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 to all for the updates.

DES made a another move up today. The sell if was not confirmed. The 10 day moving average has dipped a little though. The market appears to be giving support, an attempt on the 0.4000p looks to be on the cards. DES has re-joined the main part of the chart today and has managed to close on the days high. With this in mind, I think we may see a bit more support for DES. DES is currently 60% up from the recent lows, dating back to December.





Good Luck All

Eddie

Thanks for update Eddie

I see that the Pride Venezuela comes off contract in May 06

Also Pride South Seas is under contract to Petro until 31 July 2006 so still options there for Desire.

Aur,you are still away looking for the oil rig ,no need ,every one is looking for the oil rig ,even Peak,an aussie outfit,even Rhp,when one comes,there will be an turbo boost to the s.p.

RHP bit of a Knightrider then?

i say we drill in 2008

Hi all

DES lost some of the gains today. The moving averages have started to drop a little, the volume also. Britishbulls.com confirmed the sell if today. The 0.4000p resistance may take a little while to crack. We should have support at about 0.3500p. There was support towards the end of todays trading, this is the small shadow on the bottom of todays candle.





Good Luck All

Eddie

Evening All
Thanks for the charts as always Eddie . Was that 125k at close a buy or sell ?

Shame Bob did not tell Phipps as he might of pulled his finger out!

Publication:ENRM; Date:Apr 1, 2006; Section:SHAMBLES; Page:8

Rig crisis drives ILT to hire a consultant


THE shortage of drilling rigs in the UK North Sea has hit home, with theIndustry Leadership Team (part of steering group PILOT of whichthe Department ofTrade &Industry is amember)seeking tofind a solution tothe deepening cr isis.

According tonewswire Rigzone, energyconsultancy SenergyofAberdeenhas been commissioned to study the probl em .

In fact,it isSenergys CEO, James McCallum, who has been asked by ILT to do the work, not the DTI,asRigzonealso cl a i m s .


Dismissing itsquotes, Mc-Callum told Energy: Its not true tosay Senergyis putting together the report.

Iwas askedtolead awork group as part ofILT to make recommendations for sharing rigs in the North Sea. Phase one of thework iscompleted; the second phase has just begun. Currently, the initiative has inputfrom 11differentcomp a n i e s .


McCallum agreedthat the problem was notunique to the NorthSea. Ithas becomea worldwide issueand thisnow dictates what drilling tonnage is av ailable.

AtEnergy,we arepuzzledas to why ILT should commission suchastudy, giventhatthe worryof rigsharingis notnew and the solution is simple.

Moreover, our February front page leadhighlighted thefact that this processwas already well developed, thanks to Aberdeen company Peak Group.

It dovetailsthe drillingrequirements ofa portfolioof client explorationand production companies together to create essentiallyseamless work programmes for the rigs it hires on their behalf.


Our headline read, UK faces exploration drilling crisisas rig shortage bites. We reported that this is a different drilling boom toanything experiencedinthe pastbecause itisthe nowlarge cohort of smalland mediumsized independents that are driving the demandfor rigs
not themajors, aswas previously always the case.

Weindicated thatthebiggest chunkofthat demandisbeing co-ordinated by Aberdeen company Peak, which has come to the fore in just three years as the number-oneclientfor the drillingcompaniesby commanding more than a third of the UK wellconstruction market last year.

Lastyear, thecompany notched up 24exploration and appraisal wells on behalf of its client oil companies, which was roughly one-third ofthe entire 2005 E&A market.

Once again, in 2006, Peak is in the lead, controlling the largest sliceof theUK drillingmarket. ItsMD, BobLyons, warnedthat he could see the crisis coming a mile off at the start of 2005.


Last year,UKOOA indicated at a mediabriefing that some sort ofrig club mightbe formed, but this was no more than a proposal at that time.

Perhaps thestudy beingcarried out byMcCallum will lead to the idea being matured.

Marky

Bob Lyons DID warn Colin Phipps he could see the crisis coming a mile off at the start of 2005.

This was in a statement he made in his last interview.

Kind regards

marrow

http://www.falklandnews.com/public/story.cfm?get=3835&source=3


"DESIRE'S ENVIRONMENTAL IMPACT ASSESSMENT


It was recommended that the Environmental Impact Assessment that was carried out on behalf of Desire Petroleum be accepted. It was the first time something of this size had been done in quite some while, so it was a welcome study."

