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

Thanks Marky for the Oil Brat post,
info looks good if you can understand the tech lingo.
Main concern is the rig as quoted not a mention
at Calgary. But still hoping to give drilling results
in april 06 in Houston, major opportunity to pump up
the anti missed will be read as they can't find one
at the right price or timing, the market has already taken
this as negative note the dip last week the longer it
takes to announce the more down pressure the sp will have
to stand. If they anounce a delay the price will suffer more
we desperatly need news otherwise we will have to wait a
lot longer, we believe it's there but how long before we find
it we need the rig and soon.
regards
HUSTLER

I think they are waiting to get Rockhopper's fundraising, (due next month), out of the way before making an announcement about a rig.

Falklands oil explorer aims to list on market

IAIN DEY
CITY EDITOR


ROCKHOPPER Exploration, an oil firm planning to drill in the Falkland Islands, is seeking admission to the Alternative Investment Market next month after securing five heavyweight board appointments.

The company, which is led by former Enterprise Oil chief executive Pierre Jungels, is looking to raise 30m in a flotation that will value the business at 70m.

To help sell the issue, Jungels has recruited a handful of oil industry veterans and non-executive directors, including Chris Walton, the former finance director at easyJet.

The move comes in spite of the continued problems at Regal Petroleum which have sent shockwaves through the oil and gas exploration sector.

Jungels, who joined Rockhopper as executive chairman in January, said: "The North Falkland basin is hotting up. The interest is growing, wells are being drilled. It's at about the same stage the North Sea was at pre-1970."

He added: "We will be floating the company in July. We want to raise 30m and we are starting with a valuation of 40m before the new money.

"We've already done some pre-marketing to get the views of some large investors. They think that Regal and everything else is behind us now and companies with good management and good assets will get away without a problem.

"We've brought in strong financial expertise and strong industry expertise. We are fully compliant with all the regulations so that everyone can see we are 100% above board."

Rockhopper has been awarded a number of licences in the North Falkland basin, some of which were previously drilled by Shell in the 1990s. It has also farmed into a further prospect with Desire Petroleum.

Jungels said an independent consultancy commissioned to do research into Rockhopper's prospects estimated that they could hold 500 million barrels of risked reserves.

Analysts at Arden Partners, which is joint broker to the float along with Ambrian Partners, have said the company could be worth 80m. Desire, which has a similar portfolio of assets, is currently worth around 85m.

Aside from Jungels, the company is to be run by Rockhopper's co-founder Sam Moody, a former fund manager with AXA Equity & Law Investment Management and St Paul's Investment Management.

The recent appointments to the Rockhopper board are Keith Williams, the former exploration director at Kerr McGee's UK arm, who becomes exploration director; Peter Dixon-Clarke, formerly with Lloyds insurer Amlin, who becomes finance director; plus Dave Bodecott, Chris Walton and John Crowle.
http://business.scotsman.com/utilities.cfm?id=702812005

PEOPLE: Talent mined for new company

By Elaine Moore

Rockhopper Exploration Limited, a new UK-based oil and gas company, has announced a raft of board appointments in preparation for its flotation on Aim next month.

They include Chris Walton, former finance director of EasyJet, the budget airline, as a non-executive director, with chairmanship of the audit committee.

Other appointments are: Sam Moody, the co-founder, who becomes managing director; Keith Williams, exploration director; Peter Dixon-Clarke, finance director; Dave Bodecott, consultant to the board; and John Crowle, non-executive director and chair of the remuneration committee.

Pierre Jungels, who became executive chairman in January, said: "We want to show the market that Rockhopper is a serious company with a serious board with very strong corporate governance standards."

The flotation would help raise funds to proceed with an expanded exploration programme. This month, the company was awarded two licences formerly held by Shell in the North Falkland Basin, bringing its licences in the area to four.

Mr Jungels said: "It's a hugely prospective area. It has all the aspects of the North Sea in 1965." He believes reservoirs will be below the area explored by Shell. Rockhopper was founded in early 2004 with a focus on exploring for oil and gas in the Falklands.

The Office of Fair Trading has named Simon Priddis and Ali Nikpay senior directors in the competition enforcement division.

Mr Priddis, currently director of mergers, will oversee the organisation and prioritisation of cases.

Mr Nikpay, formerly of Clifford Chance, the law firm, moves from director of competition policy co-ordination to his new role as senior director of case scrutiny and policy and will lead the case review process.

The appointments are part of an ongoing project to make the OFT more effective. It was recently ranked joint second best competition regulator in Europe by a survey conducted in the Global Competition Review.

Elaine Moore

Hi all

Thanks to all for the updates.

Not such a good day again. Not much volume again with very few buys. I'm sure the announcment of a rig will change all that. DES is sitting just above the 60 day moving average with the 20 DMA about to go up through 60 DMA. This could be where we see some support. The market seems indecisive at the moment, so we'll just have see if the golden cross has any impact on the share price. We all know things are getting closer, so I dont think we will see much more retracement.






