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

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.

LONDON (AFX) - Buyers came for Desire Petroleum, 4-1/4 pence higher at 44-1/4, amid hopes that a drill rig could soon find its way to its activities in the North Falkland Basin.

The company's exploration work has been dogged by the shortage of drill rigs, but rumours abound that Desire has signed an agreement with a leading oil major and that a rig will soon be on the way to the oil rich area.

newsdesk@afxnews.com

http://www.berlinerboerse.de/

Berlin Exchange Desire up 35% today so far!!!

Marky, interesting article in the Independent. Surprising that a market maker tells the journalist that Shell wouldn't consider a deal with a small company that doesn't have a rig. Hmm, perhaps Shell has access to rigs and Desire has access to oil - seems a good basis for a deal to me. I think the market maker wants to shake at some more trades.

Pleased to see no RNS saying Desire have no knowledge of a reason for the SP rise

The chart does look like a break out of the channel we've been in since December. Thank you Eddie for keeping the charts on display. Onwards and upwards.

Well put Lucky will you be attending the AGM this year?

http://www.bloomberg.com/apps/news?pid=10000086&sid=a8c5Zn.RthHs&refer=latin_america#

Desire Says It Still Seeks Falkland Rig; Shares Surge in Week
May 11 (Bloomberg) -- Desire Petroleum Plc, an explorer for oil and gas near the Falkland Islands, said it's still seeking a drilling rig for the area.

``The company is pursuing several strategies to get a drilling rig and is in talks with other operators in the Falkland area,'' Ben Willey, a spokesman for the company at its outside public relations firm, said today by phone in London.

Shares of Malvern, U.K.-based Desire have soared 42 percent this week, including a 14 percent jump today, to 45.50 pence. That gives the company a market value of about 102 million pounds ($190 million).

The company in September said it may not be able to begin drilling this year after failing to find an oil rig for drilling in the Falkland Islands area.

A shortage of rigs for hire has lead to delays in the development of oil and gas fields. Record crude oil prices are prompting energy companies such as Royal Dutch Shell Plc to increase spending on oil exploration, boosting rig rates.



To contact the reporter on this story:
Renee Lawrence in London at rlawrence7@bloomberg.net

Last Updated: May 11, 2006 04:43 EDT

I too have been following the price & read the rumour of the driller too. Is it possible Shell or one of the majors has done a deal with the Falklands Oil companys as a group? I work in Aberdeen (European oil capital) for one of the larger oil service companys and I have not been able to fish out anything, but thats not new. It's long way so send a driller from any country.

Hi all

DES had another great day.

I have posted a 3 day chart with 10 minute time frame. Todays open was a whoper opening at 0.0475p, up by 0.0725p the bulls pushed DES up to the days high 0.4825p this triggered some selling which then pushed DES down to the low of the day 0.4300p. The bulls were back in at 0.4300p this is where we should now see support. The bulls then managed to push DES back up to the close of the day at 0.4525p There was also a gap up which should also give support. DES has made gains of 90.53% since 08/12/05, 40.31% of which was over the past three days. The moving averages 10, 20, 200 are all moving up now, which is a good indicator. Todays high may offer some resistance, if it does it should be short lived.




Here is the 6 month chart with daily candles.





Good Luck All

Eddie

Eddie thank you.

This rumour is not going away and have tried to get to the bottom of it and Desire are staying very quiet and now of the opinion some thing is going on in the back ground as suggested in the annual report.

Good luck to all that hold !

Marky, yes I'm hoping to attend the AGM, might bring a tie this year. It would be nice to meet up, particularly if we finally have something to celebrate.

Nice strong finish today and no dreaded RNS saying no known reason for rise, this is looking good.

Falklands : Hydrocarbons Daily Record (11/05/06)


(Falkland Islands)



Desire Petroleum share lead the charge of frantic buying in the first 10 minutes and saw the share price hit a high of the day of 48p after positive newspaper reports on that Desire Petroleum was close to closing a deal with a Oil Rig Owner or a Oil Major after one of the biggest trading days in volume for years a total of more than 9,500,000 shares were bought and sold giving Desire a end of the day share price of 5.5p up to 47p.


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.



http://www.sartma.com/art_2920.html

Falklands : Hydrocarbons Daily Record (12/05/06)
Submitted by Falkland Islands News Network (Juanita Brock) 13.05.2006 (Current Article)
Desire Petroleum are talking to someone about a rig but aren't saying who.


HYDROCARBONS DAILY RECORD: 12/05/06


By J. Brock (FINN)


At 1800 LMT on Friday, 12 May 2006 Light Sweet Crude was $72.04 per barrel and Brent Crude at $72.32 per barrel.


TRENDS:


Stock markets across the world have recorded losses today and this affected the price of oil by the barrel.


DEVELOPING FACTORS:

(Nigeria)


What has been described as vandalism has caused an explosion on a pipeline near Lagos in Nigeria, killing nearly 200 people. It is understood that people tap into the pipeline and sell the fuel on the black market at less than the going rate. The unaffordable price of fuel has created this black market commodity.


