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

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

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

According to the Directors of the oil company Desire Petroleum there are at least One Billion barrels of oil waiting to be exploited in an area north of the Falkland Islands.



Dr Colin Phipps, a founder member of the company, told Falklands share-holders that this would amount to at least 25-30 years of oil reserves and once exploited could, through royalties and corporation tax, bring in as much as $US 500,000 a day to the Falkland Islands Government and the 2,500 inhabitants, which amounts to a staggering $182 millions a year.
Desire Petroleum have announced plans to drill three exploration wells ranging from distances of 118 to 125 miles off-shore. The Company are actively looking for an oil drilling rig which can be towed to the Islands to undertake the work. 'We hope to begin drilling either at the very end of 2005 or very early in 2006', insisted Dr Phipps, who is a former Member of the British Parliament.

Desire Petroleum recently announced that it had recruited Peak Well management to carry out the well design and drilling project management. Oil drilling rigs currently operating in West Africa or Brazil are said to be of the type and price which would be well within the Companys budget.

A recent flotation on the stock market, aimed at raising 25 millions, was heavily over-subscribed and almost 35 millions was available, with many disappointed prospective investors being turned away. Most of the several hundred share-holders in the Falklands only received a fraction of the shares which they bid for.

New 3D seismic data which the Company has obtained, shows structural lines consistent with heavy 'hydrocarbon kitchens' which are known to contain massive oil reserves, said Ian Duncan, the newly appointed Chief Executive of Desire Petroleum.

Once the rig is towed into position, it is anticipated that approximately 100 men will be employed in the drilling process. A further 15 men will be stationed in Stanley.

In 1998 traces of oil and gas were found in several exploration wells which were drilled on behalf of large oil companies such as Shell, Amerada Hess & IPC. However with the price of oil then at a rock-bottom $US 10 a barrel, the exploration programme was curtailed. Now with oil prices having rocketed to around $US 50 a barrel, there is renewed optimism in the Islands that an 'oil boom' might be not too far away.

Hi all

Thanks markymar, captguns & all

The rising window was the support area for DES today. The open 0.3750p, high 0.3975p, low 0.3750p, close 0.3875p, combined volume 2.97m. What we now have is a rising window giving support at 0.3750p, and a falling window which is resistance at 0.4150p. This is a crucial time now for DES. For either support or resistance to be broken, DES must close (bellow 0.3750p for support to be broken) or (above 0.4150p for resistance to be broken). Lets hope its the resistance !






Good Luck All

Eddie

Thank you Eddie



http://www.falklandnews.com/public/story.cfm?get=3206&source=3

Falklands Oil: Don't Invest the Rent Money - Yet
April 19, 2005
by J. Brock (FINN)


FALKLANDS OIL: DONT INVEST THE RENT MONEY.YET



By J. Brock (FINN)



A very positive picture of the potential of finding at least 2 billion barrels of oil in the North Falkland Basin was presented to a Desire Petroleum shareholders meeting on Monday night. Approximately 35 local shareholders and others attended the meeting, held in the Chamber of Commerce function room. Dr. Colin Phipps, a co founder of Desire Petroleum, told the gathering that the hydrocarbons bonanza could be locked beneath the source rock of Desires Tranches, C and D in the basin.



It wont be until December 2005 or early 2006 that a rig is due to be brought down to the area, presumably from Brazil or West Africa, to begin the exploration process. Getting a rig from the UKs North Sea is considered to be too expensive but at the moment, Desire are looking for a cost-effective way to bring a rig to their exploration area. Transporting a rig can cost nearly $50 Million but Desire hope to reduce the cost, as only 25 Million towards the project was raised when stock floated on the Alternative Investment Market (AIM)? Admittedly there are more investors interested in the project than were allowed to invest. The stock was over-subscribed and people had to be turned away.



According to Dr. Phipps, the rig will drill three holes that could cost of approximately $10 Million each at a location of 118 to 125 miles north of the Falkland Islands. Due to the thickness of source rock in the area, it is expected to take longer per hole to drill than the more shallow holes done when the Borgny Dolphin in 1997/98.



According to Mr. Ian Duncan, Desires recently appointed Chief Executive, the 3D seismic, which has been obtained from GSI Admiral, indicates structural lines indicate heavy accumulations of oil in what he described as hydrocarbon kitchens. The 3D data is being re-evaluated and re-worked at the moment.



In an earlier interview with Dr. Phipps, it was indicated that no one actually knows if the seismic is right until a hole is drilled that produces hydrocarbons in commercial quantities. Until now, the average expectation per hole was indicators of hydrocarbons at various depths. Shell did a bit better on their drills though nothing in commercial quantities was found. But keep in mind, none of the drills got through the thick source rock and what lays under it, very promising indeed, is still unknown.



Peak Well Management has been recruited by Desire Petroleum to design aspects of the rig and to manage the drilling. It is expected that the company will employ approximately 100 men and women to work on the rig as well as stationing some 15 people in Stanley. Crews could be changed in the same manner as they were in 1998 however, it is expected that the LanChile flight will be used to repatriate them once their stints in the South Atlantic finish. The affects on the Falklands economy at this stage should be minimal.



To make exploration viable, the cost per barrel of Brent Crude should be around $17.00 per barrel. Fortunately the price of oil is now hovering around $50.00. However, indications are that scenarios making prices unusually high could, at the whim of market forces, change considerably. Indeed, warnings about the AIM have been issued on Monday that it could be overheating. We need to keep an eye on this. At least, wait for the stock price to dip a little before deciding to buy. Buying when its high is not a good idea.



Though the seismic is excessively promising, a roller coaster ride looms ahead. There may be enough oil to last us for 25 to 30 years but we have got to tap the reserves first before we can go further with speculating actualisation $182 million per annum. Pipe dreams about who is going to occupy what building in centre Stanley can also be snuffed out. Theres too much real estate recently vacated for 15 men. Should commercial quantities of hydrocarbons be found things could change, but that change would be moderate while the data from the first successful hole is evaluated..



The ride is not for the faint-hearted. Dont invest the rent money. yet.

Nice one Markymar and thanks Eddie for the daily charts! Here`s hoping.
Regards Berlingo