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 went down a little today. The open was with a gap down, the bears then pushed DES down to the low of the day 0.2475p. The bulls then pushed DES back up to the close 0.2575p. The bulls managed to close on the days high, but we still have the gap down to go back up through. The window is said to be resistance, however the candle that was formed is a dragonfly doji. The dragonfly doji is suggesting the support is at the lower level and emits bullish implications. Britishbulls.com currently have DES on a wait tag.





Good Luck All

Eddie

Hi all

I'll use the chart above.

Just a little move up today, volume was very low again. There seemed to be more sells than buys today, DES still moved up. Todays candle is a hammer which has bullish implications. DES is on a buy if on Britishbulls.com. The buy if will need confirmation. DES was the 10th highest mover by % in the oil & gas sector today.


Good Luck All

Eddie

Hi all

I'll use the chart above.

DES didn't move either way today, The volume was very low again. Most of the trades were sells. The candle that formed was a four price doji. This candle indicates uncerianty in which direction to go. Britishbulls.com still have DES on a buy if tag. We will need confirmation on the buy if. The support is still at the lower level so far.



Good Luck All

Eddie

Futures fall to five-month low

By Upstream staff


Oil languished near a five-month low today after tumbling yesterday as traders shrugged off predictions of chillier US weather and focused on robust stocks of crude and heating fuels.

Unseasonably warm temperatures have allowed refiners in the US to pile up crude and oil products depleted by a savage hurricane season. And demand for heating oil has been running well below normal levels in recent weeks.

Storage tanks are also brimming in Europe, where gas oil inventories in the trading hub of Rotterdam leapt to a new six-year high.

US crude slipped 12 cents to $56.22 a barrel by 1055 GMT, after losing $1.54 yesterday. London Brent crude was up 16 cents to $55.01.

"We've been looking for a long-term correction in oil prices and we're definitely seeing investors think more solidly about lower prices," Justin Smirk, senior economist at Westpac, told Reuters.

Speculators have been selling oil heavily since late August, when prices spiked to a record above $70 a barrel and industrialised nations agreed to release government-held oil stocks to offset the loss of US refinery and oilfield production due to Hurricane Katrina.

Short-term speculators have pushed their net short positions to the lowest in more than two years on a bet that prices will keep falling, regulatory data showed. Prices have plunged 20% since their 30 August peak of $70.85 a barrel.

Some analysts say this leaves the market vulnerable to a sharp short-covering rally, especially if predictions of a colder-than-usual winter begin to erode inventories.

"I'd be cautious about signalling the start of a downtrend until we're clear of the northern hemisphere winter, which certainly offers the potential of a savage cold snap," said Smirk.

Private forecaster AccuWeather believes the US north-east, where 80% of the nation's heating oil is consumed, will see temperatures 2 degrees Fahrenheit lower than normal this winter, although the National Weather Service says the northeast has an equal chance of being colder or warmer than average.

Unseasonably warm temperatures thus far have allowed the oil industry to replenish US stockpiles of oil and oil products badly depleted by a savage hurricane season, with demand for heating oil well below normal levels in recent weeks.

Heating oil supplies stand around 8% up on 2004, and with refineries running at 86.2% of capacity last week, suppliers have room to add supply.

Three refineries totalling just under 5% of US capacity remain offline due to storm damage.

Commercial crude oil stocks are 12% higher than last year after imports surged to meet hurricane shortfalls.

The price of Opec's basket of crudes fell below $50 a barrel for the first time since early June yesterday, breaking a barrier analysts say may prompt the producers' group to begin considering production cuts at its next meeting on 12 December in Kuwait.

Hi all


Thanks markymar.

DES lost a little today, the volume was a little higher today. Todays candle is a hammer. This has bullish implications, although todays buy if wasn't confirmed. The chart shows the risisng trend line & the falling resistance line. DES has cleared the falling resistance and is still above the support. These with the hammer are bullish indicators. The support line is being tested and it has held so far. This isn't guarented, but I think we will see DES move up next week.





Here is a chart with candles of 1 weeks value.









