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

Exelent performance by DES today, volume much better. For a while I thought DES would close over the falling window. The 200 day moving average not looking as far away now, we will see a golden cross soon also. It looks like the bulls intend to coninue the run. The supporting trend line that has been forming is still intact, DES has closed above this line since the hammer at the Fibonacci line. Reading the board, we have good news to come also. A lot to look forward to next week.







Good Luck All

Eddie

Thanks, Ediie....invaluable.........here's to Calgary!

Fatoldgit

A few botles of Tesco's finest is in order !

Watch out for the heat wave, don't get sunstroke.

Kind Regards

Eddie

Thanks as usual , Eddie.What`s with the early posting today? I`m not complaining, it`s great. I can go out early now.Anyone for Pimm`s?
Regards Berlingo

Thanks Eddie,

Bought a few at 36.5p this week and feeling like a classy unoaked Chardonnay at 6.99 a bottle.

Next year we will be drinking really good stuff.

Wine quality will measure Des price.

You can chart it if you want!!

Hi berlingo

I'm finding myself busy in the evenings with the twins, so not been able to post till they go to bed. I also finnish about mid day on Fridays.

Kind Regards

Eddie

Hi fatoldgit

Looks like I'll need a whopping chart.

Enjoy, but mind the liver. We've our spivs bash to go too !!

Kind Regards

Eddie

Bodecott update. http://bodecott.com/

Recent Activities: June 19th 2005 update.

FALKLAND ISLANDS EXPLORATION ACTIVITY

We have been involved in all areas of North Falkland exploration with several clients since before the first licensing round of 1996. Initial drilling results during 1998 were technically, but not commercially successful, i.e. oil was found but not produced. Five of the six wells drilled had shows of hydrocarbons, and the British Geological survey has estimated that between 10 and 100 Billion barrels of oil have been generated from the very rich lacustrine source rock prevalent in the deepest part of the basin.

At a meeting of the Petroleum Exploration Society in Aberdeen not too long ago, one member of the audience proclaimed that "oil will not be produced commercially off the Falklands". This was reminiscent of those who in the late 1960's said they would "drink every drop of oil produced north of 56 degrees in the North Sea". Both basins have already been proved petroliferous. The North Falkland Basin, although smaller than the North Sea in total, is in a similar state of exploration as the North sea was in the 1960's.

The second phase of Falkland Exploration is gathering momentum. We are closely involved with evaluations of all Falkland licence areas through the activities of two clients.

ROCKHOPPER EXPLORATION

During the past few months, Rockhopper Exploration (formerly Crude Oil & Gas) has moved rapidly to snap up a large spread of acreage in the North Falkland Basin. The licence areas approximate almost 6000 square kilometres, making the company the largest acreage holder in the North Falkland Basin, equivalent to more than 28 North Sea blocks. The evaluation of these areas has progressed rapidly using SMT Kingdom seismic interpretation software.

These are shallow water areas, with much of the area in less than 200 metres water depth, very shallow by world standards. Any exploration success here would be very quick to exploit. The potential commercial value of this acreage as a result is very high, let alone the rising oil price that seems to be heading in one direction above $50. Crude Oil is still cheap at the price relative to any other global commodity.

In order to get a piece of the upcoming drilling action, Rockhopper have farmed in to Desire Petroleum's best prospects in licences 3 and 4, where three wells will be drilled during 2006. These wells will be targeted at potential reservoirs between 2000 and 3000 metres within the oil window. There is no guarantee of success, but any shows will stimulate more activity and increase the value of the licences. Many wells were drilled in the North Sea Central Graben before oil shows were found.

Rockhopper's remaining 100%-owned prospects will be drilled further down the line, and are located within very modest water depths between 150 and 450 metres.

The North Falkland Basin is the only Falkland area with 3D seismic. There are two existing 3D surveys on Rockhopper licences, with two further surveys planned.

Rockhopper acreage is summarised as attractive for the following reasons:

Shallow waters are economically attractive for early success.
The last 1998 well drilled to 2960m. in only 11 days.
The basin is a 250 km. long Jurassic-Cretaceous Atlantic rift basin, half of which has never been drilled.
There is a proven MEGA-rich, thick, mature, lacustrine source rock.
Live oil and gas shows were proved in the 1998 wells.
The NFB is a proven petroliferous basin with a working hydrocarbon generation system.
Rockhopper is a partner in 3 wells in 2006.
Many varied plays, prospects and leads over a very wide area.
Shallow water, low cost drilling, benign environment.
The only Falkland area to have 3D seismic - 2 existing surveys and 2 planned.
Exploration stage is North Sea, 1965.
Same water depths as Central Graben, North Sea, similar weather.
Same geology as West Africa and Argentina.


