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

You can say that again Eddie,

I see my Emerald Energy had a good day today Eddie.

http://www.rte.ie/business/2005/1205/ormonde.html

http://www.newratings.com/analyst_news/article_1149090.html

Aquila Financial Limited - rockhopper@aquila-financial.com
Peter Reilly 020 7849 3319
Yvonne Fraser 020 7849 3320

www.rockhopperexploration.co.uk

Notes to editors
The Rockhopper Group started trading in February 2004 to invest in and carry out
an offshore oil exploration programme to the north of the Falkland Islands. The
Group, which floated on AIM in August 2005, is currently the largest licence
holder in the North Falkland Basin and owns a 100 per cent. interest in four
offshore production licences which cover approximately 5,800 sq. km. These
licences have been granted by the Falkland Islands government.

In total, the Board and its Consultant, the Falklands expert David Bodecott,
have over 120 years experience in the oil industry, with specific expertise in
the field of exploration and in the region itself.



Chairman's report

This interim report for the six months ended 30 September 2005, is the first
report following our successful placing and listing on AIM on 15th August 2005.
As expected the Group incurred a loss for the period.

The net proceeds of the placing of #13.9 million are on interest bearing
deposits along with funding already in the Group and will be drawn down as
required in line with our plans for the business.

Rockhopper Exploration is currently the largest acreage holder in the North
Falkland Basin with 100% interests in four offshore production licences (PL023,
PL024, PL032 and PL033) which cover approximately 5,800 sq. km. In addition the
Group has agreed to farm-in for 7.5% in Desire Petroleum plc's licences PL03 and
PL04 where Desire expect to drill three exploration wells.

PL023 and PL024 were awarded in November 2004 and cover an area of 4,200 sq. km
in water depths of less than 200 metres. The licences are close to the Falkland
Islands themselves and their southern-most edge is located only 25 km from the
Islands. PL023 and PL024 are already covered by 1832 km of 2D seismic data. The
Group has signed a contract with Geophysical Service Incorporated (GSI) to
undertake a new 2D seismic survey over approximately 900 line kilometers. The
survey should be completed early in 2006, with processing and interpretation of
the data thereafter.

PL032 and PL033 were awarded in June 2005 and cover an area of 1,620 sq. km in
water depths of between 350 and 500 metres, they are already covered by 1546km
of 2D and 368 km2 of 3D seismic data. Two wells have been drilled previously on
these licences in 1998 by Shell when the oil price was approximately $10 per
barrel and both demonstrated the presence of hydrocarbons, one flowing live oil
to the surface. A new and significant 3D seismic programme has been designed to
cover this acreage.

Prospects and leads: Rockhopper's exploration team has reinterpreted the
existing 2D and 3D seismic data covering its licences and has identified a
number of prospects and leads which have the potential to contain significant
deposits of hydrocarbons. These will be better defined following the planned
acquisition of new 2D and 3D seismic data.

PL03 and PL04 are operated by Desire Petroleum plc. Rockhopper will earn an
interest of 7.5% of these licences by contributing 15% of the dry hole cost of
the expected 3 well exploration programme. The recently acquired 3D seismic data
on these licences is very encouraging and we look forward to the commencement of
drilling operations once Desire secures a suitable rig.

In summary, Rockhopper has a very exciting and prospective exploration portfolio
in relatively shallow water, at a time that the oil industry is fiercely
competing for access to that very type of opportunity.

Our strategy in the Falklands is to mature a number of high quality drillable
prospects on our 100% held acreage and to be ready for a substantial drilling
campaign once the availability and cost of drilling units are more favourable.


Pierre Jungels
Chairman
5 December, 2005

lets hope one of them rigs from the North sea moves to the Falklands!

http://www.thisisnorthscotland.co.uk/displayNode.jsp?nodeId=149212&command=displayContent&sourceNode=150624&contentPK=13625884&folderPk=85744

Markymar

The above link is indeed encouraging in the medium term. Lets hope things start to get better soon we're certainly overdue a bit of good fortune.

marrow

Driftwood

Was the RKH Interim Report the upsy daisy news?

marrow

Marky, I hope you're right, we might get a rig out of the blue when it is released from the North sea by a petulant major but I'm slightly worried that the majors may see the FI as a UK tax zone. It might seem a nice and friendly tax zone at present but once production starts and Argentina grumbles I imagine the U.K. government will request a converging of tax regimes and remind the islanders of who is protecting their assets. Is there any guarantee against this?

Luckyswimmer

Hi all

DES moved down again, the volume was higher today. The buys vs sells was prety similar. DES is currently on a sell if on Britishbulls.com. We may see the volume up again tomorrow, DES having visited the support area again.