Good Luck All

Eddie

http://www.mercopress.com/Detalle.asp?NUM=6777

"Michael Summers who said that no progress had been made at all during the past 4 years with the present Argentine Government said, 'I can't see the Argentine Government changing its attitude in the short-term and I can't see us changing our attitude. The big issue will be what happens next year when the drilling for oil starts, and what reaction the Argentines will have to that"


Also there is an update on
http://www.bodecott.com/


Recent Activities: November 2005 update.

UK 23rd Round announcement from Energy Minister Malcolm Wicks at the Aberdeen Offshore Europe conference in September.

Great success for Reach Exploration in getting most of their choice blocks in the Moray Firth and elsewhere. How can a basin have only one oilfield?! The others will be difficult to find, but they will most likely be there. We were part of Reach's small 23rd Round team.

Client Faroe Petroleum likewise were successful in their awards. Although not part of their excellent 23rd Round team, we continue supporting Faroe in their acreage and commercial evaluations.


FALKLAND ISLANDS EXPLORATION ACTIVITY

We have been involved in all areas of North Falkland exploration with several clients since before the first licensing round of 1996. Initial drilling results during 1998 were technically, but not commercially successful, i.e. oil was found but not produced. Five of the six wells drilled had shows of hydrocarbons, and the British Geological survey has estimated that between 10 and 100 Billion barrels of oil have been generated from the very rich lacustrine source rock prevalent in the deepest part of the basin.

At a meeting of the Petroleum Exploration Society in Aberdeen not too long ago, one member of the audience proclaimed that "oil will not be produced commercially off the Falklands". This was reminiscent of those who in the late 1960's said they would "drink every drop of oil produced north of 56 degrees in the North Sea". Both basins have already been proved petroliferous. The North Falkland Basin, although smaller than the North Sea in total, is in a similar state of exploration as the North sea was in the 1960's.

The second phase of Falkland Exploration is gathering momentum. We are closely involved with evaluations of all Falkland licence areas through the activities of two clients.

ROCKHOPPER EXPLORATION

During the past few months, Rockhopper Exploration has moved rapidly to snap up a large spread of acreage in the North Falkland Basin. The licence areas approximate 5800 square kilometres at 100% interest, making the company the largest acreage holder in the North Falkland Basin, equivalent to more than 28 North Sea blocks. The evaluation of these areas has progressed rapidly using SMT Kingdom seismic interpretation software.

These are shallow water areas, with much of the area in less than 200 metres water depth, very shallow by world standards. Any exploration success here would be very quick to exploit. The potential commercial value of this acreage as a result is very high, let alone the rising oil price that seems to be heading in one direction. Crude Oil is still cheap at the price relative to any other global commodity.

In order to get a piece of the upcoming drilling action, Rockhopper have farmed in to Desire Petroleum's best prospects in licences 3 and 4, where three wells will be drilled. These wells will be targeted at potential reservoirs between 2000 and 3000 metres within the oil window. There is no guarantee of success, but any shows will stimulate more activity and increase the value of the licences. Many wells were drilled in the North Sea Central Graben before oil shows were found.

Rockhopper's remaining 100%-owned prospects will also be drilled after new seismic, and they are located within very modest water depths between 150 and 450 metres.

The North Falkland Basin is the only Falkland area with 3D seismic. There are two existing 3D surveys on Rockhopper licences, with two further surveys planned.

Rockhopper acreage is summarised as attractive for the following reasons:

Shallow waters are economically attractive for early success.
The last 1998 well drilled to 2960m. in only 11 days.
The basin is a 250 km. long Jurassic-Cretaceous Atlantic rift basin, half of which has never been drilled.
There is a proven MEGA-rich, thick, mature, lacustrine source rock.
Live oil and gas shows were proved in the 1998 wells.
The NFB is a proven petroliferous basin with a working hydrocarbon generation system.
Rockhopper is a partner in 3 upcoming wells.
Many varied plays, prospects and leads over a very wide area.
Shallow water, low cost drilling, benign environment.
The only Falkland area to have 3D seismic - 2 existing surveys and 2 planned.
Exploration stage is North Sea, 1965.
Same water depths as Central Graben, North Sea, similar weather.
Same geology as West Africa and Argentina.

