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

Thank you for the up date Eddie,

Capt bad news For FOGL as am sure will delay things and put back drilling and if i was a day trader would have a short on the share as drilling will be pushed back now till at least 2008 or even later.

Falklands : Hydrocarbons Daily Record (08/05/06)
Submitted by Falkland Islands News Network (Juanita Brock) 09.05.2006 (Current Article)
It has been predicted that a large oil company could have an interest in the Falklands and work with one of our hydrocarbons companies.


HYDROCARBONS DAILY RECORD (08/05/06)


By J. Brock (FINN)


At 1800 LMT on Monday, 08 May 2006, prices reflected a decline in the price per barrel with Light Sweet Crude .25 at 69.77 and Brent Crude at $70.21. This reflects a lull in rhetoric and optimism for dialogue efforts.

Contributing factors include rising supplies and a slightly less demand. It is not known if the trend will continue but it is hoped the situation will continue to contribute to lower hydrocarbons prices.



The President of Iran has written a letter to U. S. President Bush offering what he sees as the way forward and new solutions for the present stand-off between the two countries over Irans enrichment of nuclear fuel. The US has dismissed the letter as rambling and offering no substance. Iran stands by its claim that it is enriching fuel for energy generation only. Investors see the letter as an effort by Iran to seek a solution for the current impasse with the UN Security Council. This has lead to more confidence.


China and Russia are against sanctions for Iran and would rather have dialogue than war. It is possible their persuasion for dialogue may be a factor in the Iranian letter. Rhetoric by the United States against Russia has died down for now. Their accusations that Russia is using its hydrocarbons as a manipulative tool have not yet been proven to investors but they are waiting for more analysis.

In South America, Bolivias president is preparing for a meeting in Vienna with European officials and hydrocarbons industry representatives. It is hoped that the right advice will result in fair and workable contracts for Bolivian Gas.


LOCAL IMPLICATIONS:


When Desire gave a presentation in Stanley about the Environmental Assessment Dr. Phipps mentioned that it was unusual for a large oil company like Shell to get in on the initial exploration stage in the North Falkland Basin. He mentioned that large oil companies wait until all of the exploration work is done, then move in to buy part of take over the businesses doing the exploration. We in the Falklands are waiting to see if this happens with any of the entities searching for hydrocarbons in the North and South Falkland Basins.

Desire AGM is at 6pm on the 24th of May and will be held at the Reform Club, 104 Pall Mall, London


FOGL

The latest phase of seismic acquisition ended on May 5th. The rate of acquisition had recently slowed during a period of poor weather. Nearly 13,000 km of data has been acquired which has already substantially improved the definition of key prospects and has also helped to identify additional prospects in areas where the previous coverage was sparse. More seismic acquisition is planned to commence during the summer months in fourth quarter 2006. This takes the total amount of 2D seismic recorded by FOGL to 22,450 km which far exceeds the requirements of our licenses.

http://www.falklandoilandgas.com/fog/operations/pdfs/latest%20phase%20end.pdf

Who knows Markymar??

According to their web site 2008 seems to be the maybe plan now.

http://www.falklandoilandgas.com/fog/operations.php?sec=2

FOGL plans to conduct further seismic surveys targeting all the leads but with particular emphasis on the approximately 50 most promising. The aim will be to develop 20 high quality, technically sound and potentially economically viable drilling prospects. The Company then intends to develop a multi-well drilling programme which may be able to begin in 2008.

The news gets worse for FOGL capt,2008 a long way off and even that might be pushed back further as other delays might add to the problems.



Pip Pip

Shell on 'Big Cat' prowl

By Upstream staff


Shell is looking at several new exploration opportunities in the Asia-Pacific region to supplement its current portfolio, and is looking forward to a major operated drilling programme in Australia.

Wouter Hoogeveen, Shell vice president-exploration for Asia Pacific, said there were multiples of opportunities, and a number of prospective countries, but would not name specific countries.

"I will name those countries if we are awarded acreage," he said at the APPEA conference in Gold Coast, Australia.

"There are opportunities out there where we would be prepared to commit our intent and manpower," he said.

Meanwhile, the company is returning to operating wells in Australia for the first time since the 1990s.

Shell has contracted a semi-submersible for a 12-well gas hunt off Australia in a block that it believes could be a significant contributor to the supply of LNG to the Asia-Pacific market.

The supermajor hired Diamond Offshore semisub Ocean Epoch at a dayrate of around $225,000 from early November 2006 for 12 months.

Shell owns 100% of block WA-371-P in the northern Browse basin. The permit lies in relatively shallow water depths that range between 200 metres and 300 metres and is adjacent to the giant Ichthys/Brewster gas field operated by Japans Inpex.

Up 10% today on shell joint venture rumors

take a look on the ADVFN board, a report from the, Egm from dublin on (PCI) GOOD NEWS AWAITING TO BE RELEASED.

