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

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

Hi all,

Some great input put into this thread today and liked your post Florida, why the deal fell through with Pride South Atlantic I dont know I for one thought it was in the bag, but that Desire Petroleum and its many ups and down I have had with it since 1998.

I believe in what the BGS have stated could possibly be recoverable oil in the NFB and hope to get an up date soon with the very long awaited re vamp of there very old and out of date web site on the new prospects which lie in are acreage.

There is so much we dont know of other prospects which lie in are acreage and suspect there was a slight hint in the interims that more is to come and look forward to that news.

The board of directors have a slating of recent and I feel its been unjustified as they have always been honest and up front and have had acted in are best interests, maybe a little poor on the PR side but Phipps will do it on his terms only and dont forget they have more to loose than any of us as the biggest shareholders in Desire if he does not succeed which is a big plus for me.

Thanks, Florida, Marky, Eduardo and Lynnzal for informative posts.

After a day of some gloom, I've perked up a bit.

Net asset value of DES is 16p per share....(being all cash)

Value of oil in the ground (if any) is immeasurable (unmeasurable?) but on all best guesses might be say 10 per share....what's that worth today???

I would guess at least 10p in todays value allowing for the fact that we may well have to wait another year for some drilling.

So, (according to my logic) the shares ought to find an absolute bottom level of 26p (which funnily enough they found yesterday).

Any price under 30p per share looks a damn good buy to me...remember before they did the last 3d seismic two years ago, they were priced at 10p then and all they had was licences to drill.

I am in the camp that says we may stagnate for a bit, but below 30p I shall be adding...I missed out yesterday because I was feeling a bit glum...Hey-ho!!

Fat oldster.

http://www.guardian.co.uk/business/story/0,3604,1577287,00.html

Desire Petroleum, the oil exploration company focused on the Falklands, bounced back from Thursday's 20% fall. Traders reckon a rival may take advantage of the decline, which was triggered by news that Desire cannot get its hands on a rig, to make an offer. The shares rose 2.25p to 33.25p.

Hi markymar

Thanks for that. Just goes to show its not all doom & gloom. Did you manage to top up. ? I got in at 0.3225p, just a modest amount. A bit skint after our holiday.

Kind Regards

Eddie

Morning Eddie,

Yes I managed to re-top up on a few more as it looks to cheap, will nearly 26 million sitting in cash and extensive 3D seismic been done on acerage C and D and its just a waiting game to find out what other prospects are there and with a market cap of only 73 million compared to BOR at 45 million and FOGL at 109 million it cheap as chips.

When you look at what the market cap is for the others and only have 2D at present and not a lot more has come off them as to what is down there or future funding in place or partners you can see why Desire are a snip at this price and years in front of them.

Am sure as pointed out in the Guardian article that other oil companies will be thinking the same as the potential of what could be a new oil province is a snip at 73 million when you think of the huge profits they are making at moment in there billions.

Hi markymar

Glad you got in, it should prove to be a good price. Was yours the 1.17 million 375 k trade ? This should prove to be a good price to buy, after the massive test of the hammer (25/05/05). The hammer stood up to a massive test (9.19m volume), for the hammer to have failed, DES would have had to close under the long shadow (0.2850p). If you draw a horizontal line from the lowest point of the shadow (25/05/05) to Thursdays candle, you can see how much work the bulls had to do to defend it. This will be why the 1.17m trade was at the end of the day. The market had pushed DES back up off the low of 0.2725p upto the close 0.3100p. As Florida says top up and relax. This may be the last chance at such a low price. If there is speculation in the market DES could move up just as fast.

Kind Regards

Eddie

From todays Guardian. Desire Petroleum company focused on the falklands, bounced back from thursdays fall. Traders reckon may take advantage of the decline, which was triggered by news that Desire cannot get its hands on arig, to make an offer. The shares rose 2.25 to 33.5p. This should encourage other oil companies to offer a takeover bid shortly, possible Chervron and Exxon, within a short period.

Hi all

DES went up a little, looking at the trades there are more sells than buys. Todays trading opend at 0.3300p, moved upto 0.3400p, this is where the price stayed untill the bears moved DES back down to 0.3300p. The bulls then gave support moving DES back up to the close. The close wasn't at the high of the day, this suggests the the bears are still around. The volume has reduced slightly, we may see some consolidation around this area before moving up. News of a rig, farm in partners or bid would bring the bulls out in force.




Good Luck All

Eddie

Thank you Edddie,

At the End of the day there was a sell on AM site which looked like a buy of 550,000 also the 100,00 as well and AM had 32p and Buy 35p at end?

http://www.falklandnews.com/public/story.cfm?get=3447&source=2

Arriving on Wednesday is Ian Duncan from Desire Petroleum. Already in the Falklands are John Armstrong and Patrick Bird from FOGL

I understand that rumours abound that Chevron may pick DES off. It'd be sad as us long term holders want to see DES strike oil independently or at least with farm in partners as we all believe that it's going to be the biggest discovery for a very long time and the sp will multiply many times. Surely a rig will be found or a new one commissioned before long. Rig co's know the potential. If des was taken over I cannot see less than 1 being successful, Clever directors tying their bonus to the Capitalisation of the co. They stand to gain a hell of a lot!

Had been involved with DES for some time now however I closed my position in favour of the almost unknown TAG which has just achieved a strike in Guatamala.

You can see the upside of a positive drill especially when the pipe lines for distribution exist.

I am sure DES will achieve in the fullness of time, although to fly I believe some serious institutional support will be required.

Again using TAG as an example 91% of their shares are held by institutions / major shareholders leaving only just over 4 million in the hands of the small investor hence the massive upside.

I will definately be back to DES when the circumstances are right although do not want to be tied in treading water for the next 6 -12 months. DYOR

Roly.

Your going to need a new map Markymar.

The web site has been updated

http://www.desireplc.co.uk/

Many thanks to Eddie and Lynnzal for the charts.

Cheers Capt,

Any thoughts looking at pictures ect ect?

Well a few Markymar,

Kath is a new babe to me.

The Liz, Beth, Jan triple decker looks off, which I find odd considering the section from the Calagary presentation.
Maybe they have named the target wrong??

If you check the shape and position of Liz and Beth on the old and new map Liz seems to have become Beth.

I'm not surprised they have not sized the target's, as in my opinion it would serve no purpose without a rig.

There were a few more potential targets in that Calagry presentation, so maybe more to come??

I'd like to know the COS on Ninky as they seem rather confident on that one if, you read the write up on the slide.

Hi all

Thanks to all for the updtes.

DES went down a little today, closing on yesterdays low. The candle has bearish implications, due to the fact DES failed to move up. Looking at the chart, we have a Fibonacci retracement line just above. The market appears uncertian about going through this level. DES had few buys today, which may mean consolidation at the lower level before moving up. Both buying and selling volumes have reduced in the past few days, which reflects indecision. Tomorrows trading may confirm the markets intentions.





Good Luck All

Eddie