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.rigzone.com/news/article_pf.asp?a_id=22949

Repsol YPF, Enarsa to Invest US$129mn in Exploration Offshore Argentina
Business News Americas (BNamericas.com) 6/3/2005
URL: http://www.rigzone.com/news/article.asp?a_id=22949
Spanish oil company Repsol YPF (NYSE: REP) plans to invest US$129mn in seismic studies and drilling in offshore Argentina in partnership with state oil company Enarsa, Repsol YPF chairman Antonio Brufau announced.

Brufau made the comments after meeting with Argentina's President Ntor Kirchner to present the company's 2005-2009 investment plan, which includes US$6.5bn in Argentina.

Offshore exploration in Argentina "is one of our great opportunities, we believe there is still gas and liquids to be found in Argentina, but our main interest is to collaborate with Enarsa," Brufau told reporters.

If the seismic and drilling is successful investment could be "very much higher" than the US$129mn budgeted for the initial exploration program, he added.

Enarsa was created by the Argentine government in 2004 to increase the state's presence in the hydrocarbons sector and monitor the oil and gas activities of foreign companies in the country. The company owns all the rights to offshore exploration in Argentine waters

Cheers Markymar
PRESS RELEASE
6 JUNE 2005
Rockhopper Exploration awarded licences in North Falkland Basin
Rockhopper Exploration Limited has announced that it has been awarded two licences
offshore the Falkland Islands, adding 1,620 square kilometres to its portfolio in the
region.
The licences, PLO32 and PLO33, are located in the North Falkland Basin and were
formerly held by Shell. A 3D seismic survey and two-well drilling programme were
conducted on the acreage during the 1990s, with oil and gas shows in one well and live
oil shows at the surface in the other neither well was tested. Rockhopper plans to
conduct an extensive 3D seismic survey over the acreage during the next two years.
Pierre Jungels, Executive Chairman, commented: We are pleased to have continued to
grow our portfolio and broaden the number of potential drilling opportunities for the
company. This is very different acreage to our existing licences in terms of play types
and the stage of exploration the licence has reached. We are in discussion with a
number of seismic contractors about beginning work on our existing acreage and are
excited about the drilling programme we are undertaking with Desire. We believe that
both the prospectivity of the acreage we hold and the highly favourable fiscal regime in
place in the Islands will enable us to create significant value for our investors.

http://www.rockhopperexploration.co.uk/press/rockhopper050606.pdf

http://www.rockhopperexploration.co.uk/press/rockhopper050606.pdf

Hi all

Thanks for all the postings. Much appreciated.

DES had a small move down today, volume not very high, more sells than buys unfortunatly. The candle has a small red body which does have some bearish implications. Tomorrows candle may indicate which direction DES will move next. DES could consolidate at this level for a while. DES is still above the falling resistance line, for the third day. The bulls will need to respond to any more selling or risk falling below the resistance line. Lets hope for a bull day tomorrow !







Good Luck All

Eddie

Eddie that graph looks like a willie, it maybe needs some viagra?

Hi markymar

Yes & when DES gets its viagra well all feel like we've had some !

Don't forget DES is still up 373% from 08/08/03.

Kind Regards

Eddie

Hi all..
Fatoldgit asked if I had any thoughts on the current state of play with DES and I have taken a look at the charts to see if I can add any further value to my previous comments. My original target was at 26.5p and while that still remains the case, it is possible that we have already seen the low at 28.5p. Certainly the timing of that low fits nicely with Fibonacci time sequence. However, I would need to see further recovery through 38.5p (5 May high & 23.6% retrace of the decline from the 69.75p high) and then 41.5p (18 Apr gap & bear channel top) before I can get my hopes up.
For now, over-stretched stochastics (9-day) are beginning to unwind and although not a signal for a top, they do suggest sideways/lower consolidation. With the bear channel still intact I am wary that we may see a last push to the downside (especially if there is no news). This could then fulfil my 26.5p objective.
Timing is always the hardest thing to predict, but if pushed I would stick my neck out and say that the base (if not already seen) would be achieved sometime towards the end of July (based on Fibonacci time sequence).
Strategy wise I remain a buyer of dips under 30p.
Lynnzal

Hi all

DES moved down again, volume was low again, very few buys. DES is still above the falling resistance line, this has been for four consecutive days now. DES needs a bullish day tomorrow to stay above this resistance line. The 20 day moving average has just passed through the resistance line with the 10 day about to pass through also. These are good indicators. But nothing is cast in stone. As Lynnzal says it is hard to predict the bottom. But all being well the hammer dated 25/05/05 should give support.






