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

And FOOLS will fly, or is PIGS?

Did someone told me >>>>> a profit is not a profit till bank, well playing with words or is numbers?
Before a RAMPER now a small lier or charlatan

Proselenes - 03 Dec 2010 07:26 - 5735 of 5740
I have made a 6 figure pure profit this year

or now is I have not banked

Proselenes - 03 Dec 2010 08:16 - 5738 of 5740
cynic, I did not say banked !

http://www.proactiveinvestors.co.uk/companies/news/23647/desire-petroleums-falklands-oil-discovery-could-prompt-a-97-pct-uplift-goldman-sachs--23647.html

Desire Petroleums Falklands oil discovery could prompt a 97 pct uplift Goldman Sachs

Friday, December 03, 2010 by Jamie Ashcroft

Desire Petroleum and Rockhopper Exploration struck oil on the Rachel prospect in the North Falklands basin

Desire Petroleums (LON:DES) new discovery will focus attention on the potential of the north Falkland Basin, according to Goldman Sachs.

The investment banking giant believes the oil discovery could prompt a 97 percent uplift for the stock, once it has been de-risked.

We currently value the Rachel prospect at 9p per share for Desire (which has a 92.5% stake), and 3p per share for Rockhopper (7.5% stake), Goldman analyst Christophor Jost said.

A full de-risking of this prospect would result in a 97 percent uplift to our valuation of Desire and 4 percent for Rockhopper ... but we note that it is too early for a full de-risking at this early stage.

Yesterday, Desire announced that the latest well to test the Rachel prospect, struck oil from 2,621 metres.

Desire had more than its share of dusters in the basin both before and after Rockhopper made the Sea Lion discovery nearby. Its most recent well, the first Rachel well, initially disappointed but an inconclusive side-track gave Desire and investors hope.

Initially the first Rachel well failed to find any hydrocarbons, subsequently Desire believed the well was too far away from the mature oil source rock. It therefore sidetracked the well down-dip. The sidetrack encountered oil shows however technical problems stopped any further analysis and the sidetrack was abandoned without a conclusive result.

Now this latest well tested Rachel prospect 1.7 kilometres from the sidetracks bottom hole location, and it appears the explorer's persistence has paid off.

Initial analysis from the discovery well indicates that the well encountered sands and shales with hydrocarbons with 349 metres gross interval, from which it has 57 metres of net pay in multiple zones.

The new Rachel well encountered sands and shales with hydrocarbons from 2,621 to 2,970 metres.

The thickest zone is 8 metres thick with an average porosity of 20 percent, Desire said that the other zones are thinly bedded and lower porosity.

Goldman initiated its coverage on Desire in early November, with a buy rating and a 12-month price target of 197 pence.

This price target is now under review in light of the discovery.

The discovery of oil is a positive in our view, Jost added.

The presence of 20 percent porosity reservoir is also encouraging for both this prospect and the potential for the wider basin as a whole,

We note, however, that the thickest section was 8 metres and that porosity was lower outside this section, which may mean additional work is required before the company is able to comment on commerciality or volumes.

The Falklands play has been grabbing the headlines for most of 2010 and now with two oil discoveries - Rockhopper Explorations Sea Lion was the first the North Falklands basin continues to draw in more and more investors.

Unsurprisingly the news lit the blue touch paper under AIMs North Falkland oil stocks on Thursday.

On AIM Desires shares initially rocketed over 50 percent before pulling back somewhat and it ended the day up almost 30 percent, just above 130 pence.

Rockhopper Exploration (LON:RKH) shares shot up 28 pence, or 8.5 percent to 355 pence. Meanwhile shares in Argos Resources (LON:ARG) whose license area in the basin neighbours Desire's and Rockhoppers shot up as much as 22 percent in early deals.

Some of the Citys other prominent oil and gas analysts also eulogised over the discovery and the prospects for the wider North Basin play.

This morning, Westhouse Securities analyst David Hart described the discovery as a welcome development, particular given Desires earlier problems on the Rachel prospect.

Hart also emphasised the benefits that the second north basin discovery brings.

A second discovery in the basin, following Rockhoppers Sea Lion find, is also beneficial from a development point of view, given the opportunity to share infrastructure across projects, Hart said.

This is particularly important in the case of smaller discoveries which, at this early stage, appears to be the case with Rachel.

In the wake of the discovery Hart gave Desire a revised price target of 142 pence. He gives the oil explorer a Accumulate rating. Meanwhile, the analyst rates Rockhopper as a Buy with an upgraded target price at 496 pence.

He adds: Our new target price for Desire incorporates a smaller resource figure offset by lower risk afforded by the discovery,

Having said that, we have not de-risked the prospect to the extent we have Rockhoppers Sea Lion discovery, given the still limited information available.

Yesterday, Evolution Securities highlighted that the Rachel discovery suggests that the North Falkland basin has the potential to be an important oil province.

Wireline logging is ongoing but initial indications are that the thickest section has good porosity which bodes well for any future flow test and therefore commerciality of the field, Evolution oil analyst David Farrell said.

Farrell upgraded the oil explorer in light of the news. He now rates the stock as a buy with a 180 pence target.