Hydrocarbons Daily Record (09/05/06)
May 9, 2006
by J. Brock (FINN)

HYDROCARBONS DAILY RECORD 09/05/06)



By J. Brock (FINN)



At 1800 LMT on Tuesday, 09 May 2006, prices reflected an increase in the price per barrel with Light Sweet Crude at $70.69 and Brent Crude at $71.14. This reflects confusion, with rhetoric dieing down and the hope of dialogue between Iran and the UN Security Council, which should mean a further reduction in prices. Clearly there are other contributing factors keeping oil prices high.



TRENDS:



There have been no reports about the trend of rising supplies and a slightly less demand being reversed. Though it is not known if the trend will continue, it is hoped the situation will contribute to lower hydrocarbons prices. However, this trend, along with the hope of dialogue, does not appear to be the defining factor in oil price reduction, though it may have helped to prevent a larger jump in prices.



DEVELOPING FACTORS:

(Iran and the UN)



In the past, nervousness over the situation in Iran has lead to higher oil prices. The United States has not changed its stance against Irans President Ahmadinejads letter to President Bush, saying it dealt with politics and not the current situation where Iran is enriching nuclear fuel for energy generation. US Secretary of State Rice has said that Iran brought all of this on itself by leaving the negotiating table itself and that the behaviour was unacceptable.



The UN Security Council met today on a wide variety of matters including Irans nuclear fuel enrichment. Iran has said that it would co-operate with the IAEA and the Security Council seems to have agreed with this saying that Iran must co-operate with the IAE Board of Governors. Iran has also said it would agree to surprise inspections by the IAEA. The Security Council further said that Iran would be offered a package of benefits if it co-operates and a package of sanctions if it does not. If Iran chooses not to co-operate the price of oil could go higher.



(Russia and China)



US Rhetoric about Russia has abated for the time being, with the possibility that Russia along with China is helping Iran to seek alternatives. One option is to enrich nuclear fuel for power generation in Russia.



There are no new reports about the proposed pipeline between Russia and China and Japan.



(Latin America)



In Latin America, the Government of Venezuela has announced on Sunday that it was going to create an extraction tax. President Chavez, who made the announcement, said he did not know how much it will be but was hopeful it would generate several hundred million dollars for his countrys treasury this year and more than $1Billion in 2007. Companies Affected by any new taxes include: local and foreign companies such as Spanish-Argentine Repsol YPF, China National Petroleum, the US firm, Chevron and Brazils Petrobras.



There were no reports today about Bolivias president preparing for a meeting in Vienna with European officials and hydrocarbons industry representatives.



(Falkland Islands)



Falklands Companies reporting results on the Alternative Stock Market via their web pages are Desire Petroleum and Falkland Islands Oil and Gas Limited (FOGL).



Desire Petroleum Plc today the share price rose by 3p to 35.25p on speculation that it is talking with Shell. There is no indication about what the talks entail but it is thought that a positive outcome could mean a rig for exploration in the North Falkland Basin. We wait and see.



Falkland Oil and Gas today the share price remained steady at approximately 147p. Yesterday FOGL announced the completion of its 2D seismic survey of the South Falkland Basin covering 25,000 sq km. It is expected that this stock price could go higher with a positive outcome from the data collected. Already there are several prospects that will need 3D seismic. Again, we wait for a positive outcome.

LOL Markymar, are you the editor??

Desire Petroleum Plc today the share price rose by 3.00 to 35.25 on speculation that it is talking with Shell. There is no indication about what the talks entail but it is thought that a positive outcome could mean a rig for exploration in the North Falkland Basin. We wait and see.

I would not be posting if Des's price got to 35 I'd be letting some bar prop me up.

FOGL were at @ 140p yesterday after a steady fall.

The 2D seismic was not complete it was abandoned due to weather.

Regards Capt Googly (Reverse spin)

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

BUY
CONFIRMED

Good call Eddie, lets see us break the 40p!

http://www.berlinerboerse.de/

In Berlin the price is also following up 10% to day,with the AGM on the 24th of this month looks like we could quiet happily sit around the 40p+ mark

marky,

AGM is 24th @ 6pm

eacninewhy ,

Thanks for pointing that mistake out and i See Finn has corrected his Capt.

Well sort of Markymar,

Mind you I think with a name like Juanita, I would think he is in fact a she.

Submitted by Falkland Islands News Network (Juanita Brock)

Looking foward to Eddie's update.

Well done marky - it looks like your pateince, (and other holders), will, pay off.

Good luck to you all

Hi all

Thanks to all for the updates.

