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

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

Awok it would be great to all meet up sometime i know Eddie was up for the party but we all live diffrent parts of Uk am Newcastle way and Capt is in Kent, Ruddy live in Cookoo land and is locked up now again because he is a thug and pinchers Easter Eggs off the Kids.

Spread betting been meaning to look in to that dont fully understand it but you could gives the crack about it if you get time.I read the post on iii about spread betting today.

Any way good to see blue sky today and waiting for that lazy g** Eddie to post his charts up.Eddie i lost all contacts in outlook when had to re-install so send me so post.

Hiya Marky, fatoldgit...I can't call you fatoldgit,they'll lock me up again. I think that willy might have had a bit of viagra today marky.ha ha. Awok, a session in the smoke sounds good to me...am sure it can be arranged one day. Quick question, has any body else had problems with ad_fn today? and Marky that hoodie is just perfect for those half-hinched easter eggs!!

Hi all

Thanks for all the great updates.

DES made great ground today, higher volume, mostly buys. A little bit of resistance or cuation towards the end of the session. DES is in a great position now the 20 day moving average & the 10 day moving average have passed through the falling resistance line. The 10 day moving average & 20 DMA both climbing & look like they may cross soon (10 DMA on top). The falling resistance is now at about 0.3280p. DES is clear of the resistance line (but not out of the woods completley). The 200 DMA is at 0.4320p, with a small falling window just before it, these may cause a bit of resistance \ consolidation before moving through it. When DES moves through the 200 DMA this will add fuel to the fire.





Good Luck All

Eddie

Thanks all, Getting interesting here I think...I am a dreamer but one of these days someone big in the oil front is gonna join in ....we could use that vote of confidence. The phrase that comes to mind is "critical mass"...the best thing is that DES go first so in my view all the investors in FOGL, Borders and Southerns, Argos and Rockhopper (if it floats) might want a bit of DES as well.

Ruuddy...had trouble with AD-FN myself but haven't checked on this session...I've been sticking a couple of botts of Tesco cheap white down my gregory as its a lovely evening. Next year it will be wine of a better quality.

Just noticed that oil has dumped a dollar in New York but above $50 who cares?

I've just realised that I used to know one of the directors of Border and Southerns. We weren't best of mates but I may contact him to see what he thinks.

Ruuddy, I don't need too much of an excuse for a drinking session but I don't know where cookoo land is...Could it be near the local looneybin?

Marky, I've been spread betting for 15 years...about when it started. I'll give a whizz on it in the next few days..It is dangerous but if you like to have a spin at the wheel of fortune it is a cheap way in and no tax.

The oldfatgit aka awok

Hi all,

Awok what made you think of that name let a lone fatoldgit and yes get in touch with that freind of yours as they all seem to know each other over there.

AD.F been down most of the day Ruddy i put the Spive girls up and wor lass in a toon top but only i no what she looks like with out the top on.

This spread betting i would love to here more as the down side after reading iii is little in Desire 15p if all went wrong no rig ect, ect but the upside is huge at 200 a point, i could quiet fancy going 500 a point if it drops near 30p again and been looking at spreadex.com.
Awok how much of a gamble you think it is for Desire?

We both know before drilling lets say the share price will be 1 + and that is me thinking the worst price possible so some big money at 500 a point can be made or am i wrong?

Eddie cheers for mail and graph and it does still look like a willie been on brown ale ,or could be the beared ladys Ruddy with wiskers on it.

There you go Marky, viagrafication setting in I think...cheers Eddie. Awok the loonie bin wants me but its full up here in Harrogate...I think its something to do with the water...but seriously they've shut them alldown up here...they're all on the streets having fun. I hear they havn't shut them down up Newcastle way though...mentioning no names.lol

Ha ha, just read your post Marky... you can see typing is not one my better fortes The wor lass, I don't think I need to see anymore...as ZZ probably hears a lot; two scoops please and can you put a flake in please.lol

Hi all

DES gets a mention in shares mag. 5 day gainers.

