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

H&P 406 is a platform.. It aint going anywhere ;-?

Well, one thing's for sure, 936, Phipps is trying to thrash a deal out with one Company or another but the 64,000 dollar question is, who ?

Eddieshare are you still there. I have been reincarnated as bibber. I was a pop star previously known as fatoldgit but drank so much that I exploded and it has taken 4 months or so to sew me back together.

Whilst I was away I continued to post on other boards occasionally as AWOK and Brianplais, but only when vital organs were stitched back. Unfortunately, in the midst of my explosion, my password for Money AM disappeared into the ether and I have had to re-register and gain a new one. Bibber, I think is most appropriate.
No doubt you know what a bibber is. I believe the good Capt. Guns is also a bibber. KO gave him a telling off the other day when DES got to 47, cos the Capt. quite rightly said he was going to sink eight bottles of rum. I think KO may have been short and lost his equipment.

Anyway, here I am, I noticed that you've been missing me. Also, a lovely Scandinavian doris e-mailed me pleading with me to write on this board again.

Scandinavia seems to be all the rage at the moment. That same Doris is posting on another board in Norwegian! Can't think why!

Whilst I've been away, I notice the shares have perked up a copper or two. Good news for all of us old lags. Are you going to the AGM...I might just persuade myself to go if there are some good fellows going. (presuming they will have a glass or two afterwards)

By the way, you will be pleased to know that while I was missing, I persuaded the surgeon who stitched me back together to give me a double capacity new liver and add 3 more inches to the old todge, so now I can not only drink much more but please the wife and girlfriends as well.

Not bad for a fatoldgit called Bibber. Doncha fink?

Hi all

Thanks for the updates.

All is looking good still, the moving averages are all still moving up. DES didn't manage to move up today, but neither did most of the other stock. Only 2 stocks in the sector moved up today. The oil & gas sector has been moving to test the 200 day moving average since 24/04/06 doji top. As we can see todays candle has a very long shadow on the bottom, which represents support. DES also closed on the days high, which is a good sign of the markets intention.





Good Luck All

Eddie

Ignore me then, Eddie....you're off my "Desire strikes oil--- free champagne for all mates" list.

bibber it is then.

I don't think I'll make the AGM. I'm having the same operation you've had.

Regards

Eddie

Bibber was the name blubber already taken or the name Tesco finest good to see you post again.

A very good day for Desire I thought because especially when you look at the hole market and some good strong stocks took a pounding today Desire did to start with but after heavy buying nudged all the way back up to be down ever so slightly.

The gossip going round of talk of them doing a deal with an oil company or Rig owner is not going away and hope we get some news soon or even at the AGM who knows!

Yes I am fluent in many languages but Geordie is my favourite with a bottle of nukey brown and after a few nukeys I can slur my words.

Eddie you dont look like Chubby Brown as well do you!

Hi markymar

I don't look like Chubby Brown, but I will after the operation.

Regards

Eddie

Hydrocarbons Daily Record (15/05/06)
May 15, 2006
by J. Brock (FINN)

HYDROCARBONS DAILY RECORD: MONDAY. 15 MAY 2006



By J. Brock (FINN)



At 1800 LMT on Monday, 15 May 2006 Light Sweet Crude was $$69.86 per barrel and Brent Crude at $69.67 per barrel.



The FSTE 100 was down more than 70.8 leaving it at 5841.3 for the end of day trading.



The Dow Jones added .42% and rose to 11,425.89 or 47.78 points. All of the other stock markets including the NASDAQ are down



TRENDS:



With The fall in market prices comes a fall in oil price per barrel. Rhetoric from Iran and Venezuela has heated up but this has not been a huge factor in decreasing stock prices. What has happened is profit taking by people selling their highly priced stocks?



(Nigeria)



Nervousness abounds with reminders that rebels in the delta have in the past killed a US oil executive. There is no news yet about whether Nigeria has restored the 20% it cut in production due to rebel activity. The recent tragic deaths of 200 people who may or may not have been involved in the theft of gasoline from a pipeline has sparked renewed security but it is felt that a balancing act needs to be done in that facilities in the Niger Delta also need protection.



(Libya)



Today after 27 years the United States has resumed diplomatic relations with Libya by opening an Embassy in Tripoli. Libya has opened an Embassy in Washington DC. This comes after Libya handed over all its weapons of mass destruction to US Scientists and Intelligence Officers. The US is hoping Iran will do the same. Libya has huge reserves of hydrocarbons.



