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

Falklands-Malvinas
Wednesday, 21 September


UK has no doubts about its sovereignty over the Falklands



The United Kingdom has no doubts about its sovereignty over the Falkland Islands and there can be no negotiations on the sovereignty of the Islands unless and until the Islanders so wish, stated the UN British delegation.



In reponse to remarks from Argentine president Nestor Kirchner and Foreign Affairs minister Rafael Bielsa during last week's high level plenary meetings of the United Nations General Assembly, the office of British permanent representative Sir Emyr Jones Parry KCMG in exercise of the right of reply circulated as document of the General Assembly the following:
Statement of the delegation of the United Kingdom of Great Britain and Northern Ireland in exercise of the right of reply to the remarks made by the President of the Argentine Republic in the High-Level Plenary Meeting of the General Assembly on 14 September 2005.
The British Government attaches great importance to the principle of self-determination as set out in Article 1.2 of the UN Charter and Article 1 of the International Covenant on Civil and Political Rights. That principle underlies our position on the Falkland Islands.
The elected representatives of the Falkland Islands once again expressed their own views clearly when they visited the United Nations for this years debate in the UN Committee of 24. They asked the Committee to recognise that they, like any other people, were entitled to exercise the right of self-determination. They reiterated that the people of the Falkland Islands did not wish for any change in the status of the Islands.
There can be no negotiations on the sovereignty of the Falkland Islands unless and until such time as the Islanders so wish.
The United Kingdom has no doubts about its sovereignty over the Falkland Islands.

Similarly with the oral reply to Mr. Bielsa:

I am taking the floor in Right of Reply to the remarks just made by His Excellency Rafael Bielsa, Minister of Foreign Relations, International Trade and Worship of the Argentine Republic on the sovereignty of the Falkland Islands.
The UK's position on this issue is well known, and was last set out in detail by the UK's Permanent Representative to the United Nations, Sir Emyr Jones Parry, in a written right of reply to the statement by His Excellency President Nestor Carlos Kirchner of the Republic of Argentina in the High-Level Plenary session of the General Assembly on 14 September 2005.
The United Kingdom has no doubts about its sovereignty over the Falkland Islands.
There can be no negotiations on the sovereignty of the Falkland Islands unless and until such time as the Islanders so wish.

Cheers Marky
When is the new Warship ready another 2 - 3 years
previous thread seems a long time ago now
and not taken up with merit.
Seems to me party politics have taken over.
If Nestor wants to carry on where his predicesor
left he had better have a glass bottom boat to
inspect his fleet again.
Thanks for info on peak
but have to say, remote location,
what do they realy mean cant risk it without
back up.gov.
Every oil stock is going up except us.
The truth is, what we want and the board better
start delivering soon.
Even if it means we have to wait longer if
.gov is involved, it means the black stuff is there
in volume.
I wont mention the Middle East or why we are there.
Regards
HUSTLER

In the meantime, the Group has pressed ahead with its drilling preparations in
order to be ready to drill as soon as a rig becomes available and is also
considering other ways of securing a rig. In particular, the Group continues to
receive approaches from companies interested in participating in the North
Falkland Basin and, although another farm-in partner is not required to finance
the project, should a potential farminee have access to a rig it might be to the
Group's advantage to reach an agreement with them. As a consequence, the Group
continues to welcome such approaches.

On the plus side, the increase in the oil price means that the Group's drilling
prospects, should they result in discoveries, are likely to be twice as valuable
as indicated in the Prospectus for the Placing and Open Offer published on 14
February 2005, in which a maximum oil price of $30/barrel was assumed, even
taking into account increasing costs. It is particularly pleasing, therefore,
that, as already announced, the Group has identified additional prospects in
Tranches C and D and has acquired a 100% interest in Tranche F.

Morning all,

The Pride South Atlantic is still on contract to Encana, if you read the interims and between the lines you will read.

Nothing has changed from the stance of the BGS on what oil may be in the NFB just maybe the drilling time table been pushed back a little


In the meantime, the Group has pressed ahead with its drilling preparations in
order to be ready to drill as soon as a rig becomes available and is also
considering other ways of securing a rig. In particular, the Group continues to
receive approaches from companies interested in participating in the North
Falkland Basin and, although another farm-in partner is not required to finance
the project, should a potential farminee have access to a rig it might be to the
Group's advantage to reach an agreement with them. As a consequence, the Group
continues to welcome such approaches.

