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://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

http://www.bgs.ac.uk/falklands-oil/download/download_files/news.pdf


BGS news letter up date for June

Good to have a bit crack AWOK

Oil doing nicely

Hi all

Thanks for the updates, very interesting.


Today DES went down a little, volume again not very high. The candles are still following the support line that is forming. The 10 day moving average is moving further away up from the 20 DMA. The next moving average DES has to go through is the 60 DMA. By Friday this moving average will be at about 0.3750p, I think DES should go through this (candles on top of the MA). The next move should be the 20 DMA should pass through the 60 DMA, this will give us a golden cross. This is regarded as a good buying indicator. Then crossing the 200 DMA (candles on top of the 200 DMA) should give DES another boost. Blue sky's the limit after that !




Good Luck All

Eddie

cheers Eddie---viagra i think next week or so.

2 nice charts for Lynnzal and Eddie. Keep up the good work.

North falklands basin area. DESIRE + Rockhopper
http://buoyweather.com/wxnav.jsp?region=AR&program=nww3BW1&grb=nww3&latitude=-51.0&longitude=-58.75&zone=-4&units=e

South Falklands
FOGL + Borders.

http://buoyweather.com/wxnav.jsp?region=AR&program=nww3BW1&grb=nww3&latitude=-53.0&longitude=-57.5&zone=-4&units=e

Waves 10ft and above make for very, very poor seismic data quality. IMHO.

Thanks for the info Capt!
Having looked at your charts I know where I would rather be...things certainly look calmer in NFB, as reflected by the share price? Nudging important resistance areas now in the 38.5/41.5p area, with a nice near-term bull channel developing (support in the 35.5p/34.0p area - rising trendline/7 Jun higher low).

Hi all,

Bulls well in charge glad i popped home now, but will we see 40p

I think the bull channel will run into Calagry.
There is a bit of a round up going on there next week.
Bound to be some "Texas Longhorn's" there as well, but I do feel the
ex-Clyde "Aberdeen Angus" will take the prize.

I'm rather hoping for a bit of a stampede myself.

I feel your right Capt i have that buzzing feeling.

I feel your right Capt i have that buzzing feeling.

Cheers Eddie/lynnzal. I hear it's pretty hot over Calgary way Capt. at the moment. Nothing like a bit of stampeding to raise the temperature over there even more. I see BP have said today that there wasn't enough oil found last year...news item on 3i and Marky,quick tip for a good night's sleep, so you don't go a wondering...drink 9 bottles of nuki brown instead of 10.lol