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

By Tom Cahill
July 14 (Bloomberg) -- Pierre Jungels, who ran Enterprise Oil
Plc when it was the U.K.'s biggest independent oil producer, is
back in the hunt with a prospect he says has been overlooked:
north of the Falkland Islands in the south Atlantic.
Jungels, now executive chairman of Rockhopper Exploration
Plc, this week started meetings with investors to raise 30 million
pounds ($52.8 million) in an initial public offering on London's
Alternative Investment Market. The proceeds will fund drilling and
seismic surveys north of the Falklands, remote islands with
roughly one resident for every 240 sheep. Argentina and the U.K.
fought a war over the islands in 1982.
Jungels was chief executive of Enterprise for four years
until October 2001, six months before Royal Dutch/Shell Group
bought Enterprise for $6.2 billion. Rockhopper's prospects include
two blocks Shell explored in 1998, when oil prices on the New York
Mercantile Exchange sank as low as $10.35 a barrel, compared with
more than $60 today.
``The Shell geologists wanted to stay, but they were barred
by management by what was then a $10 a barrel oil price,''
Jungels, 61, told investors yesterday at a lunch at the Hotel
Lotti, a block from the Tuileries Gardens in central Paris.
``There's a saying in the oil exploration industry: `If you want
to find oil buy ex-Shell acreage.'''
Shell spokesman Simon Buerk said the company couldn't
immediately comment on its activities in Argentina.
The British Geological Service estimates that as many as 60
billion barrels of oil may be generated in the North Falkland
Basin, where Rockhopper has its exploration blocks. The previous
six wells drilled there focused on its center and not the margins
and deeper levels where Jungels said Rockhopper plans to explore.

Penguins' Home

``It could be another basin the size of the central North
Sea,'' Jungels said in an interview. ``When we were at $10 oil,
Shell said `Let's cut back and focus on core operations.' Now that
we're north of $50 they might wish they could look again.''
Since leaving Enterprise, Jungels has been president of the
U.K.'s Institute of Petroleum and chairman of Offshore Hydrocarbon
Mapping, a surveying company that listed on London's AIM market in
March 2004.
In February, he joined Rockhopper, named after the penguins
that make their home on the Falklands. The Salisbury, U.K.-based
group controls four exploration licenses covering 5,820 square
kilometers and has signed a farm-in agreement for two more
licenses with Desire Petroleum Plc, an explorer based in
Worcestershire, England.
Jungels said that as a pure exploration company its prospects
range from zero to ``billions.''
``This is for the brave. You could lose everything,'' Jungels
said in the interview. ``There are not that many virgin areas
left, this is one of them. And if it's not truly virgin territory,
before it was just tickled.''

--Editors: Osborne, Coulter

My thanks too to Eddie, Lynnzal and Marky. Particularly find all the charts and comment useful. Also this is a much friendlier board.

Regards the fat one

Hi all

Well thank you all for your comments & postings. Much appreciated.

Today we had slightly less volume than yesterday, the bears managed to push DES down a little. As lynnzal says there may be pull backs, I say this because of the falling window which appeared in mid April (Friday 15th). DES traded up above this window on intraday today. The market may have been just testing this for tomorrow, just to see how strong the bears are. Although todays candle does have bearish implications, we will need to get confirmation tomorrow. I think the bulls are leading the bears into a false sence of security, letting them take DES down a little today before a push up again tomorrow. DES has made good gains since the its announcement on block F, it would appear the general consesus is to continue up.





Good Luck All

Eddie

Nice post again marky

well jungels always seems very upbeat and that's a positive sign

keep posting gentlemen:marky, your credentials are well known on maoneyam,iii and advfn;lynnzal and eddie, your posts are always read with interest by me.

good luck all , and kindest regards.

Lynnzal ===whats on your mind dont understand iii you know email to me is open on here and respect thoughts.

AUR thankyou you will be rewarded in gold i hope.

