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

TheMaster, thanks - Where did you hear that? - Do you know when they'll get it? Surely they would have made an announcement

An oil worker colleague in Aberdeen told me.

Hi all

Thanks to all for your input.

DES made another great advance today, no confirmation of any rumours though. The volume has improved over the past couple of days. Yesterdays volume was similar to todays, however there were more bears out today. If you look at todays candle the shadows on the top & bottom represent the bears at work. The bulls managed to close on the + side. DES is currently at a resistance area (about 0.3150p) which may be the reason why DES didn't close at the days high. If we get confirmation of the rumours then the resistance will be behind us. DES is well above the 10 & 20 day moving averages, which have both started to move up now. DES is still on a wait tag with Britishbulls.com, the oil & gas sector is on a buy if. Other charts I look at (Renko, Kagi, Point & figure, 3 line break) are all giving good indications.





Here is the weekly chart which shows the support & resistance areas. The support @ 0.2400p. Reseistance is 0.3500p on the weekly chart, this happens to be in the middle of ( 0.4500p - 0.2400p = 0.2100p. 0.2100 / 2 =0.105. 0.4500 - 0.105 = 0.3450p. When DES clears 0.3450p, we should then be heading for 0.4500p. Again confirmation of the rumours would blow the resistance away.






Good Luck All

Eddie

Marky,

I realise you may be reluctant to say anything after the difficulties over the PSA, but do your contacts have any insight about the present rumours about securing a rig?

Kiwi7,

I think what Swampy has posted needs a closer look at and info i have picked up tonight has a question mark over it on the plus side, untill i know my facts will stay in the background.

PSA i thought was a done deal.

Brighter note here for Hustler and Lynzel i thought you Guys were in the http://champinvest.com/ at least i thought i saw your names there but not in the top 250 now. heeeee......



1(1) tadpole 109,509.66 9.51%
2(2) KyraYaz 108,813.16 8.81%
3(13) banjomick 104,018.11 4.02%
4(40) nigelsomerville 104,002.52 4.00%
5(3) williamh 103,648.24 3.65%
6(6) playno 103,644.65 3.64%
7(17) markymar 103,266.19 3.27%
8(9) ravey-davey-gravy 103,154.21 3.15%
9(16) arvinwalia 102,891.50 2.89%
10() KyotoDesu 102,883.36 2.88%

You are indeed correct Marky
I am in the comp.
but after only 4 days to early to judge.
I was also in the last run and finished 56th but only
in the last month did i remember i was in it, how did you get on.
To busy trying to get in the top 10 for my region
in Invetaquest hard to qualify for the finals with limited trades,
and 50 grand 1st prize finished 12th in region gutted and only missed out by less
than 500 quid and guess what, the only stock i
kept all the way was Des done me more than 2 grand.
Still it will be hard to win this one
as someone will go all in and be lucky on some babalon stock.
Not the stratagy in real life but still fun wish you all the best.
More important the Master quotes rig secured
but no confirmation from the board.
Whats your view sp has gone up, now only 50% to go to recover
our losses on the funding price should that make us feel good.
Time to load up again ? how accurate do you think the source is.
Hope someone will tell us what is realy going on soon.
In the meantime going to bed, 9 pint post again.
All the best.
HUSTLER

Marky,

I know you were sincere in your view about PSA, and clearly the negotiations were very advanced, and fell through at the last minute. So, it just goes to show its never over until the RNS has been released and the fat lady has sung. However, I think it is wrong to pillory people for posting their sincerely held views or snippets of knowledge, but we must all take our own decisions and assess our own attitudes to risk.

Personally, I prefer it when people post what they know (be it positive or negaitve (like Bloo on the other thread about PSA)) and then make up my own mind. Its much better than having a vacuum.

So, currently we have Swampy with some news about a drillship and the Master with potential news about Borgny Dolphin (I thought that was the rig they used last time). Clearly, something is in the wind with the sp move and two rumours and the recent pow-wow in the Falklands - maybe even the drillship could be used to drill some FOGL prospects in shallower water in the SFB - pure specualtion on my part.

Let's see what Monday or Tuesday brings, when there should be some sort of RNS about the RKH option, and hopefully news on the rig.


P.S. Is your position in the league table above based on the DES rise over the past couple of days?

Hi Kiwi,

The question mark over Swampys post you can find out yourself by ringing Jet Drilling and speak to some one about it 0065 692 0201 but dont ask for the operation manager as he goes very tight lipped I am told.

My position in the table is based on 4 shares at the moment and one of them is Desire as I think it may tick up higher on news of RKH taking up there option which is a personal thought that they will.

Morning Hustler hope the hangover is not too bad, last year I came 5th and thought I was going to get the Yellow jersey at one stage but just missed out at the end and the time before I was no where.

