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 Eddie, thanks for your ongoing work. I was wondering what you thought of the state of the RSI & stochastic indicators that you have mentioned in the past. We've had a decent run up from the 28.5p low and I am concerned about potential for a near-term pullback (let's call it better buying levels), as the momentum indicators are into overstretched territory. Also there is a potential 'dark cloud' - but that will hopefully change by the close.
My point being, if we are due a pullback, where do you think we will re-base?

I think 38p should be seen as a good level to buy. It's the rising trendline off the low and also the 60-day moving average. Plus in Elliott terms, the peak and 37.25p (3 Jun) should stay intact to allow an impulsive (5-legged) rally off 28.5p.

Regards
Lynnzal.

Hi all

Hi Lynnzal

Yes the momentum indicators are looking slightly streached. But I thought there was still room to manage over the 200 day moving average. Todays candle is a bearish counter attack, it does have bearish implications, but needs confirmation of trend reversal. The pattern isn't quite as bearish as dark cloud cover, ie the close hasn't gone to far into yesterdays close. This doesn't mean we don't have to be carefull. But cofirmation is needed. Des has made some great gains over the past few weeks, the bears will be looking to take some profit. I also think the fact this is just about the issue price, we may see more volume, the bulls will have to stand their ground. It looks like a big battle may take place. Lets hope the bulls have the upper hand.






Good Luck All

Eddie

Cheers Eddie.

Cheers for that Eddie and lynnzal good to see thoughts

Am quiet Bearish at moment as things going on in back ground and not a rig as its all hype.

After Calgary out of the way i dont know the time frame or if we have smiley faces at moment news will be with in the month and rig sorted

We need patience Marky.
Facts as we know them, at best we drill in 9 months
time crude at all time high and seems will remain that
way and even higher. The bad news a world resesion will drag
markets down so chicken and egg senario.
With crude prices high rigs not cheap or readily available,
we could well see a delay in drilling this
will not be good for the sp but the flip side is we
believe we have a better than average chance of finding
a good strike this will drive us higher, i am sure the board
are very much aware of this but after the issue, they have the
time as well as the money is in the bank.
Further questions need to be addressed the Brit Gov
for example, previous posts quote new warship being built to
police the area, i am sure there are a lot of hidden agendas
to be addressed which we are not a party to.
However as we know if you believe as i do we will strike.
This is not for widows or orfans but a waiting game
and will come good in time.
regards
HUSTLER

http://www.guardian.co.uk/oil/story/0,11319,1511846,00.html#article_continue

markymar
Good article, to which the simple answer is "Yes!"
The world generally hasn't caught onto the implications of this. They will do eventually and we will all suffer to some extent. Everything is so reliant on oil. The higher the price of oil becomes, the higher the price at the petrol pumps, up goes the cost of transport, up goes the cost of goods in the shops to cover these costs, some goods will start to disappear from shops or become scarce, up goes inflation (and interest rates?). Multiply this across the world and bang goes the world economy.
OK, so BP has at last admitted that oil will be >$40 this year. The reality is it will be way in excess of this. How about the average for 2006? $80?

The calagry presentation is now on Des's web site.

Rather large file size so no quick link.


http://www.desireplc.co.uk/index1.html

http://www.desireplc.co.uk/index1.html< Well found Capt

Ho Ho Ho, where's me Rum.

Jan triple decker with Liz and Beth looks on.

Lots of new wenches as well, all looks excellent.
--------------------------------------------------------------------------------

Capt

Good to see they have come clean with Jan yes the triple decker hmmm

Hi all

Some great updates, thanks !

Oh well DES went down a little again today. We havn't moved up through the 200 day moving average yet. But it's not all bad news. The presentation looks great. DES is still above the rising trend line. Todays candle does have bearish implications, British Bulls have cofirmed a sell. But I feel the rising trend line & the fibonacci (green line) should offer support. We are also close the the issue price, the golden cross is getting closer. DES also recently went up through a falling window, based on the theory old resistance becomes new support. The bulls could quite easily put des through the 200 day moving average very soon.






Good Luck All

Eddie

Phyllis maybe Moby Dick Markmar.

