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

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

http://www.britishbulls.com/StockPage.asp?CompanyTicker=DES&MarketTicker=RESOURCES&Typ=S

Buy-If now

Hi all

No great gain today, considering the oil & gas sector went down, any gain is good. The open 0.3850p, high 0.3900p, low 0.3850p, close 0.3900p, combined volume 546.0 K. Neither the support or resistance have been broken. DES made its gains in the morning & was able to close on the high of the day. This means the bulls were in control all day. The volume was lower than the past few days with less selling. What we need now is much greater volume buys to send DES through the resistance (0.4150p). The news on moneyam is there is NOT an oil crisis & the current levels are well balanced. This could mean DES may consolidate between the support & resistance for a while.






Good Luck All

Eddie

Cheers Eddie

The end of oil is closer than you think
April 21: Oil production could peak next year, reports John Vidal. Just kiss your lifestyle goodbye



http://www.guardian.co.uk/oil/story/0,11319,1464119,00.html#article_continue

Evening all
Interesting RNS today. A mate of mine works at Cantor Fitzgerald in Canary Wharf. I`ll ask if he can speak to any one about this . Its a massive group , i know , but he is high up and should have good contacts in Europe. The head of the group does not mess about , i know , so might have purchased in anticipation of some news/deal!
Regards Berlingo

Hi all

Thanks markymar, berlingo & all

The support was tested & held at 0.3750p agian today. The news about Cantor Fitzgerald should build confidence. The US indices look to going strong at the moment. Lets hope they finnish high, as this should give the UK a boost for tomorrow. DES open 0.3900p, high 0.3900p, low 0.3750p, close 0.3825p, combined volume 384.0 K. Quite low volume again. Could be somthing brewing ahead of the annual report next Tuesday. All being well DES should go up again tomorrw.






Good Luck All

Eddie

Good news and they got them at a bargin.

RNS Number:3835L Desire Petroleum PLC 21 April 2005


Desire Petroleum plc
("Desire" or "the Company")
Holding in Company


Desire was informed today that Cantor Fitzgerald Europe has an interest in and is the registered holder of 7,116,576 ordinary shares in Desire, representing 3.26% of the issue shared capital of the Company

Lets hope the Cantor news provides the catalyst that the charts need to get us above the 41.5p level (gap) that eddie has been talking about. A close at today's highs would give us a nice 'hammer' reversal candlestick on the weekly plot. Further strength through 48p would be even move encouraging for a number of technical reasons and would suggest an imminent re-test of this years highs.
Hats off to all those that managed to buy mid 30's! Have a good weekend all.

Hi all

berlingo did you take your mate out for a pint?

Looks like we have our hammer on the weekly chart lynnzal.

Neither support or resistance have been broken today, DES has managed to regain 4.58% since yesterday. There is speculation that there could still be an oil shortage, this should help DES. DES was the fourth highest mover in the oil & gas sector today. The open 0.3850, high 0.400p, low 0.3850p, close 0.4000p, combined volume 709.0 K. Next Tuesday is the annual report, lets see what next week brings.






Good Luck All

Eddie

It will be interesting to see how many Kms. they shoot for 2 million.

Borders&Southern awarded first licence
http://www.bordersandsouthern.com/newsdetail.asp?news_ID=6193
20/10/2004
The Company was awarded its first exploration acreage, located south of the Falkland Islands, in October 2004.

In March 2005 the Company raised 1.99 million through a private placement in order to undertake a 2D seismic programme in its Falkland Islands acreage.

Preliminary results for the year ended 31 December 2004

Following the successful Share Placing and Open Offer, details of which were
sent to shareholders on 14 February 2005, conducted by Seymour Pierce Ltd, the
Company's Nominated Advisor and Broker, the Company is now preparing to resume
drilling in the North Falkland Basin. The Share Placing and Open Offer was
substantially over- subscribed and all 55,890,656 new shares were taken up. The
new monies raised are not reflected in the Accounts for the year ended 31
December 2004, as they were raised post this date, and the Company now has,
therefore, a much stronger balance sheet than that shown in these Results.

