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

Oil & Gas: Rockhopper to raise US$53mn for exploration in early Aug

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.

Source: Business News Americas (BNamericas.com)

Hi all

Thanks markymar

An nice move up today from DES, the sell if wasn't confirmed. I have changed the chart a little to show the moving averages. As you can see they have changed direction and are now moving up. The next move should be towards the 200 day moving average and then through it. DES is above the 10 & 20 day moving average at the moment. The moving averages and candles need to be in this order. Starting from the top (candle above the 10 day moving average, 10 DMA above the 20 DMA, 20 DMA above the 60 DMA, 60 DMA above the 200 DMA. As the buying momentum builds, the moving averages will move into the correct order.




Good Luck All

Eddie

Got a mate who works as a fisheries officer in the falklands. He reckons this rig is about to start operation very soon. Everyone in the area is full of desire apparently, despite the cold weather.
F

frodo,

We have a little longer before drilling restarts but a freind who could be a good contact.

Hi all

Well what a DES fantastic day. The bulls were out in force today, excellent gains. The 200 day moving average not looking that far away now. If the bullish action is in anticipation of Rockhoper, then I think DES will fly through the 200 day moving average with force. Also if frodo is correct then there may be some other news ready to break. I think todays volume has been great, but I'm sure this will be nothing compared to the news of the rig. Dont forget Lynnzal forcast for some resistance at about 0.4800p. Although having said that. DES could quite easily clear this area in just 1 days trading. The last trade may have added a bit more bullishnes, just to gear up for Monday's trading. The market has put DES in a great position for Monday, which I think will also be a great days trading.





Here is the chart with candles of 1 weeks value.



Good Luck All

Eddie

Hello Eddie

Sorry to be an ignoramous, but could you please explain to me what the horizontial lines on your graph represent. thanks

Cheers Eddie i think we may of turned the corner but will wait till Monday

Frodo we still have months before we drill but a good contact to have.



Mercosur
Friday, 12 August


Hard left slam Kirchner & Bielsa over Malvinas oil



A group of around 100 protesters belonging to the leftwing Trotskyist Socialist Workers Movement (MST) this afternoon staged a noisy demonstration outside the Foreign Ministry building in downtown Buenos Aires protesting over Argentinas current policies vis-vis the disputed Malvinas-Falklands Islands.

While several hundred next-of-kin, war veterans, historians, government officials, diplomats, students, met within the Foreign Ministrys luxurious San Martin Palace for the second of the two day seminar on Malvinas in the South American Union - the first ever such conference organized jointly by the Foreign Ministry and NGOs working on different aspects of the Malvinas dispute - the protesters chanted slogans against both President Nestor Kirchner and Foreign Minister Rafael Bielsa who they accused of continuing handing over the Malvinas to Britain.
While handing out leaflets with a Falklands Islands Hydrocarbons map reading This is how they rob our oil and showing the areas awarded to Argos Evergreen, Desire Petroleum, Talisman Energy and Global Petroleum as production areas awarded to these companies the demonstrators chanted slogans accusing those who rob oil in the Malvinas are the same people who murder in Iraq.

The small MST is headed by National Deputy Patricia Walsh, daughter of writer and Montonero guerrilla leader Rodolfo Walsh and has recently attracted maverick national Deputy Mario Cafiero, in turn one of the sons of longstanding Peronist leader Antonio Cafiero, who was once a Peronist Deputy but broke ranks to join Liliana Carrios ARI party with whom he has now broken joining the MST as a senatorial candidate in the province of Buenos Aires. The MST is the Argentine branch of the Trotskyist International Workers Unity Fourth International, who describe themselves as the world party of social revolution.

The organizers of the seminar told MercoPress that they had called on Cafiero and his supporters not to disrupt todays proceedings, emphasizing the importance of ensuring that our methodological differences over handling the Malvinas dispute was not misconstrued as suggesting that we do not all have the same strategic goals that of recovering the sovereignty of the Malvinas Islands he concluded.
http://http://www.falkland-malvinas.com/Detalle.asp?NUM=6235

Thanks markymar.

Hi ian


The lines represent Fibonacci retracement levels. If you take 0.0750p as the low of the chart, then take 0.7100pp as the high of the chart. In between are the retracement levels. At (0.0750p = 0.0%), (0.2250p = 23.6%), (0.3170p = 38.2%), (0.3920p = 50%), (0.4670 = 61.8), (0.7100p = 100%).

