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

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.

Eddie and Lynnzal i see Desires graph looks very interesting play on the basis that the shares seem to have triple tested the December 2004 support line now running through 23p. This would suggest that longs should enter the stock on any slight nudge down towards 23p. While some traders may wish to use a wider stop loss, to my mind as little as an end of day close below this level would hint that the 2005 downtrend was still in place. Otherwise, as long as 23p holds we could see an intermediate rebound towards the February resistance line at 38p.

A bit more for you Capt are you thinking of this as a possibilty for Desire?

Venture Cracks Chestnut And Aims For First Oil In 2007
Its a project that has been on the drawing board for over a decade but it seems Aberdeen-based Venture Production has finally cracked the Chestnut oilfield. Shares in the company gained 6 pence to 520 pence when it announced the DTi had given the greenlight to the development of the Block 22/2a oilfield, which lies about 13 km southeast of Alba. Venture will operate the field with 69.875 per cent of the equity on behalf of Bow Valley (15.125 per cent) and Atlantic Petroleum (15 per cent).
Chestnut was discovered in 1986 but despite extensive appraisal (six wells have been drilled on the field) and an extended well test, this marginal deposit never made it into the full development stage. Back in 2000, former operator Premier Oil signed up Brovig for an extended well test on the field as part of a two-phase development of the field. This contract was later cancelled and US oil firm Amerada Hess took over operatorship of Chestnut. The sixth well on the field was drilled in 2001 and placed on extended well test, producing around 1 million barrels of oil into the Crystal Ocean floating production vessel. The extended well test ended in November 2001, having produced the maximum volumes allowed under an EWT consent and the partners decided to mull development options. By 2003 Venture production had bought out Amerada Hess and Chestnuts future was studied with fresh eyes by this North Sea specialist.

The results of that study are that two wells - the 2001 test well and a new water injector - will be tied back to an innovative new offshore floating production vessel supplied by Sevan Marine. This cylinder shaped floater, the Sevan Stabilised Platform (SSP), will be in action on the Piranema field offshore Brazil from mid-2006: the Brazilian firm Petrobras is Sevans first customer for an SSP.

The SSP is intended to provide a flexible production solution for all environments with the advantages of a low cost and fast construction. Venture is paying US$64 million for a 30 month contract on the SSP with an option to extend for a further 24 months. The unit will have the processing capacity to handle 30,000 barrels per day of oil and 20,000 barrels per day of water. It can store 300,000 barrels of oil. Sevan has three of the units under construction and an option with the Yantai Raffles shipyard for four more.

Ventures SSP will be newly constructed and should be installed on the field during 2007 with first oil scheduled for the second half of that year. With an estimated 6 to 9 million barrels of recoverable oil, Chestnut will be one of the smallest stand-alone developments in the North Sea.

Utilising the Sevan SSP offers a significantly less capital-intensive development solution than either a sub-sea tie-back to a nearby host platform or a conventional ship-shaped FPSO, said Ventures chief executive Mike Wagstaff. Consequently, 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.

This is the kind of thinking the DTi likes. As the debate continues about the UKs indigenous production and possible energy shortages, it will welcome news of additional production streams, however modest. The innovation required to get Chestnut off the drawing board and into a real working oil operation is also good news in an industry increasingly returning to deposits once overlooked as too small or unworkable.

Its a paradox that an industry renownd for its engineering expertise and technological know-how should also be very conservative about innovations. In part this is because most oil developments, particularly in the harsh climate of the North Sea, carry heavy price tags and mistakes can cost not only millions but also lives -something that tends to militate against innovation.

And past innovations on the floating production side have had their share of teething problems: within a year of its launch, PGSs Ranform Banff FPSO was back in the shipyard to repair and replace production risers and reduce the vessels roll motion. The innovative Ranform-design hull was wedge-shaped with a wide stern that enabled it to carry large deck loads without compromising stability or safety: it too was part of a plan to get small fields into production (although Conocos Banff field was many times the size of Chestnut).

There are, of course, no comparisons to be made between the two projects. Its good to see an innovative design get the backing of the industry and to see the Chestnut field finally get its greenlight for go.

Maybe Markymar, who knows??
If DES do drill, and strike oil it would give them an option of developing it at a reduced cost, using this technology.

If the larger oil companies want to come in, then maybe they could use it in one of there other blocks I + L??

Just need a Phippin rig.

Well Caps you know what to do get writting to Santa and ask him for a rig i have sent my letter off to Santa already.

Hi all

Thanks for the updates.

The volume was very low again today, there appeared to be more sells than buys today. The candle that formed was a doji, this indicates the market is indecisive as to go up or down. Britishbulls.com have DES on a sell if again, this will need confirmation. DES is currently above the 10 day moving average and just bellow the 20. The market may decide tomorrow which way DES is to go.






Good Luck All

Eddie

http://www.theherald.co.uk/business/51564.html#

Investors set sights on fledgling oil companies

Rockhopper Exploration gets a mention.

CNPC to pay out $1 billion to build 100 units over three years
China in race for rigs
China National Petroleum Corporation (CNPC) has committed up to $1 billion to build 100 onshore drilling rigs in China over the next three years.
The rigs are to be in the 1500 to 2000 horsepower range and built for drilling deep targets between 7000 and 9000 metres.

