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Desire Petroleum are drilling in Falklands (DES)     

markymar - 03 Dec 2003 11:36

free hit countersDesire 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

markymar - 10 May 2012 08:32 - 6455 of 6492

At least they have oil and gas.

("Desire" or the "Company")

Economic Assessment of Contingent Resources

Desire Petroleum plc (AIM:DES), the exploration company wholly focused on the North Falkland Basin, is pleased to provide an update on the economic assessment of the contingent resources established by the 14/15-4a discovery. These are based on a high-level development concept and economic review by Senergy (GB) Limited.

Desire share of Sea Lion (unrisked) at $85/bbl (NPV 10%) is estimated at $173 million

· Assuming Desire share of Sea Lion unit is 4%

· Assuming 320 MMstb full-field case

Desire share of adjacent discoveries (unrisked) at 85$/bbl (NPV 10%) is estimated at $727 million

· Assuming Casper and Casper South (Shona) development

· Based on net Desire 2C resources from Senergy April 2012 CPR update

Desire is currently evaluating the new 3D seismic data and when this is complete later in the year, a full CPR update will be published based on all prospects and discoveries. Initial indications for new prospectivity in the East Flank play fairway are encouraging, with confirmation of the potential of the Elaine fan and a major new fan system identified (Isobel). This confirms our view that there remains significant exploration potential in the basin. A technical and financial update presentation is available on the website on www.desireplc.co.uk.

markymar - 10 May 2012 10:44 - 6456 of 6492

10 May Desire Petroleum PLC DES Fox-Davies Buy old target price 24.25 to 50p new target price.

Proselenes - 10 May 2012 10:53 - 6457 of 6492

Share price reacting to the news today in a way that I thought it would - not impressed.

markymar - 29 May 2012 08:32 - 6458 of 6492

Desires AGM today

Hope we get a bit more news on progress.

Would like to hear more information on Elaine as marlonmonkey thinks she could be bigger than Sea Lion.

markymar - 29 May 2012 17:39 - 6459 of 6492

AGM notes from iii

Sat/stood beside a chap asking a lot of questions - my notes:

ID: knew Sealion was within a lake prior to any drilling. Des drilled Liz as it was best-looking feeder into this, known with the then seismic. Rachel was next best feeder - seal failed. Absolutely loads of reservior - seal is the risk.

Following all seismic, Sealion feeder has very defined sand entry flow, as does Casper. Rachel did not, and Liz was possibility volcanic. Theory: defined entry flow gives best chances of good seal.

Isobel and Elaine have best defined entry flows. Also, have similar characteristics to Sealion fans, same size/ similar depths etc. Isobel is new prospect, but fairly thick. This is exploration priority.

Ken Black: possibility Isobel and Elaine are in communication, but integration/ interrogation of new info is hopefully for Oct/ Nov, but formal statement is within 2012.

ID: Des have to relinquish large chuncks of licence in May 2013. ID suggested majority of this in southern basin, but relaxed as low prospectivity. Arcadia has also recently issued relinquishment notice over southern interests, will terminate in August. However, still very active in north - paying share of siesmics/ costs etc. Still obliged to drill Ann/ Orca, but no timescales.

ID: There has been no communication between RKH/ Des concerning RKH farm in partner. Also thought RKH published timescales (Easterish) optimistic. However, RKH partner will have to speak to Des for 4% Sealion - nothing yet, but will have to happen before RKH/ partner deal.

ID: They will really want to get rid of Des, and this is normally at a premium.

ID: excellent upside exploration potential - probably 1 billion recoverable within North basin, almost at 0.5bn now.

Need funds to explore. ID/SP: Des are exploration company.

Number of options:

1. Sell Sealion and use proceeds. (SP: probably preferred option, but dependent upon RKH discussions/ price). ID: No precendent on price per barrel - this is not North Sea. RKH deal will set this precedent. Would not be drawn on figure. SP: unlikely to sell satelites at this point (Casper/ Beverley) until appraised. This is absolute drilling priority. Caveat: unless offer is too good to refuse.

2. Farm out for individual prospects. ID: more interest now than there has ever been. Would not be drawn any further. SP mentioned confidentialities.

New exploration dependent upon rig contract - will aim to piggy-back on production rig for RKH. SP: RKH plan circa 30 production wells - thought this was over-egged. Did not expect rig until 2014.

3. Sell 4% Sealion to RKH for RKH shares in advance of RKH farm out. ID: this is an option, but would relinquish "pain-in-the-0rse" factor. Would have to be a good deal and Board also alert to option. Unlikely.

4. Seek placing. ID: markets in terrible state, and Board very aware of dilution for PI. Very unlikely.

5. Sell wholesale. ID: need to look out for shareholder, so at £10 per share: yes. Very unlikely option, as too much exploration potential.

ID: Will look at all options, but unlikely to do anything until understand exactly what Des have.

SP: Only received data three weeks ago. Will interpret/integrate/interrogate internally. Senergy will complete CPR. This usually takes 2/3 weeks. Definately by Christmas, hopefully a little before then Octo/ Nov(?).

SP: Absolutely no dialogue with Argentina. Only annual warning letter received, followed immediately by HMG comfort letter, for past 15 years. Des completely ignore both. Couldn't be more relaxed.

If exploration so good, is there possibility of hostile takeover? ID: Board alert to this. Would not be drawn, but said Des in better place now knowing potential of Isobel/ Elaine. ID: We need to know what we have to defend. Pressed as to whether this meant farm out options were available as defense - would not be drawn.

In summary: never met any of Board before, but have real confidence within SP and ID. My money is where my mouth is and will be adding more in coming months.

