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

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

http://www.oilvoice.com/Rockhopper_Exploration_Placing_and_First_Day_of_Dealing_on_A/4320.htm

Hi all

Well unfortunatley DES gave back half of Fridays gains. This may have been to give Rockhoper a bit of a leg up (Rockhoper got a great reception). The candle we have is a dark cloud cover, this suggests the market may be intending to take DES down. However DES has moved back up ontop of the rising resistance line, which may give support. Todays trading went down for the first couple of hours, bulls then started to give support, this was indicateted on the intraday chart. I think the market may have just over reacted to Rockhoper not raising all the funds that was intended. The Britishbulls.com have DES on a sell if. The candle also has a lower shadow which is where the bulls gave support. The sell if will need confirmation (if tomorrows close is lower than todays). DES has support and resistance close to either side of todays candle, (the resistance being at the 200 day moving average). I feel the markets main intention is to move DES up, if tomorrows close is up this should confirm this.





Good Luck All

Eddie

http://http://www.oilbarrel.com/home.html

16.08.2005
Rockhopper Exploration Joins Fellow Falklands Explorers On AIM
Investors looking for exposure to wildcats in the southern Atlantic are spoilt for choice with the arrival on Londons Alternative Investment Market of Rockhopper Exploration. The start-up, which has raised 15 million before expenses, joins fellow AIM-quoted Falkland Island explorers Desire Petroleum, Borders & Southern Petroleum, Falklands Oil & Gas Limited (FOGL) and Global Petroleum (which owns 14 per cent of FOGL). This is an area that offers investors a white knuckle ride but this kind of high risk prospecting also offers the potential of major rewards.

Rockhopper, which started trading in February 2004, owns 100 per cent of four offshore licences, covering 5,800 sq km of the North Falkland Basin. It also has a farm-in agreement with Desire, giving it the right to earn up to 15 per cent in two further licences (another 1,300 sq km tranche of acreage) by funding up to 30 per cent of the costs of a three-well drilling programme planned for 2006.

The funds raised from the IPO will be used to pay for a 640 sq km 2D survey and 685 sq km 3D seismic over its four 100 per cent owned and operated licences (PL023, 24, 32 and 33) plus the farm-in drilling costs on the Desire acreage.

Despite the remote location - the islands lie 300 miles east of Argentina - this is not virgin territory. The North Falkland Basin was home to a much-hyped drilling programme in 1998, when four consortia shared a rig to drill six wells. The well results failed to match expectations but, equally, in no way wrote off the prospectivity of the region. Rockhopper, which is named after the penguin colonies on the Falklands, holds the ex-Shell acreage. Shell drilled two wells: one flowed gas to the surface, the other encountered live oil.

Of the six wells, only one was completely dry and five found non-commercial quantities of oil and gas, Rockhoppers managing director Sam Moody told oilbarrel.com. The North Falkland Basin stretches 250 km from north to south and there have only been six wells and they all tested the same type of play concept. If you look at the North Sea, there were a lot of wells drilled before they found a commercial oil discovery.

The next phase of exploration in the North Falkland Basin will target a different play concept, Moody explained. The first six wells proved the existence of a world class source rock, the lacustrine, estimated by the British Geological Society to be the second richest source rock in the world. It is thought this source rock could have generated 100 billion barrels of oil much of which the BGS reckons is trapped beneath the uppermost part of the lancustrine interval, which may have forced the oil to migrate toward the basin margins or into sands older than the source rock.

None of the wells drilled to date have targeted sands within or beneath this source rock, nor have they tested the margins of the basin. Rockhopper believes these targets represent a major untested oil play.

It is keen to prove its concept. The company is currently designing the parameters of its seismic programme and talking to seismic contractors about boat availability. Desire, meanwhile, is preparing for next years drilling programme and is in touch with drilling contractors about rig availability (water depths here are under 500 metres allowing for the use of standard semi-submersible kit). Preparations are underway for the drilling programme, buying in consumables and getting Health & Safety up to speed, so that as soon as a rig becomes available at the right price the partners can get to work.