Well DES did get the confirmation, todays trading had a little less volume than yesterdays. The information I have is 615000 buys, 226000 sell, 527000 unknown. The unknown may account for the shadow on top of todays candle. If the unknown turn out to be buys then we may get another run tomorrow. DES has been following a rising trend line, since 08/12/05. The support from the bulls yesterday & today, give added weight to the rising trend line. There have also been falling resistance lines (4) which DES has passed up through, each also adding to the confirmation of support. There are couple of other resistance lines which are at about 0.4300p & 0.4500p, These may give a bit of resistance as this was the open offer price. Todays candle has a shadow on top indicating there may be resistance towards the top of the shadow, however the 10 day moving average looks likley to move up through the 20 day moving average. This should add to the bullish move. The 200 day moving average has stayed the same as yesterday, this should also start to rise if the upward momentum continues. Again adding confidence in for the bulls. There are lots of other signals which suggest buy signals. Not to mention any good news. FOGL & RKH also made gains today.





Good Luck All

Eddie

Eddie superb write up on the technical side of things and just good to see the price rise today and get over 40p, I see all the Falklands Exploration stocks were up today and any good news has a knock on affect, hence are news is only rumour and should be taken that way.

Capt it makes you wonder how these rumours start!

I see FOGL are presenting at the oil-barrel conference tomorrow

http://www.oilbarrel.com/events.html

Hydrocarbons Daily Record (10/05/06)
May 10, 2006
by J. Brock (FINN)

HYDROCARBONS DAILY RECORD (10/05/06)



By J. Brock (FINN)



Crude oil futures slipped in New York and London today before the release of a US government survey expected to show increasing domestic gasoline inventories.

In London IPE Brent crude was down 23 cents at $70.84 a barrel by 1511 GMT.

At 1343 GMT crude for June delivery was trading down 21 cents at $70.48 per barrel on the New York Mercantile Exchange.

At 1800 LMT on Wednesday, 10 May 2006 Light Sweet Crude was $71.90 in the price per barrel and Brent Crude at $70.21.



TRENDS:



Even though refineries increased their run rates by 300,000 barrels, making supplies of Gasoline in the United States 347 Million and stockpiles of other hydrocarbons products world-wide, there is nervousness about whether the trend will continue. This is a factor in keeping the crude prices high.



DEVELOPING FACTORS:



(Iran)



Speculation about Irans President Ahmadinejads letter to President Bush is becoming fact with bits and pieces of it being released to the press. There seems to be little relevant to the enrichment of nuclear fuel but it does indicate a way forward for dealing with Iran politically. It is an historic letter, the first since the 1970s. At present Irans President is in Indonesia drumming up support for his position that nuclear fuel enrichment is for energy generation only. It appears that the trip has been successful. More will be known at 0800 LMT on Thursday.



(Russia)



Last night Russias President Putin, in a State of the Union Address, said that he would encourage the increased revenue from hydrocarbons to go towards increasing living standards in Russia. Also singled out for improvement, President Putin wants to improve that countrys energy infrastructure. Russia is the worlds second most productive producer of hydrocarbons behind Saudi Arabia.



(Latin America)



Companies Affected by any new taxes in Venezuela - local and foreign companies such as Spanish-Argentine Repsol YPF, China National Petroleum, the US firm, Chevron and Brazils Petrobras are seeking alternatives to paying newly proposed extraction taxes. The media are stepping up criticism of President Chavez by saying that his plan to buy off the Americas and secure absolute power over Venezuelas oil reserves is frayed and not working. Since President Chavez has begun this policy production has dropped from 3.2 Million barrels per day to 2.5 million barrels and it could be further cut if foreign investors decide to cut their losses. If contracts become unworkable they could pull out, leaving Venezuela to fend for themselves.



Bolivias President Morales is in Vienna for a meeting in Vienna with European officials and hydrocarbons industry representatives. His South American neighbours applaud his desire to give the people revenue from their gas reserves. However, Bolivia wont be able to take it all without keeping the level of investment it presently has.



(Falkland Islands)



Falklands exploration companies stocks rose today as there is optimism that a rig could be available at any time for exploration in the North Falkland Basin.



Falkland Oil and Gas Limited will be presenting a company profile and some data at the oilbarrel.com conference on Thursday, 11 May 2006.



The following Falklands exploration companies had an excellent day on the Alternative Investment Market (AIM) today:



Des up 4.75p or 13.5%up



RKH up 4p or 14.8% up results of seismic done early on in the years due near future



BOR up 2.5p or 5.5%up



FOGL up 6p or 4.3% up

http://news.independent.co.uk/business/analysis_and_features/article363767.ece

A busy day in small oils stocks included speculative support for Desire Petroleum, 4.75p better at 40p, on bulletin board speculation the group is poised to sign a deal with a major European oil player. However, some market makers remained sceptical. One said: "Why Shell would even consider a deal with a company that doesn't even have a rig out there is beyond me."

http://www.thisismoney.co.uk/investing-and-markets/tips-and-tactics/article.html?in_article_id=408974&in_page_id=23

DESIRE Petroleum's exploration work in the Falklands has been hampered by the shortage of drill rigs. Heavy buying which saw it touch 42p before closing 4p up at 40p followed rumours Desire has signed an agreement with a leading oil major and a rig will soon find its way to the oil rich area soon. If true, last year's peak of 65p could be left miles behind.