Good Luck All

Eddie

looks like somebody has got fed up of waiting

Hi all

Unfortunatly DES went down again today, touching a new recent intraday low of 0.2325p. The sell if from Britishbulls.com was also confirmed. The volume was up today, but that was due to a large sale transaction. The support from the bulls is a bit thin on the ground at the moment. If DES fails to hold at this level, the next suggested support I see is at 0.2250p.





Good Luck All

Eddie

Moneymann

You dont understand its not a Fooking helicopter we want its a Fooking oil rig we want for christmas

Eddie plenty of volume today for you, looks like Greenwich dumping what shares they have left due to merger with Danae Resources NL and Buka Minerals Ltd.

Plenty of action in BOR today as well

Hi all

DES moved lower again today. There was another large sell order mid morning. The bulls made a slight recovery, keeping DES from closing on the days low. The Britishbulls.com have DES on a wait after a sell confirmation. Not enough motivation at the moment.







Good Luck All

Eddie

Hi all

I'll use the chart above. DES moved up a little today, the volume was lower than over the past few days. DES is currently on a buy if tag on Britishbulls.com The candle has bullish implications, but confirmation is needed. The market has been blowing hot & cold for a while now. Lets hope we get some more hot.


Good Luck All

Eddie

Hi Eddie you still here. Des looking interesting at these levels. However dont expect any upward movement until a rig is confirmed.

Hi all

Hi momentum, nice to hear from you.

DES moved down a again today. The volume was slightly higher today, unfortunatly it was a day for the bears. The buy if was not confirmed today, Britishbulls.com still have DES on a buy if. As momentum says I don't think we will see much up movement untill we get confirmation of a rig.





Good Luck All

Eddie

Hi all

I'll use the chart above

DES didn't get the buy if today. Todays candle reflects indecision in the market. The candle is a doji, is said to be a tug of war between the bulls & the bears. Looking at the sells vs the buys though, it looked like the bears had the upper hand again. DES is currently on a wait tag on Britishbullscom.


Good Luck All

Eddie

Eddie thank you,

http://www.sartma.com/art_2347.html

Falklands : Rockhopper's Sam Moody on Familiarisation Visit
Submitted by Falkland Islands News Network (Juanita Brock) 14.12.2005 (Current Article)
Sam Moody has been in the Falklands to see the people he works with long distance over the phone and via e-mail.


ROCKHOPPERS SAM MOODY IN THE FALKLANDS FOR FAMILIARISATION VISIT


By J. Brock (FINN)

Mr. Sam Moody, Managing Director of Rockhopper Exploration plc, is visiting the Falklands to meet first-hand the people he will be working with during forthcoming 2D seismic surveys that will be carried out in the North Falkland Basin in Tranche B formerly operated by Shell, Tranches C/D and Licence areas 23 and 24. At the moment he is focusing on Health and Safety and the Environmental Impact Assessment that is soon to be published in the Falkland Islands.

GSI Admiral will be used to do a 2D survey of the above mentioned areas, with 3D not necessary unless there is a good prospect. 3D will not be done on the leads. Mr. Moody said there was one area J-1- where there may be no need of 3D because prospectors are certain that the area is generating hydrocarbons.

At any rate, a 3D boat will be needed as, according to Mr. Moody, GSI Admiral is kitted out for 2D. The scenario with boats and rigs remains that they are hugely expensive due to the high demand on them as well as the high price of hydrocarbons products.


Argos/Evergreen, Rockhopper Exploration plc and Desire Petroleum are working together in the North Falkland Basin and plan to drill three holes at a cost of $50 Million.


According to Mr. Moody when Shell operated Tranche B they drilled through the source rock and when the drill bit and pipes were taken up there was crude on the equipment. Though the source rock in that area is 1000 metres thick,, per cubic centimetre it is the second best source rock in the world.

http://www.thisisnorthscotland.co.uk/displayNode.jsp?nodeId=149212&command=displayContent&sourceNode=150624&contentPK=13672806&folderPk=85744

11:00 - 14 December 2005
North Sea oil chiefs today met to discuss the impact of a new oil tax increase.

The UK Offshore Operators' Association said members will probably withdraw some North Sea investment.

UKOOA members were due at their final quarterly meeting in Aberdeen.

A UKOOA spokeswoman said its members will have to go back to the drawing board to review investments in the wake of the potentially crippling tax rise.

She said the 34 member companies had completed investment plans just before Gordon Brown announced the tax.

She added that the companies would reveal new investment portfolios early in the New Year.

However the spokeswoman said that it was expected that some projects would not "make it over the corporate hurdle" and would be dropped.

Guess that will free up some oil rigs then!

Marky

2 good posts, well done.

kind regards

marrow

Hi Marrow,

Good to see your still on board the good ship Desire, a bit quiet today but all buys so far today.

Have re topped up today and taken a few more shares out of circulation until they start to drill at these prices I would say there a bargain.