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 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.

Hi all

Thanks for the update markymar.

Today the volume was very low, most of trades were buys. Todays candle is a four price doji, this suggests confusion in the market. The Britishbulls.com have DES on a wait tag still. If DES is back negotiating we should see some more buying soon.





Good Luck All

Eddie

The San Jorge basin is just west of the NFB.

Snip from.

http://www.falkland-malvinas.com/Detalle.asp?NUM=6918

The rest went to exploratory deep water 3D surveying and exploring in the Malvinas and Golfo San Jorge basins, even when exploration resumption in the South Atlantic has proved a difficult task. For the coming three year period exploratory drilling will absorb between 80 and 100 million US dollars annually.

Morning Capt,

You beat me to it, does look like drilling may take place in that area in 2006,but will they share a rig?

Must have a bit more dig around.

Marky

I agree, at todays prices they are very cheap and one day will become a multi bagger. The only shame is we all bought 99% of our holdings at much higher levels and as such are locked in for the duration. Never mind we live and learn.

Capt

A good article which gives encouragement.

2006 could still be our year. (unlikely but definately possible)

kind regards

marrow

Doing a bit digging with them clogs on and there has been some more twists and turns over on the Ageis side.

BP are working on are door step!

Repsol revving up in Argentina

By Upstream staff

SPANISH oil giant Repsol YPF has begun processing 3D seismic data from a 2400 square-kilometre shoot in Argentinian waters in the western half of the Malvinas basin and is likely to be looking at drilling in the area in 2007, according to a manager with the Spanish company.
The seismic shoot, which was finished earlier this year, was carried out by WesternGeco on blocks CAA-40 and CAA-46, where Repsol is partnered by Pan American Energy, an Argentine-based company controlled by BP.

The blocks are located in water depths ranging from 500 metres to 600 metres.

Pan American moved into the two blocks when both BG Group and France's Total disposed of their interests in the area three years ago.

Repsol currently has a 65% stake in CAA-40 and a 50.5% share of CAA-46.

However, negotiations with Pan American are likely to result in a 50-50 split between the two companies, the Repsol manager said.

Argentina's under-explored offshore sector is seen as holding the potential to reverse the country's accelerating decline in reserves and output of crude oil. However, a lack of salt deposits and little evidence of turbidite structures have led geologists to classify both continental shelf slopes and deeper water areas as high-risk frontier plays.

The country's most significant offshore deposits are found in the Austral basin, off Tierra del Fuego, where the Total-operated Carina Aries gas development should eventually ramp up toward a targeted 8 million cubic metres per day of natural gas production.

The same consortium behind Carina-Aries consisting of Total, Wintershall and Pan American Energy drilled a wildcat called Gemini last year on Block CAA-35, located between Carina and the two blocks targeted by Repsol, but no hydrocarbons were found.

Repsol has also outlined plans to shoot seismic in deeper waters, on Block CCM2, in the Colorado Marina basin. Here the Spanish company holds a 90% stake and is partnered by PetroUruguay.

Hi all

Thanks for the update markymar.

Just a small move up today, the volume low again. DES is now back on a buy if tag with Britishbulls.com. The candle has bullish implications, however there is a upper shadow. The shadow shows the bears were selling at the days high. We will need confirmation on the buy if.





Good Luck All

Eddie

http://www.desireplc.co.uk/pdfs/falklands-exploration-8dec.pdf

Zoom in on slide 25 Markymar.

X marks the spot, Ninky A.

Looks like Ninky is on the team, but maybe just as a subsitute.

Hi all

Nice to see the buy if was confirmed. DES made prety decent gains today, the volume is still low though. The candle has bullish implications, there are no shadows on top, this is generaly a good indicator, along with the fact the bulls are prepared to stay invested over the weekend. More of the same for next week please !