About half the units are set for domestic use, while the remainder will be sent overseas, said sources.

The state-owned giant has a fleet of more than 600 land rigs, with more than 100 of those units working internationally for Great Wall Drilling Company, CNPC's overseas drilling subsidiary.

China-based sources suggested most of the new units would be additions to CNPC's armada, while a marginal number would replace older rigs.

All the onshore building work will be split between about four yards all partly owned by CNPC that are well versed in "big rig" (units of at least 1000-HP) fabrication.

The yards are Baoji Oilfield Machinery, Zhong Hua, Lanzhou-National Oilwell and one other, said sources.

CNPC officials confirmed the newbuild programme and said the company was short of rigs, especially for drilling gas prospects in north-west China's Ordos basin.

Strong rig demand would also come from CNPC's overseas operations, especially those in Kazakhstan and Sudan.

The company predicted its overseas rig demands would increase by 40% per annum in the coming years.

The officials declined to comment on the cost of the newbuild drive, but said CNPC needed at least 70 more rigs for both domestic and overseas drilling before the end of 2010.

Sources said CNPC had been building land rigs regularly in the past five years to help sustain its immense commitments overseas, where it has exploration and production operations in about 30 countries.

The current newbuild splurge was a continuation of that trend, which is driven by China's huge oil and gas demands rather than any sudden desire by CNPC to cash in on high oil prices.

"Even if the oil price fell back to $30 per barrel, CNPC would still go to places (to explore for oil and gas) that other countries can't go to," said a China source. "They are driven by energy demand."

Sources said China was highly adept at building land rigs for up to 5000 metre drilling depths, but was not experienced in the larger units. It is understood CNPC has just one existing rig for 9000-metre targets.

Certain equipment such as instrumentation and top drives were perhaps the only high-tech items that China does not make to overseas standards.

However, CNPC has stepped up the research and development of components required for domestically-made 9000-metre rigs. It announced recently that a top drive tool, designed for 9000-metre rigs, had passed an examination on 7 September and would "play an active role in the oil and gas exploration of deep reservoirs".

Meanwhile, a host of overseas drilling companies, including several North American players, are either building rigs and equipment or evaluating Chinese yards prior to placing construction orders, said sources.

The booming worldwide drilling market environment is leading to a shortfall in the number of available rigs.

Drilling sources said the global demand was placing a premium on newer, more efficient rigs that can be delivered both quickly and in quantity in many venues.

One well-known North American driller, understood to be Precision or Nabors, has ordered more than 20 rigs to be delivered over the coming years, said sources.

Looks like this is a dead horse- seen the chart lately?

Hi all

The volume was very low today, the buys appeared to be very few. The unknown must have been mainly buys. Todyays candle is a four price doji, this indecates confusion in the market. The Britishbulls.com now have DES on a hold tag, the sell if wasn't confirmed. DES is still above the 10 day moving average and jus bellow the 20.





Good Luck All

Eddie

Cheers Eddie,

Like the old days with no trades so far today!

Crude nosedives to hit 6-month low

By Upstream staff


Crude oil prices continued their downhill spiral, with the front-month contract settling at the lowest price per barrel in almost six months.

January crude lost 86 cents to close at $56.50 a barrel on the Nymex, after trading as high as $57.75 earlier in the session.

The contract's price has shed 6.3% since the end of October and 19% since the end of September.

Meanwhile, Nymex natural gas for January delivery inched to a high of $12.15 per million British thermal units, before trimming gains to close at $11.736, up 10.2 cents.

The Energy Department is slated to issue its latest update on petroleum supplies Wednesday, with most analysts expecting a decline in the nation's crude inventories for the week ended 25 November.

IFR Markets predicted crude supplies likely fell between 1 and 3 million barrels, while Wachovia estimated a 2.5 million drop.

In contrast, Fimat USA expected a 1.9 million barrel increase.

On Thursday, the Energy Department will release its data on natural gas supplies in storage.

Platts analysts are predicting a 48 billion cubic foot fall in inventories last week, while IFR's forecast pegs the estimated decline at between 35 and 45 billion cubic feet.

.

Hi all

Thanks for the update markymar

Well it looks like the market decided to move DES down today. Very few buys, the volume was a bit higher today, but unfortunatly mainly sells. There were a coulpe of late trades which lifted DES from a low close. The oil & gas sector moved down also today. The Britishbulls.com still have DES on a hold tag. DES has currently moved bellow the 10 day moving average.





Good Luck All

Eddie

Cheers Edddie

http://media.corporate-ir.net/media_files/irol/72/72166/pdf/Contract_Status_Report_120105_FINAL.pdf

http://www.latinpetroleum.com/article_4943.shtml

Capt a little story for you,makes the mind tick!

Hi all

Thanks for the update markymar

The volume was slightly higher today and also prety even. The bears were most active in the early part of the morning, the bulls came in to take DES up from the low of the day. The candle which has formed is a bullish hammer. The hammer is a potential turning point, it is said the market is hammering out the bottom. Britishbulls.com have DES on a buy if tag. Lets hope the bulls continue tomorrow.





Good Luck All

Eddie