After 0.7100p we should see (110.03p = 161.8%), (173.08.p = 261.8%), (276.06p = 423.6%)

If say one level is broken then we can expect to move to the next level, which is if the candles are moving up. The line above is the target. So for candles moving up, may have resistance at the retracement (target) level. For candles moving down, may have support at the retracement (target) level.

Hope this is of help.

Kind Regards

Eddie

Morning all,

A little bit on Peak Group today been awarded a new contract and the way they secured the rig.

http://http://www.thisisnorthscotland.co.uk/displayNode.jsp?nodeId=149212&command=displayContent&sourceNode=150624&contentPK=13002715

Eddie
Thank you for the explanation.
I find all this charting information that you and lynzal post on here fascinating.
Can you recommend any books on the subject suiable for a novice?

Ian

Hi Ian

What trading platform do you use. Do you day trade, or do you buy and hold for a short time / long time ?

Kind Regards

Eddie

Hi Ian

I collect my data using Sharescope. You can download the demonstration version for free. The download has historic charts which allows you to work your way through the programe and get a feel for it. If you like it you can down load the full version. You have three options of which depends on how you trade, if you buy and hold then end of day data (Sharescope gold) will be great for you. If you trade using dealyed time then (Sharescope plus) is for you. If you are an agressive trader then you will need (Sharescope pro) for upto the minute data. I would recomend to just go for downloading the full version of end of day data. This will give you time to study the charts. It costs just under 80.00p for a life time memership, whith subscrition of about 14.00p per month, for the data feed. The charts are fully customisable. You can chose from candle, renco, kagi, three line break, point & figure, bar charts. You can add lines & text to the charts. You have a tax gain calulator. You can paper trade in loads of different portfolio's, group sectors ect. If you were going to invest in anything then I would recomend this, sharescope has won many awards. Udates are all included in you initial membership for life. (www.sharescope.co.uk) You don't need to continue with this product if it's not for you. There is no minimum subscription. I downloaded the demonstration version, within 10 minutes I went for the full version. I still rate this tool. There are many more features I havn't used yet. Many more will be added.

Then move onto books, The Candlelstick Course by Steve Nison (Wiley Trading). Beyond Candlesticks by Steve Nison (Wiley Trading). Encylopedia of Chart Patterns by Thomas N. Bulkowski (Wiley Trading)


Kind Regards

Eddie

http://business.scotsman.com/utilities.cfm?id=1776792005

Rockhopper intent on flotation despite shortfall in fundraising

IAIN DEY
CITY EDITOR


ROCKHOPPER Exploration, the oil minnow chaired by former Enterprise Oil chief executive Pierre Jungels, is pressing ahead with its flotation this week, despite raising just half of its original fundraising target.

Shares in the company, which is planning to drill in waters off the Falkland Islands, will begin trading on the Alternative Investment Market tomorrow morning.

While Jungels had previously said he wanted to raise 30m of new money, the firm has raked in only 15m.

Nevertheless, the company insists it can still finance most of the work programme it committed to while marketing the float.

Chief executive Sam Moody said: "You have to look forward with these things. We've raised 15m, we've got a good list of blue-chip shareholders on our register and we can go ahead with our work programme.

"We have had to slightly curtail our plans, but we can still do all the main seismic work we were planning to do and we can still drill the well with Desire."

Rockhopper has been awarded a number of licences in the 700 square kilometre North Falkland basin, some of which were previously drilled by Shell in the 1990s.

The company has also farmed into a further prospect with Desire Petroleum.

It is understood that some potential investors were concerned about how long it will take Desire to drill the shared block, given the current shortage of jack-up rigs.

Moody said: "It is tough out there - there's been the Regal Petroleum thing, it's the summertime, there have been a number of companies doing the rounds, but we've still raised 15m."

The company's pre-float valuation has also been cut to 15m rather than the hoped for 40m.

Moody said the firm is no longer planning to do 3D seismic work on some of its blocks, and will stick to cheaper 2D research at this stage.

The float has been run jointly by small-cap brokers Arden Partners and Ambrian Partners. Arden analysts have previously estimated that the company's assets could be worth 80m. A report by an independent consultancy indicated that Rockhopper's prospects could hold 500 million barrels of risked reserves.

