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

The pullback off the 44.75p high (15 Aug) appears to have satisfied a three legged corrective target at 38.75p (my system shows todays low at 38.5p), so we could be in for a bit of a recovery towards the 44.75p/45.25p highs.
My only concern however, is over the wave structure between the 33.75p low (6 Jun) and the 44.75p high. The best fit that I can currently see is a double zig-zag (consisting of 7 waves). This implies that the entire sequence from the 45.25p high has thus far been corrective and we are still due to complete the final leg lower (which started at 44.75p). Under this scenario the risk is that the overall correction either terminates in the 37.5p area (as a contracting triangle correction) or in the 33.25p area (as a flat correction). Either way, my previous analysis regarding the impulsive structure of the move up from the 28.5p low is still valid and I will address my topside projections as the market confirms resumption of the bull move.
Regards
Lynnzal

When is Desire going to hit oil?

When is Desire going to hit oil?

Cheers for up date Lynnzal and just looking at trades not a bad day and thought it should of gone up more than it did.

Eddie the weathers red hot back here we have a heat wave its in the 80s

Bear pressure since breaching the 20-day moving average extended through the 60-day moving average to test support at 38.25p (1 Aug higher low). This has held and prompted a recovery rally to Tuesdays 41.5p high. The resulting daily candle is a piercing pattern and suggests a potential turning point in the recent downtrend. Closure of the 41.25p/42p window is now needed to prompt further bullish action towards a succession of lower highs (43.25p, 44.75p & 45.25p). Note the 200-day moving average is now at 45.66p.
To the downside we have several supports under the 38.25p higher low, notably 38p (Fibonacci retracement of the 33.75p/44.75p up-move), 37.5p (Elliott projection) and the 36.75p higher low (19 Jul).
Regards all
Lynnzal

Thanks Lynnzal

...

Hopefully desire petroleum will exclaim to us all in the very near future.

Put an order in at 39 until end of next trading day.
F

Where are the lines going to be drawn now on the chart?

Looks to me like it's getting harder to find an upward trend line to base the "opinion" on.

driftwood1, is your question supposed to be directed to anyone in particular? Generally I do not use trendlines for my analysis. You appear unaware that they are not the only form of chart analysis that can be used to define trend or to formulate an opinion.
Also may I say that I find your attitude towards contributors to this BB very offensive. You have only critised peoples work and never offered up anything constructive (eg. a bullish or bearish viewpoint with sound reasoning). By all means question peoples analysis, but cut the sarcasm.

Hi Lynnzal
you do a good job and is much appriciated by followers
ignore the wood knomes who hide behind the screen,
have no worthy imput and just try to stir it up.
All the best
HUSTLER

Driftwood known as KO so put him on your squelch button with the rest of the names he has.

Heads high for Monday

Not today or this week but the wait could be worth it!

Hi Marky
Sorry about the Abort 11/9 - 9/11
bit emotional, but radar still on scanning for bugs.
When is Des going to make an anouncement.
Soon i hope and with a rig date.
All the best
HUSTLER

Todays candle is a hammer pattern. It is a bullish signal. It does not guarantee a reversal of the recent sell-off, but gives us a strong indication that recent weakness is faltering. As with most candlestick patterns we need to look at the following days action for confirmation. However, I would ask readers to take a look at the chart to see how many occasions that other hammers have formed a base.that way the doubters out there can draw their own conclusions. Remember, the charts dont move the market, they merely represent the \ction of the buyers and sellers in the market. When we can see repetitive occurrences, we can formulate an opinion of where the market is likely to go next.
Regards
Lynnzal

Thank you Lynazal,

May have to get ZZ rocket soon so much going on.

Is the World Running Out of Oil? Yes And No
by Joseph Nocera The New York Times
International Herald Tribune 9/13/2005
URL: http://www.rigzone.com/news/article.asp?a_id=25235
"We're halfway through the hydrocarbon era," my old friend Boone Pickens has been saying for the last couple of years. You may know Pickens as a corporate raider of the 1980s, but he has spent his life in the oil patch. A geologist by training, Pickens founded an oil exploration company, Mesa Petroleum, at the age of 26 and ran it for the next 40 years. Now, at the age of 77, he works the oil patch in a different way, running a pair of energy-oriented hedge funds in Dallas.

A folksy line like that, it sticks with you. But I hadn't realized until I began poking around the world of oil forecasting in the wake of Hurricane Katrina that it also meant Pickens had taken sides in a surprisingly heated debate. He subscribes to what is sometimes called the "peak oil hypothesis," which holds that there simply isn't very much new oil left to be found in the world. And, as a result, we are currently in the gradual process of draining the more than 1.2 trillion barrels of proven reserves that are still in the ground. And when it's gone, it's gone.

The best-known "peakist" these days is Matthew Simmons, who runs Simmons & Co., a Houston-based investment bank and consulting firm specializing in energy companies. Some of Simmons' views were recently given an airing in a New York Times Magazine article about the awful possibility that Saudi Arabian oil has peaked, something Simmons believes is a distinct possibility. His essential belief, he told me recently, is that "energy demand is about to significantly exceed supply. And that was pre-Katrina" before the hurricane damaged refineries, pipelines and offshore rigs all along the Gulf Coast of the United States.

"I would argue that we are in a serious energy crisis," Simmons added. He forecasts increasing oil prices.

