Desire Petroleum

<>Desire Petroleum plc (Desire) is a UK company listed on the Alternative Investment Market (AIM) dedicated to exploring for oil and gas in the North Falkland Basin.

Desire has recently completed a 6 well exploration programme. The Liz well encountered dry gas and gas condensate at 2 separate levels while other wells recorded shows.
Together with the Rockhopper Exploration Sea Lion oil discovery in the licence to the north, these wells have provided significant encouragement for the potential of the North Falkland Basin. The oil at Sea Lion is of particular interest as this has demonstrated that oil is trapped in potentially significant quantities in a fan sandstone on the east flank of the basin. It is believed that over 50% of this east flank play fairway is on Desire operated acreage.

Desire has now completed new 3D seismic acquisition which provides coverage over the east flank play, Ann, Pam and Helen prospects. The results from fast-track processing of priority areas are provided in the 2011 CPR. A farm-out to Rockhopper has been announced. The revised equities are shown on the licence map (subject to regulatory approval and completion of the farm-in well). Desire Petroleum

Rockhopper Exploration

British Geological Survey

Argos Resources



Latest Press Realeses from Desire

http://www.proactiveinvestors.co.uk/companies/news/27035/desire-petroleum-to-review-funding-options-for-future-drilling-in-the-falklands-27035.html

Desire Petroleum to review funding options for future drilling in the Falklands
Desire Petroleum (LON:DES) will review all its financing options so that it can re-join the Falklands drilling campaign later this year, it announced.

The AIM-listed explorer has now drilled five of the six wells it initially planned without success. However in this mornings full year results statement, the firm said it continues to be confident that oil discoveries will be made on its acreage.

It is currently drilling Ninky, its final contracted well of its current programme. After that it will have US$37 million left which wont be enough to drill any more wells.

It plans to review its financing options once it has digested the 3D seismic results and the Ninky well results are in.

Meanwhile, the company said that its remaining cash is sufficient to cover its share of demobilisation costs and the completion of its 3D seismic work acquisition (including processing and interpretation), as well as its general working capital needs.

"It is our belief that the East Flank Play Fairway has a great deal of potential, and it is with this in mind that we are currently drilling the Ninky exploration well," said chairman Stephen Phipps.

He added: "We have drilled five wells on prospects and have commissioned 3D seismic over previously uncovered acreage. The geological information gathered from these wells combined with the new seismic data is expected to have a significant impact on the prospect portfolio.

The Ocean Guardian rig will remain in the South Atlantic after the Ninky well has been completed, to drill a further three wells for Rockhopper Exploration (LON:RKH) who recently followed up the Sea Lion discovery with a successful appraisal well.

Desire reported a loss of US$3.49 million in the twelve months ended 31 December 2010.

interestingly, DES hasn't moved at all today

More funding means sp will drop.

Notice is hereby given that the Annual General Meeting of Desire Petroleum Plc will be held at the offices of Buchanan
Communications Limited, 3rd Floor, 107 Cheapside, London EC2V 6DA, on Tuesday 31st May 2011 at 10:00am,


You better short it hlyeo, let me know if you do

So far the 5 wells drilled had come to nought and previous misleading info by DES has certainly put a nail in its own coffin. Shareholders will certainly remember that.

Shareholders and / or potential investors will soon forget the past if Ninky comes up trumps.

I have never believed for one moment Sea Lion is the only resevoir in the NFB and if they (DES/RKH etc) keep drilling they will find more oil, it's just a matter of time, luck and good pre-drill analysis. Someone posted a while ago, can't remember if was on this thread, that the North Sea drilling campaign kicked off with a raft of dusters and look what eventually happened there!

What is clear is that if Ninky fails, DES SP is going to drop at least 50%, probably more, due to the inevitable future funding dilution. From a pure punt perspective the downside is reasonably limited, whilst the upside is considerable. Depends on your risk appetite whether to gamble or not, but 25% COS is not bad odds.

if you're taking a punt, then definitely only stake as much as you can afford to lose, assuming it dumps 75% on yet another duster ...... that said, i agree with peter that it is almost inconceivable that sealion is the only live patch, but why should ninky be another?

Indeed Ricardo why should it, but by the same token why should it not?

I imagine DES have chosen this drill very, very carefully, if it fails they know they are going back to the market for more funds and huge dilution for existing shareholders (including themselves). Whilst none of that improves the COS, this is their best bet.

I agree with your punt sentiment, anyone buying now must size their position on the basis of how much they could lose and 75% isn't a bad estimate, tho I think after the intital rush for the door, 60%-65% is perhaps more likely.

DES didn't intentional pick duds previously either, he said with unusual sourness

Not in......so risky and got my fingers burnt when they said they had found a good oil discovery only it to be a complete dud......a 100% gamble to be in this because 10p is the next stop if it's a duster !.

My fingers are still bandaged from the majority of the FKI scene. RKH has moved the scene a little away from speculative now, though there is still a high element of risk. If the FKI's are going to be in the megga bucks bracket then I think it is essential that DES find something that they recognise as oil rather than water! But wtfdik?!

Well, for all I know, DES can't differentiate oil from water.

you Unbeliever you ..... it's the realisation of the reverse miracle

Stand by for oil rumours next week,order book looking good so far to day on level 2 at 10% so we might the SP pushing towards the 40p mark in the next few days.

Good to see the price starting to motor,either mu level 2 is playing up or its just gone in to market.......some things off

too many need to cash in to allow it to stick up.

Volume is there and greed is a funny thing it will shoot back up.

hope so.

Maybe there is truth in the old adage of buying unloved stocks (or something along those lines). Interesting day, no doubt helped by shorters scrambling for the exit. Rumours prevail once again, wonder if this time they are right?

They usually say in the oil industry that the odds of hitting oil is 4 to 1 or 5 to 1 well pardon the pun lets hope we are lucky, already holding quiet a few and bought another 30,000 today.

So far its a good sign that oil is in the top sand,there is a buzz going round the Falklands at the moment hence i topped up.