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.falklandnews.com/public/story.cfm?get=3200&source=2

Some good news "There will also be a Desire Petroleum shareholders meeting while the three men are visiting." so news to come soon


PEAK WELL MANAGEMENT APPOINTED TO DESIGN AND MANAGE FALKLANDS DRILLING



By J. Brock (FINN)







Desire Petroleum has announced the appointment of Peak Well Management Limited, an Aberdeen, Scotland Company, to carry out the well design and drilling project management of the planned 3-well drilling programme in the Falkland Islands.



According to the Company, this will involve detailed well and test design, contracting for all services, and execution of the drilling programme, including materials and logistics.



Peak Well Management Limited, based in Aberdeen, have the expertise and worldwide experience to deliver this operation in a safe and cost-effective manner.



Colin Phipps, Desire Chairman, Ian Duncan, Desire CEO and Bob Lyons, Peak Managing Director are visiting the Falkland Islands this week to discuss plans for the drilling campaign with the Falkland Islands Government and key local residents. There will also be a Desire Petroleum shareholders meeting while the three men are visiting.



Said Ian Duncan, The appointment of Peak and the visit to the Falklands continues the progress for the resumption of drilling in the area.

Hi Markymar
The shareholders meeting doesn`t surprise me as most of the adult islanders have holdings .
Must be exciting times on the island at the moment with all this exploration going on.
All the best
Berlingo

Good do here from you berlingo and you input has been a miss, to me this is very positive news that a shareholders meeting to held across there and i expect some sort of news very soon.

Kind Regards

Markymar

marky

don't tease please expand on the german buzzing link please (if you are able at this time)

all the best

marrow (nee ming beaver)

Marrow there is nothing to expand on just a few things point in a German conection but nothing to back it up.But it does make you wonder why a German main paper comes over to Falklands and Sue has asked me to post her any news on the Desire front as she is very keen on to what is unfolding across there.

Regards

Markymar

PS Dont forget Newcastle tonight on TV-Howay the Lads

Hi all


Lets hope the three wise men are bearing gifts for christmas. Todays open 0.4425p, high 0.4500p, low 0.4325p, close 0.4400p, combined volume 387.0 K. The candle which was formed is a doji (needs open & close to be exact, to be perfect doji). Never the less we have a doji, which could be indicating a trend reversal. Looking at UB07 oil & gas sector this has been dropping recently, so not suprisingly DES,s news has not been able to lift the share price. It looks like UB07 may be about to form a morning doji star. This will need to be confirmd tomorrow. If we do see this pattern, then we can expect the sector to rise. If we get some news from DES also this would be good timeing.







Good Luck All

Eddie

Desire aspires to summer drilling

Oil Company Desire Petroleum plc hopes to start exploratory drilling in the Falklands next summer, possibly as early as December 2005.
Thats according to the companys Chairman, Dr Colin Phipps, who is visiting the Islands this week with Desires Chief Executive Officer, Mr Ian Duncan.
Speaking to Penguin News on Wednesday, Dr Phipps said the 25 million raised by Desire earlier this year allows the company enough money, ...to drill three wells at current costs.
The wells will test the three principal targets identified through a 3D seismic survey and Dr Phipps says the company is feeling confident: I cant tell you if theres going to be oil but certainly were a lot nearer to it.
Dr Phipps says Desire could be drilling as early as December 2005, however this depends on a number of factors; first and foremost, the company needs to secure the use of a rig - thats the crucial bit.
He says tenders have been sent out and, ...were talking to a number of drilling contractors about rig availability.
In addition, the company needs to fulfil a number of obligations including environmental studies and Health and Safety Executive requirements, a process he says, ...with a fair wind, we can do in about six months.
The earliest we can drill from now is in the late spring, but it is much more likely to be mid-summer.
Dr Phipps says each of the three wells is on a very large prospect and if one is successful, ...it will make a very big difference to the Falkland Islands.
Accompanying Dr Phipps and Mr Duncan on this visit is Mr Bob Lyons of Peak Well Management, the company appointed by Desire to carry out well design and drilling project management.
This will involve detailed well and test design, contracting for all services and execution of the drilling programme, including materials and logistics.
Mr Lyons is here this week to see what resources can be found locally: We want to use as many local facilities as possible. Primarily what we will be looking to draw upon locally is logistical support.
Shore-based activity?
Should sufficient oil be found for development, Dr Phipps says the process will then enter into a period of ...pretty deep discussions with the Councillors, Governor and, indeed, everyone on the Islands as to what they want to happen. In the end its your choice.
He added, There will obviously need to be some infrastructure here, there will have to be supplies and so forth, and, given Argentinas attitude, its going to be essential that there is some here.
But the extent to which it will change the Islands is a matter for you rather than for us.
Dr Phipps is complimentary of the work of Director of Mineral Resources, Phyl Rendell, and Dr Phil Richards of the British Geological Survey who he says have, really represented the interests of Islanders.
- Desire holds a 100% interest in 3,650 km2 in the North Falkland Basin. These interests are in Tranches C,D,I and L.
Desire also holds a 12.5% interest in Tranche F, operated by Talisman Energy. Six wells were drilled in this basin in 1998. Five recorded oil or oil and gas shows.
In February, Rockhopper Exploration announced it had signed an agreement with Desire to farm-in to the three wells to be drilled by Desire in Tranches C and D.

