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://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.

There was a lot more buys than sells and the price drops am i missing some thing here.

Clearly a bargain Marky, though I think that's was said at rather higher prices too.

Hi all

Well I agree markymar.

There were more buys than sells, yet DES closed on the low of the day. The whole of the sector had a bad day also with only 2 stocks making gains. It would appear that it isn't a deirect reflection on DES. The rising trend line is still intact, the 10 & 20 day moving averages moved up. The 200 day moving average moved down. With the sector looking a bit grim and DES being on a sell if on Britishbulls.com. We will have to see if there is confirmation of the sell if tag tomorrow, which may well happen. (Not what we want to hear).





Good Luck All

Eddie

Cheers Eddie,

Hydrocarbons Daily Record (22/05/06)
May 22, 2006
by J. Brock (FINN)

HYDROCARBONS DAILY RECORD Monday, 22 may 2006



By J. Brock (FINN)



At 1800 LMT on Monday, 22 May 2006 Light Sweet Crude was $69.23 up .70 cents per barrel and Brent Crude at $69.35 up .67 cents per barrel.



TRENDS:



Stock markets worldwide continue to have an affect on the price of oil per barrel with worries about supply a major factor. Now that Shells Mars platform in the Gulf of Mexico is operational and will be in full capacity of 350,000 barrels a day by the end of June, the supply picture looks a lot better and this could reflect in tomorrows price per barrel.



A new trend is being set by the New York Stock Exchange bidding for Euronext, a European Stock Market conglomerate. Normally stock exchanges are national entities but this could change with stock exchanges acquiring others outside national boundaries.



MARKET REPORT (FTSE)



More misery was being piled on City investors today as the cracks in stock markets around the world grew bigger and the Footsie lost 31bn in value.



Another major sell-off in the Far East saw investors beating a ragged retreat in Hong Kong, where the Hang Seng index tumbled more than 500 points, or 3%, to close below 16,000 while in Tokyo the Nikkei 225 Average finished almost 300 points down. Singapore's Straits Times index also lost 3% and the Mumbai stock market had to be suspended to let things cool down.



In the event, the FTSE 100 index touched a low of 5538.9, then rallied for most of the day, before a late reversal saw the index 124.7 points down at 5532.7.



(NEW YORK STOCK EXCHANGE)



The Dow Jones index lost 0.17% and ended up at 11,225.33 on worries about rising interest rates and a slow down in US economic growth.



The NASDAQ continues to fluctuate downwards on reports of lower profits and profit warnings that are traditional quarterly indicators of how the technical companies are doing.



In general, the New York Stock Exchange has put a bid in of $10 Billion for the European market conglomerate, Euronext. Euronext is reported to be happy with the bid.



DEVELOPING FACTORS:



(United States)



Infrastructure that had been damaged during Hurricane Katrina last year is now coming back on line. It could be another month before newly opened facilities are on line. There are generally no concerns about supply a factor that affects the price of hydrocarbons products.



(Africa)



It is hoped with Libyas oil reserves will remain unhindered by terrorism, unlike the other reserves in the region. There remains a feel good factor about Libyan oil and the consistency of supply.



(Latin America)



President Chavez of Venezuela will be visiting Bolivia this week to have talks with President Morales about Bolivias hydrocarbons industry. It is thought that if there is any compensation for nationalisation of Bolivias industry, it would be the Bolivian investors that will be compensated.



(Falkland Islands)



It is hoped that at Desire Plcs annual general meeting an announcement about a drilling partner will be made.



Falklands Oil Stocks End of Day Price for the 22.05.06



Desire Petroleum down 2.75p or 7.1% to end the day at 36p



Falklands Oil and Gas down 20p or 15.1% to end the day at 1.12.50p



Rockhopper Exploration up0.5p or 1.7% to end the day at 30p





Border and Southern shares remained unchanged on the day 47.75p

Hi all

Thanks for the updates markymar.