There has already been a spurt of activity in the waters to the south and east of the Falkland Islands, an area geologically distinct from the North Falkland Basin. Borders and Southern Petroleum recently completed a 2,860 km 2D shoot over its 19,598 sq km tranche of acreage while FOGL has a busy 2D and 3D schedule underway.

FOGLs acreage covers 83,700 sq km, equivalent to the North Seas Southern Gas Basin and Central Graben, and the company has already identified 130 leads distributed across different play types, some of which could hold recoverable reserves in excess of 200 million barrels. The 2D survey has identified numerous Direct Hydrocarbon Indicators, seismic signals that point to the presence of working petroleum systems. Some of these DHI leads cover areas of 300 to 500 sq km. First drilling here is slated for 2007.

Exploration success by any of these companies, whether north or south of the islands, will be good news for their fellow Falklands explorers and put this region firmly on the oil and gas map.

Hi Marky ,
Just read your post on ADVFN re your compensation cheque for your endownment mis-selling! I am expecting to hear shortly myself ! L.O.L I am doing everything to get more funds for DES shares. Well done to you . I`ll let you know how it goes for me.
Regards Berlingo

p.s
Thanks to Eddie and all regular posters for updates. Its all a bit frustrating at mo but as Marky said patience will reward !
Regards Berlingo

p.s
Thanks to Eddie and all regular posters for updates. Its all a bit frustrating at mo but as Marky said patience will reward !
Regards Berlingo

berlingo you can say that again.....

Tried always to get fresh funds now scraping the barrel cant think of any more ideas.

I will wait a little longer before topping up as would like to see if the 40p is going to hold maybe a little knowledge from Eddie or Lynnden can make my mind up.

Hi all

Thanks to all for you updates

Another down day for DES, the sell will be confirmed on Britishbulls.com also. Rockhoper also gave back about half of its gains today. The oil and gas sector UB07 has been going down for the past four days with profit taking. Which means the picture is the same for most. DES is still sitting above the 10 day moving average, just under the 200 day moving average. The 200 day moving average is still moving up, just under 0.4600p at the moment. The trend for the past three months has been up. If you look at the Bollingar bands you will see DES is also up near the top, which suggests DES may be oversold at the moment. So I think we are just seeing corrections. DES still has a rising support line and a rising window at about 0.4025p. I would think if DES gets to this price, the bulls will in be buying. So berlingo this is where I can see support, but remeber support and resistances get broken. DES is close to both support and resistance. Given that the trend has been going up for the past three months, this is likley to continue, which should then break the resistance. The moving avarages are printed at the top of the chart.





Good Luck All

Eddie

Thanks Marky and Eddie
When i get my money i`ll watch when to buy more. I find the charts fascinating and am grateful for all the explanations.Also thanks to Lynnzal.
Berlingo

http://www.falklandnews.com/public/story.cfm?get=3355&source=3

Rockhopper Exploration's Successful First Day of Trading
August 16, 2005
by Graham Bound (BBC World Service)

ROCKHOPPER EXPLORATIONS SUCCESSFUL FIRST DAY OF TRADING



A Report for BBC World Service Calling the Falklands by Graham Bound (GB) 16/08/05



Rockhopper Exploration is the latest Company to commit itself to the search for hydrocarbons around the Falklands. With International oil prices at an all time high, the Company is steaming ahead with plans for survey work and drilling north of the Falklands. Yesterday Rockhopper shares were floated on the Alternative Investment Market (AIM). Chief Executive, Sam Moody (SM) told me (GB) how the first day of trading went.



SM: We have been very pleased with the whole process. We raised 15Million from some good blue-chip institutions. And, since the shares went on to the market, we have had quite a bit of interest both from the press and from private individuals. The 15Million will cover our immediate programme, which are two quite large seismic programmes. We will share the cost of drilling with our partners, Desire.



