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

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."

Hi everyone.
Good posts Markymar and all . Have faith , no one said its gonna be easy to drill!
Have a nice day
Berlingo

Hi Markymar,

First spreadbetting.

Essentially you are buying DES on margin. There are four settlement (or contract months) per year. These are MAR, JUN,SEP,DEC. At the moment you can deal 3 settlement months out..so DEC is as far as you can go. However, when JUN expires on 14th June, the spread firms will almost certainly quote for MAR 2006. Cityindex don't quote DES. Spreadex and Financial spreads do. I don't know about IG index as I haven't got an account with them.

Try looking at www.spreadex.com (or www.finspreads.com)

The site is reasonably friendly to navigate.

It shows as I write

DES June 34.37 37.19
DES Sep 34.86 37.73
Des Dec 35.37 38.31

The increase in price as you go out in time reflects the cost of money.


Spreadex are OK but you have to phone to deal whereas Finspreads you can deal on the net.

Spreadex may well grant you credit (probably not much) whereas Finspreads need cash up front for margin.

As an example if you buy 10 of DES DEC at 38.31, you have effectively bought 1000 shares in DES at that price. You can close the trade at any time in the intervening period, but if you hold to contract expiry they will settle at roughly the middle price at close of business on that day. If you want to continue to hold you can roll over your position at expiry.

So if DES DEC closed on expiry at 65p and you bought at 38.31 you would have made 65 - 38.31 = 26.69p x 1000 (shares) = 266.90.

If I were you i would contact either of these firms and ask for their blurb.

They are quite helpful and always on the look out for new clients.

You can deal in nearly all shares (including Europe and USA on finspreads) and also the main market indices (FTSE, DOW, DAX etc.) and currencies and commodities.

I would caution you a bit though...it is easy to get carried away with your views and back them on the spreadbetting front. Needless to say you have to be right to make money and when things you wrong they tend to go very wrong and you can easily get wiped out.

Essentially it is a way of trading on margin..ie. not putting all your cash up ..a sort of gearing effect.

If you do decide to go for it please take care and deal small to begin with until you are comfortable with it.

Give me a shout if you want more info...but their brochures are pretty good at explaining things fully, including the margins they require.


Now my nicknames.

Fatoldgit...I'm a tickle large round the tummy (but not too much) I'm quite old
(but not an old fogey) and my wife calls me a git (sometimes)

AWOK....I live in Woking (surrey) and used to commute to the City ( I was a stockbroker) for 25 years. The rail line in to Waterloo came from Portsmouth, Southampton or Exeter. Nobody from those places liked Woking as so many commuters got on the trains and crowded them out. They call us WOKS and so I decided on AWOK. Funny thing is all the toilets notices on those trains are defaced. They used to say "Please do not flush the toilet while the train is in a station"

Now they say "Please do not flush the toilet while the train is in the station..except Woking. So it is a bit of a shit town.(HeHeHe)

So now you know I am a soft southerner that drinks Tesco wine. Actually there is some good news. My Ma was from Batley so I'm half Yorkshire which means that maybe Ruuddy might talk to me!

I am planning to buy some MAR 2006 DES in the near future because they will probably still be available at about 39p next week and you have a lovely 9 month run wich might just encompass drilling. Downside 39p upside ...well who knows?
Regards FOG or AWOK

Awok thank you for the time to explain about spread betting and March does seem to be a good plan better than December and I will order a brochure and very interested in any other thought you have. If you want my email click on my name and stick your email in and I will send you mine.

Thank you once again for that post

Markymar

Hi all

Thanks for all the great updates.

Well DES went down a little today, volume was very low though. The 10 day moving average has just passed through the 20 DMA. It's the first time since 09/03/05, we need for the 10 DMA to stay on top. This is another good indicator for DES. We have a nice risisng support line forming. Todays candle is a little bearish, but hasn't pushed to far into yesterdays candle, the bulls may return tomorrow. The falling resistance will be at about 0.3200p tomorrow, it's looking further behind now.