(Iran)



The Rhetoric continues with Iran on the defensive even though Libya has handed over weapons of mass destruction to US Officials. Venezuela, defending Iran, has warned the United States not to make war with Iran.



(Russia)



Oil companies continue to explore for reserves around the Caspian Sea.



(Latin America)



The United States today has put sanctions on Venezuela. For harbouring two terrorist organisations linked to Colombia, the US has put a freeze on arms sales. For his part, President Chavez has accused US President Bush of genocide in Iraq. Venezuela is the largest provider of hydrocarbons outside of the Middle East.



President Evo Morales of Bolivia has told the European Parliament in Strasbourg that European energy companies can still make a profit from their investments in his countrys natural gas reserves. This is despite the fact their assets have been nationalised.



(Falkland Islands)



Desire Petroleum closed the day 0.75p or 1.8% down on the day to 41.25p



Falklands Oil and Gas was the biggest Falkland oil stock to fall loosing 12.5p or 8.6% down on the day to 1.33p



Rockhopper Exploration closed down 2.5p or 7.8% down on the day to 29.5p



Border and Southern closed down 1.75p or 3.6% down on the day to 47.5p

Hi all

Thanks for the update markymar.

DES moved down a little again today, the long thin line on the bottom todays candle is where the bulls are giving support. The sector was down again also, the trend that the sector has been following has been very strong, therfore I feel will be back in favor soon. The 10, 20 & 200 day moving averages are still moving up, todays close is just above the Fibonnaci support line. All things being well DES will be on the move up soon.





Good Luck All

Eddie

Cheers Eddie for update

Falklands : Hydrocarbons Daily Record (16/05/06)
Submitted by Falkland Islands News Network (Juanita Brock) 16.05.2006 (Current Article)
Cyprus now says it could have reserves of hydrocarbons south of the island.


HYDROCARBONS DAILY RECORD: TUESDAY, 16 MAY 2006


By J. Brock (FINN)


At 1800 LMT on Tuesday, 16 May 2006 Light Sweet Crude was $69.53 per barrel and Brent Crude at $69.78 per barrel. The FSTE 100 was up 12.1 ending the day at 5846. The Dow ended the day at 11,419.57



TRENDS:

Supply seems to be meeting demand with reserves growing. Rhetoric and corresponding nervousness has died sown since Libya and the United States have resumed diplomatic relations.

DEVELOPING FACTORS:

(Cyprus)

Data from initial seismic surveys shows that there are reserves of hydrocarbons south of Cyprus. Norways Petroleum Geo Services (PGS) were commissioned to do the initial seismic. Cyprus and Egypt have signed a deal governing future exploration along the median line of the sea area separating the two countries should reserves be found in the area.


(Africa)


Egypt could benefit if hydrocarbons are found in the seabed between it and Cyprus.

The major story, however, is Libya and the resumption of diplomatic relations with the United States. It is thought that the deal will be beneficial to both Libya and the United States regarding hydrocarbons.

(Latin America)

Bolivia has demanded three Spanish Banks to meet Government demands to surrender shares it administers for a public pension fund within three days. President Evo Morales says his government wont pay for the shares because they belong to the Bolivian people. The banks say they will not give up the shares for free.

Ecuador is revoking the Occidental contract. The reserves produce 100,000 barrels a day. It is thought that the contract is being revoked as a result of a dispute between the Government of Ecuador and Occidental and not a general trend for that country to nationalise reserves.


In general, the nationalisation of assets in Bolivia and Venezuela has not affected output.



(Falklands)



The Mineral Resources Committee met today and discussed the Health and Safety regulations and inspection of any oil rig that might come to the Falklands. According to Agriculture and Minerals Director, Mrs. Phyl Rendell a rig has not yet been identified but it is hoped the regulations and legislation will be updated by the time the inspection takes place. In accordance with user pays, Desire will have to pay the Health and Safety Executive for the inspection.



Tim Bushell, FOGLs Chief Executive gave a presentation to oilbarrel.com last week. Oilbarrel.com links oil companies with investors and they had a lot to consider following Mr. Bushells presentation. He said that the Loligo prospect a large Tertiary fan system could hold as much as 3.3 billion barrels and that the lower Cretaceous Endeavour and Endurance prospects could hold 710 million barrels and 730 million barrels respectively. According to Mr. Bushell, FOGL is planning more 2D and 3D seismic and is also keen to do electromagnetic seabed logging.



FOGLs report and presentation can be seen at: http://www.oilbarrel.com/home.html.



