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

http://www.bgs.ac.uk/falklands-oil/download/download_files/news.pdf

News update on BGS

I agree with the topside breakout ideas although sideways action could continue for the next four weeks as we approach the apex of the triangle. As time goes by however, I can see more 'technical' reasons to buy than sell. Also, I think that by now everyone will have their share allocations sorted out (if not the cash refunds). This week I expect to see the remaining scalpers to take their quick profits and then the longer term players to use their cash refunds to take up the additional shares that they didn't get from the placement.

In light of the paranoia that some DES holders have about FOGL. Could someone explain why DES shares should 'catch up' with the price of FOGL especially when market cap for both firms is aroung the 105m area with share price at 50p and 135p respectively? IMO oil specs should now take up both companies to keep the market cap at similar levels (perhaps stronger bias to DES in light of how advanced they are in their exploration activities).

lynnzal- Agreed on that, take the long time look

Marky

Whats your take on no further partners (unless terms are superb) I for one am very disappointed with the 3 well campaign.
We all know that if we get a good strike theres no problem but if problems are encounted with drill 1 for example additional monies will need to be expended possibally jeapodising drill 3.
If des do not strike commercial oil in the 3 wells we are finished.
I would have prefered 6-8 wells and another partner albeit further dilution.

ming

Des have stated they are planning for a 3 well campaign, i would expect any rig tender they sign to have the option of a drilling extension. I would expect DES also identify and plan for more than 3 wells, as location changes and plays may be forced upon them.

The two non farm-in scenarios I see for expanding the number of wells are:
1) Initial drilling success leads to an extension of the exploration program.
1) Drilling is quick & problem free taking less days than planned, hence an additional well or two may be added to the program (even if the first 3 are dry holes)

Hi guys
Any charts for us tonight Eddie ? Have we reached the bottom yet ? For all the hype about oil exploration stocks and considering the positive recent news from DES this has failed to excite the market ! V.strange but i think when it happens this share will rocket instead of rise slowly as more people come on board. Also there are a lot of oil explores out there at present so a lot to go round. By the time news reaches most , DES could be out of sight , we hope !
Patience Gentlemen .
Regards
Berlingo

Hi again
Markymar, do you know when DES are reporting next set of accounting results? Isnt the AGM soon ?
Regards
Berlingo

Hi all

Sorry I'm late.

DES is sat right on the support of 0.4800p. This support goes back to 06/12/04. The buys were more than the sells again, DES went down ? I think DES will go up tomorrow. Support or near support is a good area to buy. There are lots of reversal patterns could still send DES back up. Bullish harami, bullish harami cross, morning doji star, tweezers bottom, bullish engulfing.

Annual results 26/04/05
prelim results 28/04/05

Lets hope it's one of these!






Good Luck All

Eddie

Thanks Eddie
Lets hope we get that bounce in the morning. You are normally correct !
Regards

Hi all

A little late to post but just got in from work and thank you Eddie for your views and I may get the axe back out tomorrow!

Ming we have a long road to travel and partners are there but only on Desire term only you must keep focused on the basics and the share price will follow

There is a game of poker going on with CP and future farm-in and CP has all the aces and if they join they will join only on CP terms with there money in hand and a lots of it.

The geology is right the seismic is right and I believe its been cooked to the right temperature which means there is oil down there in my view.

Look at your prospectus you got there is a possible answer to one of your question there Ming .

Just look at Rockhopper all the funds for the seismic are paid for already makes you think who is behind them ?

Thank you John good post

Take Care

Markymar

Morning Marky
http://bodecott.com/
Extract from.
Recent Activities: March 21st 2005 update.

FALKLAND ISLANDS EXPLORATION ACTIVITY

We have been involved in all areas of North Falkland exploration with several clients for nine years. Initial drilling results during 1998 were technically, but not commercially successful, i.e. oil was found but not produced.

At a meeting of the Petroleum Exploration Society in Aberdeen not too long ago, one member of the audience proclaimed that oil will not be produced commercially off the Falklands. This was reminiscent of those who in the late 1960s said they would drink every drop of oil produced north of 56 degrees in the North Sea. Both basins have already been proved petroliferous. The North Falkland Basin is in a similar state of evolution as the North sea was in the late 1960s.

The second phase of Falkland Exploration is gathering momentum. We are closely involved with evaluations of all Falkland licence areas through the activities of two clients.

DESIRE PETROLEUM

Desire are now formulating plans for drilling three of their eight or nine prospects in Tranches C and D. Investor interest has been very high for the recent fund-raising.

3d interpretation results confirm attractive seismic amplitudes, DHI's (Direct Hydrocarbon Indicators) and structural-stratigraphic pre-source rock prospects. These prospects are adjacent to a mature source-rock kitchen which contains one of the richest sapropelic source rocks known in the world. Drilling beneath the Early Cretaceous source rock is analogous to drilling beneath the Kimmeridge Clay source rock of the North Sea. The next three wells will test this untested pre-source play.

The area to be drilled has modest water depths which greatly assist the economic potential.

ROCKHOPPER EXPLORATION

Rockhopper have recently been awarded licences PLO 23 and 24 in the southern part of the North Falkland Basin. These are relatively shallow water (less than 200 metres), commercially attractive areas close to the Falkland Islands. Any exploration success here would be very quick to exploit. There have been no wells drilled in the southern part of the NFB, but both Desire and Rockhopper have substantial prospects and leads within those areas with DHI presence.

Any success in the area is likely to increase significantly the value of the Rockhopper acreage. They have further optimised their portfolio by taking an interest in the Desire licences of Tranches C and D

COMPETITOR ACTIVITY

Additional large acreage spreads southeast of the islands have been licensed recently by FOGL and Borders & Southern. These are all high risk frontier areas, having scant previous seismic information, no wells, deep water and a harsh climate. Any potential in this area might be ten or more years down the line from the North Falkland Basin - and with much bigger risks. 2d seismic is presently being acquired.

Massive recent share price movements suggest that investors are actively embracing the high risk scenario of the South Falklands deep water areas. This can only have a positive knock-on effect for the North Falkland Graben which is much lower risk and with very similar geology and structure.

Morning Capt.......Heeee

Captguns,thank you for the Bodecott update. He is is clearly not impressed with FOGL's deeper prospects and is surprised at the recent price rise aswell. Wish I had some FOGL to switch into Desire now. A good site to show the benefits of looking under source rock such as the Kimmeridge clay that he mentions is:


http://www.ukooa.co.uk/issues/storyofoil/geological-12.htm


There are a reassuring number of prospects found in the sandy deltas on the edges of a rift valley and under the source rock!

All those people that are thinking of trading out of DES on a breach of the 'potential' head and shoulders reversal should be looking at 46.5p (using intraday lows to draw the neckline). At the moment the chart is still building a consolidation triangle (bullish) and I can see other technical reasons to be buying above 45p for a push towards the 90p area.

Excellent link Lucky swimmer, look out for an R.N.L.I. badge at the AGM.
I'll post the link on iii for the non oily's

Good read that Lucky thank you for that

As you can see MMs do not want you to buy...they want your shares.