Nice to see the sell if wasn't confirmed, DES also gained back the loss from yesterday. The oil and gas sector made good gains today also which looks to be about to test the 200 day moving average. The news of a possible drilling partner, which may be announced at the AGM could well give DES a good bull run for a while. The oil and gas sector has been falling for about a month and looks like some bullish action may be due. All being well DES will move above the recent resistance 0.4800p soon.





Good Luck All

Eddie

http://www.falklandnews.com/public/story.cfm?get=3920&source=3

Hydrocarbons Daily Record (23/05/06)

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

The 19997 Desire Petroleum link at the top left hand side takes me to www.flowerdeliverydeals.com, mmmmmm very strange!!

http://www.falklandnews.com/public/story.cfm?get=3922&source=3

Hydrocarbons Daily Record (24/05/06)

http://www.falkland-malvinas.com/Detalle.asp?NUM=7955

Eddieshare, did you go to the AGM last night? If so were you wearing a linen jacket and red tie?

Check out ADVFN BB for the results of the AGM.

Brian great post mate,did you stand at the bar or did you find a sturdy seat!

brianplais - 25 May'06 or Fibber i mean Bibber

LOSING MY VIRGINITY

(or how your correspondent penetrated his first Desire Petroleum AGM)

"Meet in the cafe opposite the Reform Club", was the message on my e-mail. "We will be there at 5pm and it closes at about 5.30 so we have plenty of time to cross the road and make the meeting." So I duly turned up at 5.05pm and discovered the Cafe Spreads. As a regular spread better, I thought this was an auspicious sign. How wrong can you be. As I tried to enter the cafe a shortish but stocky man of meditteranean extraction barred my way. "We shut now" was all I could understand. I could see that there were customers still in the cafe...no doubt the chaps from the chatroom that I had arranged to meet. I had little choice but to pace up and down for 5 minutes until a number of gentlemen looking like Desire shareholders came out. As I was clutching a Desire Anuual Report, contact was easily made. The two famous Captains, Guns (a lithe and commanding figure) and Duckling (even lither), Luckyswimmer, Ruuddy, eagerbeaver and many others were all introduced. The game was on.

Over to the Reform Club. I was refused entry on the grounds of lack of tie, but a kindly messenger sorted me one out from an old bag (rather a fetching tie actually) and I was allowed to join my new found friends. Amongst them a slightly odd character in linen jacket and red tie who seemed reluctant to give his name. Was it KO?, or G1?, or even Biswell?

So to the meeting. Dr Phipps started the meeting at 5.58pm, two minutes early. (If this was a horse race starting before the appointed time, it would have been declared void!) The room was packed...standing room only. A brief progress report, (following the narrative in the annual report quite closely) ensued, together with a presentation by Ian Duncan on the de-lineated prospects and another presentation by Bob Lyons of Peak Management who explained how difficult it was to get rigs (I got ther feeling most of us knew this all ready).

Sometimes you picture people in your dreams. Colin Phipps did not fit the bill. If he is 70 years plus, he is doing very well, I am quite certain that this slim and fit looking man could easily beat yours truly in a 100 metre dash!. Must be all those hobnobs. (Make a note to remind wife to purchase hobnobs on next visit to Tesco.)

A fast and furious question and answer session ensued...

Q. Were Shell involved in talks?
A. I would issue an RNS if we were in discussions with Shell.

Q. How much share would you give up to permit a farm-in with a rig?
A. possibly as much as 50% if it was the right deal but ideally not that much. We would like to retain at least 70%.

Q. How much would it cost to build a suitable rig ourselves?
A. About $400 million. (My memory is hazy here on the exact amount and I stand to be corrected.)

At this point your correspondent tried some mental maths and came to the conclusion that to follow this path a further rights issue on the basis of 1 for 8 at 12.5 per share would be needed. Phipps did not pursue the suggestion seriously.

Q How are talks about farm ins progressing so far?
A. I can say that they are progressing and there has been interst shown.

Q. Reports in the Norwegian press indicate Desire may talk to Norwegian rig and oil companies. Is this true?
A. It is true, Ian Duncan and Stephen Phipps will be visiting Norway in the near future.

