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

Last weeks sell-off through the May low at 28.5p changed the dynamics of my analysis somewhat. The break down through the 28.5p low tells me that the recovery since the May low was not the beginning of a longer-term advance.... In other words we are still in the midst of a corrective cycle off the 69.75p high. This was always a concern in the back of my mind that I first alluded to back in April (#1147), when I pointed out that a break above 48p was needed to confirm the end of the corrective phase. To be precise I was looking at the 10 Feb low at 47.75p as a bull trigger. Anyway, I am labelling an a,b,c corrective decline from 69.75p to 28.5p, forming corrective phase A of a higher degree. Subsequently we have an a,b,c pullback to an orthodox top at 44.75p (15 Aug), forming B and we are now in what should prove to be the final leg lower C. According to my calculations, current downside risk could be in the 19.75p area.
Regards to all and keep up the great work eddie
Lynnzal

Hi all

Thanks Lynnzal, can you post the chart with your findings please ? I'm unfamiliar with the count (ABC).

The bears were in again today taking DES down to the low 0.3000p. The bulls came in at this area taking DES back up to the close 0.3750p. This may be suggesting the bulls don't want to allow the close to go under 0.3050p, this was the low close from the top close 0.6800p (doji top on the daily chart). However the hammer (25/05/05) 0.2850p has been penetrated on (22/09/05) the day of the announcement. DES has not closed under the hammer (the lowest point of the shadow), this suggests the hammer is still intact. Todays candle has bearish implications, but the lower shadow suggests the bulls were buying near the low area. Todays close is very near to the low 0.3050p. If the bulls don't manage to defend this area then bears may take DES closer to the bottom of the hammer.




Good Luck All

Eddie

Hi all,

Sorry late night in from work but got an email from old friend in the Falklands pointing out Ian Duncan was in good company in the Falklands just a whisper.

Not all is dead and if what I have been told leaks in the buying should come through if its going to happen.

Hi markymar

You'll meet yourself going out if you keep working this late.

Hope its good news, any clues ?

Kind Regards

Eddie

Hi all

A few late trades showing this morning (550,00 & 100,000). I hope they are buys.

Good Luck All

Eddie

Eddie, that 550,000 is the third such buy recently. I thought the first two might be a rollover but now we have an odd number of trades so hopefully someone is picking these up. Now is a good time for a strong bounce.
22/9 1.1m 32p
26/9 550,000 33.68
26/9 550,000 33.75
28/9 550,000 33.75

I've done some more thinking.

(dangerous, I know.)

Just got the interim report on the doormat, cash is 25.25m, shares in existence 216.8m. Net cash per share = 11.5p.

Pre the 3d survey and associated rights issue, the shares bobbed around at 8 - 12p I think. (memory fairly good on this) Thus the market attributed this price (say 10p) to the licences. Since then the oil price has more than doubled...I guess the licences are now worth 13p (?)

The 3d survey is supposed to be the dogs Bollo**s so must be worth something (3p?)

I'm up to 27.5p. These are cheap....not saying they won't get cheaper because a lot of people hacked off and dumping.

Time to buy in my book. Did so today, just a few ....

Hi all

Well nice to hear you can still think fatoldgit.

DES closed at a new low today (0.2975p), the previous low was (0.3050p). This is from the top price (0.6800p) 11/01/05. The only support I can see left is at the bottom of the hammer (0.2850p) 25/05/05. After that we would be looking back to last November at start of the rally with a gap up window (0.2800p) 08/11/05. After todays selling volume I'm suprised DES hasn't closed under these prices. Todays candle has bearish implications, however DES has not closed under the hammer. The shadow under todays candle, suggests the bulls were buying at the lower end again. The buying volume however was low. We need a lot more bulls tomorrow otherwise the support from the hammer will be gone.





Good Luck All

Eddie

Eddie it Friday soon always a good day 9 times out of time 10

Lucky i think your right someone is buying on the cheap

Hi markymar

Yes I think it's fatoldgit.

Here are the figures I have. Total trades 150. (buys 20) (sell 97) (unknown 33) = 150. (buy volume 147,000. 42,000) (sell volume 1.51million. 428,000) (unknown volume 1.09million. 313,000) a lot of unknown.

Then look at the open, high, low, close.

Open 0.3075p, High 0.3075p, Low 0.2750p, Close 0.2925p.