As has been announced, Rockhopper Exploration Limited has agreed to farm-in for
up to a 15% working interest in Tranches C and D by paying up to 30% of the
costs of the proposed three-well drilling programme.

Given the importance and complexity of operating a drilling programme in the
North Falkland Basin, it was further announced that Dr. Ian Duncan, already a
non-executive director of the Company, had been made full-time Chief Executive
and that Peak Well Management had been appointed to manage the drilling
programme on the Company's behalf. Dr. Duncan and I, together with Robert Lyons,
the Managing Director of Peak Well Management, have recently returned from a
visit to the Falklands to initiate the drilling programme. There are many legal,
operational and logistical factors to cover before drilling can commence and
these will take from six to eight months to put in place. I am pleased to report
that we continue to receive the fullest help and support from the Falkland
Island Authorities and from their advisor, the British Geological Survey.

In my Chairman's letter accompanying the Placing and Open Offer, I indicated
that the Company had put out invitations to tender for a rig contract to drill
the three-well programme, and that, because of the high, current oil prices, the
rig market had become very tight. This has been borne out by the response to the
tender invitations. However, a number of the responses are now the subject of
discussion and negotiation and your Board remains hopeful that drilling will
re-commence in late 2005 or early 2006; shareholders will be kept informed of
progress. The most important consideration will be not just the availability but
also the suitability of the rig eventually contracted.

Although Dr. Duncan is the first full-time employee of Desire, it is not your
Board's intention to build up staff but, wherever possible, to outsource our
requirements and maintain as low an overhead as possible. However, it has become
clear that Dr. Duncan will need increased specialist support at Board level and
the composition of the Board has been reorganised to reflect this. Dr. John
Martin, Dr. David Quick and Ian Forrest will be retiring from the Board at the
Annual General Meeting on 24 May 2005. All three have given valuable service to
the Company and I would like to thank them sincerely on behalf of all
shareholders. As of 1 May 2005, Lewis Clifton, OBE and Andrew Windham will be
joining the Board. Lewis Clifton is a resident of the Falkland Islands and will
be playing an essential role both before and during the drilling programme, he
was a member of the Board prior to the Company's merger with Gaelic Resources
plc. Andrew Windham is a lawyer with considerable experience of all aspects of
oil-company activity and already acts as a consultant to the Company. I would
like to extend a warm welcome to both of them.

As a result of the appointment of Dr. Ian Duncan as Chief Executive, and of the
other Board changes, Stephen Phipps will become Chairman of the Audit Committee
and Andrew Windham will become Chairman of the Remuneration Committee.

Since the acquisition of the 3-D seismic survey in 2004, the Company has made
steady progress towards the resumption of drilling in the North Falkland Basin.
The 3-D seismic has had a major impact on the elucidation of the geology of the
Basin and continuing work on its interpretation is revealing additional drilling
targets which can be added to the Company's prospect inventory. The Company is
now entering a very important phase of its development and, given that we have
no staff, I shall be relying very heavily on the input of my colleagues on the
Board. As in previous years, it is the intention of the Remuneration Committee
to recognise this input by allocating share options. I would like to thank all
Board members for their continuing support in the Company's progress.

Could you please refer to postings 608 and 610.
Those who took the well-placed advice will be delighted at having done so. Those who did not and wish that they had done so can recoup their loss by trading in now and buying into Alexander Mining.
Incidentally, I'm not called Pro for nothing!

Thanks for the insight Pro. How is your share of the year (KMR) doing since you bought at 23p? Perhaps you could tell us all where you think DES is headed to now.

My share of the year is called Alexander Mining.
Two previous shares held were African Diamonds (bought at 63 and sold at 77 pence) and Kenmare (bought at 23 and sold at 28 pence).
I only deal in winners. AXM is a winner waiting to happen.
As for DES, well I wouldn't slate it to the degree that I did back in February (it is on record that I said it was worth no more than 45 pence at that time) but I'd need more encouraging company news before becoming interseted in it as a punt. at the moment I'd say it is no longer as bad a share as it was earlier in the year. Five out of ten -no more- and I need at least a 9 before buying anything. Take a look at AXM.