Eddie the axe is out soon and sharpened maybe i should keep it blunt for KO

Hi all

It looks like the window is proving a little harder to close than I thought. The volume was quite low today, with very few buys. This has created a falling trend line, which may sugest either consolidation or retest of the recent support line. If you look back to 23/06/05 this is where DES fell bellow the windows support. DES then had some consolidation just under the top of the window (which had then become resistance). As it stands now DES will have to make about a 0.03p gain to close the window, so it may take few days. It looks like a symmetrical triangle that is forming, this will mean DES will have to break either up or down. I would definatly prefer up, as generaly we would see quite a big move after the break. (we will have to see if it is a true symmetrical triangle that is being formed)


Hi all

I'll not bother putting a fresh chart up, as it will be just the same. Not much volume again today, very little buying. the bears had thier day. At the moment it looks like we're having a bit of a problem with the falling resistance line & the open window. We may see the support being tested again. DES is sitting on top of the 10 day moving average at the moment, which is also moving up slightly. The 200 day moving average is also moving up, so all being well DES should also be moving up soon.





Good Luck All

Eddie

http://www.bnamericas.com/story.jsp?sector=9&noticia=324071&idioma=I

Rockhopper to raise US$53mn for exploration in early Aug - Falkland Islands
Published: Monday, July 18, 2005 13:36 (GMT -0400)

UK company Rockhopper Exploration plans to raise 30mn pounds sterling (US$52.6mn) on the London AIM stock exchange in early August for exploration offshore the Falkland Islands, a consultant at Rockhopper's PR firm Aquila Financial, William Davidson, told BNamericas.

Rockhopper will be the third UK company after Desire Petroleum and Falkland Oil and Gas Limited (FOGL) to list on the AIM to obtain financing for exploration in the Falklands.

"There has been appetite certainly in London and the European markets for small oil companies to raise money and list, that has been the case for the last 12 months at least," Davidson said.

Rockhopper was awarded two licenses in the North Falkland basin, PLO32 and PLO33, in early June covering 1,620 sq km and bringing to four the number of licenses it owns in the basin.

In December 2004 the Falkland Islands government awarded Rockhopper licenses for the PL023 and PL024 blocks covering an area of 4,203 sq km some 50km to the north of the islands in the northern basin.

The two licenses awarded in June were formerly held by Anglo-Dutch company Shell, which carried out a 3D seismic survey and two-well drilling program on the acreage in the 1990s. Oil and gas shows were found in one well and oil shows in the other, but neither well was tested.

"That was a time when the oil price was substantially lower than it is today, so the economic bar was much higher then," Davidson said.

"Oil at US$60 a barrel means regions that wouldn't have been economic at US$10/b are now economic. In general, attention is turning to areas previously overlooked or deemed uneconomic and the Falklands falls into that category," Davidson said.

Rockhopper plans to conduct an extensive 3D seismic survey over its acreage during the next two years.

"We are in discussion with a number of seismic contractors about beginning work on our existing acreage and are excited about the drilling program we are undertaking with Desire," Rockhopper executive chairman Pierre Jungels said in a statement in June.

In February the company signed a memorandum of understanding with Desire Petroleum to farm-in to three wells to be drilled on Desire's acreage in tranches C and D also in the northern basin, where sizeable prospects have been identified.

Rockhopper has already identified a number of prospects and leads in its own license areas.

The Falklands benefits from a "benign taxation and royalty environment and this, combined with the relatively shallow water depths in the Rockhopper licences, mean that discoveries of less than 50 million barrels could be economic," the statement said.

By Julian Dowling
BNamericas.com

Falklands-Malvinas
Tuesday, 19 July


Falklands at Calgary oil conference



Interest in the Falkland Islands at the biggest worldwide oil exploration conference was down this year; however this has been attributed to increased use of the Mineral Resources Departments website.



The American Association of Petroleum Geologists (AAPG) Conference is an annual event held in North America. This years event took place in Calgary, Canada last month and the Falklands were represented by Councillor Stephen Luxton, Director of Minerals and Agriculture Phyl Rendell, Oil Statistics Manager Alex Blake and Phil Richards and Bob Gatliff from British Geological Survey.
Councillor Luxton said the event was well attended with over 7.000 delegates though there seemed to be less interest in the Falklands stand than in some previous years.

