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

Hi all

DES move up a little today, the candle has bullish implications. A buy confirmation was also given on Britishbulls.com. DES has resistance at 0.3400p area, so we may see some more consolidation before moving through this area. The volume has increased recently, so lets hope the bulls stay interested.




Good Luck All

Eddie

Hi all

DES gave back the gains from yesterday. Todays candle has bearish implications. The buy confimation has now changed to sell if (Britishbulls.com). The trading volume was very low today, with very few buys. The oil & gas sector UB07 moved down today, which may be the reason DES failed to move up after the buy confirmation. The market should decide tomorrow if the buy confirmation still stands. There are suggestions the market may have over done the sell offs, and the oil sector should bounce back.





Good Luck All

Eddie

Cheers Eddie

Thanks Eddie for your continuing analysis ! V.much appreciated . I always look forward to your charts and comments.
Hope all regulars are well . Des will come good , prob when we least expecting it !!
Regards
Berlingo

Hope you dont mind Oily

Oily1 - 5 Oct'05 - 22:30 - 23694 of 23705


Meanwhile back at the ranch......

Have been chewin' the fat following the very disappointing news.
Phipps is definately going to have to look further afield than Brazil if he's going to get a rig, ie., Equatorial Guinea, Angola, Nigeria; basically any western African country or any South American country such as Mexico, Venezuela, Caribbean and Gulf Of Mexico area. North Sea, Australasian base rigs etc are a no-go, imho, due to the mobilisation cost.
MAJOR drilling contractors have following 2nd/3rd generation semis available 2Q/06.

Global Santa Fe :-
GSF 135, available March 2006. Capable of drilling in 2,400 feet of water. Day rate unknown. Presently drilling in Equatorial Guinea.
http://www.globalsantafe.com/fleet/frames/locfr.html

Pride :-
Pride South Atlantic, available June 2006.
Enough said about this particular one, I think we'll all agree.
http://media.corporate-ir.net/media_files/irol/72/72166/Contract_Status_Report_100405_FINAL.pdf

Transocean :-
Sedco 700, available January 2006. Capable of drilling in 3,600 feet of water.
Presently drilling in Equatorial Guinea.
http://media.corporate-ir.net/media_files/irol/11/113031/reports/093005.pdf

Dolphin :-
Bulford Dolphin available end of 2Q/06. Problem here is she can only drill in 1,250 feet of water - not quite good enough for the northern parts of tranches C & D, but modification wouldn't be overly expensive. Rig is presently under contract to Equator via Peak Well Management, drilling offshore Nigeria.
Rig doesn't feature on Dolphin's website (?!):-
http://www.dolphin.net.uk/index.asp?tid=8011&title=Contract+Overview&topimg=

Diamond :-
Ocean New Era is available June 2006. Presently drilling GOM. Capable of drilling in 1,500 feet of water.
Ocean Voyager is available May 2006. Presently drilling GOM. Capable of drilling in 2,000 feet of water.
Ocean Whittington. Available October 2006. Presently drilling Mexico. Capable of drilling in 1,500 feet of water.
http://www.diamondoffshore.com/excel/October%204,%202005.xls

Rowan :-
Predominantly a drilling contractor who specialises in jack-up rigs. Nothing for Desire here, imho.
http://www.rowancompanies.com/pdf-files/offshore.pdf

Noble :-
The only semi-subs they have are ultra-deep water rigs - too expensive for our Mr. Phipps, imho.
http://www.noblecorp.com/rig/foverviewfrX.html


DYOR, IMHO, etc.

Hi Marky
Great research you should be a Director, as i
believe more you say than the board.
I only wish the directors would come forward
with somthing constructive. i for one am becoming
more than concerned i feel we are being sold down the
river, issue at 45p - 20% discount at the time,looks cheap now dosen't
it 28p. We all believe the potential is there but
the board are hiding a lot of things from the shareholders.
In the meantine we are all doing our dough big style.
In to deep to get out without getting slaughtered,
and the truth is we could sink to below 20p
what is there to support the sp only hype
at present.
vultures will be preying on us shortly if not already,
perhaps that is what the board want
after all they will benifit most.
Keep up the good work Marky,
hang in and prey what else is there.
Regards
HUSTLER

A little birdie told me that Ian Duncan is still in the Falklands after 1 week and looks like his stay is for 2 weeks there and I would not be surprised to see some sort of PR from the Falklands about Desire Petroleum in the coming days.

A few days have passed since my last posting and although I realise Im never going to be mr. popular, while I post bearish projections. I still believe in airing my thoughts so that people can act/react accordingly. Not too much has changed in terms of my near-term sentiment towards DES. The recovery off the 27.25p low was both quicker and shorter than anticipated, as I expected to see a bounce closer to 34p. The minor abc wave that we have just seen is labelled as follows - a from 27.25p to 34p, b from 34p to 27.5p and c up to 31.5p. Therefore, 31.5p becomes the terminus of wave (b) of one higher degree (noted with a question mark on my 30 Sep chart). This now puts us in the next (c) leg lower and should see a push towards my target in the 19.75p area. Ahead of that I have noticed that we have a higher low from October 2004 (21.75p) and 78.6% Fibonacci retracement of the 6p 69p advance at 20p. Therefore, we have further reasons for the market to stall around those levels. Ultimately, I cannot rule out losses through 19.75p as the major wave 2 comes to an end and we then begin the major wave 3 advance through 69p.
Regards to all
Lynnzal

A new ship for the Falklands

http://www.vosperthornycroft.co.uk/newsandevents/newsdetails.asp?s=&ItemID=620

Hi all

Sorry I wasn't able to update last night. Our dog went missing. We have him back now, so here we go.

