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

FOGL shares are down but DES up........A correction is on its way

http://oilbarrel.com/news/desire-petroleum-jumps-as-it-nets-61-million-paper-backed-bid-from-falklands-oil-gas-as-enlarged-group-tees-up-five-well-campaign-for-2014-2015


October 03, 2013

Desire Petroleum Jumps As It Nets £61 Million Paper-Backed Bid From Falklands Oil & Gas As Enlarged Group Tees Up Five-Well Campaign For 2014-2015



News of a four-way deal between operators in the Falkland Islands will be seen as long overdue by some investors. For a province that has yielded only one commercial discovery, there's a surprising number of small caps struggling to make headway with their frontier exploration portfolios where the remote location in the Southern Atlantic makes for hefty drilling costs.


Thursday saw AIM-quoted Falklands Oil & Gas (FOGL) announced an all-paper acquisition of fellow AIM company Desire Petroleum, which had faced a significant funding gap to advance its acreage in the North Falkland Basin. The deal values Desire at £61 million, which represents a 45 per cent premium to Wednesday's share price. FOGL CEO Tim Bushell said the combination was a “compelling opportunity”. For under-pressure Desire, which has faltered after a run of poor drilling results and the poorly managed release of the results from the Rachel North well in 2010, which proved to be water-bearing, the tie-up with cash-rich FOGL can only be good news.

FOGL has also agreed farm-out terms for the Desire-operated licences PL004a and PL004c to Premier Oil and Rockhopper, who are jointly developing the only commercial oilfield in these remote waters. Premier and Rockhopper will carry the newly merged company through two exploration wells, one on each licence, in return for a 52.5 per cent interest in PL004a and 35 per cent of PL004c (under a previous agreement, the two will split the equity on a 40/60 basis in favour of Premier). Those wells will test the Isobel/Elaine prospect in PL004a, which is reckoned to host Pmean gross oil-in-place of over one billion barrels, and the Jayne East prospect, with 289 million barrels in PL004c. FOGL will be left with 40 per cent of each licence and will operate until both wells have been drilled.

Rockhopper chief executive Sam Moody said the new acreage, adjacent to Sea Lion, was “highly prospective” and said this week's deal-making would increase the likelihood of rig-sharing for a drilling campaign in late 2014 or early 2015. Shares in Rockhopper ticked up four per cent on the news.

From a FOGL point of view, the deal provides diversification from its high risk wildcatting in the frontier waters to the south and east of the island, giving it a seat in the North Falkland Basin, where drilling conditions are more benign, drilling costs are lower and there's a proven oilfield to reduce risks. It also changes the perception that the FOGL portfolio is a gaseous play (something FOGL disputes) as the North Falkland Basin is proven to be oil-charged. And it also adds some critical mass to the portfolio: through the farm-out the company now has a package of five wells, which again helps spread risk and should help when negotiating with rig companies.

Those wells will comprise two in the South Falkland Basin, partnered with Noble Energy and Edison International, and three wells in the North Falkland Basin, Isobel/Elaine, Jayne East and Zebedee. This programme will be fully funded from existing cash – and at the end of June FOGL's and Desire's combined cash balances tallied US$170 million - and farm-out carries.

Yet some investors were critical, feeling the terms were too dilutive. FOGL's share price may be under pressure after the dusters of last year but it had wisely conserved cash, ending June with US$161 million. In the current market, cash is king: is buying cash-strapped Desire and a portfolio that has yet to impress the wisest use of this resource? The market didn't seem to think so and the shares slid six per cent in early trading to 26.75 pence.

RNS Falkland Islands government approve takeover by FOGL........ goodbye DES.

Time to say good bye.......thank you all for input over the years...good luck all holding in Falklands.

Marky


NOTICE

06/12/2013 7:00am

NOTICE OF CANCELLATION OF ADMISSION TO TRADING ON AIM

DESIRE PETROLEUM PLC



At the request of the company trading on AIM for the under-mentioned securities has been cancelled from 06/12/2013 7:00am.

ORDINARY SHARES OF 1P EACH, FULLY PAID

(0268949)(GB0002689494)

If you have any queries or require further information, please contact the company's nominated adviser on 020 7418 8900.

did you still hold des marky or all on rockhopper?

I sold out way back, hope to be back in FOGL at some point ready for the drill in late 2014.