Good Luck All

Eddie

You'll do for me AWOK aka FOG. There's too many serious,serious people in this world...you've got to have a laugh and a giggle when you can...but there is a time for it of course. As you know Batley used to be the mecca of the north of England...god's country I believe, I see where you get your sense of humour from...aye theres nowt so strange as folk, as we say up here ha ha take care lol.

http://216.239.59.104/search?q=cache:wRqR-wPIx3AJ:www.geordie.org.uk/translate.htm+geordie+phrases&hl=en

Morning all email not working at minute so cant reply so a little help for you Capt on your Geordie type in what you want to say.Ruddy your bang on there a sense of humour needed.Hope to try to get outlook working over weekend and will have crack.

Cheers Markymar
Eeeh man, ahm gannin te the booza.
No IRN bru for me. (made from Girders)

FOG, no problem too take a few beer's sometime in the future.
Just 4/5 I gave up inspecting table legs years ago.

Hi all

A little move up today, not much volume though. The 10 day moving average is quite well through the 20 DMA now. DES is getting further from the falling resistance line, which is at about 0.3200p now. A nice little support line is forming, DES has been following this line which runs from the low (shadow) of the hammer dated 25/05/05. DES is looking good !





Good Luck All

Eddie

Credit to Trebor Reg on iii.

Good article, especially the bit about the rig from Brazil.

Risk Capital Pours into Exploration

1,168 words
13 June 2005
International Oil Daily
English

Emboldened by persistently high oil prices, investors are pouring cash into new exploration companies targeting big discoveries in high-risk locales such as Africa and the Caspian.

Executives argue that this presents an important opportunity for start-ups to target exploration prospects shunned by larger companies -- but the trend has also attracted its share of controversial players.

Over the last 12 months, a raft of new exploration and production companies have been created on London's Alternative Investment Market (AIM), backed by retail and institutional investors willing to throw caution -- and cash -- to the wind for the chance of a big strike.

Some 17 oil and gas exploration companies floated on AIM in the second half of 2004, raising a total of 373.9 million ($680 million). By comparison, 2003 saw just two oil and gas firm float, raising a mere 27.8 million ($52 million).

This year, the trend has magnified. The five months from January to May saw another 14 issues, raising 115.77 million ($211 million). Of the top 10 largest AIM companies by market capitalization, four are now oil and gas explorers.

One surprising beneficiary of this burst of activity has been the Falkland Islands, which has attracted a number of small UK explorers to its barren shores. Three firms -- Borders and Southern, Falkland Oil & Gas (FOGL) and Desire Petroleum -- have together raised over 50 million ($91 million) from investors on AIM in recent months, specifically to find oil and gas in the rough and icy waters around this remote Southern Atlantic archipelago.

Despite previously being regarded as an exploration backwater, the area has caught the imagination of the market. FOGL shares have more than doubled since they listed in October, giving the firm a market value of around 73 million ($133 million). It plans to return to the market soon to raise more funds while interest is high (IOD Jun.1,p9).

The value of Borders and Southern stock has rise by around 40% since its listing just two weeks ago.

Desire and FOGL were among the most traded securities on AIM in recent months.

Another firm that is currently private but hopes to list on AIM in July is Rockhopper Exploration -- which typifies the entrepreneurial spirit that is the hallmark of the new breed of small explorers.

The firm was founded last year by a UK-based lawyer and property developer who had invested in some Falklands offshore acreage, and who contacted industry veteran Pierre Jungels with the view to forming an oil exploration company. In January Jungels -- who previously held a series of senior positions at Royal Dutch/Shell, Fina (since merged into Total) and British Gas before becoming chief executive of UK independent Enterprise Oil -- accepted the position of executive chairman of Rockhopper.

"I was interested in what he was trying to do because I truly believe the North Falkland Basin has huge potential," Jungels told International Oil Daily in an interview. "Fina, Lasmo, Amerada Hess and Shell had together drilled six wells back in the 1990s, five of which had various forms of oil and gas shows. So there is no doubt there is a working hydrocarbon environment, the question now is to find out how the oil has migrated through what looks like extremely large source rock, and whether it is producible."

Shell's former acreage -- licenses PLO32 and PLO33 -- were picked up 100% by Rockhopper this month, taking its North Falklands interests to six blocks (IOD Jun.8,p10). A 3-D seismic survey and a two-well drilling program were conducted on the Shell acreage during the 1990s, with gas shows at one well and oil shows at the other, but neither was tested.