Jungels and Moody have assembled a heavyweight board to support the flotation. Chris Walton, the former easyJet finance director, is a non-executive director. The firm's exploration director is Keith Williams, former exploration director at Kerr-McGee's UK arm. Peter Dixon-Clarke, formerly with Lloyds insurer Amlin, has been appointed finance director. Other non-execs include industry veterans Dave Bodecott and John Crowle

Nice find Capt, well looks like all the money is on the table now, just. If Desire contribute all their cash (24m) then Rockopper's maximum contribution would be only 10m (assuming they do a 70%:30% split) so they can afford that with 15m in the bank now. Interesting that the institutions were not too bullish, it can't be easy to ask for money from someone who dug deep for Regals placing two weeks before it crashed and maybe watched their contribution of 45p a share to Desire sink into the 30s aswell.

we can still drill THE well with Desire

Was that a mistake by Moody, surely he meant 3 or more, perhaps there is an extra single drill on another prospect

farmed into a further prospect with Desire Petroleum

that could mean either he's paid for a share of another tranche of Desire's or more interestingly agreed to drill an extra well somewhere. On a second reading I think that phrase may just be referring to the 30% farm-in on C/D that we already know about. No doubt we'll find out on Monday which.

Hi Lucky,

3 wells will be drilled and all multi targets.

He also got it wrong with a jack up rig

He also got it wrong that that Rockhopper only have 700 square kilometres when they have over 5000 square Kilometres.

They or we have enough money to go ahead with the 3 well drilling campaign now just need news of a rig which we might hear about some time in the near future so its all looking very good.

http://www.harrogatetoday.co.uk/ViewArticle2.aspx?SectionID=24&ArticleID=1113351

Ruddy this got owt to do with you?

Desire get a mention

Unfortunately not Marky, my shares were bought from the Otley branch of Redmayne Bentley, but I will be inquiring tomorrow who Nigel Bottomly is and what his interest is in Desire Petroleum infact I'll give him a ring personally aswell. How are the moo-cows in your neck of the woods Marky; the sheep were quite receptive up Kirkcudbright way for this time of year...shame I had to come back to the land of the white rose...to the third best place in the country to live so I'm led to believe...must be the Queen's english that we speak...aye lad; now't as strange as folk. Cheers Marky for the hospitality.

No probs Ruddy but next time no hillman imp with the dice hanging from it and still worried about the sun visor with your name on it and the wifes.

Maybe you could have a weekly slot in the paper on the ups and downs and get Eddie to do a chart am sure you can turn Nigeal into a Spiv or we can.

Press Release
15 August 2005

Rockhopper Exploration plc
Placing and first day of dealing on AiM

Placing raises 15m

Rockhopper Exploration plc ('Rockhopper' or 'the Company'), the oil and gas
exploration company with a number of licences in the North Falkland Basin, today
announced that following the successful placing of 35,714,285 shares at 42p to
raise 15 million (before expenses), its shares have been admitted to trading on
AIM and dealings will commence at 8.00am today under the symbol: RKH.

Arden Partners Ltd is the Nominated Adviser, Joint Financial Adviser and Broker,
HSBC Bank plc is the Joint Financial Adviser and Ambrian Partners Ltd is acting
as Joint Broker to the Company.

Placing statistics

Placing price 42p
Number of Placing Shares 35,714,285
Number of Ordinary Shares in issue immediately following Admission 71,774,605
Percentage of the Enlarged Share Capital being placed 50 per cent
Expected market capitalisation following the Placing at the Placing Price 30.1m
Gross proceeds of the Placing receivable by the Company 15m
Net proceeds of the Placing receivable by the Company 13.9m

The Rockhopper Group is currently the largest licence holder in the North
Falkland Basin and owns a 100 per cent interest in four offshore production
licences which cover approximately 5,800 sq. km. An extensive 2D (640sq. km.)
and 3D (685sq. km.) seismic programme is planned.

In addition, the Group has signed a farm-in agreement with Desire Petroleum plc
whereby Rockhopper will earn up to a 15 per cent working interest in two further
licences covering approximately 1,300 sq km by funding up to 30% of the costs of
a three well drilling programme to be carried out during 2006 subject to a
suitable drilling rig being available.

The North Falkland Basin has previously been subject to exploratory drilling,
with six wells being drilled in 1998. These wells proved the existence of a
world class source rock, with the British Geological Survey estimating that it
may be the second richest source rock in the world. One well flowed live oil to
the surface, and another flowed gas to the surface.

The company has a highly experienced board, led by Dr Pierre Jungels, who was
the CEO of Enterprise Oil plc from 1996 to 2001.

Pierre Jungels, Executive Chairman of Rockhopper, said:

'I am delighted with the support we have had from institutions and new
shareholders. The proceeds of the placing will allow us to carry out our seismic
and drilling programmes, in what is a hugely prospective area.'

/http://www.rockhopperexploration.co.uk/press/rockhopper050815.pdf