THE MARKET



Investors generally were happy to see to the market steady itself following the losses of the past couple of days. After a nervous start, share prices moved ahead with the FTSE 100 index rising 12.1 to 5853.4. But investors were braced for opening losses on Wall Street this afternoon.


Desire Petroleum closed the day 1p or 2.4% down on the day to 40.25p
Falklands Oil and Gas closed the day 1p or 0.8% down on the day to 1.32p


Rockhopper Exploration closed up 0.5p or 1.7% on the day to 30p


Border and Southern closed down 1.5p or 3.2% down on the day to 46p

Hi all

Well no news as of now.

Yesterdays candle has reduced in size, and the shadow has gone from the bottom. The FTSE is set to open higher, we may see the bulls giving a bit more support.

Good Luck All

Eddie

Morning Eddie,

Hydrocarbons Daily Record (17/05/06)
May 17, 2006
by J. Brock (FINN)

HYDROCARBONS DAILY RECORD: WEDNESDAY, 17 MAY 2006



By J. Brock (FINN)



At 1800 LMT on Wednesday, 17 May 2006 Light Sweet Crude was $68.69 per barrel and Brent Crude at $69.04 per barrel.



TRENDS:



The lowering numbers in the stock markets had a corresponding affect in the crude price per barrel. However, it did not have the same affect on all of the Falklands related oil stocks.



UK/US MARKET REPORT 17.5.06:



THE FTSE 100 has lost nearly all of its 2006 gains in the space of just four trading days after another day of carnage on the markets. Index of the UK's 100 largest listed companies closed down a massive 170.7 points at 5675.6. FTSE 100 is now just 57 points ahead of its January 1 level of 5618, meaning the market has fallen a painful 8% since its year-high of 6128 on 20 April.



Dow Jones in New York closed down 2.92% at 11,205.69 and the NASDAQ closed down 1.49% at 2.195.82.



In London, the trend was that the market freaked by weak trading in the US and growing fears of an interest rate rise in the UK.



The Trend in New York was directly related to the release of a 0.6% rise in the inflation rate in April.



DEVELOPING FACTORS:



(Iran)



The European package, which reportedly included a light water reactor, has been rejected by Iran. Irans President had said he wouldnt believe any offer until he actually sees them; and may be rightfully suspicious of any fishing expedition but if the offer of a reactor for domestic power generation was official, one would hope the other foot is still in good shape.



(United Kingdom)



UK Prime Minister, the Rt. Hon. Mr. Tony Blair MP has said that he wants to see more nuclear energy power generation for his country. It used to be that reserves in the North Sea provided 90% of the UKs hydrocarbons needs but now the UK imports 90% of its needs. He remarked that Britains carbon emissions would be cut if it went over to nuclear power for energy generation. However, the problem of what to do with nuclear waste still remains.



(Russia)



Mikhail Kasyanov, prime minister of the Russian Federation from 2000 to 2004 has written an article for the Russian publication, Kommersant, calling on the European Union to stop the energy wars, saying it never sufficiently explained the liberalisation of its energy markets and has not given guarantees of stable supplies. Meanwhile, Russias own (former) energy giant Mikhail Khordorkousky, who had set up a special school for disadvantaged Russian children some from Beslan is even having his charity work closed down by the state. Mr. Khordokouskys oil company, Yukos was shut down for tax evasion and its founder put in prison.



(India)



The CEO of a hydrocarbons exploration Company in Assam, India says that his company, Abhay Chowdhary has a tie-up with DMS Exploration to bid for NLP 6. His company has exclusive rights in India and SAARC countries.



(Latin America)



President Chavez of Venezuela and London Mayor Ken Livingstone have come under fire for wasting tax payers money on a lunch for the Venezuelan President at City Hall. President Chavez has defended his policy towards investors in his countrys hydrocarbons industry.



(Falkland Islands)



There was a mixed reaction for Falklands Oil Exploration Stocks with Desire losing and the other three gaining. A delay in getting a rig for Desires tranches in the North Falkland Basin could be behind nervousness with their stocks.



Desire Petroleum shares lost 0.75p or 1.9% to end the day at 39.5p



Falklands Oil and Gas 6.5p or 4.9% up to end the day at 1.38.5p



Rockhopper Exploration shares were unchanged on the day and stood at 30p



Border and Southern shares rose 1.5p or 3.3% to end the day at 47.5p

Hydrocarbons Daily Record (18/05/06)
May 18, 2006
by J. Brock (FINN)

HYDROCARBONS DAILY RECORD: THURSDAY, 18 MAY 2006



By J. Brock (FINN)



At 1800 LMT on Thursday, 18 May 2006 Light Sweet Crude was $69.60 per barrel and Brent Crude at $69.47 per barrel.



