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

driftwood, are you suggesting you know something? If so, why not just say what you know. You seem to be suggesting a takeover from one of the oil majors and a RNS this friday. This is speculation that has been circulating the other bb's since the market gapped through 37p. But until you become less cryptic it is meaningless...

Walla
Driftwood at it again and eveybody takes the bait myself included.
Not once has he put forward anything costructive or damming
with substance. just whispers. edit

However we are being slaughtered and that is no suprise
as said previously the board need to act and fast or else
they will not be on the board much longer.
Still a great prospect but the drum is beating.
Regards

Will we see a rig drilling in the NFB next year ?, there are not too many available, as most are aware. The Pride South Atlantic is available in June - will Phipps be prepared for a second bite ?, further afield we have the Sedco 700 in Equatorial Guinea - will Phipps be willing to pay the additional cost of mobilisation due to the added towing distance in comparison to a Brazil based rig ?
Offshore Nigeria the Bulford Dolphin will be available end of June, (under contract with Peak, which could be a good thing), the only problem is she doesn't quite have the anchor chain length required for drilling in the NFB, but to upgrade the 8 anchors wouldn't be an enormous cost - it all depends how much Phipps et al really want to drill and for how much money. Maybe they plan to wait 12 to 24 months to allow the rig market to cool down ?
Oh, decisions, decisions !
imho, dyor etc.

Drilling for Oil Starts to Pay as Price Soars
by Richard Orange
Sunday Business, London 10/12/2005
http://www.rigzone.com/news/article.asp?a_id=25989
Searching for oil has become one of the most profitable things anybody can do. The ramp-up in the oil price is raising hopes that the industry might start putting its money where its mouth is. This may lead to greater emphasis on exploration rather than cost-cutting or buying other oil companies.

A study by oil consultants Wood Mackenzie has modelled the effect of oil prices on the profitability of exploration. Assuming they could sell the oil they have discovered for $40 a barrel, the best explorers would have made returns of more than 20 percent on every dollar they have ploughed into finding new oil supplies over the past 10 years.

Even the worst performers out of the 28 top international oil firms surveyed would have made a 12 percent return.

When the first version of the study, Exploration Strategy and Performance, was released two years ago, it made waves in the oil industry by showing that the bottom ranks among oil companies were destroying value when they tried to find more oil. Given the level of discoveries and their costs today, Wood Mackenzie says, at a $20 oil price, two thirds of the companies would be destroying value.

Increased exploration is crucial to stave off a decline in global production and a steady concentration of pricing power in the hands of the Opec oil cartel.

Over the last decade, the six largest oil companies have drilled fewer wells. They slashed their budgets in 1999 after the oil price collapsed to $10. Even now, they haven't increased them back to 1998's level. The top six only account for two fifths of the oil exploration; before they accounted for two-thirds.

The result has been a collapse in the industry's ability to replace the oil it sells, with the companies only finding half as much as they need. Wood Mackenzie estimates that to replace all of it, they'd need to increase spending on exploration from today's $14bn (8.0bn, E11.6bn) to $40bn. True, they've spent 30 percent more since the oil price started to climb, but almost every cent is swallowed by higher costs of hiring equipment, manpower and services.

Laid next to the $85bn the top five oil companies have spent buying back shares since 2000, that hardly looks like heavy spending.

Even if exploration increases, it is unlikely to triple to the levels needed to stop reserves declining. After all, part of the reason oil companies have been making good returns from exploration is because they have been doing less of it. BP, the most successful, has excelled because it only explores in the most prospective regions. Surprisingly, Royal Dutch Shell, plagued by problems with reserve replacement, came second in terms of profitability. No completely new oil hotspot has been discovered since 2000, when a string of finds was made off Angola.

Also, after a decade of cutting back, there aren't enough drilling rigs or engineers for a doubling of exploration, however much cash companies pay. Investment in rigs is on the rise; around 30 new drilling rigs are being built. But that's hardly enough to remove the bottleneck

The Peak Group Secures Credit Facility from RBS
Peak Group 10/12/2005
http://www.rigzone.com/news/article.asp?a_id=25967
The Peak Group has agreed an 11 million finance structure with the Royal Bank of Scotland (RBS) to enhance the services the company provides for its clients' well construction projects.