(Iran)


An analyst, Professor Shaul Bakhash from George Mason University in Washington, DC has said publicly that the letter sent to President Bush from the president of Iran may not have been an attempt at dialogue but to establish the moral high ground in his attempt to win the hearts and minds of fellow Muslims. It is thought in some circles that assertiveness by Iran over its enrichment of nuclear fuel for power generation could work against them if they do not make a genuine effort for dialogue and negotiations.


(Russia)


Aside from obviously pointed articles saying that oil and democracy dont mix in Russia, there has been little rhetoric. Russia stands by its stance that dialogue and negotiations with Iran are better than sanctions.


(Latin America)


Though Venezuela and Bolivia have heated up their rhetoric in Vienna, Brazil and Petrobras have also stood their ground. They have agreed to have talks but Bolivia is firm about not giving back assets that belong to foreign investors. Rumours that Venezuela was interfering in Bolivian affairs were quickly dispatched by Bolivias Minister of Foreign Affairs, Mr. David Choquehuanca.



Venezuelas President Chavez will be visiting Britain this weekend but reportedly will be avoiding the Prime Minister, Tony Blair, who has warned energy rich states to act responsibly towards their neighbours when he visited Vienna this week.


(Falkland Islands)


Speculation is ripe that Desire will be procuring an oil rig. It has not been confirmed who the people Desire are talking to are but it is thought to be Shell. Even if one is found, it will still take time for paperwork and for it to be transported to the Falklands. It could be that there wont be any exploratory drilling in 2006 but this depends on how quickly a rig arrives. Desire Petroleum are ready to get straight to work on several interesting prospects that it has in its tranches in the North Falkland Basin.



A bad day on the London stock Exchange left investors feeling the pain as the FSTE index tumbled back below 6000 for the first time in six weeks with a loss of 129.9 points to 5912.1 this did not help any of the Falklands Exploration Stocks today.




Falklands Exploration Shares end of day price for the 12.0.06


Desire Petroleum down 3.25p or 7.2% and closing price of 42p


Rockhopper Exploration down 3p or 8.6% to close at 32p


Falklands oil and Gas down 4p or 2.7% to close at 145p


Border and Southern down 2.25p or 4.4% to close at 49.25p

As the saying goes "There is no smoke without Fire" applies here. Could it be Shell or Total? Monday should be interesting! Sunday papers may have some news about this speculation!

Hi all

Thats right Tonto (hjs)

Thanks to all for the updates through the week. Markymar, Captguns. Luckyswimmer.

Where is Fat old get these days? Probably still still on Tesco's finest.

I have posted a 3 month chart with Zig lables, this shows the support and resistance areas. Which are represented by the thin shadows on the top and bottom of the candles. DES is looking great, the recent cross of the 10 day moving average up through the 20 day moving average, was a golden cross. The true golden cross is when both the moving averages are moving up (as was the case in the last cross). The 200 day moving average is still moving up, so all we need now is more fuel for the fire!





Good Luck All

Eddie

Falklands-Malvinas
Sunday, 14 May


Companies plan to grow in the next year



FALKLANDS businesses are incredibly optimistic about their future, despite the economic challenges they face.



Thats the message from the Falkland Islands Development Corporation which has published the results of its Business Climate Survey.
The survey has shown that two thirds of companies in the Islands are planning to grow their business in the next twelve months. This optimism persists despite current challenges such as uncertainty in the illex fishery, reduced government spending and the charter flight ban.

The survey was sent to every business in the Falklands, along with government heads of departments and councillors.
According to Sue Gyford of FIDC, there was a huge response, with replies received from 36% of those contacted and significant representation from every sector of the economy.

The fisheries sector was the most optimistic, with every respondent company saying they expected to see improvements in their business in the next two years while the tourism and oil/mineral exploration sectors were identified as having the best potential for future growth.

Freight and labour issues are seen as the key barriers to economic development and reductions in the size of government have been welcomed.

Ms Gyford said FIDCs recent policy of divesting parts of its operation (such as FIMCo, the Tourist Board and lodges at Pebble Island and Port Howard) and focusing on the core areas of business support and infrastructure development appears to have paid off.
On a rating of 1-5, where 5 is high, the overall rating given to FIDC has risen from 3 to 3.8 in the past two years.

She added, The survey is invaluable in guiding FIDCs work, ensuring its direction and priorities are aligned with those of business. (PN)

Juanita heard it on a radio bulletin,
the rumour originated from Mercopress in Uruguay,
she states that it was only speculative.
Next stop Mercopress...

Peter H-W/G?

What did Juanita hear on the radio? and how do you know that.

I sent her an email, she sent one back. If you send me your email I'll forward it on to you.
I'm also sending you the link to mercopress as it makes interesting reading
on one Argentinian Senator's view towards the "Falklands".. The section about the
Argentinian Senator trying to pass a bill that will outlaw any company dealing
with the Falkland oil companies...I am still researching to see how much or how little weight he has. As you are probably aware Argentina is broke and needs
this economy. Petrobras however is a different proposition. Having just fallen out
with the Bolivian President, because he nationalised Bolivia & some of PetroBras's assets and turned the gas taps off to Brasil I can now see them thinking about
some sort of deal if Agentina does not want to play. What difference between
a tanker to Brasil or Argentina. Brasil has the refinerys.

mercopresshttp://www.mercopress.com

Cheers Peter have sent you a email.