GB: When will that programme begin?



SM: We are in negotiations with the seismic contractors at the moment and we are hoping to start shooting perhaps within the next six months. In terms of the drilling, Desire is the operator of those two blocks so it is rather more in their hands as far as getting hold of a suitable rig.



GB: Do you actually have to go back to the drawing board every time? I was just reading some background notes that say that oil actually was discovered in the North Falkland Basin the black stuff actually came up the tubes there, and some gas as well. An awful lot of seismic has been done. Do we have to go back to the drawing board?



SM: I am not sure it is a question of going back to the drawing board. Its a question of trying to re-interpret what has been done before to move on to the second phase of exploration. Thats all we can do at the moment.



GB: And, is it your understanding that actual oil was discovered there or was that just somebody making a story more exciting?



SM: Six wells were drilled in 1998, two by Shell, two by Amerada, one by LASMO and one by IPC. One of the Shell wells, which is now on acreage held by Rockhopper, did discover live oil at the surface. But that was never tested. And, of course, youve got to remember that in 1998 oil prices were around $10.00 per barrel as opposed to about $65.00 a barrel today. And, at $10.00 a barrel, its quite difficult to make a region like the Falkland Islands commercial. At anywhere above $25.00 or $30.00 a barrel it becomes a much more attractive proposition.



GB: How optimistic are you about all this? It sounds very exciting. Would you like to think that?



SM: We are hugely excited about the prospect of this. We are very excited because it is in the Falkland Islands. We found it a very good commercial place to do business in so far. And, we are looking forward to getting on and doing some more work.



GB: Do you have much assistance from the Government down there? I understand the fiscal arrangements are quite good for you.



SM: The fiscal regime in the Falkland Islands are absolutely superb for an oil company. It does make a big difference when you are thinking about going into a new area, that you can be confident that the legislation works in a proper way, that its transparent and a proper place to do business and that the tax regime is beneficial.



(100X Transcription and Monitoring Service)

http://www.guardian.co.uk/oil/story/0,11319,1550620,00.html

DES has been forming an ever more complex pattern, making near-term price projections off the 6 July, 33.75p low difficult due to the numerous possible outcomes. I would have expected a minimum target off that low to come in at 46.7p, but due to recent price action we could see extension towards 48.4p and potentially 55.7p.
On a slightly wider time frame and assuming that the gains off the 28.5p low are impulsive (as opposed to corrective), I would expect a minimum target at 50.5p, but again due to the complexity of the interim advance off 33.75p, it is more likely that further gains would extend towards objectives in the 57p/60p area.
With regard to topping-up levels, I agree with a policy of waiting to see what happens around the 40p support level. If I were considering a reasonable size/longer term buy-in, I would personally wait for the market to close above the 48p area (rather than buying at market - 41.5p).
Regards to all.
Lynnzal

So apart from the charts, whats going to make this thing move into the 50s let alone 60s.

You currently have people running away from the 40s SP as faster then MMs can mark down the price down. MMs are curently supporting this level simply because their systems tell them it took four month to break out of it last time.

You now have Desire share holders reducing to buy into Rockhopper.

The Rig - In the Rockhopper Listing prospectus, 2nd qtr of next year mentioned for the first time.

You have uncertainty about what size farmin Rockhopper will now take up. They are only commited to 7.5%. If they decide not to take the option for another 7.5% that will be reported by Des in October or before.

FOGL will continue to report good news, this will intice more money away from Desire.

The Des board can't leave shareholders in dark for much longer if they still can't put a date on the drilling. We know from the last time this will take atleast 10% of the SP.

The one single thing that can turn this around now is the booking of the rig. They only way this will go till then is down. Where I don't know but even after the rig is know it still has no upward presure. So if news come out that they won't drill till 2007 you won't be looking at 40s you'll be looking at low 20s.

KO.

Markymar, just a few recent things I knew that you didn't.

Rockhopper, bunch of used car salesmen and won't raise enough money.