Similarly Northland Capital - formerly Astaire Securities - also had an upbeat view on Desire, now it has an oil discovery of its own.

This looks very positive and vindicates Desire's decision to pursue the Rachel prospect with a second well (largely a consequence of analogous data from Rockhoppers Sea Lion prospect), Northland analyst Andrew McGeary said.

Finally some reward for Desire's endeavours in the form of oil here.

Fox-Davies Capital also featured Desire in its 'Daily Monitor' yesterday and asked: "Have Desire and Rockhopper cracked the North Falkland Basin? Possibly, as Rachel confirms one of the play concepts unravelled by the Sea Lion discovery.

"It remains to be seen though whether reservoir development and quality are sufficient for Rachel to be commercial. Hence this is obviously very good news but still early days," the broker added.

yawn.....all known and boring.,.

Bought a few this afternoon

moving higher as the order book is very strong 3M v 1.3M, volume over 12M at LSE

i am loath to call people liars, so Mr P, perhaps you could tell us on what dates you managed to buy your shares in 2010 at what would appear to at or even below the bottom (closing price admittedly) ..... brilliant timing assuredly .... even those with inside knowledge could not pick so unerringly

and tell us all the great secret you clearly have (you tell us it is so) of never buying a dud, or that when a share suddenly plummets you KNOW that this just a blip, as opposed to the first sign of disaster? ...... if you really have this magical gift, how come you are still pottering around on this rather silly BB instead of living the life of riley, or perhaps working for the likes of GS, where you would assuredly be very handsomely rewarded, in sums of 7 figures, and not just a paltry 6

At the same time Mr P, please can you tell us whether you tuck your shirt into your underpants a la John Major. I have wagered 5 that you do, so please don't let me down.

what underpants........nappies

Someone once posted on a thread a table of the then Papal Powers' (now Pros) ramps, I can't recall which thread, but nearly every share was a complete and utter disaster. Which probably explains why he isn't 'living the life of riley.'

cynic, I do not need to defend myself to some BB poster. You have your opinion, well done, but your opinions have absolutely no effect on me.

I always say, you can tell the loser a mile off, they are ones who start getting personally abusive to other people.

Winners ignore the riff raff and losers - why waste time engaging sad people, there are much better things to do.

I would rather have my leisurely and very very pleasant lifestyle and an additional 6 figures profit like this year, than having 7 figures and working in boiler room style conditions with ultra high stress. You only live once and you can die anytime, so enjoy your life........for tomorrow may be your last day.

It is a true sign of good things when lots of idiots start jumping on you and being abusive. Its a sign you are a winner, as nobody cares about losers.

You will notice this year has been excellent with RKH, XEL, AST, EOG etc... and so its no surprise the angry losing muppets have started having a go..... it comes with success.......... :)

Mr P .... my question was almost rhetorical, as anyone who takes a quick look at the charts so readily available here will be able to draw their own conclusions

your analysis of my own record just goes to show that you aren't much of an analyst! ..... as it happens, i have had an amazingly good year, following on from the previous one ..... i have not even heard of AST or EOG, but certainly my own winners - where i have actually banked substantially profits, but have either bought back in or hold a balance - include both RKH and XEL .... however, unlike you, i actually admit to have made some bad choices along the way - it's inevitable, yourself excepted of course - but other than PXS and BLNX (for which i retain strong hopes) i bit the bullet and dumped

Got to laugh at the hypocritical double standards; I think I have Pro on the top of the abusive posters list.

I wonder what a non commercial announcement will do to the DES SP? I assume the markets will take into consideration the continuing proving of this NFB area, so I guess it won't be too damaging. But as always, one can only guess.

good morning Peter ..... glad i managed to miss the freeze for a week in an open prison (aka hotel compound!) in Nairobi ..... next conference venue (mid April) will be Rio, which I shall assuredly attend!

DES
i have been trading this on and off and yesterday sold half for an adequate profit ..... not sure what i shall do with the balance ..... my gut feeling is that there isn't much upside, which implies that sp will slip away until there is something a bit more exciting in prospect

Steady on....they are testing the oil...I think it's called api rate ..(not sure)....there is a big chance that the oil will be exactly the same as Sealion, and therefore a rns confirming this will be issued....now if I remember correctly : the last time RKH came out with the kind of oil and all that : the sp shot very much higher and this was issued not long after the first rns,...so perhaps this week...a super little rns confirming that there is a distinctive strong possibility of oil all over this part of the basin.....with something like that : I would be hoping for 150p.....

150 is barely 10% higher than friday close, and though oil may indeed be same quality as Sealion, the chances of there being significantly more than 50 mbl are not very good ... i stand by my previous comment

I sold the lot in morning and same amount back at 1.29p with a nice profit left in the bank.,.

There is also the possibility of another well being spudded in the same area...perhaps just a few miles away...we shall see....much more optimistic now for these Falkland companies and the price of crude is rocketing...

Water water everywhere..

Back to 80 p today.

o dear..................not what i wanted to hear,,,,hard hat on and back down the mine

Is this going to affect P's 6 figure profits?