Etc Etc....nothing of major interest followed by the passing of resolutions and re-electing of Directors etc.

So the meeting was formally closed and informal chatting took place. A chance to meet and chat to JPDM, Ruuddy and eager beaver and then at 7.30pm when the room hire had run its course, we were evicted onto the streets of Pall Mall.

So, dear readers, not a great deal to report on the positive side of things, except that they know they have to extract their digits and get something going. I would not dare forecast progress from here on in but Dr. Phipps did make the point that all of our luvverley oil in the ground is worth twice what it was this time last year and that when we did strike the stuff we would all be billionaires!

The streets of London on a wet evening in May are not too appealing. A decision was made to repair to the nearest Red Lion. Those in attendance, Captains Guns and Duckling, Ruuddy, eagerbeaver, norseman (from iii board) luckyswimmer, yours truly and un-named man in linen jacket with red tie.

Pints were bought and drunk, curiously, I found that my colleagues drink rather slowly and I had some trouble keeping to their pace. As ale was consumed interesting stuff came out .Captain Guns had sailed the world and shot seismic all over. He had girls in most ports and loved the sea. I thought I heard that he started life as a cabin boy on the Cutty Sark, and had helped to bring us all our PG Tips when he was a callow youth, but again, I may have misheard.

I didn't discover Captain Duckling's history, but by his miltary bearing, I would guess that he was Captain of a Royal Navy frigate at some stage in his life. Possibly even saw action in the Falklands?

Ruuddy and eagerbeaver had driven down from the Northern parts of England, but there were no flat caps and talk of whippets! No, these were serious investors with great interest in Desire Petroleum. The only other comment I would make is they might have been secretly discussing the cost of pints in London as compared to those in Harrogate! Luckyswimmer was far from me in the crowded pub and I was unable to chat to him and he beetled off early to post AGM stories on this screen last night. Man with linen jacket and red tie was also in attendance but his comments seemed slightly strange and at times indecipherable.
It didn't stop him drinking beer. Norseman is an interesting chap. Young, tall and a blond adonis, his eyes were on the young ladies in the Red Lion. One in particular caught his eye and he asked me what I thought. Now I am getting on in years, but this was a very pretty girl and in company with some other fellows. I suggested that although she had blonde hair, I didn't think that it was natural. Norseman took up the challenge immediately and went to find out.
20 minutes later he returned with the news that I was correct and that he would be meeting up with her later on. Oh,to be young again.

So at 9.15pm the drinkers started to head for home. Ruuddy and eagerbeaver were to get the tube to where they had parked the car for the return drive to Harrogate, Captains were off to London Bridge, Norseman was going to meet his girl. I decided to cut and run and walked the mile to Charing Cross in pissing rain. (You never can get a taxi when it rains). That left strange chap in linen jacket and red tie....I wonder what happened to him. Was it KO, G1, Biswell, perhaps it was greengrapes, rutter was it you? Will I ever know?

Perhaps next year..........

http://www.falklandnews.com/public/story.cfm?get=3924&source=3

Hydrocarbons Daily Record: Thursday, 25 May 2006

Hi all

Thanks for the updates Markymar.

Bibber I don't have a red tie, but must confess I do have a linen jacket. I think I'm well dressed. Trousers are a bit tight after the opperation though. You wouldn't have noticed the tie if had been there.

Anyway back to DES, the trend line that DES has been following since 08/12/05 is still in tact. DES has given up most of the recent gains, but so have a lot of other companies. This suggests to me that when the bulls return DES should be back on the move up. The oil and gas sector has just moved back up through the 200 day moving average and is looking good for a return to a bull run. It's good to hear DES is in negotiations with a drilling partner. It is also encouraging to hear the value of the oil if found has doubled since last year. In the shares mag cover story it was estimated that if DES held only 10% of the oil after a farm in the stock would be worth 4.00p per share. So holding out for 50% - 70% sounds even better. (just my opinion). DES is currently up 54.74% since 08/12/05 which is 105.53% pa if the trend continues. But news of the right deal will send DES into orbit.




