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

LOL!!!!!!! Telling Rf not to worry!!!! ;o)

Time to close out and go long then!

:o)

there is likely to come a time when a bear squeeze sets in, but first there will be the BIG drop unless "Foinavon" comes in beforehand

Pardon my ignorance...foinavon ?....

you're too young .... 100/1 winner of Grand National ...... check out the story on line

Cheers....not so hot on the horses.....are you short ? of DES.....it does not look good for a success here...

baler post 5361 lol - i didnt doubt him though

cynic post 5363 i've been out today - thanks just seen this post - tomorrow is imo a key day for the sp - news just digested today - will watch with interest - glad i only have a modest holding now

short looking good here - i will probably kick myself if i do not! and there is no need to offer to kick me free of charge!! lol

Took the plunge and sold out at modest loss, have always had doubts about loads of oil here. Still think it might be a one hit wonder in the F.I. Do regret not taking 5+ on rkh.....must get more aggressive in selling some or all!! also sold 3/4 of holding in matd for now.

RF - i don't follow horses at all, but Foinavon was a classic - yes, i'm short DES

I'll chuck in my pennyworth, not that it's worth very much, like everyone else I'm making assumptions without actually knowing what's going on.

I would have thought if the drill had encountered hydrocarbons in any quantity they would have said so, they haven't, so I doubt this is a commercial well.

I doubt they would be running a log unless they think they have found something, something that will further inform the geology of the basin.

So I suppose the RNS will perhaps annouce something along those lines, quite what effect it will have on the SP I'm not entirely sure, but maybe not as dramatic as the shorters hope. I think the DES bashers are forgetting the oil is there (RKH) and it will take time to map the basin, to find all the oil and if DES can keep going, sooner or later they will hit.

After all your muppet shorts Hyleo, I'm surprised you have any money left, what's this one running at 1pp? PMSL

baler - well done selling rkh @>5 - i have found in general best to bank profit than leave it too long and watch the profit disappear like a mist!! matd - i had a real narrow escape there! was gonna buy friday - what a relief! keeping a close eye on that one

there are several reasons why i think the sp didnt drop further and may even shock everyone and go a little north tomorrow even if first thing only - this was mentioned by someone who is supposed to be in the industry today - maybe worth a thought?:

'And having returned yesterday from the Islands, where the lips are firmly sealed re news, IMO this is going to be huge

Some of the key points below from a drilling engineer's perspective.

40 degrees hole inclination formation around the shoe been exposed for a few weeks now = degrading hole

logging is proving to be challenging. logging operations are a lot more sensitive to hole conditions



Think about it if you were fishing and your hook got stuck on bottom and you tried to get yourself free (your limited by the strength of the wire) if you had something more solid like a metal pole you'd have a lot more scope to pull more and get yourself free) same applies with wireline and drillpipe; so you need to prepare hole and clean it to reduce chance of getting stuck with wireline - overpulls are the indications whilst wireline logging of poor hole conditions.

If this is the case the fact they are going to the effort to prepare the hole to allow for additional wireline logging sounds promising - if there was nothing of interest would expect it to be a cement stinger running in hole as opposed to a wiper trip assembly- strongly suggests they have something.

My analysis - The 40 degree inclination is good, It means the sidetrack went into the pay zones steeper rather than horizontal. This will make potential pay zones deeper and bigger.

They are going to a hell of a lot of effort to get this done, they have something very worthwhile here folks as I have always said, It's sometimes whats not in an RNS. This will kick start the Eastern Fairway and Desire are fighting hard to do this and I have every confidence they will succeed.

OH (still staying all in and wishing I had more to put in)'

Desire Petroleum plc

Drilling Update

Desire Petroleum plc (AIM:DES), the oil and gas company wholly focussed on the North Falkland Basin, wishes to provide a further update on the 14/15-1Z sidetrack well on the Rachel prospect.

Clean out of the sidetrack has not proved possible due to mechanical failure of the wellbore and it will therefore not be possible to obtain any wireline logging data from this well. However, the data acquired during drilling operations (from logging while drilling tools and geological data from cuttings) indicates that around 25 metres of sand with oil shows was encountered. However, in the absence of wireline logging data it is not possible to fully assess the significance of these results and, in particular, reservoir properties and the hydrocarbon saturations associated with these sands cannot be confirmed.

The current well will be plugged and abandoned prior to moving the drilling rig to a new location on the Rachel prospect.

The data collected from both the Rachel main bore and sidetrack will allow the selection of an optimum location to drill a vertical well to further evaluate the potential of the Rachel prospect and undertake a comprehensive logging programme. Undertaking the logging programme in a vertical well should avoid the geomechanical problems encountered in the sidetrack which were shown to be a consequence of drilling a deviated wellbore in an area where very little regional stress data is currently available.

This proposed move to another location on the Rachel prospect is subject to obtaining all necessary regulatory and partner approvals in a short time frame. In the event these approvals are not rapidly forthcoming, the rig will instead move to drill the Dawn/Jacinta prospect and return to Rachel later in the drilling programme.

Commenting on the well, Stephen Phipps, Chairman of Desire, said "It is disappointing that we have been unable to collect all the data that would have enabled us to fully evaluate the Rachel sidetrack well. However the data that we have been able to gather has given us sufficient encouragement to drill another well on the Rachel prospect. Following the Sea Lion oil discovery by Rockhopper Exploration, this is the second well to indicate the presence of hydrocarbons in what is now termed the east flank play fairway and gives us encouragement that further oil fields will be discovered in this area

cynic - just wanted to say congrats on your short - kerrrrchinnnggg - des goes in my bottom drawer! top up on the lows!! not all bad but not that good either the rns imo lets hope the approvals for the 2nd vertical are quick!!

At least they have found some oil.

They will take Rachel-1 logging results, sidetrack drilling results, 3D, Geo-Phys and come up with a Rachel-2 well location that should yield a lot more oil.

So their CoS will now rise into the next Rachel well, they are not chasing water or dry sandstone, there is or was oil there.

Now it might have all migrated up north and its all in RKH licenses...... thats the downside for DES (and upside for RKH).

However, Rachel-2 will now be very interesting and could yield something commercial, you never know.

golfing until this afternoon, so shall put a limit on my shorts and perhaps a buy order at around 40

To me they are clutching at straws....oil shows....but not able to test....I bet the rig will move and they won't come back for ages....perhaps after Jacinta.....they can't have the rig just hanging around.....risky drilling another well....perhaps good for RKH but not good for DES....

I was expecting it to be marked down heavily at the open. Seems to be holding up well considering.

Been stopped out....with small profit...