Thanks for all the input. Just catching up.

Lynnzal thanks for your input. Yes I agree DES could go lower. If DES were to rally at this point, would your calculations still stand ? In other words has this been built into your calculations ? The reason I'm asking, DES finnished with a long legged doji (potential for reversal). Your post was also before the close.


As just mentioned DES has finnished on a long legged doji candle, this candle suggests a tug of war between the bulls & the bears. Combined with yesterdays candle we have what could turn out to be a morning doji star. If DES gaps up tomorrow then all three days candles will form this pattern. The doji candle alone has the potential to call the bottom of a down trend, but is better at calling the top (this is the candle at the top of the chart 11/01/05). If we get the third candle tomorrow, we should see more bullish action to follow. We are therfore looking for a gap up followed by a continuation up. Britishbulls.com is also has the formation as a potential reversal & has DES on a buy if. Lets hope for the bulls are out in force tomorrow. Could be some good news brewing.




Good Luck All

Eddie

Hi Eddie, thanks for your update and glad you got the dog back!
My calculations are pretty much based on a combination of longer-term and short-term wave analysis. Often they cluster and when projections do this it adds weight to those targets.
Therefore a recovery rally tomorrow would not immediately alter the downside risk towards the 20p area. A move above the 31.5p lower high would have implications for my wave count over the near-term and so I would have to go over and re-count the recent moves more closely. As mentioned before, I felt the bounce off the 27.25p low was rather short and swift, so I wouldn't be suprised if we saw a more significant pullback. Although, that still would not rule out further subsequent weakness through the 26.75p low.
For now I can only base my findings on what I know i.e. the price movements that have gone on before, but I will update as soon as things change.
Regards
Lynnzal

Thank you Eddie for making me look up long legged dojis. It does look bullish but then WT*DIK, I thought this company looked good at the 45p offer when the 3D showed 2.2 billion barrels at one location and all they had to do was find a rig. Thank you Lynnzal for sharing your fibonacci retracement view too, it's a touch more pessimistic in the short term but then I, and possibly some others, have clearly been too optimistic in the past. On this occasion if the long legged doji is right then you will hear it's name sung on the streets of London as a cyclist flies by.

Thank you Eddie and Lynnden and glad you got the dog back Eddie

I re-topped up to day with the last of my money as I felt we are at the bare bones of Desire with the money they have in the bank and what acreage and the prospects they have this is at a bargain of a price and cant see it fall much further.

I also think we are now in territory which makes Desire a serious take over target for any large oil company and hope this does not happen but with a market cap of only 63 million when looking at there prospects I think this is chicken feed for any large oil giant when you look at what profits they make.

If it drops any further I will sell other shares to buy more Desire I have every confidence in the board and Peak Group to do what they have set out to do and fully believe in the findings of the BGS and the encouraging seismic and work done by FOGL .

Hi Lucky good to hear you post,we must be all posting at once tonight, as you mentioned you thought the price was good at 45p with 11 prospects found and 2.2 billion barrels of recoverable oil, then we had the news from the 3D that five other prospects were found from the 3D which was even better news and then we get news of tranch F which 2 more new prospect were found which together gave a another possible 1.5 billion barrels of recoverable oil.

Ok we await a rig but looking at the fundamentals unless its just me this is a screaming BUY

Luckyswimmer, I'll listen out for you as I walk past the BofE tomorrow.

Hi Lynnzal, Luckyswimmer & Markymar.

Ye well no good films on tonight.

Lynnzal thanks for your reply, Luckyswimmer the candle formation has potential but not guaranteed. Markymar yep cheep as chips. I supose DES is like a good film, starts off looking for oil, all hopes get dashed, then bingo finds loads of oil. Well thats the happy ending anyway. Looks like were in the middle of the film. Best get some more popcorn.

Good Luck All

Eddie

Hi Marky, yes, I'm still around, holding on by my fingertips - popcorn in the other hand, wondering how to eat the popcorn without falling off the cliff edge. Well done for buying yesterday, a brave move but they're always the best investments.

Morning Lucky,

Clogs on out the door but the lowest i ever bought at was about 7.8p years back when you were lucky if there were a few thousand bought in a day.

O have times changed

Its like been on a starting line to a race this time last time there was no starting line when bought at 7.8p but i believed in the BGS and there findings and even more now.

Are big boys shaking the tree? 20p may be good entry but I don't think it will go as low as that.

Hi all

Oh well we never got the gap up, however DES did manage a little gain today. We may have seen a gap if the 500,000 trade had been the first. This means the morning doji star didn't happen. Todays candle has bullish implictions, so we may see further advances. Lynnzals theory may prove to be correct, so we must be aware of the dark side. Todays volume was a little lower today, not what you might expect on a rally. So its onto next week. We might even have a rig by then. Wishfull thinking I know. If the share price was good at the open offer 0.4500p, then it must much better now DES has capital to drill. Britishbulls.com still have DES on a buy if.





Here is a 1 year chart with candles of 1 weeks value. This shows the high and lows of the week.




Good Luck All

Eddie