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

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

http://www.guardian.co.uk/business/marketforceslive/2011/oct/12/rockhopper-desire-falklands


Rockhopper raises presence in Falklands with Desire deal, and calls for 50m cash


A day after raising resource estimates for its Sea Lion field in the Falklands, Rockhopper Exploration has announced a couple of deals to help fund its developments in the area.

It has agreed to raise its stake in a nearby licence held by Desire Petroleum from 7.5% to 60%, in return for paying the cost of an exploration well in the area. It believes the licence could prove to be an extension of the Sea Lion field. Rockhopper chief executive Sam Moody said:

Our technical work to date has shown that the Sea Lion field may extend onto the Desire acreage. We are therefore very pleased to have agreed a farm-in deal with Desire which will allow us to appraise what we believe is the full extent of Sea Lion and to become the operator of that part of the licence.
Desire chairman Stephen Phipps said:

This agreement 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.

And given that financing is key to developing such projects, Rockhopper is placing 25.8m new shares with institutions to raise around 50m to help fund the drilling. It also said it is in talks with potential industry partners and debt providers about funding what could be a $2bn project to produce oil from the area.

Of course, the further along the track to production the companies in the Falklands get, the more they are likely to stoke tensions with the Argentinian government, which claims sovereignty in the area.

Still, for the moment Rockhopper shares have climbed another 6.75p to 198p while Desire is up 3.75p to 21p. Richard Rose at Oriel Securities said:

Overall this looks a sensible deal for Rockhopper, taking advantage of Desire's distressed situation to increase its exposure to both further upside in Sea Lion and exploration prospectivity identified with the recent 3D surveys over both Desire's and Rockhopper's acreage. At the same time, the placing gives flexibility to both drill a further well on Sea Lion and ensure they have enough working capital to progress development planning on Sea Lion, without being overly dilutive.
Phil Corbett at RBS said:

The farm-in and proposed placing is a positive for the investment case we believe given the funding issues that have dogged the share price in recent weeks. Rockhopper remains our preferred E&A [exploration and appraisal] pick in our coverage universe and reiterate our buy recommendation.
As for Desire, Westhouse Securities said:

The read-across for Desire Petroleum is positive in the near term, as its funding for the first well on Area 1 is carried by Rockhopper under the terms of the farm-in and gets the company out of an immediate funding issue. However, it will still require funds in the longer term, to cover its 75% share of a well on Area 2, and unless it experiences some success with the Area 1 well, it may find additional investor support difficult to achieve. We have a hold on Desire Petroleum, with a target price of 40p.

Wow giving them a market cap of about 110 million for no oil found at 40p unless you want water.

StockMarketWire.com
A new competent person's report gas confirmed Desire Petroleum's belief in the prospectivity of the fast-track areas of PL003 and PL004 in the North Falkland Basin.

The report - which looks at only 40% of the company's northern licences - identified 11 prospects in area covered by the fast-tracked 3D seismic data.

The report gives these prospects a 'best' estimate of gross recoverable resources totaling 638 million barrels of oil, of which 322 million barrels are net to Desire.

The CPR was prepared by Senergy (GB), an independent consultancy specialising in reservoir engineering, geology, geophysics and petroleum economics.

Desire chairman Stephen Phipps said: "The CPR summary published today confirms our belief in the prospectivity of the fast track areas of PL003 and PL004.

"The farm-out agreement with Rockhopper announced on 12 October 2011 will ensure that at least one well is drilled on this acreage in the current drilling campaign."

can see no logic in holding this share at all ...... if you want FI exposure, then surely RKH is far and away the best bet?

I always love to see this in such reports - "A new competent person's report" - what happened to the "old competent person" ?


Especially in this case when followed by "confirmed Desire Petroleum's belief in the prospectivity" - a banker then!

with you on that cynic - des have been in the last chance saloon for so long they are kinda out staying the welcome - they should take their unique skills of turning oil to water to some of the countries in the middle east where water will have more value - then des worth an investment lol

competent person reports usually get produced when a company is desperate and in the shat- cant be bothered to read the release is said competent person an employee / director of des by any chance? LOL

the previous competent person is now passing the hat round!!

I'm still holding - probably out of a perverse nature of not wanting to take a hit. However my holding is very small (and affordable if it comes to that) but there is the 'flip of a coin' chance that it will come good for long enough to mitigate the loss - I hope!

avsec..high chance that RKH will dig DES some way out of their hole.

I really hope your right

Digging and holes reminds me of mines........ ..and clogs

RIG UPDATE
Desire Petroleum plc (AIM:DES), the exploration company focusing on the North Falkland Basin, announces that the rig contract with Diamond Offshore Drilling (UK) Ltd for use of the drilling unit the Ocean Guardian for operations in the North Falkland Basin has been amended.

Under the amended contract an undefined number of optional wells may be drilled up to 1st March 2012, at which time the Ocean Guardian will leave the Falklands on a long term contract with another operator. Desire must declare the exercise of such options on or before the spud of the previous well in the campaign.

The rig is currently drilling well 14/10-9 for Rockhopper Exploration PLC who have announced they will follow this with a well on the Desire farmin area PL004b.

Desire is investigating all the possibilities to utilise the Ocean Guardian until the end of the contract.

and no doubt the cheaper the better ..... i can't read this as a promising rns but merely a way of minimising losses against a commitment

Sadly I think you are spot on. IMHO DES are in damage/cost limitation.

This is the first I've heard that OG will be leaving the FIs. Is there a replacement planned?

.

hello

Hi Rob,u holding at mo or just looking,this is what is making the share price rise that big word "IF" good COS so got to be worth a punt.

http://www.desireplc.co.uk/pdfs/North_Falkland_Basin_Detailed.pdf

Its like a cat with nine lives

Have decided today to buy a few more Desire shares the more I look into it the more upside I can see of them striking oil.

Game on!!! This could change Desire fortunes Remember this is an appraisal of Sea Lion and exploration of Beverly could have a huge impact on the share price of Desire.

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, announces that the 14/15-4 well (the "Well") was spudded, by Rockhopper as operator, at 08.15hrs GMT on 28 November 2011.

The Well is situated on Licence PL004b in which Rockhopper will earn a 60% interest by drilling 14/15-4. The Well is designed to investigate reservoir presence and hydrocarbon charge towards the southernmost mapped limit of the Sea Lion field and is located approximately 12.1 km to the south west of the 14/10-2 discovery well and 6.3 km to the south of well 14/10-9. The Well is also an exploration well on the Beverley prospect.

The Company intends to drill to target depth ("TD") then subsequently sidetrack to core should significant hydrocarbon charged reservoir be encountered in either the Sea Lion Main Complex or Beverley. Initial drilling and logging operations are expected to take approximately 20 days and a further RNS will be issued prior to commencing any sidetrack.

The Company intends that 14/15-4 will be the final well it operates during the current drilling campaign. ( maybe Desire might drill another)

News should be any time....clip clop with a skip

looks like it could blow today