Good Luck All

Eddie

Interesting snip.

http://www.falklandnews.com/public/story.cfm?get=3925&source=3

On Minerals, I will be brief. We are moving forward and as I have mentioned recently in the media the next big jump for offshore exploration is currently being hampered by extremely high rig rates. However, we remain confident that things will progress well. And, until we can move forward, the Falklands must maintain its level of commitment to marketing internationally. We also look forward to continued commitment and support of Her Majestys Government in the development of this industry.

http://www.peak-group.com/cms/content/view/128/1/

AGR of Norway acquires The Peak Group in major international oil and gas well services alliance
Monday, 29 May 2006
The Ability Group (AGR) of Norway has entered into an agreement to acquire The Peak Group, the UK-based global provider of well construction services to the upstream oil and gas industry.

AGR has agreed to purchase 100 per cent of Peak for 26 million in a deal that will significantly enhance AGRs position as one of the worlds leading suppliers of exploration, development and production services to the international petroleum industry.

Sverre Skogen, AGRs Chief Executive Officer, said: We are delighted to have reached this agreement with Peak. Its operations are very similar to those of our Drilling Production Technology (DPT) subsidiary in terms of the scope and quality of services, and we are confident we will see many benefits from this new alliance. One immediate benefit from the Peak acquisition is that it provides AGR Petroleum Services with a significantly improved international presence. At the same time we gain access to a strong brand name, unique products and services and world class performance. AGR and Peak represent a perfect match. The acquisition is an important step to achieve our growth ambitions for integrated operations around the world.

Peak will continue to operate under its own name from its Aberdeen headquarters. It is anticipated that some of the existing AGR services will be brought under The Peak Group brand. All of the Peak shareholders Andrew Paterson, Chief Executive, Bob Lyons, Chief Operating Officer, and Gordon Angus, Chief Financial Officer - have agreed to remain in executive positions within the enlarged group. Peak employees are being reassured that there will be full staff retention and the current recruitment campaign will continue.

We see this as a really positive move, said Andrew Paterson. The Peak Group will be able to go forward on an even stronger corporate, financial and managerial platform. This must be good for our clients, who will see the benefits of our greater operating and financial muscle, and our staff who can look forward to even broader opportunities.

AGR, based in Straume, near Bergen, has in a comparatively short time grown to be a significant provider of services to the oil and gas industry both on the Norwegian Continental Shelf and internationally. At the turn of the year the company had 940 employees. The groups turnover in 2005 was 950 N Kr. AGR operates with four business areas: Petroleum Services, Drilling Services, Integrity Services and Project Services.

On May 23, 2006, AGR submitted an application for the listing of its shares on the Oslo Stock Exchange.

The Peak Group, established in 1997, has over 90 staff with revenues of 25 million in 2005. The company has three divisions: Peak Well Management, Peak Consultancy Services providing recruitment and consultancy services, and Peak Performance, an industry leader in the development and application of performance management systems for well construction.

Peak Well Management, which managed the drilling of 24 wells in 2005, has established an international reputation for its multi-well, multi-client operations. Andrew Paterson said this offering would be significantly enhanced by the link with AGR. The Norwegian company has recently contracted the semi-submersible Bredford Dolphin drilling rig for three years starting later this year. Peak, which has been using the Bredford Dolphin in its own multi-well, multi-client programmes, sees this contract as evidence of increased opportunities to build long-term programmes for oil company clients. I believe that with the combination of our companies and our experience in each of the North Sea sectors, we will be able to further develop the market.

With respect to the transaction, CIBC World Markets acted as exclusive financial advisors to AGR and KPMG acted as exclusive financial advisors to Peak.

Worth a carefull read,

Something not mentioned is the advances made in seismic streamer design, and the acceptable noise levels.

http://www.bgs.ac.uk/falklands-oil/download/download_files/SeismicReport2006.pdf