As always though, it was a handful of very good contacts that made the event worth attending, rather than the total numbers of people visiting the stand, as the majority of visitors only have a casual interest in the Falklands.

He said the emphasis on the Falkland Islands Governments activity at the conference has changed, ...from marketing to potential new license holders over the last few years, to now mainly providing information on the farm-in opportunities available with existing license-holders who are well advanced in their seismic exploration programmes.

He added that the excellent and comprehensive Mineral Resources website www.falklands-oil.com has also reduced the number of personal enquiries, ...as many interested companies can now access much of the information they require on-line.

The North American AAPG is believed to be the biggest worldwide oil exploration conference and attracts delegates from virtually every sector of onshore and offshore minerals worldwide.

Councillor Luxton said many companies have very large and elaborate stands there promoting their products, but for us the main interest is in making contacts with new venture exploration managers of oil and gas companies, and providing them with information which they may then pursue to either a license application or a farm-in with an existing license holder.

He said a number of useful contacts were made during the conference. (PN).-

Chart update
Last Thursday (14 Jul, #1532), I suggested that we may have formed a near-term top (my chart indicated 41.5p as the likely target). This proved to be the case and the subsequent setback has since reached my initial objective in the 37p area. I would now like to see support here hold for the next impulsive leg higher. Assuming the 37p area can hold, we can expect to see gains towards 49.25p/50.5p. This would confirm the end of the corrective bear phase from 69.75p (assuming we hold over 48p as we should) and allow for further strength towards a target at 61p further out.
If we fail to hold todays low then we could see a re-test of the 6 Jul low (33.75p) and I will re-assess my calculations.
Regards all and thanks for the daily updates Eddie. I appreciate hearing your perspective.
Lynnzal

Hi all

Thanks for the updates markymar & Lynnzal.

It looks like the support held out today, I think this was a definate test of the 0.3700p that Lynnzal is refering to. Todays trading had low volume again, there were more buys than sells, unfortunatly the price didn't close on a plus. This was due to the low opening price of 0.3675p. The bulls did manage to push the price up off the lows of the day, but not in to a positive close. The pattern that is forming looks like a morning star, however it is not the classic pattern. If this was a test of the support area, then we will need to see some more action from the bulls. I think a possible rally, otherwise the bears may push DES under the support.





Good Luck All

Eddie

Hi all

Good to see DES went up today. The volume was quite low again though. The chart is slightly different than the one above, it has the 200 day moving average. The 200 DMA is now just under 0.4500p, this was the price at which DES raised the money for its drillling programe. Also the 200 DMA is now moving up which we can take as a good indicator. The 10 day moving average is also about to move up through the 20 DMA, another good indicator. Looking at the last chart you can see there is still some restance (the falling resistance line). DES is but upto this resistance, I think DES will pass through this tomorrow (all being well). Britishbulls.com have a wait signal after a sell, I feel sure this will be a buy signal again soon, todays candle is bullish so I think we will seen more of the bulls. Tomorrows trading should confirm the markets intentions. A gap up would be nice. If you look at the top of the chart, you will see the key for the chart indicators.





Good Luck All

Eddie

Cheers eddie.

Interesting to see increasing speculation/rumours about rigs appearing on other bb's.Time will tell if the rumours turn out to be true.

I think the imminent flotation of rockhopper is very significant for desire shareholders as it gives us another source of information.I am pleased that the level of institutional backing is very solid and am sure the issue will be enthusiastiacally greeted by private investors.If only an announcement of a rig contract would come shortly or immediately after!
But nevertheless,it is a waiting game at the moment,and I am willing to wait.
KInd regards and good luck all.

Eddie thank you for that.

I think with Rockhopper float the price will rise i just hope they can get the 30 million they are asking for what I have been told of the prospectus I feel it is out of date to what I know now.