Now that the Rockhopper float has been successfully negotiated, we continue to support their technical push for success.

DESIRE PETROLEUM

Desire is the Operator of the upcoming wells. The best of their eight or nine prospects in licences 3 and 4 will be drilled.

3d interpretation results from continuing work confirm attractive seismic amplitudes, DHI's (Direct Hydrocarbon Indicators) and structural-stratigraphic pre-source rock prospects. These prospects are adjacent to a mature source-rock kitchen which contains one of the richest sapropelic (oil-prone) source rocks known in the world. Drilling beneath the Early Cretaceous source rock is analogous to drilling beneath the Kimmeridge Clay source rock of the North Sea insofar as some of the oil reservoirs are located beneath the source rock. The next three wells will test this untested pre-source play.

We have also assisted Desire recently in researching workstation hardware and software requirements. They are another operator who have opted for Kingdom software.

Thats a healthy looking u turn in the direction of the share price today.

Thank you for the bodecott update Marky.

Hi all

The volume very low again today, the candle that has formed is a hammer. This is a bullish candle, DES is back on a buy if on Britishbulls.com. I'm not sure how we managed to get the hammer, there appeared to be more sells than buys, even if all the unknown were buys. The buy if will need confirmation.






Good Luck All

Eddie

Cheers Eddie,

Rumours Point to Growing Expectation of Big Oilpatch Deals in the Offing
Canadian Press 11/21/2005
URL: http://www.rigzone.com/news/article.asp?a_id=27148
A spate of takeover rumours involving some of Canada's largest independent energy companies points to a growing belief that big deals are afoot as the oilpatch grapples with unprecedented wealth from sustained near-record oil and gas prices.

"You've had a long period of high cash flows - and free cash flows," said energy analyst Chris Theal with Tristone Capital Inc. in Calgary. "And we're at the stage now where you're seeing the majors looking to where they can deploy that cash."

"I think we are at the front end of a consolidation phase."

To some industry observers, the $18-billion takeout of Unocal Corp. in August by California-based Chevron was just the start of a new era of big-money mergers and acquisitions in the North American industry.

Whispers of more deals continue to rattle around the streets of Calgary, Canada's oilpatch headquarters.

Last week, Calgary-based Talisman Energy (TSX:TLM) was rumoured to be in the sights of Houston-based ConocoPhillips.

Talisman - with key assets in Southeast Asia, the North Sea and Canada, as well as new exploration activity planned for Alaska - is said to be a good fit for ConocoPhillips, which made a big splash into Canada four years ago with its $8.9-billion acquisition of Gulf Canada Resources.

And even with a market value of $20.5 billion, analysts say Talisman is relatively cheap and would be an instantly accretive deal.

But potential suitors for large Canadian and U.S. energy companies are now coming from all corners of the globe.

Chevron was in stiff competition for Unocal from Chinese-based CNOOC Ltd., which is 70 per cent owned by China's Communist government.

Last month, another Chinese energy company, China National Petroleum Corp., succeeded in buying Calgary-based PetroKazakhstan Inc. for $4.2 billion US. The company's assets were all located in the central Asian country of Kazakhstan, which is expected to contain large oil and gas reserves.

EnCana, Canada's largest independent energy company, was also rumoured in October to be coveted by global energy giant Royal Dutch Shell Group PLC, despite its market value of more than $45 billion.

EnCana has denied any knowledge of a pending deal and rumours - and accompanying stock spikes - have died down for now.

Other big international integrated oil companies are also looking to North America, where political risk is lower. Specifically, the northern Alberta oilsands is attracting a great deal of attention due to its proximity to the U.S. and the fact that it contains the world's second-largest energy reserves behind Saudi Arabia.

French energy giant Total SA gained a large stake in the oilsands earlier this year with the $1.58-billion acquisition of junior Deer Creek Energy, and plans to spend about $9 billion US to develop a major open-pit mine and upgrader.

Italian-based Eni SpA also gets mentioned often in rumours as a company keen to gain an instant North American presence.