Desire's share price will fall because of their listing.

The board where NOT holding back news for Rockhopper.

Greewhich won't buy into Desire.

Rockhopper won't buy into Desire.

OHM (or whatever) won't be used by Desire.

Desire can't find a rig (told you tha 4 months ago).

The way the SP has gone since December mate. Thats the one you don't like.

Call me all the names you like it won't change the fact that you know I can call Desire better then anyone and thats what gets right up your arrogant nose.

No matter how many lies you tell about me that will always be true. I'll continue to post what I like when I like. But unlike you I'll not resort to name calling & lies. Just the facts that is you know nothing about trading and very little about whats going on at Desire. Except that is from what you cut and paste from the internet. You should get out more and talk to real share people, the brokers who turned Rockhopper down perhaps. very interesting very !!

For the record - I've always said I think Desire is worth a punt and I'll be backing that up with plenty of real cash when the time is right. I took my money out when the time was right and the price four months ago. Even your rampers eyes can see the price has not moved forward since then.

KO.

Kickoff, you don't seem to understand charting very well. Charts do not make a market go anywhere ("apart from the charts, whats going to make this thing move...") they are merely graphical representation of the buys and sells, supply and demand that have gone on before. Study of which allows us to estimate where the market is likely to go in the future. On the other hand, the fundamentals (economics, news alerts etc.) provide the catalyst that realise what the chart suggests and cannot tell us where the market is likely to go to.
I am not sure I agree with your assumption that if the market can't go up (in your opinion) it must go down. It's about the psychology of the market participants. So if the majority of people are happy to hold...the price will trade sideway (conslidate) until firm news either good or bad comes along.
Lynnzal

Kickoff I am amazed at your arrogance. You are now a self professed market professional especially were DES is concerned. I recall you calling DES lower sometime after it broke down through the 45p issue price and agreed with you some time after then. I targetted 26p and can't recall what you said. Since it based at 28.5p you have continually called it lower! That is not what anyone would consider sound advice. Of course if it comes off 10% frm here, I have no doubt you will be blowing your trumpet....even if it subsequently rallies 20% (because it's easy to forget those occasions).
Meanwhile, if you have something personal to say can I ask you to contact the person direct through moneyAM. This board has been happy enough without all the personal cr*p that goes on the 3I board.
Lynnzal

Hi all

Welcome back Lynnzal

DES went a little lower again today. The rising window may be tested for support, 0.4025p is the low of the window this is where the bulls should start buying again. There is also another larger rising window at 0.3900p, either of these may give support. The 200 day moving average is at 0.4600p now and is still rising, the 60 day moving average is also gaining momentum towards the 200 day moving average. DES has closed under the 10 day moving average but is still above the 20 day moving average. DES is still at the top end of the Bollinger bands and is trading quite close to the 200 day moving average, which is also close to the resistance area of 0.4800p as mentioned by Lynnzal. I think we may see some consolidation before moving through these two resistances. The 200 day moving average will then be closer to 0.4800p. DES can then go through them at the same time. Thats my theory anyway. The oil & gas sector has started what I see to the second candle in a morning doji star. If tomorrows candle gaps up then closes above the open, we should be seeing another bull run for the sector. This should move things along a bit. Rockhoper closed up with good gains today.





Good Luck All

Eddie

Lynnzal, good to see you back, hope you had a good hols.

Bad news is we have the freak with us. The man who called Des a sell on iii after the RNS on the new tranche (after hours) and would have encouraged people to sell within 2% of the lows the following Monday, the man who called oil down at $48 and who refrains from stating that DES have increased from 30p to the mid 40's over the last few months (45%up!)

He has started tipping horses on iii, perhaps he thinks he is John McKririck!

Most think he is a attention seeking fool and it has become plainer every day.

His own knowledge of trading (self confessed) is minimal.

But he won't go away...please don't rise to his bait...but please keep the useful chart comments coming.

Regards FOG

Twerp alarm!