"There is an old saying that a sure way to find oil is to go into old Shell acreage," Jungels quipped. "It is very likely that the Shell drillers would have wanted to stay and continue exploring, but the price of oil dropped below $10/bbl, and at that price, economic recovery from the Falklands would have been extremely difficult."

Rockover's economic analysis indicates that at $30 or $40/bbl, the story is very different, and even small finds of 40 million bbl could be profitably developed. "The Falklands administrative, legal and fiscal regimes are all very good," Jungels said, "And although the global rig market is very tight at the moment, we are in negotiations to bring a rig down from Brazil at a reasonable price." The Falkland Islands levies a 9% royalty on production and 25% corporation tax on profits.

The Northern Falkland Basin is around the same size as the central UK North Sea, with similar weather conditions and relatively shallow depths. In terms of exploration activity, Jungels views it as being the equivalent of the North Sea in the 1960s.

The much deeper southern basin is completely unexplored, and that is where FOGL and Australian partner Hardman Resources own interests in seven blocks.

With plans to carry out a new 3-D seismic survey and an exploration well on its ex-Shell blocks, plus a farm-in to three wells to be drilled soon by fellow UK explorer Desire Petroleum nearby, the financial commitments are piling up for Rockhopper. Plans to raise over 20 million ($36 million) through an AIM flotation as early as next month are now in motion. "It will be an exciting 20 months," Jungels said.

However, he remains wary of going to the market at a time when sentiment could be turning, following unsavory events at Regal Petroleum -- the most actively traded AIM stock in May -- and Sudan specialist White Nile Petroleum (IOD May23,p5).

Jungels admitted that "a bit of a bubble" had developed, with more nonspecialist investment funds moving in and investing in AIM exploration firms. "They've been a bit spooked by Regal and one or two other events, but the specialist funds and those that really know the sector are all still interested in investing in quality companies with good acreage and solid backgrounds," Jungels stated. "But they will be more discriminating now in their selection processes."

Regal's shares plummeted after the company announced in mid-May that its Kallirachi well offshore Greece -- earlier touted as a 1 billion barrel prospect -- had proved uncommercial. Negative sentiment from Regal hit other AIM-listed exploration stocks (IOD May19,p9).

Still, the widening of investor interest has created a rare window of opportunity for industry veterans to start up their own operations, raise a sizable amount of cash and take advantage of acreage opportunities that big integrated firms have either dismissed or overlooked.

"The small independents are always a bit quicker on their feet than the majors at identifying and acquiring under-explored acreage, and we have seen this in Mauritania, India, Kenya and many other places," Jungels said. "The big boys arrive late, farm in and take operatorship, but that's fine, that's the way the industry works."

Angus Rodger, London

RNS Number:4543N
Desire Petroleum PLC
13 June 2005


Desire Petroleum plc

Appointment of Non-executive Director

Desire Petroleum plc is pleased to announce the appointment of Mr Edward
Wisniewski as a non-executive Director from 13th June 2005. Mr Wisniewski, aged
44, is a Chartered Accountant with twelve years experience in the oil
exploration and production industry. After training with Touche Ross & Co he
joined Clyde Petroleum plc in 1988; from 1995 to 2000 he was the Finance Manager
of Clyde Petroleum's subsidiary in the Netherlands. He joined Alstec Ltd as
Financial Controller in 2000.

Also Eddie Oily post which looks good

http://media.corporate-ir.net/media_files/irol/72/72166/pdf/Pride_Fleet_Status_6-07-05-FINAL.pdf

As Robbie Williams would say 'She's the One'.

Available January 2006.

Morning all,

I like what I've read this morning and found a few more bob and topped up with a 5000 small lot!

fatoldgit
Agreed. Great prospects lie ahead. Sounds crazy, but i just hope the price rise holds off till Thurs - waiting for Halifax Sharebuilder account to be funded with 105!!! Been building DES for a while in this account which will be a nice little side-earner before long. I'm cleared out otherwise - scraping the barrel!
Apply potential share price multiples to DES as have been attributed to FOGL over the weekend and the sky is the limit.

AWOK , cheers for that and will get back soon.

Thanks Marky