TRENDS:



The lowering numbers in the stock markets had a corresponding affect in the crude price per barrel. Only one Falklands exploration stock Boarders and Southern has risen in price. Another trend is the Atlantic hurricane season shortly to begin and infrastructure not being repaired from last year.



UK/US MARKET REPORT 18.5.06:



The FTSE 100 index traded in a wide band of 100 points which saw it touch 5618.7 - its lowest since January - before settling to close down 3.9 points at 5671.6.



City investors had to endure the peaks and troughs of another volatile performance by the stock market today in the wake of yesterday's massive sell-off that saw share prices suffer their biggest one-day loss in more than three years.



Dow Jones in New York closed down .38% at 11,163.44 and the NASDAQ closed down .28% at 2.189.76



The US trend was flat with the market expected to bounce (dead cat) up temporarily but the indexes closed roughly flat.



DEVELOPING FACTORS:



(United States)



Nervousness due to the approaching Atlantic hurricane season is expanded due to the fact that not all the infrastructure was repaired from last years disastrous season. It is estimated that production in the Gulf of Mexico is down by 60,000 barrels a day due to the state of the infrastructure.



(Iraq)



Reports on the state of infrastructure in Iraq are not good with leaking pipelines common and infrastructure that is well out of date. Sabotage to pipelines and refineries has brought the industry to its knees. Northern Iraq, for example, has the potential of producing 1.5 million barrels a day. However production from the area rests at approximately 300,000 barrels a day.



(Latin America)



President Hugo Chavez of Venezuela will travel to Bolivia on 26 May 2006 to sign accords on co-operation in the natural gas sector. The accord is between Petroleos de Venezuela S.A. (PVZ.YY) and Yacimientos Petroleos Fiscales Bolivianos (YPFB). Both entities are state owned. Rumour has it that $1.5 Billion will be invested. A better report will be produced after the event.



(Falkland Islands)



There are still rumours that Desire are talking about getting a rig but Falklands based officials are out of the Islands at the moment.





Falklands Oil Stocks End of Day Price for the 18.05.06





Desire Petroleum down 2.25p or 5.7% to end the day at 37.25p



Falklands Oil and Gas down 3.5p or 2.5% to end the day at 1.35p



Rockhopper Exploration down 0.5p to 1.7% to end the day at 29.50p



Border and Southern up 0.35p to 0.5% to end the day at 47.75p

Hi all

DES moved in the right direction today, recovering a bit from recent selling. Since the buy signal DES is still up 20% and still looking good. The 200 day moving average as dipped a little today, but after todays trading I think we may see it rise again next week. The 10 & 20 day moving averages are still moving up, DES is currently just bellow the 10 day moving average. The rising trend line is still looking good, the resistance is at about 0.4800p. A good rally would easily push DES through the resistance.





Good Luck All

Eddie

Hydrocarbons Daily Record (19/05/06)
May 19, 2006
by J. Brock (FINN)

HYDROCARBONS DAILY RECORD: FRIDAY, 19 MAY 2006



By J. Brock (FINN)



At 1800 LMT on Friday, 19 May 2006 Light Sweet Crude was $68.53 per barrel and Brent Crude at $68.68 per barrel.



TRENDS:



Lowering numbers in the stock markets continues to have a corresponding affect in the crude price per barrel. Nervousness bout US interest rates has been less today.





UK/US MARKET REPORT 19.5.06:



LONDON stocks marked the end of a volatile week with a period of relative calm, the FTSE 100 index slipping 14.2 points to 5657.4.



The Dow Jones index has risen to 11,144.06 up 1% and the NASDAQ has risen by .6% to 2,193.88. It is expected that this small rise in the numbers could affect stock markets elsewhere.



DEVELOPING FACTORS:



(United States)



President Bush has, at Northern Kentucky University, given a speech about seeking alternative energy sources and weaning the United States off dependency on oil. The speech was well received and may have had an affect on the price per barrel of Light Sweet Crude.



(Iran)



President Ahmadinejad has received a veiled geological lesson about fault lines under his proposed nuclear fuel enrichment site. Its the case of the pot calling the kettle black with nuclear reactors being near fault lined in the US in California and in Japan.



(Latin America)



CNPE, Brazil's National Energy Planning Council, announced measures to guarantee that there is enough natural gas to meet growing demand after the nationalization of the natural gas fields in Bolivia made an increase in gas imports unlikely in the medium term.



