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

were some its properties not adjacent to RKH, then you could divide sp by 10

.

http://www.bnamericas.com/news/oilandgas/drilling-unlikely-until-2q12-desire

Drilling unlikely until 2Q12 - Desire

Published: Monday, September 12, 2011 14:25 (GMT-0400)

By James Fowler / Business News Americas

London-listed Desire Petroleum (AIM: DES) is unlikely to begin drilling on its acreage off the coast of the Falkland Islands until at least 2Q12, a spokesman for the company told BNamericas.

Desire is currently in the process of interpreting data from recently completed seismic surveys on acreage in both the north and south Falkland basins. According to the firm's 1H11 interim financial report, initial indications are encouraging for the undrilled Shona and Beverly prospects.

Once fully interpreted, Desire will seek financing to fund further drilling in the area, the spokesman added.

"That [financing] is likely to come first and is most likely to be completed during the fourth quarter of this year. It is still a case of reviewing the options that are available, though it's either going to be an equity fundraising or perhaps a farm-down."

Desire has spudded six wells across its Falkland's acreage, abandoning them all with limited oil shows.

Desire reported a profit of US$333,000 in 1H11 compared to a loss of US$6.39mn in the same period last year thanks mainly to foreign exchange gains.

looks like one-way traffic here

Shouldn't the header to this thread have a "not" in it?

coeliac1 some times you need luck and Desire have hit it as Sea Lion is huge with Desire holding a chunk of that oil.

Need to wait for CPR but what litttle i know it looks like the great escape for Desire.

LOL coeliac.

DES do have water and some gas, but no oil.

They will try their best to intimate that some of RKH oil is in their area, but its NOT PROVEN, it may just be water and they have no funds to drill it anyway.

RKH say today they are reviewing keeping the rig or not once their next 2 drills are done, that will leave DES with no money, no rig and only the hope that a little bit of Sea Lion in their area has oil in it (and not like RKH 14-10/3 which had water in it).

I would say, IMO, that DES is a rather large AVOID.

Pro you are a first class prat,if i am squelched how come you can find my thread to post on it.....thicky.

Trying to de ramp and distort facts as usual for your personal gain, Sea lion has all ready been deemed commercial by the board part of sea lion expands in to Desire acreage which means Not Water but oil.

Up to 10% of what sea lion holds could be in Desire acreage with the news we have had to day of the depth it would seem it goes a lot deeper into Desire acreage than first thought maybe enough to make it commercially viable to extract so I guess we will have to wait for CPR report.

http://www.rockhopperexploration.co.uk/pdf/cap_markets/RKH_CapMark_Section_02Technical.pdf

From drill results today that size has got a lot bigger slide 67

Really cannot understand anyone wanting to buy DES.

Market cap 70M.

Oil = None
Water = Lots
Dusters = Lots.


I mean, FOGL market cap is just 109M and yet they have billions and billions of barrels potential. Either DES is grossly overvalued, or FOGL is massively undervalued.

FOGL only have money for two drills max they havent found any oil also oil never been found in SFB.....Only partner they had pulled out it just says it all........overpriced

22 Sep Desire Petroleum PLC DES Goldman Sachs Sell 0.00 16.70 21.30 Downgrades

New target price 16.70p

Wednesday 12 October, 2011Desire Petroleum PLC
Farmout to Rockhopper Exploration
RNS Number : 0229Q
Desire Petroleum PLC
12 October 2011









For Immediate Release
12 October 2011




Desire Petroleum plc

("Desire" or the "Company")



Farmout to Rockhopper Exploration



Desire Petroleum plc (AIM:DES), the exploration company wholly focused on the North Falkland Basin, is pleased to announce that it has agreed the terms of a farm-out agreement, subject to the approval of the Falkland Islands Government, with Rockhopper Exploration PLC ("Rockhopper") over the northern section of its Tranche D (PL004) licence.



The area farmed out covers approximately 23% of Tranche D and comprises part of the area over which a 3D seismic survey was completed earlier in 2011. Processing of the seismic data over the area farmed out has been fast tracked and has recently been interpreted and evaluated.



The principal terms of the farm-out, which include the commitment by Rockhopper to drill a firm well with the Ocean Guardian rig during the current drilling campaign, are as follows:



The area farmed out has been divided into two areas (Areas 1 and 2), details of which can be found on the Desire website (www.desireplc.co.uk). Desire still retains 92.5% of the remainder of Tranche D.



AREA 1



Area 1 includes a possible extension of Rockhopper's Sea Lion oil discovery, the recently delineated Shona West prospect,the Casper West prospect and part of the Beverley prospect.



Rockhopper will pay 100% of the committed well in Area 1 to earn a 52.5% interest. With their existing 7.5% interest, this will bring their equity to 60% with Desire at 40%. Rockhopper will assume operatorship of this area.



This well will be drilled during the current campaign using the Ocean Guardian rig.



This transaction is subject to regulatory approvals including consent from the appropriate authorities to drill the well and the change of operatorship by November 11 2011. Discussions with the Falkland Islands Government and the other authorities are underway.



AREA 2



By drilling the committed farm-in well in Area 1, Rockhopper will also earn a 17.5% interest in Area 2 which, including Rockhopper's existing 7.5% interest, will bring its equity to 25% in that area, with Desire retaining 75% equity and the operatorship.



Area 2 includes the recently delineated Jayne, Shona East, Casper East and Catriona prospects and the remainder of the Beverley prospect.



Rockhopper, subject to technical approval, will support, at their 25% equity, a well drilled in Area 2 during the current Ocean Guardian drilling campaign should Desire decide to drill a further well. Drilling this well will depend on further technical work currently being undertaken by Desire and subject to Desire raising any necessary funds.



This well would also be subject to all regulatory approvals.



The farm-out agreement is conditional upon Rockhopper raising additional capital through an equity placing.



Stephen Phipps, Chairman of Desire, commented, "We are very pleased that this agreement to farmout part of Tranche D to Rockhopper will enable another well to be drilled on our acreage in this current drilling campaign, at no further cost to Desire. Under the terms Desire still retains a significant interest in the prospectivity of Tranche D. In addition, the recently evaluated fast track 3D seismic data shot earlier this year has brought some exciting new prospects into play and underpins our core belief in the prospectivity within our acreage. A CPR containing a detailed evaluation of the new data and prospects is being finalised and will be available shortly."

good news for des - not so good for rkh! imo

It gives a new chance to the company without having to pay fo the exploration, naturally short of cash, there was not many ways to do it otherwise and in another way is good for both companies.

RKH getting another 100mmbbls on their books from Sealion for the $22m cost of the drill looks good business to me...plus whatever they may find in the other 2 targets.

RKH staff seem to think it's a good deal too and are putting a fair amount of dosh into the venture!


"Each of the Directors intend to subscribe for Placing Shares in the Placing which at the Placing Price, have an aggregate value of 405,000."

"In addition, certain senior employees intend to subscribe for Placing Shares in the Placing which, at the Placing Price, have an aggregate value of 80,000."

ON THE WAY UP NOW

Got in at 20.20p earlier but I could have managed to get cheaper eventualy as the 19.75 offer lasted for some time, but now I am on the money as it looks like is moving for the opening price once again

Certainly makes sound economic sense to me. DES were running out of options (being seen as the lame duck following the cock-ups in the past) and RKH have the chance to increase their holding / influence. In Bridge terms - 'a perfect fit that could lead to a slam'.

added another 15K @ 20 95p and again "AT" took the 21p offer, size was difficult to get