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

Been selling some other shares today to re top up in Desire, I am hoping for news this month from RKH and DES.

Desire is now my largest holding, hoping I don’t get burnt again.

DES are certainly looking perky today for some reason.

Morning Chav,will give you a bell later if your back from down the mine.

Plenty of buying today....perky a good word.

Twas warmer down the mine Marky but nice to have some sun in the Valley this morning.

S.American group rejects UK oil exploration in Falklands,Reuters March 18, 2012,
http://www.precogz.com/home/

PLEASE MODS.

BAN THIS SPAMMING OF NEWS BY PRECOGZ/SPIKEYDT.


!!!!!!!!!!!!

Preliminary Results

Desire Petroleum plc (AIM: DES) the exploration company wholly focused on the North Falkland Basin, is pleased to announce its Preliminary Results for the year ended 31 December 2011.

Operational Highlights:

· Desire farmed out areas PL004b and PL004c to Rockhopper Exploration Ltd (Rockhopper).

· Oil and gas discovered on successful 14/15-4a farmout well operated by Rockhopper (Desire 40%)

· Competent Persons Report (CPR) published in October 2011 and currently being updated to incorporate 14/15-4a well data.

· Graeme Thomson joined Desire as the senior independent non-executive director and chairman of the audit committee.

Financial Highlights:

· The Group changed its oil and gas accounting policy from a full cost policy to a successful efforts policy.

· Loss for the period was $42.5 million (2010 restated loss: $113.9 million).

· Cash resources at the end of the year amounted to $10.6 million, plus an additional $24.5 million held as restricted cash in escrow accounts with Diamond Offshore Drilling and AGR to meet demobilisation liabilities.

· Sufficiently funded to continue in operational existence for the foreseeable future.

http://www.moneyam.com/action/news/showArticle?id=4340856

Don't you love the statement

"Sufficiently funded to continue in operational existence for the foreseeable future"

In other words we have enough cash to sit on our backsides appointing our mates as directors, doing absolutely nothing and filling our bank accounts every month. Great work if you can get it.

Great news for Desire,all reservoirs were in pressure communication with more oil than i first thought they had found.

When a farm-in partner found Desire will be sitting round the table with RKH as all in communication. good result

http://www.stockmarketwire.com/article/4352850/Desire-reveals-CPR-update.html

Desire reveals CPR update
20 April 2012 | 07:59am
StockMarketWire.com - North Falkland Basin-focused Desire Petroleum has released the findings of a recently completed independent update to the competent person's report issued by Senergy (GB) in October.

The update covers the results of the farm-in well 14/15-4a in licence PL004b within Tranche D, relating to the Sea Lion Extension, Casper, Casper South (Shona) and Beverley prospects, which were identified pre-drill and described in the initial October CPR.

All of the prospects were found to be hydrocarbon bearing, with a gross reservoir column of 89 metres and a total net pay of 57 metres.

Following the completion of this well Desire has a 40% interest in PL004b with Rockhopper Exploration plc having a 60% interest.

The update shows:

* Mean estimate contingent oil resources net to Desire of 85 MMstb

* Mean estimate contingent gas resources net to Desire of 178 bcf

Chairman Stephen Phipps said: "We are delighted that we now have significant, contingent resources assigned to the Company for the first time.

"The well results were very close to our pre-drill expectations and this has been confirmed by the independent Senergy report.

"We continue to evaluate the remaining exploration potential in our licences and have now received the final, merged 3D seismic data over our operated licences and we are optimistic that further, exciting prospects will emerge from this data."

More upside here than RKH (until they get a major to help)......took the plunge into DES...

http://www.proactiveinvestors.co.uk/columns/fox-davies-capital/9072/hambledon-mining-ferrexpo-providence-resources-beowulf-mining-plus-others-feature-in-fox-davies-newsflash-9072.html

Oil & Gas News

Rockhopper (LON:RKH) - A Little For Bulls and the Bears: First the Bulls. Today's announcement suggests that Sea Lion is commercial, and there is further prospectivity in the immediate area. Now the Bears. However, the fact that GCA has provided 2C contingent resources of 307mm bbl will have come as a disappointment; the 14th September Capital Markets Day suggested 350mm bbl. While we do not believe that the news in itself is too bad as in the end we believe that it evens out, and reserves can also be revised upwards, there may be more damage done by the fact that this is the first technical headwind in an otherwise flawless exploration and appraisal programme. At this stage, we are maintaining our 600p price target and BUY recommendation. In this news:

• 355.6mm bbl net to Rockhopper 2C contingent oil resources attributed to Sea Lion and adjacent discoveries

o Sea Lion 307mm bbl

• Sea Lion and adjacent discoveries estimated to have net to Rockhopper 2C risked NPV10 of US$ 4.1 billion and an unrisked NPV10 of US$ 4.7 billion

Desire Petroleum (LON:DES) - On The (Sea) Lion's Tail: Despite being the first to market,Desire has created more value by being next to Rockhopper than they have through their own work. Life is like that sometimes. The successful drilling of farm-in well 14/15-4a in licence PL004b confirms commerciality of Sea Lion and that Casper, Casper South, and Beverley prospects all have producible hydrocarbons. The Company also shared excerpts of the latest Competent Person's Report which estimates net 2C resource at 116mm boe. This will now be the focus, as investors would be looking for the roadmap for upgrading the resources to the reserves level. In essence, Desire's own exploration programme is somewhat underwritten by the discoveries it shares with Rockhopper. Following this news, we are upgrading our target price to 50p and reiterating our BUY recommendation. In this news:

• Drilling has confirmed the pre-drill interpretation of multiple hydrocarbon-bearing reservoirs in the mapped prospects.

• Reservoirs appear to be in pressure communication with common fluid contacts

• Mean estimate contingent oil resources net to Desire of 85mm bbl

• Mean estimate contingent gas resources net to Desire of 178bcf

May 9 (Reuters) - Desire Petroleum PLC:

* Goldman Sachs raises Desire Petroleum Plc to neutral from sell

* Goldman Sachs raises Desire Petroleum Plc price target to 49.30P from

14.60P

IMO what a pathetic RNS..........

Is the begging bowl going to come out soon ?

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.

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

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

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.

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.

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 !...