(Falkland Islands)



Desire still hasnt announced whether it is talking to oil companies about acquiring a rig. There is speculation but it is hoped that one of the Directors will shed light on the speculation when he returns to the Falklands over the weekend.



People in the Falklands remain optimistic about their future with hydrocarbons.



Falklands Oil Stocks End of Day Price for the 19.05.06



Desire Petroleum up 1.5p or 4% to end the day at 38.75p



Falklands Oil and Gas down 2.5p or 1.9% to end the day at 1.32.50p



Rockhopper Exploration shares remained unchanged on the day 29.50p



Border and Southern shares remained unchanged on the day 47.75p

Hydrocarbons Weekend Record (20/21 May 2006)
May 21, 2006
by J. Brock (FINN)

HYDROCARBONS RECORD (WEEKEND EDITION 20/21 MAY 2006)



By J. Brock (FINN)



At this writing the stock market is just waking up, with the Nikki up .55% the S & P 200 down .47% and the Hang Seng down .24%, so the daily report will begin with Mondays Hydrocarbons Daily Record when Mondays world-wide business completes.



TRENDS:



OPEC has guaranteed to keep up with demand and this could be an indicator for lower oil prices per barrel. It is the adequate supply of hydrocarbons products that drives the price of oil per barrel down.



DEVELOPING FACTORS:



(United Kingdom)



Experts say that North Sea Gas will run out in six years, so it is wise to aggressively seek alternative forms of energy generation. Some say nuclear power generation has been improved technologically and could, along with wind and solar power, be the way forward for the United Kingdom.



(Africa)



In Libya, Gadhafi's next goal is to initiate an economic revival by the doubling of oil production in the coming decade. High-tech oil extraction methods will help, as will geography: Libya, on the North African coast, should be immune from disruptions that could snare the flow of oil from the Persian Gulf.



(Iran)



Critics say that Iran is seeking a nuclear weapon and could have the materials to produce one in 6 or 8 months, with an actual weapon ready for use in 5 to 10 years. Iran, a strict Islamic country, has stressed that it is enriching nuclear fuel for energy generation.



(Latin America)



Press reports are about the insistence that Bolivian hydrocarbons companies should be compensated for their nationalised assets when foreign investors should not. While this is seen as a positive step in the right direction, it is considered to be unfair as foreign companies invested vast amounts of money in Bolivias natural gas reserves. While it is fair to say that investors seem to be getting most of the profits from Bolivias people, it is not fair to say that sudden acquisition of foreign assets will solve the problem of getting Bolivias Hydrocarbons profits to the people. Some are saying that Bolivia should have given an ultimatum to the hydrocarbons companies and if that ultimatum is not met, then the assets should be nationalised.



Meanwhile Chiles president, Michele Bacholette, in her state of the nation speech, has said that she would like to see more of the profits from Chiles copper industry go towards education and health care. Copper is one of the entities that has risen in price recently and it could prove to be a windfall for the people of Chile if Michele Bacholette gets her way. Hopefully the trend will spill over to the hydrocarbons industry.



(Falkland Islands)



Rockhopper Exploration, in advance of the release of its Controlled Source Electromagnetic Survey has released an information paper prepared by Kelper Teather & Greenwood Merrion a UK Research Company. The paper, available of Rockhoppers website, covers the drilling programme, finances, valuation, management, disclosure and legal information.

http://www.falkland-malvinas.com/Detalle.asp?NUM=7943

Offshore health and safety laws to be updated

CHANGES are to be made to offshore health and safety legislation.

At a meeting of the Mineral Resources Committee on Tuesday, Director Phyl Rendell said the legislation needs to be updated to mirror the regulations for the North Sea introduced in April 2006.
Mrs Rendell met with officials from the Health and Safety Executive (HSE) in London in April to discuss the need for modernisation of FIGs legislation and to confirm FIGs need to contract HSE to assess the safety case for rigs working in Falklands waters.

In addition, HSE inspectors need to be appointed on behalf of FIG to inspect installations.

At the meting in London, HSE stressed the need for the Falklands to have current UK Continental Shelf legislation in place when their inspectors undertake checks. The alternative of working to 1998 regulations, Mrs Rendell said, would be confusing and open to error.

Also discussed at the meeting was the Falklands participation in the American Association Petroleum Geologists international conferences.

Councillor Andrea Clausen said that with the constant shuffling of staff in the large companies which the Falklands wish to attract, it is important to attend annually: If you miss one year, you miss the boat. (PN)

Panic is settin in! and MM's are enjoying this.