SP has reached bottom and now moving up fast.

Good time to top up, before a Big Major buys them out, and drills themselves.

"On the brighter side DES does look over sold."

Does this bloke do the scripts for Only Fools & Horses too ?

Now it's over sold, take a look at the chart and learn from what you see. Never laughed so might in my life. BTW - You have another shock in store next month.

So cryptic driftwood, you're pathetic. So rockhopper have to decide how much of their investment they want to excercise with DES. Why don't you just say that? You still offer nothing of value to this bb.

http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=542957

Lack of oilrigs hamper Desire

LONDON (SHARECAST) - Desire Petroleum shares slipped after the group said it is yet to procure an oil rig to begin drilling in its North Falkland Basin prospect, due to a global shortage.

The shortage is mainly due to the general increase in exploration drilling and because of the lack of new rigs being built in recent years.

Prices of rigs also closely correlate with the price of oil, so rig rental has increased due to recent rise in crude prices.

"Rig rentals have increased by more than 50% and current suitable rig availability has reduced to almost zero at the time of writing and is likely to have worsened further as a result of Hurricane Katrina," said the company.

The oil explorer was in lengthy negotiations with the owners of a rig but the two parties were unable to strike a deal.

"The current situation as regards drilling in 2005 or 2006 is unclear but Peak Well Management, the Group's drilling consultants, continuously monitor world-wide rig availability on the Group's behalf," it adds.

Nevertheless, the group expects the rig market to normalise, as newer rigs are built, and said the underlying potential value of the group's prospect has been greatly enhanced due to the increase in oil price.

Desire also recorded a swing to first-half pre-tax profits of 786,000 as opposed to the 301,000 loss previously. Since the group has no source of revenue, the profit was due to the company converting 24.4m to US dollars and benefiting from the resulting exchange rate.

Hi all


Oh well we know why DES has gone down now. Not good news about the rig beeing delayed. DES gaped down today as a result of its announcment. After the gap down the market pushed DES down to the low of the day (bottom of the thin line under the real body of todays candle), the market then pushed DES back up to the close. This would indicate the support is at the bottom of todays candle 0.2725p. The long term rising trend line was broken today, we are now looking at the horizontal line for support, which dates back to 08/11/04. The support line is where DES started to move up from the hammer on 25/05/05. If the support holds out here, we may be seeing a double bottom.





Good Luck All

Eddie

Sorry I just troll the internet to have a laugh when I've nothing better to do. Sad really but it's an hobby of sorts. Here's a bit of stuff, you may not think it worth knowing but at least if I call back you can't complain.

I'm told Desire Pet had been in agreement for a rig till around 5-6 weeks ago. The contract in question fell apart because of a dispute over what the charges where. Desire Pet thought they agreed all aspects but they failed tie in something to do with leantime or tow time or something like. Sorry I don't use a big spanner on an oil rig so I don't really understand the details. The resulting shortfall started off at around 300k, discussing it resulted in this going up and the last figure I heard was 800k. This was for one small part I don't know the full cost but the rig was owned in europe and has now been contracted. The only way they will get a rig between now and 2007 is if someone goes bust.

Hi Driftwood
Interesting post, you do seem well conected with the content.
So what is your interest if you think Des is such a dog shit stock
you appear to spend a lot of time following it. To me shit stinks
and would only look at it once. You seem to have more than a vested
interest i can only conclude you have a large short position.
Good luck to you, but how do you view it long term do you
believe oil is there to be found, your overall view is welcome.
Regards
HUSTLER

driftwood1, at last you bring something to the party of some value. Could you let me know the source of your info (ie website), so this information isn't taken as something that you have made up off the top of your head.
By the way, I agree that it is sad if you have nothing better to do than trolling the internet like that, but it takes all sorts I guess. If I were you I would put all the info to good use...why not speculate in DES for example, you could have made a lot of money shorting a spread this week.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2005/09/23/cndes23.xml&menuId=242&sSheet=/money/2005/09/23/ixcity.html

Desire can't get no satisfaction
By Stephen Seawright (Filed: 23/09/2005)


Soaring prices have boosted the earnings of many oil companies in the past year but have stalled the plans of Desire Petroleum.
The company, which has the right to explore sites near the Falkland Islands, has been unable to get near the oil as it cannot hire a drilling rig.

