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

Thanks for the welcome Marky.......I won't tell him, he's busy being rude to Ruddyy at the moment.

fatoldgit -do what i do rec every post when someone has a crack at him like Awok and Ruddy its the only way it will get in to his thick head he has spoilt that B&B and his wise cracks at people and to call Capt Guns a ramper is out of order .


From stockmarket report

Desire Petroleum said that it had identified 5 additional prospects on Tranches C and D in the North Falkland Basin. No indication was given of their size, but it said that 11 previously-identified prospects had the potential to contain recoverable reserves of more than 2 billion barrels of oil. the shares added 0.9p to 35.9p. House broker Seymour Pierce said that waiting for drilling to get underway in the Falklands was no doubt frustrating for Desire Petroleum's management and shareholders alike. However, the broker argued that, in the meantime, the fact that the ongoing analysis of the 3D seismic data covering the acreage was yielding additional prospects and leads can only be interpreted positively.

Hi all

Welcom fatoldgit.

Thanks markymar.

I'm supprised looking at the buys vs sells on moneyam DES didn't end higher, there were a few late trades that may not have registered. Any way DES is up. The candle although opened hi closed low giving a bearish look. But the fact the candle didn't close below yesterdays close or even into yesterdays candle, takes some of the bearishness away. We will have to look at tomorrows trading to see which way the market intends to go. The oil & gas sector was down, which didn't help. DES was 7th out of the 11 climbers, so still in favour. DES is still at 2nd place in the oil & gas sector for % rise over the past 250 trading days. The open 0.3650p, high 0.3650p, low 0.3525p, close 0.3525p, combined volume 951.0 K.

I think the 3D survey news is just great !






Good Luck All

Eddie

http://ogj.pennnet.com/articles/article_display.cfm?Section=ONART&C=TOPST&ARTICLE_ID=227586&p=9

Desire Petroleum identifies offshore Falklands targets


Desire Petroleum, a UK company, has identified seven drilling locations on Tranches C and D in the North Falkland basin, offshore South America. At four of these locations, the company has identified dual targets resulting in 11 total prospects. Desire estimates that the prospects have a potential of over 2 Bbbl of recoverable oil.

Further recent interpretation of the 3D seismic data has yielded a further five prospects, Desire reports. Three of them the operator can test at the drilling locations already identified. In addition, it has identified numerous less-defined leads that will require further work before they can be moved to prospect status, the company says.

"The more we work on the 3D seismic data, the more prospectivity we see in this basin," says Ian Duncan, Desire CEO. "The identification of these five new prospects means that in the planned three-well drilling campaign, all of the wells will have dual objectives."

Desire was established in 1996 to participate in the first round of licensing offshore the Falkland Islands. The Falkland Islands lie 300 mi east of the South American mainland. Desire holds a 100% interest in 3,650 sq km (equivalent to 13.5 UK North Sea blocks) 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 wells recorded oil or oil and gas shows. According to Desire, these wells established the presence of one of the richest source rocks in the world. The British Geological Survey estimates that over 60 Bbbl of oil may have been generated and expelled from this source rock.

http://www.rigzone.com/news/article.asp?a_id=22486

Desire Petroleum Identifies More Targets in North Falkland B
Desire Petroleum Thursday, May 12, 2005


Desire Petroleum has identified seven drilling locations on Tranches C and D, in the North Falkland Basin. At four of these locations, dual targets have been identified, resulting in eleven prospects in total. These prospects have a potential of over two billion barrels of recoverable oil.
Further recent interpretation of the 3D seismic data has yielded a further five prospects. Three of these can be tested at the drilling locations already identified. In addition, numerous less well defined leads have been identified which will require further work before they can be moved to prospect status.

Dr. Ian Duncan, Desire CEO, commented "The more we work on the 3D seismic data, the more prospectivity we see in this basin. The identification of these five new prospects means that in the planned three well drilling campaign, all of the wells will have dual objectives."

It's true -Jennifer lookalike and I are through.

Guys

Historically des moves forward over 3 days on good news. If rig announcement is made at current levels I see 35p + 30% day 1, 30% day 2, 15% day 3, 1 week later settling back to 60p. IMO this will climb to 100p at time of drilling with big up and down daily swings the closer to results we get.

How do you fellas see things panning out?

Hopefully we are nearly there, keep the faith.

marrow

Marrow i still think we have wait till news of a rig which will have an open contract so if more holes drilled that will be possible.

Also my expectation of the share price are a lot higher than yours last time it had a high of 4+ when drilling last time.Everything is better this time with 3D and modeling been done over many years and peak managment in charge and this time high oil price and Desire in charge a diffrent ball game.

Hi Eddie & all, welcome Fatoldgit,
sorry for the delay in getting back to you with the price projections. They are calculated as follows...