Good Luck All

Eddie

Nice posts marky and eddie.

oily 1 you may well be right with your rig announcement timing.

in any event,things look to be heating up with this rockhopper float.

regards and good luck all

Hi all,

I would have thought that a Rig Announcement would be before Rockhopper float as there has been speculation that Desire can not get a rig which this kind of news can not help Rockhopper raise the money they want too.

Just my personal thoughts but it would make sense to announce a rig and then the city know there going to drill and you can imagine the institution fighting for Rockhopper shares.

Who knows but we know Rockhopper and Desire are thick as thieves and am sure this has all be planned out well before Joe public or the city get to know and Phipps will start to play his aces.

Regards

Marky

Hi Marky.
So why didn't we sing from the roof top
at Calgary.
Because the rig is not in place - begining to
get the jitters.
regards
HUSTLER

Hi, Marky, Rockhopper now have a very serious board of fairly big hitters with alot of experience in their relevant fields. I'm sorry to say, but i think they put DES to shame in that regard.
I think the 30M for the Rockhopper float has already been agreed in principal with the intitutions involved.

If we were waiting for the Rockhopper float to be concluded before announcing a rig, then surely all those instutions involved would be insider trading and earning a fast mark up to their 30m.

Marky....mail

Interesting to see david bodecott www.bodecott.com now on the rockhopper board.No wonder he runs the southern basins down so much then!

It's true-the rockhopper board does seem to have a few big beasts,but don't forget they want in on our acreages so as far as I'm concerned that's good news.

But des also has a decent team,and don't forget peak well management-bit hitters in their field.

LOoking forward with interest to the next few months-if no rig is firthcoming for early 2006 then i will be buying more des on the inevitable dip in price.

But drill we will-and I fancy our chances.

REgards all.

Hi all

Just a small move up today, volume not great. The day started well with DES opening slighly up on yesterdays close. DES continued to move up then the bears had a go at pushing DES back down. Although not the bigest move up it may mark the bottom of this correction. The 20 day moving average is now on top of the 60 DMA. This has now given DES its golden cross. I did expect a bigger move up, but this may come tomorrow. Todays candle has suggested the market intends to move up, however the bears are still lurking. If DES closes above todays close, we can take this as confirmation.






Good Luck All

Eddie

cheers ed

eddieshare,

Excellent stuff as usual...I think Lynnzal is optimistic as well!

I've just ordered 4 cases of very good wines for delivery next week.

I have to pay for them on delivery.

I am pretty confident that my credit is good and may be extra good next week.

Factor this into your charts (joke - I know you can't)

Bought some more DES today and feeling super confident about my purchase.

Hope to be drinking our health quite soon

Regards The gonna be fatter soon old git

You are right in thinking that fatoldgit! While DES is above 37.25p (36.25p closing basis), I am optimistic. A close above 48.25p would convince me even more, that we are well on the road to recovery. I have been doing a few calculations and will be posting some price targets when I have it all completed.
Regards to all.
Lynnzal.

Hi all

Thanks aur, fatoldgit & Lynnzal.


The bulls tried to move DES up again today, but the bears were back in selling again. The main thing for today is the closing price didn't close under yesterdays open. This means the bulls still intend to move DES up. The volume was a little higher today. We will need to see a bit more action from the bulls before the bears will back off. I still feel this is the area at which the retracement may have finnished. So lets look forward to some bullish action tomorrow.

fatoldgit don't drink all that wine in one session !

Lynnzal hope you find out how to post an external chart. I think that would be great !






Good Luck All

Eddie

keep posting edd

look forward to your price targets lynnzal


regards all

Me 2
Excellent postings from Eddie , Lynnzal , Marky .
Regards Berlingo

If the link works, this should show you my wave count for DES since July 2003.

Well, the chart didn't seem to work so I'll see what the helpdesk gets back to me with.
Meanwhile, I have been taking a closer look at DES to see what we might expect over the coming sessions. I have mentioned 37.25p in one of my previous postings as being an important support level and that remains the case. While DES is above there we appear to have completed an 'a,b,c' correction from the 45.25p peak (21 Jun). That correction is currently labelled as wave 4 within the recovery rally from the 28.5p low and we are now beginning wave 5.
Now there are various ways in which the terminus of wave 5 can be projected and we can only know as the rally develops, which is the most likely to be correct. Having run through the various permutations however, I see the most likely peak coming in the 48.5p region (range 47.25/49.75p). Note 48.25p is key in confirming the end of the correction from 69.75p. If bullish momentum builds then it is possible that wave 5 will extend to the 55p area and at an extreme 65.5p before further consolidation is seen. A minimum objective for this current bull move is in the 44p area.
When the market breaks 48p I will update the longer term projections.
Regards all and thanks for all the input.
Lynnzal