Very interesting what Oily has said that there are 2 Rigs available to Desire and I trust Oily word 100% even though he is Scottish and last to buy a drink.

Reason to be glad

KO on holiday

Evil Weasel banned from iii

FOGL down DES up

And you can post on iii for a week before that idiot gets back.

I think happy days are back in fact am going to open a bottle of the finest Morrison wine at 2.99 wine as Rudys bar is just opening up the tight git he should be up in Scotland as well, us Northerners no how to be hospitable.

I like the Capts post about pickling today,

Marky

Hey Up, Marky. The bar opened late tonight, 10.30. Oh I do like the scots, back up there soon hopefully, where they take my english poonds off me gleefully and keep me locked in indefinately...heaven. But what's better fun is bringing scottish poond notes back to yorkshire and cashiers saying they're not acceptable...get them in your till girl...thems there notes are legal tender...great fun. By the way Marky I can't afford wine, it's finest ASDA 5% pils for me then 9% ASDA lager for the kick. See you soon Marky hopefully and cheers Eddie and Lynnzal and Capt don't fall down that chimney, you might find some fizzy tangerines and the rum gone. Cheers Ruddy

markymar,

"FOGL down DES up"


Pillock!!!

I dont know if anyone has noticed but another huge buy for 175,000 shares went through just after 5 I would think there is some people buying in the know or news is leaking but either way I think the price will continue to rise and it is Friday tomorrow always a good day for Desire.

Hi all

Thanks markymar.

Yes I had noticed, I also noticed the volume had increased, with a lot more buys than sells. I don't know why the share price didn't go up though. The candle that we have is a doji. Doji candles are normaly good at calling tops to a up trend. The fact that we are still bellow the falling resistnce line could still hold DES back. But I think the length of the lower shadow is suggesting support at the bottom of todays candle. The last buy that markymar has refered to may also be a good indicator, as buying late & leaving a large chunk of money over night may suggest someones in the know. The doji also indicates idecision, the market hates indecision. So lets hope they decide to rally, Fridays as markymar says is a good day for DES to go up. There may be a gap up tomorrow with the last buy, this may add some fuel to the fire. The 200 day moving average is now just above 0.4500p. The 10 day moving average has just come up through the 20 DMA, another good indicator.





Good Luck All

Eddie

Hi all

I will post a three month chart today, you can see todays candle better. Todays candle is a dragonfly doji (not the one shown on this chart, this one is a long legged doji). Dragonfly doji's normaly work best at the bottom of a down trend. However after todays trading I think it is still significant. The dragonfly normaly indicates support. Todays close is now above the falling resistance line, this is why I think the candle is significant (offering support). If this is correct then we may well see some good gains next week. The 200 day moving average is above 0.4500p also. The 10 day moving average is above the 20 DMA. DES just needs to stay above the falling reistance, all should be well.




You may as well have the weekly chart fer DES. Each candle has a weeks value.




Good Luck All

Eddie

Eddie, thank you for regular chart updates. The weekly chart looks much more encouraging and poised for a breakout, it'll be interesting to see if we get a breakout before August 9th.



Interesting article in The Business today about the majors looking for new offshore frontier prospects. It particularly mentions the Faroes and Madagascar but could equally well apply to the Falklands. Exxon have done a farm-in deal with Sterling Energy which previously had 100% interest in 13,100 sq miles but sold 70% for a free carry. The less upbeat news is that Sterling have only risen 5% since the annoucement. That is explained by the 3 year wait while Exxon carry out some technical study and some 2D after which they may chose to do some 3D and drill 2 wells on each prospect - so what deal would they have offered if the 3D was already done?

The market for doing deals seams to be improving all the time and offering 70% to a major for a free carry in a frontier region seems the norm now. So that must mean the chances of a deal closer to 50%, which it seems our directors are after, is getting closer for a more prospective area with previous oil shows, plenty of gas and completed 3D. Looking forward to the effect of the Rockhopper float,

Luckyswimmer

Having problems posting the link, so go to the address below then select World Business from the menu on the left

"http://www.thebusinessonline.com"