Demand for rigs has soared as oil companies are keen to extract as much as possible while energy prices are high.

"We are very disappointed about it because we want to go and drill as soon as possible," said Ian Duncan, Desire Petroleum's chief executive.

"A year ago there were numerous rigs that could have drilled these wells."

The type of rig Desire needs rents for about $150,000 (84,000) a day compared with $80,000 a year ago, Mr Duncan said.

The Falklands' sites, which are Desire's only projects, could hold over one billion barrels of recoverable oil, according to the company. In preparation for exploration drilling, Desire raised 24.4m through a share placement in March.

Yesterday Desire reported first-half profits of 786,000 pre-tax, all made from interest payments and exchange rate gains on the 24.4m which was converted into dollars. Desire shares plunged 6 to 31p yesterday.

Hi Guys
Well to be honest i wasnt surprised we didnt get the news we were hoping for . I was ready for it and made a decision a long time ago to stay aboard whatever. I was surprised the price didnt drop back more and today we are seeing a small recovery!
All the fundamentals are still in place and the institutions and long term private investors know that .
Things are still v.interesting and we will just have to sit tight. C`mon Peak , time to earn your stars !
Thanks to all regular posters as usual , Eddie , Marky , Lynnzal and others . Dont lose heart . Des investors need you !!

this has got to be a share to stick with and holding for the buy opportunity as it bottoms. With the price of oil as it stands logically holding and picking up more shares has got to be a wonderful chance.

watcher. ps. enjoy learning from the regulars and appreciate the labour of love..

Thursdays sell-off confirmed my concern of a deeper setback to 33.25p (19 Sep, #1760). However, the market extended way below there to reach 27.25p. This raises further issues, as the minor breach of the former low at 28.5p changes things somewhat on the technical front and will require some further analysis on my behalf. There are a couple of scenarios that I need to work on and will post my thoughts once complete. I managed to buy some cheapies yesterday and think there is topside room (certainly the gap up to 37.25 is a draw), but would advise people to be wary of the downside.
Regards
Lynnzal

Glum because the price has dropped, no way. I see this as a wonderful opportunity. Just think of our position before the announcement, everyone knew that the potential for no rig to be announced was always a possibility and of course all of us were fearful of the damage it could do. But look at the position we are in now, only 4 points down with nothing whatsoever to set the price back apart from general market movements. We are now over the worst part of the storm and have survived totally intact.

In the early part of 2005 Phipps said something about a farm in partner was not an option to be considered at that time (or words to that effect). In his latest statement he has openly invited any farm in partner who has access to a rig.

This broadens the scope of acquiring a rig substantially. The position now is immeasurably better than it was before the announcement. He now has access to many other rigs that would otherwise be out of the equation. What's more, he has opened the door to many other companies that would have liked a piece of the action but never got the chance.

Gentleman the road is clear, top up and relax.

Kind regards to you all.

Florida

ThoughtDES wasin with Rockhopper,have they any contactsor even a drill bit,if they hop rocks, any views.

Hi all

Thanks to all for the positive input.

I'll start with a weekly chart (candles have 1 weeks value), which shows where a rising support line. If you look to the left of the large green candle you will see a small green candle which shows the days low price as (02/11/04) 0.2450p, then draw a line from this candle to the low of (08/04/05) 0.2850p. This should give you a rising support line. This weeks close is above this line. This indicates the support is at this area still. On a daily baisis DES has traded bellow this line but not closed under it. Yesterdays trading volume was 9.19 million, this definatly tested the support line, DES closed right on the line. Today DES has recoverd some of yesterdays loss and move up off the support line. It has been said by a few on the bb this is a good time to top up. I think so after 9.19 millon volume testing the support. The big green candle has not let us down since last November.




On the daily chart you can see the falling window (gap down), the resistance area as Lynnzal has said may be at the top of the window. This is the bottom of the red candle on the day before the gap down (0.3725p).

Lynnzal I'm keen to hear of your fresh assesment (0.2750p low).




Good Luck All

Eddie