The agreement follows a thorough review of The Peak Group's financial, commercial and contractual processes to enhance further development of the company's innovative multi-well, multi-client programme.

Multi-well programmes are being undertaken for Dana Petroleum and Century Exploration in the Central and Southern North Sea, and offshore Australia for AED Oil Limited and Methanol Australia Limited.

As a market-leading bank recognised for supporting significant advances in the oil and gas industry, the RBS will provide The Peak Group with an 11 million general corporate purpose facility to strengthen its contracts with service providers and support client requirements.

The Peak Group's Chief Financial Officer Gordon Angus said: "The package that RBS put together clearly distinguished them from their competitors. The way that the RBS team got close to Peak's business, and their ability to create innovative solutions to financing requirements, were critical in our choice of bankers. This year has seen a quantum change in Peak's activities and we are delighted to have RBS supporting us in our business development."

Brian Johnston, RBS Regional Director of Corporate Banking in Aberdeen and the North of Scotland, said: "We are delighted to welcome Peak as a new customer. They are a progressive company at the forefront of their sector. We took the time to develop a comprehensive understanding of Peak's business requirements and were able to offer them a specifically tailored deal. We look forward to helping Peak achieve further growth.

Heard that Regal are selling their 'King Alexander' rig on the cheap, surely Desire know this and could buy this outright to enable them to drill all seven wells from December, without the need for any farm-in partner. 100% money for the shareholders and they could sell the rig afterwards aswell.

Apparently the CEO Ian Duncan is visiting the Falklands this week, check out today's company press release.
http://www.desireplc.co.uk/press_releases.php#

Hi all

Thanks for the input.

DES managed reasonable gains today, the trades were a bit odd though. There appeared to be more sells than buys, and a lot of unknown. It would appear the unknown were buys. DES is currently 21.48% from the breakout confirmation price. It is said the average decline is about 22% in a bear market. The support area of 0.2450p has managed to stay intact so far. Also it is said significant recovery can be exspected between days 14 - 21. Britishbulls.com have DES on a buy if at the moment. All being well the bulls will give support.




Good Luck All

Eddie

This will come right in the long term imo.

I hold GBP and and feel I asm in the same boat, so float!

Crap day all round generally.
Of the stocks i hold at present
8 are oil based,everything apart from Des went down.
Des not up much but as it has been such a shit
day to see a small rise gives me some hope somthing may be brewing
that we are not a party to and the mm's are, if nothing else this
could be seen as a signal the bottom has been reached or at least close. very overweight on Des still at present but may be tempted to buy a few more
at this level next week, hope the gain today will continue.
HUSTLER

New face for Pride board

By Upstream staff


Houston-based drilling contractor Pride International has appointed Francis Kalman as its new director.

Kalman has been McDermott Internationals chief financial officer since February 2002 and has held other senior executive positions over the past decade.

Taken from Westmount Energy results today


Desire Petroleum plc

Since June 1996, the company has invested a total of #909,915 in the issued
share capital of Desire for which it has acquired a total of 7,820,830 ordinary
shares. Desire's shares were admitted to AIM on 17 April 1998 and from June 1998
the company has realised #996,442 from the sale of 2,329,830 ordinary shares.
This has resulted in the return of all the funds invested along with a surplus
cash flow of #86,527. The company has generated profits from the proceeds of
shares sold of #328,781, #50,211, #176,047, #24,365 and #204,140 respectively,
in the five financial years ended 30 June 1998, 1999, 2000, 2002 and 2005,
totalling #783,544. The company retains 5,500,000 ordinary shares representing
2.51% of the issued share capital of Desire at 30 June 2005, with a carrying
book value of #697,017 equivalent to approximately 12.67p for each Desire share
held. The middle market closing price on 30 June 2005 of a Desire share was
40.25p. This shareholding provides the company with a significant indirect
investment in the exploration of the North Falkland Basin, South Atlantic.