Take the close from the open 0.3075 - 0.2925 = 0.015p. Todays change.

Then take the low from the close 0.2925 - 0.2750 = 0.0175p. The difference between the low and the close, seem to sugest the unknown were buys. This is why the shadow is so long. It is also the reason why I'm saying the bulls seem to be buying at the lower end. (unknown value 313,000 volume 1.09million).

Kind Regards

Eddie

Hi Eddie & all.
Above is the chart that goes with my previous comment (#1808).
As I mentioned, the break down through 28.5p labelled 'A' meant that the prior recovery off that low could not be impulsive. Therefore, the terminus of '2' has yet to be seen. Near-term I think we have scope for recovery towards the 34p area as we complete the (b) leg off the 27.25p low. This should then see further downside to sub 20p under current calculations (although there is further possible downside risk). That final move would conclude the correction off the 69.75p high and be the beginnings of a major third wave advance that will carry us through 69.75p. Please note that the lines that I have appended are not indicative of the timescale that will be involved.
Regards Lynnzal

Hi all

Thanks for the chart Lynnzal.

DES managed to move up today, this therfore means the hammer is still intact. The volume was a bit lower today and also a bit odd. Todays candle has bullish implications, but cofirmation of the markets intentions is needed. So were looking at support at about 0.2850p, resistance about 0.3400p at the moment. Britishbulls.com have DES on a buy if today.





Good Luck All

Eddie

lynzal , if the A wave is as you suggest surely it should be a 5 , and not abc. I know the numbering can be a problem , perhaps you could amplify

liked the figure of 90% accuracy , pity Prechter and his boys could not manage that during 2003 , 2004 and early 2005 , they cost me with their predictions of the end of the world as we know it.

Cheers for the input Eddie and Lynzal looks intresting!

http://www.upstreamonline.com/hardcopy/news/article99404.ece

Desire puts drill plans on hold
BRITISH minnow Desire Petroleum has been forced to shelve plans to drill exploration wells off the Falkland Islands because it cannot get a rig, writes Iain Esau.
When the company surveyed rig availability at the end of last year, seven of the 10 companies contacted said they had a suitable drilling unit available.

However, after talks with rig owners, it emerged there was only one suitable rig available, but Desire said it was "unable to agree an acceptable contract".

The company and its drilling advisor Peak Well Management hope that rig availability improves in 2006, although Desire said it may consider farming out part of its acreage if the interested party has access to a rig.

Can I ask who operates the tranche to the west of Desire tranche C (Ann) please?

There is also a tranche F to the south called "Desire non operated".Does that mean they have the licence but don't plan to drill there?

Thanks

Coeliac1, Argos Evergreen are the operator of tranche A, although this is to the west of Rockhopper's acreage and not Desire's, (see link) :-
http://www.desireplc.co.uk/pdfs/figure-a.pdf

From what I recall, they are due to perform a certain amount of seismic, (3-d ?), in that tranche over the next year. I'm sure Capt Guns will have more knowledge of this as he is the resident expert in this area.

Post 1802 - what makes you think Chevron are interested, Rob ?

From the interims

"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."


Upstream artical

"The company and its drilling advisor Peak Well Management hope that rig availability improves in 2006, although Desire said it may consider farming out part of its acreage if the interested party has access to a rig."

Evening all,

What was interesting about the article was that Desire were interested in farming out part of there acreage in return we get a rig, does that mean Desire and Rockhopper know which targets they are going to drill as quoted by them will be all dual targets and the big if is do we let one of the bigger boys come in to drill the likes of e.g. Phyllis or some other target and they get lets say 80% what is found and Desire get a free carry and 20% of which is found in that target.

Just a thought nothing more so dont read anything into it, but does make you wonder why there are a lot of suits in the Falklands at the moment.

Hi maddoctor, thanks for the input. Actually, in corrective patterns, its only the C leg that should be broken down into 5 waves, but I haven't shown that to avoid confusion. Generally corrective waves are either zig-zags (5-3-5) or flats (3-3-5). Therefore I am calling this an 'irregular flat' correction. Of course it may be a double-three. I.e. a-b-c-x-a-b-c, but to mention that would start making this thread way to complex for most readers.
By the way, I think prechter is calling for meltdown in 2012 now, so u still have time to make a few quid. Personally I don't worry what they think. Just DYOR!