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

1,250 billion barrels of oil could have been generated over FOGL's patch to the south of the FIs according to their press release today - is that a misprint? Drilling in 2007 should mean that if we Desire holders are successful in six months then we well have plenty of time to switch.

A 600,000 cross this morning, that might hopefully indicate the end of an overhang dragging the share down.

Good news for FOGL and great news for Desire as the eyes of the world will be watching this story as it unfolds in time.

http://www.falkland-malvinas.com/Detalle.asp?NUM=5584

Falklands-Malvinas
Tuesday, 03 May


Gusher dreams push up Falkland Oil and Gas



Exploration minnow Falkland Oil and Gas gushed after seismic reports dramatically increased the prospect of discovering sizeable reserves of oil and gas.The company will have to raise fresh funds to step up the exploration work.



The shares jumped 10p to 119p, having risen from 40p when it floated on AIM last October. The company was spun off from Falkland Islands Holdings, which still has 18%. Other major holders are Australian oil group Global Petroleum, 16%, and AIM-listed UK fund manager RAB Capital with 31%.
An upbeat chief executive John Armstrong said the Falkland Islands could become a new petroleum province by the end of the decade and called the seismic reports remarkable.

He added: This is the most exciting project Ive seen for years the number of leads identified has far exceeded our most optimistic estimates and we believe it has greatly enhanced FOGLs prospects.

The data identified 130 leads - a feature requiring further technical appraisal prior to a decision to drill some of which appear capable of containing recoverable reserves in excess of 200 million barrels. At the time of the float FOGL identified just eight structures worthy of closer scrutiny.

The company now plans to carry out further seismic surveys targeting all the leads, but with emphasis on the 50 most promising. The aim is to develop 20 high quality prospects ready for a drilling programme to begin in 2007.

At the time of its float FOGL held a 77.5% interest in seven offshore production licences covering 33,700 sq km to the south and east of the Falklands. FOGL holds the licences in a joint venture with Hardman Resources. In December it was awarded a 100% licence over a further area giving a total of 83,700 sq km equivalent to 380 North Sea blocks.

Armstrong said the increased scope of the exploration work would require further funding. At the end of March it had 10.9 million cash.

May 3, 2005
by H. E. the Governor Mr. Howard Pearce

Executive Council 28 April 2005
http://www.falklandnews.com/public/story.cfm?get=3227&source=3

On oil, Councillors agreed that in future work plans made by companies as part of their licensing agreement would be made public. This will enable other companies who are interested in applying for a licence see the kind of work which FIG expects them to commit to although obviously each company will have a different work plan.

On a technical note and to fill the void while Eddie takes a break....

DES held nicely above the 30.5p Fibonacci retracement level last week. My chart package shows a 'hammer' reversal candle for last Friday (not shown on the moneyam chart?) which has been confirmed by subsequent bullish candles on Tuesday and also, so far today (Wednesday).
A short while back someone mentioned 'oversold' RSI momentum. More meaningful however, is bearish divergence where the RSI forms higher lows while the price chart shows lower lows. This has happened recently (19 Apr & 29 Apr) and can also be a good indicator for a base.
While we hold over 30.5p I expect a test of the 40/41.5p window. (Also note falling trendline off the 9 Mar & 11 Apr highs comes in at 40p). A break over there would be good for a run on the 48p area!
Intraday supports are seen at 35.5p and then 33.5p (lets hope we don't see those levels again).

lynnzal ,

Thank you for filling in for Eddie why he is a way, momentum you may have sold at wrong time.

Well done Lynnzal. Poor Eddie , goes away and DES on the up. Dont hurry back! Only joking Eddie.
Come on DES .
Regards
Berlingo.

Hi all

Looks like I should stay away. Charts looking better already.

Good Luck All

Eddie

Eddie is it next week you are away?

Blue sky,fingers crossed

You were wll warned in advance about this share. I warned you! It has gone down the pan and will never return!

Complete clap-trap, pro. With so much potential we'll see a major reversal in the price; it will not be too long before an announcement of a rig contract, IMHO. After that we just need to hit the black gold. The rest will then just be history.

Pro u cant see the wood for the trees

3 wells to be drilled one which will go through 2 targets Beth and Liz and nearly a billion barrel recoverable between the 2.

Now if they are lucky and hit oil in both that alone will stick between 7 to 12 on share price and before they even drill the hype will take this share to 2 now if you can tell me difrent i would like to here why.

Explain your reasons as i would love to know why been such a pro and i a novice give us your expert opinion or can you not back up your post?

Markymar

Hi Marky
I wouldn't take pro to seriously seems to me he-she? only keeps
posting trying in vain to push the price down so he can buy himself
at a bargain price, after all we all know this is very speculative
but if the drilling goes well the upside will be massive.
Ask yourself why he keeps warning us of the dangers surely his
time would be better spent posting on stock he actually likes
and follows unless there is in fact a hidden agenda.
To keep the faith just bought again.

regards HUSTLER

ps see alexander mining is doing well
pro's tip of the year listed a couple of months
ago down 33% well done

The proverbial trumpet blower - only remembers the good calls. Here's one the 'Pro' forgot.

pro - 25 Apr'05 - 09:33 - 1138 of 1174


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!

NOTE - AXM closed at 30p on 25 Apr and is currently 24.5p.

DES closed at 37.75p on 25 April

Hi Hustler,

I think we all no what Pro agenda is, just thought he could give us the wisdom of been such a knowledgable pro trader.

I'll update the chart tomorrow...needless to say things are looking well for DES at the moment and my comment #1166 (4 May) still stands. I've read elsewhere that 38p was key level on the topside. I have never suggested this (due to the amount of trading that has been seen either side of 38p on the way down), so I'm not be suprised that DES hasn't taken off. More significant remains the 40/41.5p window. Let's break the latter and see what happens....
Supports at 35.5p (Wednesday's low & intraday trendline) then 33.5p.
More tomorrow.

Good luck all.
Lynnzal

The last two candlesticks formed a Bearish Doji Star Pattern . This is a bearish reversal pattern that marks a potential change in trend. However, its reliability is not very high and it requires confirmation.