Good Luck All

Eddie

ARGOS RESOURCES LIMITED

EXTENSION TO EXPLORATION LICENSE IN TRANCHE A, NORTH FALKLANDS BASIN

Argos Resources Limited (Argos Resources or the Company), is pleased to announce the extension of its exploration license for Tranche A in the North Falklands Basin. The extension of the license until November 2006 by Falklands Islands Department of Mineral Resources is on the same commercial terms as previously agreed. The Company plans to shoot a 3D seismic programme within the Tranche during 2006.

John Hogan, newly-appointed Chief Executive of Argos Resources, said:

We are delighted that the Falkland Islands Government has agreed to extend the license which will allow Argos to pursue its programme for Tranche A. The Tranche contains several structural and stratigraphic prospects with multi million barrel reserves potential in play types that were not tested during the previous drilling campaign of 1998. Argos will conduct a 3D seismic programme in 2006 to further define and rank these prospects in readiness for later drilling.



A drilling campaign covering at least 3 wells has already been announced for the North Falklands Basin, commencing early in 2006. This extension will allow Argos to benefit from the results of such drilling and be in a position to respond promptly to any successes.



Enquiries to:

John Hogan

Argos Resources Limited Tel: 07831 749271

To Lynnzal,
Thanks so much for your update.............most useful to me and my broad strategy is in line with yours.

Eddieshare.....Thanks for the usual chart

Capt Guns......this looks like extraordinarily good news..... if Argos shoot some 3D and DES are successful when they drill a bit of rig sharing for a few more holes might take place. I'm no oil person but does this make sense?

Fatoldgit aka awok

Not really (AWOK), They would need more seismic data to drill again.
The same applies to Rockhopper IMHO etc.

In the future then yes. (Late 2006)
But given the time frame of early 2006 by DES and the extra logistics involved I'd only give it a 2% chance.

Thanks Capt......I'm a dreamer.......but to own DES you need to be I suppose.

Still the more prospectors the better!!!!

Lots of interest now in the Falklands,but it is Desire who will lead the assault,assisted by Rockhopper.

Despite the optimism from other explorers it will still be years,in some cases, before drilling. Des has the best prospects as the situation stands at the moment,and des who will drill and hopefully,discover hydrocarbons first.

What a lovely morning, sunny here in London and not a single sale of Des yet amongst all the buying. Maybe the market has finally woken up to the fact that a lot of companies are preparing positions in the waters around the Falklands but only Desire can do anything soon.

Hi Lucky,

Thanks for mail,38p as i speak and i think we may soon be up in the 40s soon as far to cheap and undervalued this share is.AWOK :}

Hi All
Nice looking staircase forming.Lets hope it goes all the way up for the rest of today. Come on DES , keep on climbing.
Regards
Berlingo

If DES can go up 8% on comments from the Argos chairman about an un-named oil company drilling early next year (obviously DES!)one can only guess at the potential rise when a rig is announced! And then when the drill bit goes in...?
Even if DES drifts down after today its been a very nice taster of things to come. On days like this 70p doesn't seem that far away after all! Time left to get in at these low levels is running out rapidly.

FAO, Lynnzal

http://www.falklands.gov.fk/dmr/legislation.htm

Thanks Capt, lots of very interesting and useful information. Your knowledge is greatly appreciated.

Hi Marky........yes this is too cheap, managed to pick up a few cheapies recently but cash restraints prohibit further purchases just at the moment. Considering selling some biotechs I've got that have done quite well and re-investing.

I just get a bit worried about eggs and baskets arguments.......it doesn't seem to worry JPDM though...I see he's still at it!

And he's found out about spread betting...I've got some June DES some SEP Des and some DEC DES so I have some more exposure but you have to know what you are doing with spread betting.

I bought myself a JAG with one months profits two years ago and haven't really made a penny since ...in fact I have dribbled a few grand away and subsequently found out that the car drinks more than I do...and that's quite a lot, so I almost regret buying it now.

On the drinking front, I bet I can't keep up with the Capt. though. I thought I was an old pro but I just have this suspicion that in a match I would be under the table first.

Do you ever get down to the smoke? Let me know if you are coming and perhaps we can get Capt. Ruuddy and a few others of like mind out for a session.

AWOK, fatoldgit