6.5p - 69.75p (wave 1) = 63.25p
projected from the current corrective (wave 2) low at 31.5p gives a 'minimum' target at 94.75p. As wave 3's are never the shortest, it is reasonable to suggest that it will extend beyond the minimum objective to the next likely level at 134.0p, calculated thus -
63.25p x 1.618 = 102.34p
102.34p + 31.5p = 134p (rounded up).

Were still not out of the dark yet however and current consolidation over 31.5p warns of near-term extension of the corrective decline from 69.75p. Obviously the general state of the equity markets isn't helping us here. A break above the 40.5p/41.0p resistance area would do a lot to improve the picture.
Lynnzal

Thankyou, lynnzal and eddie, its good to have two technicians on the board,
can't say I understand charts all that much but it helps to have them explained a bit and let's hope they work.

My background is City of London but on the bond side mainly, although I have been interested in equities for many years. Certainly hope I can help with finance questions like recent rights issue stuff.

Marrow, my own view is that we are very near bottom. We will have a mini spike when the rig is announced but we still have to wait for the turn of the year before drilling starts.

Personally, forecasting prices is a bit of a mugs game and I for one didn't think we would get this low. However, when the drilling time is announced I feel sure that we will be at least double this price and probably higher.

It's at that time that the press will come into play and when Joe Public reads about the billions of barrels in the NFB, you can bet your bottom dollar that there will be a scramble for shares.

Along with many others, I plan to sell a few about then but the majority will be held because I am very optimistic about striking oil.

I am very interested about Rockhopper because we don't know too much about them. It's my belief that there is some corporate body who wishes to remain anonymous behind them. Markymar did some research and found coincidental addresses with a large Canadian oil company. Although this doesn't prove anything, I can't help thinking about smoke and fire relationships.

One last factor, the oil price.

I know we read a lot of bullish stuff on these boards but it seems to me that production is near full capacity and demand still growing strongly. I only got A level Economics but I can work out where the price is likely to go and this must help Desire.

Marky,

My forecast was based on news released to date. However like you I feel there's more to come (partners/rockhopper/takeover).

Lynnzal,

I will settle for your estimate every day of the week however based on current market sentiment i'm not convinced. The sale of First Calgary will no doubt go against us and I still feel the market has not forgiven us from before. This time round I think we will need to prove our resources before we get our just desserts.

However you look at des, the only way is up

Game on

Marrow

Just for clarity...and for those that have missed my previous posts. I seen near-term risk down with a target at 26p (if we lose support around 30.5/31.5p). After that I see resumption of the underlying bull-trend to the targets outlined (94.75p then 134p). Note that they are longer-term projections and would likely have a rig announcement and drilling announcement provide the catalyst for gains.
Lynnzal

Hi all

Thanks for your input everone !

Looks like weve had a small drop in todays price. The charts are new & the candles are red for down, green for up. We now have the open, high, low, volume & change on the charts. We have a tweezers bottom (the two candles that look the same on the bottom) on this chart, which indicates the bottom of a down trend. Todays candle is a spinning top which means there is indecision in the market. The charts are much easyier to read. Most UK idices were down, the US look like they might finnish up, this may give us a good start for Monday.

US indices finnished down..








Good Luck All

Eddie

Excellent input everybody and very interesting reading for a layman like me.

Time will tell!

Good luck all.

Like the the charts eddie

Marvellous charting Eddie. I like the blue 'oil slick ' running across !

Hi all

Thanks aur, markymar & berlingo.

Yes I painted the oil slick, just wondered who would spot it first.
Look on the candles as us, it'll give you a nice feeling swimming in all that oil !

The slick also represents bollinger bands. Over sold is at the bottom, over bought is at the top. Looks like we have room to move up a little more.


Good Luck All

Eddie

Thanks eddie..........breath of fresh air on this board

http://www.thisisnorthscotland.co.uk/displayNode.jsp?nodeId=149212&command=displayContent&sourceNode=150624&contentPK=12439698

A little moe free PR today

DESIRE IDENTIFIES OIL TARGETS
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09:00 - 13 May 2005
Desire Petroleum, the Aim-listed oil and gas explorer which focuses on the South Atlantic, said yesterday that it had identified 11 prospects in the North Falkland Basin with a potential of over two billion barrels of recoverable oil.

It said further interpretation of 3D seismic data had yielded a further five prospects, of which three could be tested at drilling locations already identified.

The company added that in addition, "numerous" less well-defined leads had been identified which would require further work before they could be classified as prospects.

Desire is planning a three-well drilling campaign and now all of the wells will have dual objectives. Its shares rose 1.44% yesterday to 35.25p

Hi all

Thanks markymar, fatoldgit

News on money am (XOM) suggest more up side to oil stocks.

Good Luck All

Eddie