DESIRE PETROLEUM

Desire is the Operator of the upcoming 2006 wells. The best of their eight or nine prospects in licences 3 and 4 will be drilled.

3d interpretation results from continuing work confirm attractive seismic amplitudes, DHI's (Direct Hydrocarbon Indicators) and structural-stratigraphic pre-source rock prospects. These prospects are adjacent to a mature source-rock kitchen which contains one of the richest sapropelic (oil-prone) source rocks known in the world. Drilling beneath the Early Cretaceous source rock is analogous to drilling beneath the Kimmeridge Clay source rock of the North Sea insofar as some of the oil reservoirs are located beneath the source rock. The next three wells will test this untested pre-source play.

We have also assisted Desire recently in researching workstation hardware and software requirements. They are another operator who have opted for Kingdom software.


COMPETITOR ACTIVITY

Additional large acreage spreads southeast of the islands have been licensed recently by FOGL and Borders & Southern. These are all high risk frontier areas, having scant previous seismic information, no wells, deep water and a harsh climate. Any potential in this area might be ten or more years down the line from the North Falkland Basin - and with much bigger risks. 2d seismic has recently been acquired but the licensees are not yet at the 3D or drilling phase as further north.

The main objective reservoir is one that is also present in the North Falkland Basin, but the source rocks are not the rich lacustrine shales, as a marine section is expected.

Recent share price movements suggest that investors are actively embracing the high-risk scenario of the South Falklands deep water areas. This can only have a positive knock-on effect for the North Falkland Graben which is much lower risk and with very similar geology and structure in shallow waters.

As the recent shake-out in AIM energy and resources stocks proceeds, the Desire and Rockhopper licence acreage will stand out as quality and relatively low risk for the area.

Thanks Captguns
Great post, when the mayhem generally over the
Falklands gets fully focused on quality
the north is where it is most likely to happen.
Which leaves Des way out in front of the rest.
all the best
HUSTLER

Agreed there Hustler MMs getting a kicking today and price should move if not will put boots on a kick them myself

http://www.scoop.co.nz/stories/WO0506/S00281.htm

hi fatoldgit

thanks for your reply. got a few questions i wouldn't mind bouncing off you if you have the time.
regarding the spreadbet i intend to open my understanding is that for every penny rise or fall eqates to 1000, additionally they require 20k margin.
1. If des go to 80 next week (i wish) if i closed the position would the return be 80-45 (price quoted)= 35+20 (return of margin)?
2. Is there a maximum payout(as at some bookies)?
3. If the bet goes cash positive will the margin still be held until the position is closed?

Any advice will be gratefully received

marrow

Marrow, a quick answer


1 yes
2 no
3 you can take money out without effecting the margin if you are in profit before you close the position.

I'm sure fatoldgit will give a more full answer but I find spreadbets are good as long as you have plenty of margin and spare cash incase the price moves against you unexpectedly and they ask for more margin.

luckyswimmer

Marrow, was it your spreadbet that moved the share price in the last few minutes? Luckyswimmer

luckyswimmer

thanks for your answers and unfortunately cash is tied up till wed. bugger!!!

kind regards

marrow

Hi all

A great day again. DES is now up at the 200 day moving average. It looks set to pass through this tomorrow. The momentum should build as the the bulls take DES through the 200 DMA, we shaould also get support when the golden cross takes place, this should be in the next few days. Also news of a rig will give DES a boost.







Good Luck All

Eddie

Cheers Eddie,

What happens with the Golden cross?

Hi markymar

The golden cross is when the 20 day moving average comes up through the 60 day MA. This is seen as a buy signal, as is the candles moving up through the 200 DMA. Both of these should happen soon (all being well).


Kind Regards

Eddie

Cheers Eddie
Good chart.
Good post Captguns.
Golden cross.
Price is rising.
May it all continue
now all we need is a rig,
it all seems to be coming together nicely
all the best
HUSTLER

Thankyou for that Eddie can you see my Range Rover in them charts

Hustler I dont think Capt will be posting as computer has gone bang for a bit so a bit missed input there.