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

I also reckon that some people have sold because of the 30 day rule in cgt hoping to come back in just before drilling results, of course those trading in a sipp will not be affected, nor our overseas friends....but I think that the sp could hit 150p a week or so before.....this drilling will carry on for the next 2 years at least...what fun in store !.....expect a rebound tomorrow ...

http://www.telegraph.co.uk/news/worldnews/southamerica/falklandislands/7293036/Oil-drilling-begins-off-Falkland-Islands.html

Oil drilling begins off Falkland Islands
Oil exploration has begun off the Falklands after a British rig arrived amid protests from Argentina.

Possibly a rebound tomorrow, but then 30 days of.......nothing, so would expect the sp to drift in the meantime.

Harry i think it maybe a lot less than 30 days,Liz sits in 500 meters am not sure what the depth of Beth is but she sits under Liz so with Desire saying they hope to drill to estimated target depth of circa 3,500 metres so Deire are going to drill 2 plays with one drill.

Now if an correct the last shell well was i think to a depth of 3,000 meters and was drilled in 16 days.

Oily how many days? whats your take on Liz?

Anyone else have any thoughts on how SP will move over next 30 days? Also what are the chances of good news in 30 days and whats likely price range if good news comes?

zz this was released on the 12th Jan

Desire Petroleum (DES, BUY, 111p), Rockhopper Exploration (RKH, HOLD, 78p) - Investor/Analyst presentation

Desire and Rockhopper gave a joint investor/analyst presentation yesterday. Both presentations reiterated the details presented in the previously published Competent Persons Reports (CPRs) although the companies confirmed they will cooperate during the drilling programme by sharing data to maximise the chance of success in the current programme.

Drilling plans remain fluid, with the results of the first wells expected to heavily influence the forward drilling programme (e.g. if Liz is successful Desire's next well is likely to target a follow on prospect in the same play). The first two wells are expected to be on Liz and Sea Lion. This will be followed by a well on Toroa on Falkland Oil and Gas's* (FOGL) acreage with a rig agreement currently being finalised between Desire and BHP

Following the recent placings and Desire's open offer both companies are well financed going into the drilling programme and will have flexibility to drill additional wells potentially using some of the contingent well slots on the Ocean Guardian, although this may change if the initial wells are successful and extensive testing programmes are completed.

Desire confirmed that the rig is making good progress down to the Falklands and is expected to begin drilling in February which we expect to act as a positive catalyst for both stocks.

In terms of upside valuation for the initial wells, a commercial success at Liz based on pre-drill resource estimates of 280mmb would be worth unrisked 635p/sh to Desire and 86p/sh to Rockhopper. Sea Lion based on a pre-drill of 170mmb would be worth 608p/sh to Rockhopper while Toroa based on pre-drill estimates of 1400mmb would be worth c3400p/sh to FOGL*

Richard Rose
Oriel Securities

+44 20 7710 7637 +44 20 7710 7637 Direct
Connected research

Thanks Markymar I appreciate that...

So do you think the SP will hover in the range 110-130p until the news is released?

very evenly matched to be fair -one biggish sale of 240,000 dec. ater close of business,,,,,,,,

zz am sure the price will rise a lot more than that in the coming weeks as Liz and Beth valuation if oil in commmercial succes then you have a valuation of 10 to 12 a share acording to Oriel Securities

A discovery of commercial quantities of oil may cause the share price of Desire to surge as much as 90 percent, Nick Copeman, 39, an analyst with London-based Oriel Securities, said in a Feb. 9 telephone interview.

If the first well gets a commercial flow rate, shares will respond quite positively but technically they have to drill another two wells or so to be able to understand truly what they have there, Copeman said. Most likely theyll get good oil shows in the first well.

'TheFrenchConnection - 22 Feb 2010 21:44 - 3728 of 3730
very evenly matched to be fair -one biggish sale of 240,000 dec. ater close of business,,,,,,,,'

TFC wtf are you talking about? The 240,000 trade was a crossing trade during the auction. A "UT" trade is actually a summary of all auction transaction (whether sell or buy), and hence should not be seen as a buy or a sell; it is just the amount that has changed hands.

As an ex City trader, I'm surprised you don't know that.

my apologies et al / my intention was certainly not meant to mislead ,,,,Obviously i know what a UT trade constitutes .,,,,,,,,,,, l am not a current holder in Des but was rather intrigued by the continual flashing of its ticker on level 11 trading during the last few minutes of the days business - l admit i failed to observe the nature of any of the trade(s) and later when i wrote the post l presumed the transaction was a sell considering its price of 112,5 ,,,had i seen the bid/offer of 117,25 ../,,111p ...a protected trade would have come straight into my mind ........As i say l had no intention to mislead. l can but apologise !

uncrossing trade just to 'balance the books' end of day - gla

Just heard on the BBC News during a storyline on the rig starting to drill, the comment, 'It won't be long before the first barrels of oil change the Falklands forever.

Well if the BBC are sure there is oil there!

another doubter......greek careful

and you will also recollect that about 10 days ago BBC also reported that the rig would not arrive for a good while yet!

They were reporting from the Falklands they have a man down there on the ground.

and today's continued profit-taking shows just how hard it can be to get a reasonable sp value assessed

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though whatever was put on the market has clearly been quickly mopped up - bid went as low as 107 and is back to 112 as i write

Those that have taken their profit (the traders, because for everybody else, matching rules apply, or in a sipp)) will want to get back in...there wil be a rebound ....the possibility of a massive strike will prove to be too great.

So glad am not a day trader as this is very volatile stock jumping all over the place,Colin Phipps always said if this was on land they would be pumping this out now.

Back up now Cynic

not exactly up, but yes i thoroughly agree with you