There is a second group of forecasters, though, who argue with equal vehemence that, Katrina not withstanding, the world is not only not in an energy crisis now, it probably won't face one for a very long time. The best-known proponent of this view is Daniel Yergin, author of "The Prize," a history of oil that won the 1992 Pulitzer Prize, and the founder of what has become a rather sizable consulting firm, Cambridge Energy Research Associates, or CERA. "This is the fifth time that we're supposedly running out of oil," he said the other day. But, he added, each time new technologies made it possible for oil companies both to find new sources of oil and extract new oil from old sources. A CERA survey released a few months ago says that between 2004 and 2010, world oil supplies will have increased by as much as 16 million barrels a day, "outstripping the likely demand increase." Most of those who hold this view believe that oil prices will eventually drift down.

Does it surprise you to learn that when it comes to one of most vital resources known to man, there could be such an incredible divergence of opinion? It sure surprised me. I was especially surprised to realize that even some of the oil majors are on opposites sides, with Chevron taking the peakist view and Exxon Mobil more aligned with the Yergin camp.

There are three reasons for this lack of consensus. First, because oil is buried underground, it is hard to measure. So basic "facts" such as how much oil remains, and how much can be ultimately extracted are as much the product of guesswork as science. Second, the world of oil can be shrouded in secrecy. As was recently pointed out in that New York Times Magazine article, Saudi Arabia, the biggest producer of them all, won't even allow its reserve and production data to be audited.

Finally, the fact that this enormous divergence has developed speaks volumes about the very different way each camp views the world. As Seth Kleinman, an analyst with PFC Energy in Washington, put it recently, "It's the geologists on one side and the economists on the other side." And while it is impossible to know, right now, whether the geologists or the economists will turn out to be right, we can at least understand why each side believes what it does and form some judgments from that.

Just about the only thing about which both sides agree is that the recent run-up in oil prices, which began well before Hurricane Katrina, has been caused because demand for oil spurred by growth in China, the generally healthy economic condition of the Western world, and other factors has caught up with supply. "The world produces about 85 million barrels a day," Pickens said. "That's where demand is now, too. And I've seen forecasts that demand is going to be higher than that by the end of the year."

What's more, Pickens said, pre-Katrina refining capacity was already at the breaking point. "Refineries were operating at 96 percent," he said. "You can't operate anything at 96 percent. It'll start breaking down."

That, though, encapsulates the world view of the peakists: All the easy deals have been done. One reason refineries are operating at such a high capacity is that no new refineries have been built in the United States for some 30 years. Simmons claims that this was due to the shortsightedness of the oil industry: "My theory was that if the industry didn't expand like crazy, the U.S. would find itself running short of energy." It didn't, and that's what happened.

Even more troubling, the pessimists believe that, despite new technologies, it is going to be increasingly difficult to replace the oil that we're now using up. "Let me give you a number that is pretty shocking when you hear it," Pickens said. "The world uses 30 billion barrels of oil a year. There is no way we're replacing 30 billion barrels of oil. Just a million barrels a year is 1,000 wells producing 1,000 barrels a day. That's big," he said.

How do the economists respond to that? They don't deny that it is hard to find new oil. But they believe that when tight supplies push up the price, as is happening now, the rising price becomes our salvation. For one thing, higher prices will probably temper demand, as people begin to change their energy habits. Surprisingly, this has not yet happened, even as the price of gas at the pump has more than doubled in the last year or so. But there will come a point where it will change behavior.

Secondly, they believe, the rising price itself is what spurs innovation. Oil that could not be extracted profitably at, say, $15 a barrel can be enormously profitable at $60 a barrel. In the view of Yergin and his allies, in fact, this is exactly what has been happening. They point to new oil that is coming out of the Caspian Sea, deep-water drilling in Brazil and the oil sands in northern Alberta. The 16 million barrels a day of new oil Yergin expects to see by 2010, he told me, "is predicated on $25 and $30 oil." If oil stays higher than that, there will be even more investment not just in ways to extract oil, but in new refineries, pipelines and other infrastructure.

Mention this theory to a hard-core peakist like Simmons, and get ready for an earful. "These economists are so smug," he said derisively. "All they talk about is the magic of the free market. They don't seem to understand that this is incredibly capital- intensive." He pointed to the Canadian oil sands where, he said, Shell Canada recently announced it was going to increase its investment to $7.3 billion from $4 billion to produce an additional 100,000 barrels a day. "$3.3 billion for just 100,000," Simmons said. "Doesn't that tell you something?"

Of course, the economists can be just as dismissive of the peakists. "I've gone from disagreeing with them to debunking them," scoffed Michael Lynch, an energy consultant. "By most estimates, total global resources is 8 trillion barrels of oil. They are saying only a small percentage of that is recoverable, and you can't do anything about it. We are saying the amount that is recoverable expands over time."

I wish I had the confidence to make my own forecast. What I do know is that oil is a finite resource. Surely, the peakists are right about that. What I also know is that the economists have generally been right about how the price of oil has wound up fixing the problem. As Gary Ross, chief executive of PIRA Energy Group, a consulting firm, put it, "Price is the only thing that matters. The new threshold of price will do its magic on the supply and demand side."

After all, it always has before. And it will again. Until it doesn't

It will be interesting to see if today we get some further 100k purchases after 2pm