.

From the well spud RNS below :

http://www.investegate.co.uk/Article.aspx?id=201105030700297465F

............The well is located just north of the Sea Lion 14/10-2 discovery well and 13 metres updip at top reservoir level. The well is designed to appraise the Sea Lion main fan reservoir and investigate hydrocarbon column and reservoir distribution. The location is 77 metres updip at top reservoir level from the recently drilled 14/10-4 appraisal well.

It is clear that they are drilling to test the Main Fan only. The last well found the Oil Water Contact and therefore defines they lowest level and now they are in the process of proving whether the upper levels also contain oil. When they have a bottom and top defined and both in contact they can call oil distribution across a very large area.

At this location the planned actions do not include Sea Lion Lower as it clearly states Sea Lion Main fan and at the updip top location.


From the RPS update on Sea Lion : http://www.mediafire.com/?z4pkvs9dd6l16b7

It is clear the average depth of the Sea Lion Main fan is expected to work out at 34.5 meters with thickening at down dip locations but potentially much thinner area's as well - hence an average of 34.5.

So this well is updip and therefore a figure in the 25 meter to 35 meter range should be hoped for, slightly below average expectation given this is updip and top of the reservoir, and not downdip where the much thicker net pay is expected to be.

I would be happy with 30 meters of net pay as a good result, anything more than 30 meters is very good.

As has been said we are not testing Sea Lion lower at this location and so net pay is purely about Main fan only, not a combination of Main and Lower as per the 14-10/2 well.

25 meters to 30 meters is ok.

30 meters to 35 meters is good given its updip and top location.

35 meters to 40 meters would be very good.

Above 40 meters and its an excellent result from this location for the main fan.

So Sea Lion goes into DES acreage down south, must mean a massive increase in the size of Sea Lion. I would go for over 600 million recoverable barrels now, perhaps more.



DES RNS :

RNS Number : 5061H

Desire Petroleum PLC

31 May 2011

For immediate release 31 May 2011

Desire Petroleum

('Desire' or 'The Company')

Exploration Update

Desire Petroleum plc (AIM:DES) the company wholly focussed on the North Falkland Basin wishes to provide the following update on its exploration activities.

The Company's 3D seismic acquisition programme is now complete and the full-fold area of coverage is approximately 1416 square kilometres in Tranches C, D, F and adjacent open areas. Combined with Desire's existing 3D data, these new data provide almost full coverage of the East Flank Play Fairway on Desire's acreage and extended coverage of the Liz area, Ann, Pam and Helen prospects. A planned extension of the survey to the south was curtailed due to poor weather conditions.

The fully processed data for the northern part of Tranche D and the Ann prospect area are being fast-tracked and are expected to be available in July. A fully merged data set covering all prospective areas is expected to be available towards the end of 2011.

However the preliminary raw stack data have been received for the area at the northern end of Tranches C and D and the initial indications for new prospects are encouraging. In particular, two new leads, Beverley and Shona, have been identified so far. The Shona lead is at the same stratigraphic level as the Rockhopper Sea Lion discovery and extends northwards to the block boundary of Tranche D, while the Beverley lead is at a shallower stratigraphic level and is mapped wholly within Tranche D.

Commenting on the announcement Chairman Stephen Phipps said; "We are pleased with the preliminary results from the new seismic data and feel that it highlights new prospectivity within our acreage. We anticipate the prospect inventory will continue to grow as the fully processed seismic data are delivered and interpreted."

Details of these new leads and a technical update can be found in the AGM presentation to be posted after the AGM today, on Desire's website, www.desireplc.co.uk.

This statement has been approved by Ken Black, Exploration Director of Desire Petroleum plc, who is a member of the Petroleum Exploration Society of Great Britain with over 30 years experience in petroleum exploration and management.

i see far too many words like "indications", "encouraging" and "prospectivity" to get at all excited

Could be like two people eating the same sandwich, from opposite ends !.

GOLDMAN SACHS have today reiterated that RKH is a conviction buy and upped their price target from 684p to 732p.

GOLDMAN SACHS have today reiterated that RKH is a conviction buy and upped their price target from 684p to 732p.

Could take off like a rocket.....

Or could go down like the Titanic! Good luck to you rf. You seem to like the buzz of the mega risky stocks. A bit too hot for me this one! Am sitting on ARG but long time out of DES & RKH.

With 2 hits at the same place....surely it will hit oil again.....this well should be a lot less risky than any previous drilling ang most people have the jitters about this....me as well....but I'm hoping for a great result here...

Am I becoming too optimistic here ?......starting to steam......not me : the sp....

Set yourself a target and stick to it. Sell half and let the rest run? Have a strategy of some kind!

Think a cold shower needed rf.....

As I'm at a loss.....that would be half at a loss...keeping the other loss....

My stategy is : make some dosh and every may, to get stuffed on the pullback.....seems to work every year ....when will I learn ?...

News tomorrow then ?


http://www.thisislondon.co.uk/markets/article-23955081-cairn-catches-a-cold-in-wake-of-arctic-rig-stunt-by-greenpeace.do


........Are private punters gluttons for punishment? Desire Petroleum - the Falklands oil explorer famed for turning oil into water - shot up 1p to 13.3p after completing a seismic data programme highlighting new drilling prospects.

Desire is short on cash, however. "Really, Rockhopper and Desire ought to merge," said one City motormouth. "Otherwise, Desire's future looks doubtful."

Rockhopper, which updates the market tomorrow and struck crude last year, rose 13p to 216p............

12 millions shares traded. Thats a good volume spike and upwards movement.

Pretty much looking like some good news is on the way.


30 metres of net pay at this location would be good news..... lets see.

Goldman Sachs target price is 732 pence, as per the link below :

http://www.igindex.co.uk/content/files/ukratings_31may2011_igiam.pdf



But, not like the FT to put the wrong figure in, never mind.... anyway, its 732p and conviction buy.


Market report from the FT.com

Small caps: Desire in demand
By Neil Hume and Stephen Smith

Desire Petroleum was in demand on Tuesday. It shares advanced 6.4 per cent to 12 1/2p after the Falklands explorer said it had identified new drilling prospects, one of them at the same stratigraphic level as Rockhopper Explorations Sea Lion discovery. However, traders reckoned Desire would find it difficult to finance futher exploration in the waters off the Falklands given the companys dreadful drilling record.

With limited cash resources remaining the group faces a funding crisis later this year, commented Canaccord Genuity. Given that Rockhopper has a 7.5 per cent interest in Desires acreage it is in a good position to evaluate the assets, and is probably the only credible buyer of the company, or potentially to undertake some kind of asset deal, e.g. increasing its stake in exchange for carrying Desire.

Rockhopper, meanwhile, rose 14.1 per cent to 230 1/2p helped by the clearance of an overhang and a bullish sector note from Goldman Sachs. The broker has slapped a conviction buy rating and set a 657p target price on the company, which it is says it one of five stocks that offers high-impact exploration newsflow supported by core values that mitigate downside risk of exploration failure. Another stock in that category is Bowleven, 2 per cent higher at 307p, according to Goldman.

In addition, Rockhopper was also lifted by speculation of a bullish drilling report from its 14/10-5 appraisal well, which was spudded in early May. Traders reckon Rockhopper has already started to flow test the well after drilling down 800 metres.

Of course, if they have already started to flow test it means news is perhaps some days away as yet, perhaps even next week then.

However, the move to flow testing in effect tells us the results of drilling were ok and they have found suitable net pay to commence flow testing.

So either way even if no news, its all good :)

.

.