Good Luck All

Eddie

Hi all, it's good to see the recent recovery in DES getting everyone in good spirits.
I too have been interested in the spread betting for DES and wondered if anyone had a view about CFD's? As I understand they offer tax benefits and can be open ended with regards to settlement dates.
Back to DES, I'd really love to see a break above that 200-day MA that Eddie is talking about. There are various resistances around that area and it would do a lot towards improving the overall picture.
Lynnzal

Argos plans North Falkland 3D seismic survey


By OGJ editors

HOUSTON, June 8 -- Argos Resources Ltd. will shoot a marine 3D seismic survey next year on North Falkland basin acreage under an exploration license extended until November 2006 by the Falkland Island government.

The survey will cover structural and stratigraphic prospects not tested in a 1998 drilling program in the Tranche A area north of the Falklands.

A drilling campaign with a minimum of three wells is scheduled to begin early next year on Tranche A, in which Argos holds a 100% interest.

http://ogj.pennnet.com/articles/article_display.cfm?Section=ONART&C=ExplD&ARTICLE_ID=229572&p=7

Morning all,Looks like more spin from FOGL again amd the artical is wrong as there was oil incounted.

North Falkland Basin Hydrocarbon Indications
At least 2 petroleum systems have been identified in the drilled area of the North Falkland Basin.
Live oil has been recovered to surface from a mature lacustrine source rock
Wet gas has been recovered from a deeper, fluvio-lacustrine source rock.
The deeper, gas-prone source rock may be in the oil window further south in the North Falkland Basin.
A deep source appears also to have generated oil slicks observed on SARs in the area north of the wells.

FROM THE FT TODAY

The last time British investors got excited about the prospect of finding oil in the freezing waters around the Falkland Islands, some suggested the 2,400 inhabitants of the remote islands were about to become the "sheikhs of the south Atlantic".

Sadly it came to naught, when six expensive exploration wells - drilled by a consortium of companies that included Royal Dutch/Shell, Amerada Hess and Lasmo in the late 1990s - failed to produce commercial flows of oil.

But this unhappy experience has done nothing to damp the enthusiasm of a group of small UK companies, which remain convinced the area could contain huge oil and gas deposits.

Buoyed by crude prices of more than Dollars 50 a barrel, Falkland Oil & Gas, Borders & Southern and Desire Petroleum - which was involved in the unsuccessful drilling campaigns of 1998 - have persuaded investors to fork out tens of millions of pounds to place another bet on the islands.

Gero Farruggio, head of the Latin America team at Wood Mackenzie, the industry consultancy, says the upsurge in interest is as reliant on "hype" as it is on hard data.

"In the north Falklands basin (where Desire is active) you had the six wells in 1998, all of which were dry. And the southern basin (where Falkland Oil & Gas and Borders operate) is undrilled so you couldn't even use the word 'embryonic' to describe it."

The companies have experienced sharp share price rises on the back of excitement about possible finds, even though all they have as proof is geological maps created from seismic surveys.

Falkland Oil & Gas shares have more than doubled since they listed on Aim in October. Borders & Southern Petroleum shares have risen more than 40 per cent since listing on Aim two weeks ago.

And even Desire, whose shares fell sharply after hitting a record 416p in 1998 on earlier hopes of a Falklands find, have doubled in the past year.

John Armstrong, executive chairman of Falkland Oil & Gas, who helped build Santos of Australia into a multi-billion dollar oil and gas company, argues that the 9,450km of seismic data gathered by his team show there is a "real possibility we have found a lot of oil".

The company has identified 130 leads, some of which could contain 200m to 600m barrels of oil, he says. MBA Petroleum, an independent consultant, estimates the licence area could hold 1.2bn barrels of oil.

But while such optimism could be justified eventually - the presence of large rock structures would support hydrocarbons - there is no certainty that you can get oil out of the ground until you drill a well. Falklands Oil & Gas needs to find a much bigger partner with deep pockets before it can start to drill.

Mr Armstrong has received interest from what he describes as the "very biggest" companies and hopes to strike a deal within six to nine months.

Desire plans three wells, after raising Pounds 25m this year, but is struggling to find a drilling rig at a time when high oil prices make competition fierce for oil services.

The Falkland Islands are extremely remote, so getting equipment there is expensive.

There is no infrastructure to support drilling or the development of a field. Borgny Dolphin, the rig used by Shell and others in 1998, took Dollars 27m (Pounds 14.8m) and 72 days just to tow the 7,585 nautical miles from Aberdeen in Scotland.