Hi all

The whole oil & gas sector is down, based on falling oil prices. The open 0.4400p, high 0.4425p, low 0.4150p, close 0.4150p, combined volume 1.138m. There was an increase in volume today, unfortunatly the bears had the upper hand. The close is at the bottom of the hammer(lower shadow) dated 05/04/05. The hammer is said to be hammering out the base. If this test of the hammer is good then DES should have support. DES has moved below the 200 DMA, at which I thought we would see a bounce. Momentum suggested DES may go to the price of the rising window dated 09/11/04. With the oil & gas (UB07) correcting prices to a lower level, this may be the case. Lets hope for the support at the hammer !







Good Luck All

Eddie

Hi all

Here is the chart for the oil & gas. I think its the sector thats pulling DES down. If you look about mid March, DES looks to be moving up. Then the sector starts to drop.







Good Luck All

Eddie

Cheers Eddie,

http://www.rigzone.com/news/article.asp?a_id=21820

Peak Wins Falklands Oil Exploration Contract
by John Bowker
The Scotsman 4/14/2005
URL: http://www.rigzone.com/news/article.asp?a_id=21820
Peak Group has won a multi-million-pound deal to manage the second oil exploration venture in the Falklands.

The fast-growing business said yesterday it had struck a deal with Desire Petroleum, a fledgling UK explorer that recently raised GBP 25 million in a share placing. Managing director Bob Lyons flew out to the Falklands earlier this week to kick-start the project.

Desire is the first to tackle the Falklands since 1996, when a consortium led by Shell did a series of tests. The area is seen as troublesome because of its remoteness, as well as on-going political issues with Argentina.

However, the high oil price has led to a frenzy of exploration as companies hunt for a strong return. Desire has said it plans to hire a rig from Brazil to start the drilling, which it hopes will uncover more than one billion barrels of oil.

The deal cements the international standing of Peak, which has offices in the US, Dubai and Australia as well as Aberdeen. The firm said more openings were not on the agenda, although the global ambitions of UK companies could dictate a more international strategy.

Ian Burdis, operations director, said Desire's UK base was the key factor behind the deal, which will require the management of at least three drillings. The two firms said that Peak's fee would depend on the number of wells created.

Privately owned Peak made pre-tax profits of GBP 388,000 in 2003, more than double the GBP 169,000 it racked up in 2002. The firm would not comment in detail on its 2004 performance.

Some times when you dont expect things they happen.

Have a good weekend all

Markymar

http://www.thisislondon.co.uk/news/business/articles/timid399801?source=

Rockhopper float would defy fears
Steve Hawkes, Evening Standard,
18 April 2005
A THIRD energy minnow looking for oil in the Falkland Islands is preparing to float, despite growing fears that many Alternative Investment Market (Aim) stocks in the sector could suffer in coming weeks.


Rockhopper Exploration is expected to make a decision whether to list by the end of May. It is likely to raise more than 15m.


The move comes as City experts are growing ever more anxious that the Aim bubble is set to burst after dozens of floats and cash calls in the past six months. One fund manager said: 'The market is getting very overheated.'

Rockhopper has two exploration licences to the north of the Falkland Islands and hopes to cash in on the wave of optimism about the region.

Citigroup last week revealed plans to float Vanco for as much as 500m and fund managers claim the potential price shows how skewed the market has become. Some stocks have already taken a battering, with Adulis Resources plunging 61% in the past the two months alone.