I do not expect any news, other than RKH farm out, in near term; I get the impression that RKH deal will be later summer; Des will come very good, but not within near term.

required field - 29 May 2012 20:02 - 6460 of 6492

Marky, this is all very well....oil there is.....good investment RKH yes...DES.....not sure ...not so good...now....but the potential big rises are with the South (and East) Falklands......RKH is awaiting funding......but the big rises in sp might come from the FOGL's and BOR's....(need a bit of luck with the latter)....not one to put too much into.....to me Rockhopper are now a safe bet....better than money stuck in a building society or a bank...which is a complete waste of time and funds.....anyway.....RKH looks good and FOGL is the gamble with massive upside...and who knows Borders might just come right...you could have 60 % in RKH....30% in FOGL....and a punt of 10% in BOR.......great stuff....come on the Drillers and Riggers give us a result !...

cynic - 29 May 2012 20:28 - 6461 of 6492

but a damnfool idea to have 23% of your entire portfolio in this region

Proselenes - 25 Jun 2012 14:02 - 6462 of 6492


http://www.lse.co.uk/FinanceNews.asp?ArticleCode=hduxxrhbec1da3o&ArticleHeadline=BRIEFRESEARCH_ALERTJefferies_downgrades_Cove_Energy_Tower_Resources


* Jefferies raises Desire Petroleum price target to 18p from 14p;

rating underperform


.

HARRYCAT - 10 Jul 2012 10:59 - 6463 of 6492

What the hell happened to the DES sp? Or is that something to do with today's outage?

skinny - 10 Jul 2012 11:02 - 6464 of 6492

Nothing.

21.75 - 22.50 +1p

HARRYCAT - 10 Jul 2012 11:05 - 6465 of 6492

My stockwatch is showing 11.5p (Also Randgold down 100%, so I suspect I need to reboot!)

skinny - 10 Jul 2012 11:08 - 6466 of 6492

Harry - I'm getting the prices here.

HARRYCAT - 10 Jul 2012 11:20 - 6467 of 6492

Cheers for that skinny. I use Digitallook as a backup site and looks like MAM are going to have to sort out a few price glitches today, so will have to multi-task for a while!

markymar - 13 Jul 2012 16:31 - 6468 of 6492

These are notes taken fron Desire AGM in June,i have now re topped up on Desire today as i hope they are bought out or the oil which they hold in Sea Lion will be bought out.

With a market cap of only 73 mill the offer made by a partner knowing what was made to RKH we should see this SP double depending on deal.

"DES are not party to any discussions with third parties - and neither do they expect to be at this stage. Stephen Phipps did agree that Anadarko, with their DoD connections would make an excellent partner but added that they had no inside track, apart from reading about the famous visits by the company jet to the FI). The assumption is that RKH's chosen partner will conclude negotiations with RKH and only then will they open discussions with DES and other interested parties in the 'Unit'. "

Chart.aspx?Provider=EODIntra&Code=DES&Si

coeliac1 - 13 Jul 2012 17:08 - 6469 of 6492

DES are price takers and are not in a decent negotiating position. I wouldn't expect miracles (eg oil to water) even though they have form in that regard.

cynic - 13 Jul 2012 17:23 - 6470 of 6492

based on the enthusiasm that greeted RKH's deal yesterday, i think mark's b/o estimate is wildly over-optimistic

markymar - 13 Jul 2012 22:24 - 6471 of 6492

Guess we will have to wait and see,my average price now is 21p,also my biggest holding, then RKH then FOGL.

Not holding BOR

cynic - 16 Aug 2012 07:50 - 6472 of 6492

there's a CPR out today which is clearly trying to make DES sound much more alluring than it is ...... hahaha!

HARRYCAT - 16 Aug 2012 08:09 - 6473 of 6492

StockMarketWire.com
North Falkland Basin-focused Desire Petroleum is delighted that a recently-completed competent person's report indicates its prospect inventory continues to strengthen.

The report on the Elaine and Isobel prospects - prepared by Senergy (GB) - covers the interpretation results from the 2010-2011 merged 3D seismic data.

A CPR covering the full prospect inventory from the merged 3D seismic data will be available in the fourth quarter.

The Elaine and Isobel prospects are located wholly within the PL004a licence in which Desire has a 92.5% interest.

Desire says the highlights include:

* Best case un-risked prospective recoverable oil resources net to Desire are estimated to be 312 MMstb

* The Elaine and Isobel fans are developed in the southeast of the basin within the basal part of the F sequence and are similar to the Sea Lion fans further north

* The seismic expression indicates a thick, sand-prone interval inter-bedded with mature oil source rock and combined structural/stratigraphic traps mapped on the downthrown side of the basin-bounding fault system

* The volumetric assessment of the total Elaine and Isobel prospect area indicates gross prospective resources which are comparable with the size of the Sea Lion field and with a geological chance of success of 30%

Desire chairman Stephen Phipps said: " We are delighted that our prospect inventory continues to strengthen and that some of the best remaining potential in the North Falkland Basin is within licence PL004 in which Desire has a strong equity position.

"The Elaine and Isobel prospects are very attractive drilling targets, particularly as the basin moves into a new phase of activity.

"The planned development of the Sea Lion discovery demonstrates the commerciality of major discoveries in the basin and we are optimistic that the Elaine and Isobel prospects can deliver significant value for our investors.

"As our prospect inventory matures, we will be seeking industry partners to participate in further exploration of our licences and the quality of prospects like Elaine and Isobel provides a strong platform for success."

hlyeo98 - 16 Aug 2012 08:18 - 6474 of 6492

That's what Desire always say over the past 10 years, but no significant oil has been found. RKH has a much better track record.
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