Jonathan Copus, analyst at Investec and former Shell geologist, says Borders has an impressive management team, with the chief executive and finance director both ex-directors at BHP Billiton, the international mining company.

Harry Dobson, the mining entrepreneur who sold his 6.5 per cent share in Manchester United to Malcolm Glazer for Pounds 30m, is chairman of Borders and owns a 19 per cent stake.

Mr Copus says there is evidence the southern basin has a different "thermal" history from the north, where some geologists suspect the organic matter had not heated up enough to produce hydrocarbons.

But he adds: "The problem in the south is that it is much deeper water (between 500 and 1,500 metres) and the economics change."

Shell and Amerada rejected the southern basin in favour of the north when they did their drilling.

Mr Farruggio at Wood Mackenzie says drilling in these depths in such a remote part of the world will represent a huge challenge to even the biggest oil companies.

The economics are only likely to become compelling in the event of a large find, even though the fiscal regime is benign with a 9 per cent royalty and a 25 per cent tax take.

Worsening relations between Britain and Argentina (which call the Falklands Las Malvinas and claim sovereignty) are also unlikely to help, and make the availability of equipment even more unlikely.

While Mr Armstrong also holds out the possibility of gas finds, others argue that this would be worthless in such a remote region.

"There is a lot of hot air about, so it would be ironic if they found gas," says Mr Farruggio

http://www.bgs.ac.uk/falklands-oil/NFB/NFBdefault.htmhttp://www.bgs.ac.uk/falklands-oil/NFB/NFBdefault.htm

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



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.



Ends.
http://www.falklandnews.com/public/story.cfm?get=3286&source=2

A little bit on Peak Group but an example of what they do and finding a rig they can do as they have clout.Plenty of reading for you Eddie tonight.
Cheers Ruddy will get back later.

Peak Group Secures Australian Well Management Contract
The Peak Group 6/8/2005
URL: http://www.rigzone.com/news/article.asp?a_id=23041
The Peak Group has secured a major contract with Australian oil exploration company AED Oil Limited for the provision of its well construction project management and procurement services. Peak has also been contracted to provide a drilling rig for AED's production and exploration drilling campaign in the Timor Sea.

The Peak Group will deliver a complete well project management service for three wells located in AED's permit area, AC-P-22, within the Ashmore Cartier area of the Vulcan Sub-Basin, in the Bonaparte basin. It is approximately 80 kilometers southwest of the commercial Jabiru and Challis fields.

The job will include detailed well design, tendering and contracting for all services, execution of the drilling programme including materials and logistics, project completion and operations wrap-up. The Peak Group will also provide a semi-submersible drilling rig, the 'Stena Clyde', and act as project service manager for the drilling in AED's permit area.

Planning and operations management services will be conducted in Melbourne in close collaboration with AED Oil and Upstream. Drilling activity is expected to commence in the second half of 2005 and the contract value is in the region of AUS $1million.

Bob Lyons, managing director of Peak Well Management, The Peak Group's well management division, said: "This is a landmark contract win for Peak and strengthens our position in Australia and Asia Pacific. A key part of the selection criteria was our ability to secure a rig in a highly competitive market. We look forward to growing and enhancing our relationship with AED throughout the development of this project."

The Peak Group's business development director, Hugh Mackay, said: "This contract strengthens our portfolio of clients and enhances Peak Well Management's reputation as a key provider of fully integrated well construction services.

"We are delighted to be playing a significant role in a fast track development project. It has been our strategy to grow our business servicing development projects, we anticipate that this will be an area of future growth for the industry and it builds on our experience gained in development projects in the UK, Iran and West Africa.

"The Peak Group holds the contract for the Stena Clyde and we intend to create a multi-client programme for the rig in Australia. This will bring the benefits and synergies of participation in a larger programme to all our clients. Peak has successfully created multi-client programmes in the UK and we intend to do the same in Australia and West Africa "

Managing director of AED Oil Limited, Dr Ken Tregonning, said: "Signing the contract is an important achievement for us and we are delighted to have reached this agreement with Peak. Securing the drilling rig is a major step in the relatively short history of AED and will enable drilling to start within the scheduled timetable and on terms consistent with the estimated project costs."