Desire Petroleum: Your questions answered

There is a lot of waiting in the oil drilling game and 2012, while an exciting prospect, is no exception for Desire Petroleum.

Answering Interactive Investor users' questions at the North American Prospect Expo (NAPE) in Houston the firm's explorations director Ken Black confirmed the firm has put its 2011 cash crisis behind it and remains well enough funded to see through existing projects and  the hunt for any future rights.

Asked why the company had failed to raise sufficient funds to drill when the Ocean Guardian drilling rig was on site he replied: "We'd loved to have done of course, but the timing wasn't right in terms of market conditions."

Discussing prospects for Desire in the coming year Black said: "We have already said that we have new seismic data which we will be interpreting over the next three to six months. This will be completely updated on all of our licences."

As for the short-term, Black said he was unable to elaborate on this week's RNS announcement that an updated Competent Persons Report is due and will incorporate the 14/15-4a well results.

Interactive Investor user question:Rockhopper currently have their data open and are in discussions with potential farm-in partners but are Desire active in these discussion due to their part ownership of Sea Lion?

Black:"Rockhopper are engaged in their own farm-out process and we are not a party to those discussions. But we have a small stake in the Sea Lion field and so at some stage it requires our involvement."

Interactive Investor user:Has the company considered a farm-in in 2011? And what kind of deal would Desire seek if it were in Rockhopper's position with a genuine discovery?

Black:"Yes, a potential farm-in was considered but the view was that the market wasn't right at that time." He added: "It would seem likely that a third party is going to get in with Rockhopper and that third party would be equally likely to take a holistic look at the region, but that is just my view."

Interactive Investor user:Why does the company not interact more with shareholders?

Black: "I'm unaware we were considered poor communicators. We have an obligation to put into the public domain any information which is price sensitive in a timely manner. I believe we fulfill that obligation."

Interactive Investor user:Can you tell us more about the Arcadia/Denholm Project?

Black:"The situation hasn't changed on the licence and we do view it as being drillable as and when funds are available, and of course the rig."

In closing, Black acknowledged the hunger of Desire's loyal shareholders for information.

He said: "Of course I can't say anything which isn't in the public domain but 2012 is going to be an exciting year for us. It is important that we see a solution for (Rockhopper's) Sea Lion development and when that happens I think it would be an appropriate time for us to get involved."

"I can see that happening this year. In the course of things it would normally be around a six month timeframe."

Read more about Stephen McDowell's take on the NAPE in Houston: The Falklands is for Bulls, not sheep.