Mark McMurray, a principal with Calgary boutique firm Kobayashi Partners that specializes in oilpatch divestitures, says takeover talk always heats up when there's really strong cash positions in the industry.

"It's not unexpected that you'd see discussions going on in the market with guys that are sitting on a pile of cash," said McMurray.

"And it beats the alternative to buying back your stock, which often signals a lack of investment opportunities."

McMurray also expects further oilpatch consolidation.

Deals could occur before the year-end reporting period of next spring as companies who are at risk of falling short on their own organic growth look to acquire extra reserves.

And later on next year, McMurray expects stronger companies to start flexing their muscles.

"We'll start to see some reactive mergers where there's such a difference in value that the strength of the quality players is going to be predatory on the weaker parts of the market."

Hi all

Thanks for the update markymar.

Sad to say but today has been a bad day for DES. The trading was going prety even till the last half hour. Unfortunatly the support of 0.2425p has now gone. The next support I can see is 0.2200p. How long this will last, I don't know. Looks like I'll have take the christmas presents back at this rate.





Good Luck All

Eddie

Hi all, good to see the regulars are managing to hang in here.
Further to my last post (#19610), the market failed to extend the recovery rally through the 32p high. The return under 26.5p confirmed that the rally was indeed a three wave correction, opening scope for further downside pressure. Losses through the 24.25 low (19 Oct) now suggest decline to the 20p/19.25p area where, at this stage of the game, there are several projected supports suggesting a reasonable base.
Keep up the daily updates Ed.
Regards
Lynnzal

Hi all

Thanks Lynnzal.

Well DES had a better days trading today, ending the close on the days high. This gives us a bullish peircing pattern, Britishbulls.com have DES on a buy if again. We will need confirmation, the market has been blowing hot & cold recently. We have had quite a few buy if's recently which havn't been confirmed. Lets se what this one brings. The oil & gas sector moved down today, DES was the eigth highest mover by %.





Good Luck All

Eddie

Thanks Eddie as always and all regular posters , Lynnzal , Markymar etc. I`m still here , and holding on tight for the ride . Anyway what`s the point of moving away from this speculative share at this time . I`ve decided to ringfence this "investment" until such time..........................................................! Anyone fancy a wager Oct 2006 ???
Thanks and regards to you all
Berlingo

Hi all

Thanks Berlingo, nice to hear from you.

Nice to see DES go up again today, DES finaly got confirmation on the buy if from Britishbulls.com. The volume was still quite low today. Lets hope the market isn't still blowing hot & cold. The oil & gas sector moved down again today, we'll have to wait and see if the bulls are still keen tomorrow. DES is currently just bellow the ten day moving average.





Good Luck All

Eddie

Rigs continue to dip

By Upstream staff


The number of rigs searching for oil and gas in the US fell by 13 to 1491 in the week ended 23 November, according to Baker Hughes.

There were 1251 during the same week last year.


The number of rigs in the US Gulf of Mexico fell two to 77, compared with 96 last year.


In the US, there were 1388 rigs searching on land, 81 offshore and 22 in inland waters.


The total North American rig count rose 25 to 2122, up from last year's 1713.


The number of rigs searching for oil in the US rose 10 to 275, while the number of rigs searching for gas rose three to 1212.


The number of miscellaneous rigs, at four, remained unchanged from last week.


Meanwhile, the number of rigs exploring for oil and gas in Canada rose 12 to 631, compared to 462 last year.

Hi all

Thanks for the update Markymar.

Well it's nice to see DES go up for the third day in a row (we've seen enough down days). DES has now moved above the 10 day moving average. Todays trading was mainly buys, however the candle has a shadow on top. This suggest there was selling at the upper end of todays trading. The Britishbulls.com has DES on a sell if today. This will need confirmation.






Here is the weekly chart also, it has Zig lables which shows support and resistance areas.




Good Luck All

Eddie

http://www.pressandjournal.co.uk/displayNode.jsp?nodeId=149212&command=displayContent&sourceNode=150624&contentPK=13567498&folderPk=85744
Let's hope this technology gives DES another option with regards to any oil field development. Should they hit oil.