Of the six wells drilled offshore in the North Falkland Basin in 1998, five
recorded oil, or oil and gas, shows. The first phase of drilling has
demonstrated that this basin contains a working hydrocarbon system.

Desire holds a 100% interest in licences over tranches C, D, F, I and L in the
North Falkland Basin. Rockhopper Exploration will earn up to a 15% interest in
tranches C and D by funding 30% of a three well drilling programme.

In 2004 Desire acquired 804 square kilometres of 3D seismic data on tranches C
and D. Five major prospects have been identified in addition to two major
prospects mapped on the earlier 2D seismic data. Environmentally, the water is
not deep, 300-400 metres, and the weather is similar to the central North Sea.
Heavy-duty deep-water rigs are not required to drill in the area. In addition,
most of the targets are at reasonable depths, shallower than 3,000 metres.

Desire raised #24.4 million by way of an open offer and share placing at 45p per
share in March 2005 to support a three well drilling programme on tranches C and
D. The current worldwide rig market is very tight as a response to current high
oil prices and Desire have not as yet been able to contract a suitable rig for
the three well programme. However, it is understood, essential work for the
programme is progressing well in preparation for drilling in 2006.

Signed - A floater from Huston, the rig will be taken out of cold and be on a six month contract. You can bet it's not going here folks.

That RNS? now more like 60/40, time is not on your side sorry. If you don't get it byTuesday you may need your hard hat if you still hold these.

Hi all

Looking at the trades it appeared there were more buys than sells today. Unfortunatly the chart suggests different. Todays candle has bearish implications, DES gave back most of yesterdays gains. DES is still trading very close to the 0.2450p support area, which is also close to the suggested 22% decline (from the breakout price) for this chart pattern. DES has currently declined 23.7% since the breakout price. The buy if on Britishbulls.com has changed to wait.





Good Luck All

Eddie

hahahaha....driftwood, you are indeed very funny. I suspect you talk to flowers and read tea leafs too! What on earth are you on about now? The imaginary RNS didn't happen on Friday did it?...maybe next week or the week after. Failing that I would say sometime the next month or else before the end of the year. And when it arrives the sp will either go up or down depending on the content. Of course if it doesn't arrive in 2005 the RNS will definately turn up in 2006. Mark my words and remember what I have just said (lol). I will be proved right and you will all sit up and take notice of me.
There driftwood....you don't need to bother posting anymore, because I have doen it all for you. Thanks for absolutely nothing.
Isn't it true that the hands of a broken clock tell the right time twice a day....

Well done Lynnzall
The bloke is like a laxative - just gives you the shits.
However there will be news in time, no news we go lower
then vultures will prey and take over and news will come, or
rig secured and news will come, the board is obviously
aware so throw the dice. Who knows what it will land on.
Appriciate your imput along with others.
We are stuck between a rock and a hard place at present
with most supporters doing thier brains.
Fortune favours the brave they say just hope it's true
in our case.
Hustler

"guess it's an RNS on Friday"

Guess you don't know what "guess" means and sorry you guys I thought you knew a bit more then you clearly do. It would be nice to make direct statements but the law you know. I'm here to play (as I have told you). It's up to you to think around the words if you wish to.

A tip, don't think about what you might wish for or moving this project two years forward, think about what might be going on right now and who might be talking. Changes are afoot and it will impact the SP in Oct, at the moment 60/40 for the best but the deal is not signed.

A tip, ypu are full of b*shit... More profound statements! Changes are afoot eh...yawn. The law of what, bye the way?
Lets have some facts and if u want to say something but are scared of 'the law' Tell them you heard the information from me.
Say something meaningful, before you lose any credibility.
Thanks1

You seem to think I want something from you, I don't.

I'll have my fun and you think what you like laddie.

One point, b*shit ? check what I've told you, have I been wrong ? perhaps you are just too stupid to work it out kipper.

D1

Do you hold des shares or intend to in the near future?

Given the non events of the last year, I for one, can easily see why changes could very well be afoot. Not only in stragedy but also in leadership.

I would welcome a less cryptic message next time should you decide to post again on this matter.

kind regards

marrow