Hi all

Thanks markymar.

Not very much been going on of late. Todays trading was a little unusual, there were much more sells than buys. DES managed to move up? not sure what is going on but todays candle has shown support and has bullish implications. The 200 day moving average also moved up by a fraction. DES appears to be holding well at this price, and may be ready to move up a bit more. The volume was quite a bit higher also today, so if the bears havn't managed to push DES down today then we may see them have another go tomorrow. Britishbulls.com have DES on a buy if tag.





Good Luck All

Eddie

Looks like DES heading downwards to 30p due to rig shortage

http://www.bodecott.com/

April update

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.

ROCKHOPPER EXPLORATION

During the past year, 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.

In order to get a piece of the upcoming drilling action, Rockhopper farmed in to Desire Petroleum's best prospects in licences 3 and 4, where three wells will be drilled as soon as a rig becomes available. These wells will be targeted at potential reservoirs defined on 3d seismic, between 2000 and 3000 metres depth within the oil window.

Rockhopper's remaining 100%-owned prospects are located within very modest water depths between 150 and 450 metres. Recent seismic acquisition and an EM survey have been carried out across licences 23 and 24 (February 2006), see http://www.rockhopperexploration.co.uk

The North Falkland Basin is the only Falkland area with 3D seismic. There are two existing 3D surveys on Rockhopper licences, with 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.
Exploration stage is North Sea, 1965.
Same water depths as Central Graben, North Sea, similar weather.
Same geology as West Africa and Argentina.

We continue to support Rockhopper's technical push for success.

Marky, thanks for shaking some dust off this board and keeping us up to date.

A tick up today, surely some mistake. Mind you the 6 month SP graph does look very promising at the moment.

Just discovered RIFT oil, who also had problems getting a rig. What did they do about it? They bought one that could be flown in by helicopter and are now drilling in Papua New Guinea. I know, I know, Desire have to cope with 500m of salty water but RIFTs move does show initiative. Has anyone booked Japan's Oceanographic drilling vessel after GBP have finished with it?

Hi Lucky,

Who knows but jungles is on the board of Woodside Energy, Just need news of a rig or boat as all the other bits of the jigsaw are in place and ready.

If youve had a good day please consider giving a donation to the lads dressed as Elvis racing 350 miles to the North Pole on behalf of Great Ormond Street Hospital It makes the London Marathon seem like a stroll in the park!
To donate or view how theyre getting on visit
http://www.elvispolarchallenge.co.uk/
thanks for your time

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

BUY IF

Hi all

Hope you are all keeping well.

Markymar
The abandend baby is quite a rare combination of candles, todays trading was prety neutral. We may still see some action yet.

Well we didn't get the buy signal today, there is allways next week. DES announeces the preliminary results on Tuesday 25/04/06. The market appears to be on the side of caution at the moment.




Good Luck All

Eddie

http://www.falklandnews.com/public/story.cfm?get=3858&source=3

Daily Hydrocarbons Record: 25/04/06
April 24, 2006
by J. Brock (FINN)

HYDROCARBONS NEWS



(New Feature)



By J. Brock (FINN)



At 1800hrs LMT on Monday, 24 April 2005 the price per barrel of Brent Crude was listed on Londons ICE Futures Exchange at $73.78. This is down $1.57 from its recorded high on Friday off $75.35 Per Barrel.



At present the trend seems to be fluctuating upwards with excuses for the rise being the on-going dispute with Iran over nuclear power, OPECs refusal to increase supply and rumours that oil reserves in the Middle East are past peak. Irans President, in a two-hour press conference today said that he did not think the UN would sanction his country because Iran only wants to use nuclear power for peaceful means.



Local Relevance: Though the data is excellent with several hundred prospects awaiting 3D seismic in the North and South Falkland Basins, there are no semi-submersible exploration rigs available to do exploration drilling at the moment. The unavailability is due to other exploration priorities as well as the cost of the rigs in an extremely tight market. There is no indication of where the Falklands are in the queue for a rig.



Comments from companies involved in the North and South Falkland Basins are welcome. Please use the contact section on SARTMA to get in touch.