'BIG BUOY' TECHNOLOGY WILL CRACK WEE CHESTNUT OILFIELD EXTRACTION

DAVID TELFER

09:00 - 25 November 2005
Venture Production, the Aberdeen-based oil and gas company, said yesterday it had gained approval for development of the Chestnut oilfield in the UK central North Sea.

The field - one of the smallest stand-alone fields yet to be developed with less than 10million barrels of recoverable reserves - is expected to come on stream in the second half of 2007.

It will be developed at a cost of around 25million using the innovative Norwegian-built Sevan Marine SSP300 "round rig" floating production vessel, which will be hired by the day, and two subsea wells tied back to the vessel.

It will be the first time this kind of vessel - known affectionately by staff at Venture as "big buoy" - has been used in the North Sea and only the second to be built. The first is under construction and will go to Brazilian waters to work for Petrobras.

Mike Wagstaff, chief executive of Venture, said: "Using the Sevan SSP offers a significantly less capital-intensive development solution than either a subsea tie-back to a nearby host platform or a conventional ship-shaped floating production vessel.

"The Sevan SSP offers a simple, re-usable, low-cost solution which has the potential to lower the threshold for economic development of 'stranded' oilfields in the North Sea."

Mr Wagstaff added: "We are very excited by this technology. It will bring down costs and offers the potential for development of more North Sea finds.

"We have interests in 30 North Sea fields, of which just 11 are in production.

"We would expect to use this technology again in the future, and are looking to see where it could be applied."

Interesting article Capt and this one I like on the politics side, by the way Dave or KO watch the sells in your IDN tomorrow ,remember you herd it here first!

http://www.falkland-malvinas.com/Detalle.asp?NUM=6825

British parliamentarians visit Argentina

A group of six British parliamentarians are currently visiting Argentina under the auspices of the Inter-Parliamentary Union (IPU).

Thank you Marky for keeping this board alive. Some nice pictures of some of FOGLs targets and an interesting estimate of total oil displaced from source rock.
http://www.global-petroleum.co.uk/gplinfo/present/gplagm0511.pdf

Hi Lucky hope you are well,things just a little quiet at the moment,so here is a bit more info for the Capt on your "BIG BOUY"

Chestnut Field: Commercially Viable and Approved
by MARK WILLIAMSON Newsquest Media Group
The Herald 11/25/2005

URL: http://www.rigzone.com/news/article.asp?a_id=27244

VENTURE Production moved closer to bringing one of the smallest fields ever developed in the North Sea into production, after winning approval from the government for the project.

The Aberdeen-based independent said it hoped to start production from the Chestnut field in the central North Sea in the second half of 2007.

The field was discovered in 1986, but with less than 10 million barrels recoverable it was not previously considered big enough to make development commercially attractive.

However, Venture, which specialises in developing fields that bigger players consider too small to be worth investing in, will be able to develop the field using a specially designed floating production vessel, the Sevan SSP.

This will allow the company to avoid having to tie the field into a producing platform via expensive pipelines.

"The Sevan SSP offers a simple, re-usable, low-cost solution which has the potential to lower the threshold for economic development of 'stranded' oil fields in the North Sea, " said chief executive Mike Wagstaff.

The company, which has a 70-per cent operating interest in Chestnut, estimates the field contains total recoverable reserves of between six and seven million barrels.

Aspokeswoman could not give an estimate of what daily production from Chestnut would be if it came on stream on schedule.

Separately, the oil services giant Expro International provided further evidence of the boom in North Sea activity which has resulted from sharp increases in oil prices.

The company grew first-half revenues from its Europe and former Soviet Union business by 22-per cent to GBP34m, largely as a result of increased demand for production enhancement technology in the North Sea.

In order to cope with the growth in orders, the division has increased employee numbers in its Aberdeen head office by 20-per cent to 750 in the past year.

Expro grew interim operating profits 65-per cent to GBP13.6m, compared with the first half last year. Group sales increased to GBP132m, from GBP101m.


Image Description: The Chestnut Field development will use a new concept floating production vessel, the Sevan Marine SSP300. This vessel is a lower cost alternative to developing stranded fields in the North Sea.