Cheers Marky
Keep up the good work.
The Dow and Nas were flying on Friday and
closed with good gains, hope it rubs off on us
this week. Add some good news from Des which i now feel
is imminent on the rumours and we could see a further lift
in the price which would be very welcome.
All the best
HUSTLER

Hi all

The bulls got off to a good start pushing DES up to 0.3200p by mid morning. Unfortunatly this is where the resistance is at, the bears then pushed DES down to the close. Todays candle has bearish implications the market is rejecting the higher price. With no confirmation of the rumours, DES may run out of steam at the resistance.





Good Luck All

Eddie

Hi all

I'll not post another chart. DES moved down a little more today. Volume was quite a bit lower. There were only a couple of buys today, this allowed the bears a free run. This produced a candle with small real body, it therfore implies the bears were reluctant to over sell. If you look at the weekly chart you can see where the support is (0.2850p) and resistance (0.3250p). This doesn't leave much room for movement, without either support or resistance being broken. We don't appear to have any confirmation or denial of the rumours yet. This may be causing indecision in the market.


Good Luck All

Eddie

That was an impressive rally last week! Maybe I should take another vacation to help it up further?
The 32p high was the minimum correction (38.2%) we could have expected in regard to the decline from 44.75p. However, there is still scope for a pullback to 37p which would close a gap on the daily chart, while fullfilling a 61.8% retrace. In terms of impulsiveness of the recent advance, we need to hold above 26.5p on any pullback from the 32p recovery peak. Failure there would call the bounce as corrective (three legs higher) and signal further longer-term bear pressure.
Regards
Lynnzal

Hi all

Hope you had a nice break Lynnzal, thanks for your input.

Todays candle is a four price doji, this means the open, high, low & close are all at the same price. The volume was very low today, neither the bulls or the bears making any significant moves. The support and resistance are very close together, the bulls or the bears will make their minds up soon. DES is still above the 10 day moving average.





Good Luck All

Eddie

Hi all

I'll use the chart above.

Just a little move up today, very llttle volume again. Most of the buying was at the end of the day, this may indicate the bulls are intending to move up tomorrow. DES is on a buy if on Britishbulls.com. Both the 10 & 20 day moving averages are moving up, this is seen as a good indication also. Application has been made for 2,887,288 new ordinary shares in the Company to be admitted to trading on AIM and admission is expected to occur on 4 November
2005.





Good Luck All

Eddie

I don't know if anyone else has asked DES this question, but here's my e-mail to them asking about the lack of RNS on the RKH option:


Hello,

I am shareholder in DES.

It is my understanding that RKH had an option to increase their contribution to the forthcoming drilling campaign from 15% to 30%, in return for an increased share in the results from 7.5% up to 15%. I believe this option expired on 31 October.

My assertion is that their decision either way is market sensitive for both companies, and I would have expected an RNS by now to explain their decision.

I also note the vague speculation in the market place about bids for DES, or indeed that you might by now have secured a rig or drill ship and the welcome sharp rise in the share price as a result.

Can you please explain the lack of RNS about the RKH option, and set my expectation on when news will be forthcoming on both these topics.

Regards.


Anyone have any updates on last week's fun and games?

Kiwi, you got your answer this morning with an RNS to say that RKH are not increasing their holding beyond 7.5% which suggests there's no imminent farm-in deal with a third party. Looks like we have a bit of a wait now for either news of a rig or farm-in..

Hi all

It's a bummer when it goes wrong.

A disapointing day today. With the support & resistance so close, the news sent DES on a dive. Although DES fell dramaticaly in price, the buys were not that far off matching the sells. This indicates the bulls are still interesded but want to buy at the lower price. Once the market gets over todays announcement, selling should slow down. We will have to see what the revised drilling program consists of. In todays drilling update, the suggestion is DES can still fund the drilling programe, even at the higher rig rates. I think I've undrstood this correctly. We are now looking at support at 0.2625p with the resistance still at 0.3200p. DES is currently bellow the 10 & 20 day moving averages. Re testing the support of 0.2400p cannot be ruled out either. I'm sure it'll all come good with the rig.






Good Luck All

Eddie

Where are you Marky - no posts since the RKH news, you seemed confident they would take up the option.

Hi all

I'll not post a chart as we have one above. DES made a small move up today, volume was low again. Todays candle has bullish implications, DES is on a buy if on Britishbulls.com. We will need confirmation on the buy if. DES is currently above the 20 day moving average but back bellow the 10 day moving average.
Although we had quite heavy selling last week, the short term trend line is still up off the 0.2425p. We will have to see what is in the revised drilling programe.


Good Luck All

Eddie

Oct 2005 News letter.
http://www.bgs.ac.uk/falklands-oil/download/download_files/news.pdf