Good Luck All

Eddie

Cheers Eddie i see we have a BUY CONFIRMED

http://www.britishbulls.com/StockPage.asp?CompanyTicker=DES&MarketTicker=RESOURCES&Typ=S

OIL GIANT DROPS MAJOR RIG ORDER



11:00 - 17 December 2005
Major North Sea operator Shell has slashed a rig contract after a tax hike.

In his pre-budget report, Chancellor Gordon Brown said tax would soar to 50% of profits.

Experts fear offshore drilling investment could plummet by a third.

SNP leader Alex Salmond revealed Shell's decision to cut an order for three rigs to two following the tax increase.

Shell confirmed the move saying it was made "after an investment review" and more cuts may follow.

Shell said it was continuing to evaluate the impact of the 10% tax rise on offshore oil company profits.

There has already been a drop in projected exploration activity and other companies could follow suit.

Mr Salmond said: "Now we have the first tangible sign Scottish jobs are being sacrificed on the altar of Brown's tax grab.

"The danger is that billions of pounds for Brown today will become thousands of jobs lost in Scotland tomorrow."

Shell admitted it was "disappointed" with the Government's decision and the UK Offshore Operators Association said it was "ill-judged".

The confirmation that Mr Brown's decision to raise tax on the profits of offshore oil companies to 50% from 40%, effective in the new year, has already resulted in a reduction of projected exploration activity and reinforced the alarm voiced by industry experts when the tax rise was announced in the pre-Budget report.

West Aberdeenshire Liberal Democrat MP and energy spokesman Sir Robert Smith said the news confirmed their worst fears.

Rig count takes a tumble

By Upstream staff


The number of rigs drilling for oil and natural gas in North America decreased 2.3% this week according to data compiled by Baker Hughes.

The number of North American drilling rigs in operation was down by 50 compared to last week at 2112.

The total US rig count fell 20 to 1463 and the total Canadian rig count fell by 30 to 649.

Evening all,

I was just wondering how everyone who has taken part in the moneyam championship investor is doing?

I have been making steady progress this month but Desire needs to start moving and one of my other selections

Overall Rank: 686 (686) View league Monthly Rank: 143 (143) View league

Morning Markymar, (Late night??)

19 December 2005


Desire Petroleum plc (Desire)

Drilling Update

Desire is pleased to announce that the Environmental Impact Assessment, required
for drilling in Tranches C and D in the North Falkland Basin, has been submitted
for approval to the Falkland Islands Government. The full documentation will be
posted on the Desire website.

In order to increase the flexibility of the drilling programme, a detailed
analysis of the shallow 3D seismic data, for site- survey purposes, at nine
drilling locations, within Tranches C and D in the North Falkland Basin, has
been submitted for comment to the Health and Safety Executive (acting for the
Falkland Islands Government (FIG)).

In addition, and in response to long lead times for the supply of drilling
equipment, Desire has decided to order now, all of the casing needed to fulfil a
three-well drilling programme. When received, this casing will be stored in
Aberdeen ready for the drilling programme.

Work is now well advanced on all of the fronts necessary to commence drilling as
soon as the rig market allows and Desire will continue to review both its
drilling programme and well design in order to meet changing circumstances when
a suitable rig does become available.

At the recent conference in London on Commercial and Technical Strategies for
Managing Exploratory Risk in Frontier Regions Ian Cross, Vice-President of IHS
Energy presented a paper entitled " What can we really expect from unexplored
areas?- Global elephant hunting. "
In this paper he highlighted the significant exploration wells to be drilled in
the World in the next 18 months ie wells with the potential to find a major
field with 250 million barrels or more of recoverable oil. In this category he
included Desire's wells to be drilled in the North Falkland Basin.
He also noted that there are very few areas in the World where oil fields of
this size can now be found with discovery levels now back at the levels last
seen in the 1950s.
IHS is a leading global provider of consultancy services and technical
information to the oil and gas industry and as such are well placed to provide a
global overview of the oil exploration scene.