The elephant of the deep ;-)

It all looks verg good indeed Capt

Presentation looks good on Des site
Captguns.
If you can understand it
personally i dont as not trained,
but surmise if it has been put to the conventsion
experts will,hope the hype turns into a buying frenzy.
we all know it will given time.
Not many seats left on the rollercoaster, when full booked
and flying at 5.00 an hour per share, pre drill
pussy galore and all her mates will love you.
for sure for sure
regards
HUSTLER

Hi all

DES went down again today, stange volume, with only 5 buys. 2 of them at the end of the day. The bears didn't seem to sell very much either, only 21 sells. I think its a case of the bulls letting the bears bring the price back down a little, testing the how low they intend to go. The bulls seem to be picking up a few cheap stocks towards the end of the day, almost as if this is their intention. We are closer to the golden cross now. Also Lynnzal had mentioned a price of 0.3850p as a possable rally (see post 1444). Lynnzal could you please confirm if this still looks good ? DES has stopped at the rising trend line today. Lets hope we come back up off it tomorrow !







Good Luck All

Eddie

Eddie am sure that viagra is starting to work and its Friday tommorrow.

Hi Eddie, thanks for the daily commentary, can you remind me what the Grey area running right across the chart represents, why it is on your daily chart & how is used to predict future price movements, to me it looks like the last two times we breached the top of it we dropped rapidly to touch the bottom!

Thanks
Jon

Hi Eddie and thanks for your latest update. In my last posting (21 Jun - #1430) I mentioned my concern about a potential pullback. Well, we are now witnessing the unwinding of some of those longs. If I had to put a fundamental perspective on it, I would suggest that some of the previous buying was based on a potential rig announcement at Calgary and the resulting drift lower is due to lack of news. Anyway, on a technical note.I am still not unduly concerned with the slippage we have seen over the past few days.
If we look at a line chart of DES (closes only), the up-move from the 7 Jun higher low/close at 34p extended exactly 161.8% of the previous rally (from 30.5p to 36.25p), when it reached a closing high at 43.5p. This is classic Fibonacci/Elliott stuff for a third wave impulsive advance. As I mentioned before, impulsive waves come in fives (three up, with two corrective downs in between). Therefore, it looks like we are currently in the throws of a fourth wave correction (or perhaps part of an extended 3rd wave advance). Either way, for the underlying impulsive rally to remain intact, DES needs to stay above the peak of the first wave up. Therefore, the 37.25p peak (36.25p on closing basis) should act as support. Also of note is the convergence of the 20 and 60-day moving averages just over 37.5p that should also provide support.
I have stated before that a clear break above 48p (48.25p closing basis) would confirm the end of the corrective phase, as it would take the market through the base of the first wave down from the Jan 2005 peak (confirming the decline as a corrective three a,b,c lower). Once this happens, I will post some projections for where the rally will take us.
Downside risk? If we should break below 37.25p (close under 36.25p) then I will have to re-examine the decline from early March. It could mean that we re-try the recent lows and my original 26p objective sometime late July early August. However, for now in terms of timing and also the proximity of the 28.5p low to my 26p target, I am happy that we have seen the base.
Summary look for support in the 36.25p/37.25p area to underpin the market for a fresh test of the recent highs. Key topside level 48p.
If anyone would like clarification on what may appear to be a complicated piece of analysis, then please ask. If anyone knows how I can post an external chart it would be useful.

Jon B, the grey area denotes the upper and lower limits of 'Bollinger Bands'. I'll let Eddie explain - thanks Ed ;)

Regards to all Lynnzal

Hi all

Thanks for the explanation Lynnzal. All is looking well, have a hammer just at the 60 day moving average. This is roughly where Lynnzal is refering to (or should I say the low was exactly 0.3850p). The chart is slightly defferent as I have changed the 200 day moving average to 60 days. This also shows the 20 DMA just about to come through the 60 day moving average. This is called the golden cross. It is regarded as support and should trigger buying around this area. As Lynnzal says the recent rise may be due to expectation of a rig. So the market has got its eye on DES, and will give support. Just a matter of time.


Hi Jon B

As Lynnzal says the Bollingerbands is an area in which the share price would normaly move within. The upper & lower limmits. As volume increases, gets regular and there is lots of movement the bands open up more. As you can see on the bottom of the chart the bands have started to open up. But as the share price gets to the top, it is seen to be over bought. At this area we may see some selling, as the price drops again the bulls see the stock as over sold. Buying starts again.






Good Luck All

Eddie