The expected 1.3bn sale of Aim's biggest energy stock First Calgary could play a pivotal role. Experts claim any deal below the current market cap will send shivers through the market.

I think todays mark-down was more reflective of the general state of the market rather than anything fundemental with DES. Red all over today and the Dow is still struggling. Good volumes of buys against sells which, again, does not correspond to the price we are currently at. Just a case of smiling and hope for a bounce sometime this week. Things in the Falklands are moving along nicely. If the Dow finishes stronger this eve then we could see a considerable mark-up tomorrow.
thanks, tau.

Hi everyone. Well said TAU , absolutely not panicking cos everything turned red today.Market jitters , maybe , but we are he for one reason. That is our belief that DES will drill for oil again ? They have found it once already in `98 ! Everything is going ahead as planned . I`m gonna sit tight and ride this one out for sure.
As a matter of interest what did DES do in Berlin today, Marky ?
Cheers
Berlingo

Hi all

Thanks markymar, tau & berlingo.

As already said, red for most indices. The open 0.3900p, high 0.3950p, low 0.3650p, close 0.3750p, combined volume 5.62m. The close is right on top of the close before the rising window dated 09/11/04. This is where momentum sugested DES might get support. In candle terms the support should be at the rising window, but the way the sector is at the moment anything could happen. We have the annual reports on 26/04/05 & the preliminary reports on 28/04/05. Maybe we will hear something here that will give DES a push in the right direction. Lets hope this was the final sell off.







Good Luck All

Eddie

Hi all,

Not the best of days but nothing to panic about as tau said everthing is down and a lot to look forwars to and a lot going on in the back ground.

If Rockhopper do float then we will know who is behind them and Encana still in my picture and all the bogus names they have set up.This can only help Desires share price and my axe comes out next week Eddie.

berlingo it was down 5% and was about 9% at one point so all to play for.
Nothing has changed with Desire we are going back drilling soon. Its because of 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.

Kind Regards

Markymar

Thanks Markymar and Eddie.

Eddieshare - how many "final sell-offs" are we going to see with DES? I'm a holder so have fingers crossed that the company will do well but we see a lot of charts & pretty pictures on this thread and the common theme seems to have been, "It'll be alright tomorrow...", or, "maybe we'll here some news..." whilst all the while its be staggering backwards. How about a realistic, "Shit, it's going to get a lot worse before it (hopefully) gets a hellavu lot better"?

The daily charts are interesting-but that's all.

As you know,there are only 2 things to bear in mind with DES:

1.Rig announcement.

2.Discovery of commercially viable hydrocarbons.

It's up to you to decide when you get off the roller coaster.

Hi all,

3 wells planed so far and I do think this will change as time goes by, but 3 wells we have at moment and as Mike has pointed out it is possible to side track from different angels when you drill.

Am quiet sure the Desire board have sat down with specialist in there field and disgust with them which targets they are going to drill and will give them the greatest success rate so in my opinion they will go for the biggest in C & D.

Now if I was sitting round the table there is one place that stands out like a sore thumb where you can kill 2 birds with one stone ,meaning you can drill through 2 reservoir plays with one exploration well.

If you look at your prospects on page 18 you will see a map of the targets now you have Liz which lies at the top and holds 2,200 mmbblSTOOOIP and at the bottom of is Beth931 mmbbls STOOIP which these over lap.

It is very possible to drill through Liz and carry on to Drill in to Beth.

It might not be possible to drill both prospects at the optimum position, but certainly Beth could be tested to a certain degree at the same time and maybe some feed back of Oil Brat on this matter and his thoughts.

We can kill to birds with one stone here and Liz is huge so it maybe a 3 well at moment but I see 4 targets drilled at moment from 3 wells drilled.

Just remember why you bought the shares forget about the price the geology is right the 3D and 2D has been done and many years of mapping this out am sure its been cooked to the right temperature hence last time they had oil shows, its all there.

Time will tell and that Rollercoaster we are on will give you that thrill at what ever stage you get off , am very happy with the Desire board and for bringing in Peak are a drilling consultancy - very good outfit, they take care of well operations for companies like Desire they are Pros in there field and money well spent.

When the rig is booked am sure in the contract that Desire can keep it there longer if needed, but we still have a while before it all comes together but that does not rule out news in between time that could affect the share price.

Kind regards all

Markymar

http://www.the-falkland-islands-co.com/Pages/frameset.html