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.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

http://www.falklandnews.com/public/story.cfm?get=3946&source=3

http://www.falklandnews.com/public/story.cfm?get=3948&source=3

Hydrocarbons Daily Record (31/05/06)

Is the Hyrocarbons Daily Record really have any relevance on whats happening with this company?

Falkland Islands)

http://www.falklandnews.com/public/story.cfm?get=3950&source=3

With each dry hole exploration rigs drill it becomes more frustrating to acquire a rig for the excellent prospects in both the North and South Falkland Basins. Nonetheless, the rig costs keep fluctuating higher and the possibility of getting a rig is thwarted by the rising costs as well as their rarity.


With the higher costs of oil per barrel, companies dont have spare rigs and the ones that are being leased are on tight programmes, with rather long waiting lists.


Falklands Oil Stocks End of Day Price for the 1.06.06

Desire Petroleum down 0.25 or 0.6% to end the day at 39.75p


Falklands Oil and Gas unchanged on the day to stand at 1.18.50p


Rockhopper Exploration down 1.5p or 5% to end the day at 28.5p


Border and Southern unchanged on the day to stand at 44p

There are some slides from the AGM

http://www.desireplc.co.uk/presentations.php

AGM PRESENTATION SLIDES
MAY 2006

Presentation 1: Desire AGM
Download Powerpoint Presentation (7 slides, 5702k)

Presentation 2: Peak AGM
Download Powerpoint Presentation (2 slides, 1941k)


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http://www.falkland-malvinas.com/Detalle.asp?NUM=8058

Argentina presses for annual OAS Falklands claim

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

BUY-IF

Preliminary Results for the Year ended 31 March 2006


Chairman's Statement

Background
Rockhopper Exploration was established in early 2004 to explore for oil in the
North Falkland Basin. We currently have a 100% working interest in and are the
Operator of 4 licences, PL023, PL024, PL032 and PL033, which between them cover
approximately 5,800 km2. In addition, we have a 7.5% working interest in
licences PL003 and PL004, which are operated by Desire Petroleum. In total, our
net acreage position of over 5,900 km2 currently makes us the largest acreage
holder in the North Falkland Basin.

We are currently in a period of relatively high oil prices and have seen a
significant growth in exploration activity across the world. Access to high
quality acreage is becoming increasingly difficult and expensive while high
quality people and equipment are in high demand and short supply. Against this
background, your board has built up an acreage position of real prospectivity
and value and has also been able to carry out a significant part of the work
programme set out at the time of our listing on the Alternative Investment
Market (AIM), with more work already timetabled for later this year.

Achievements
We completed a successful listing on AIM in August 2005 raising #15 million
before expenses to undertake work on all of our licence areas. We specified at
the time that we would conduct both 2D and 3D seismic acquisition programmes and
consider using other exploration technologies in addition to fulfilling our
commitment to drilling with Desire Petroleum.

The 2D programme has been completed on licences PL023 and PL024 and the 3D
vessel is now secured for licences PL032 and PL033. CGG, one of the world's
leading marine seismic contractors, will undertake the survey. We have also
completed two Controlled Source Electromagnetic (CSEM) surveys in order to give
ourselves greater confidence in the prospects over which they were acquired.
These are the first such surveys ever completed in the Falkland Islands. The
results of these surveys will be fully integrated with all our other technical
studies once they are available.

We are working closely with Desire in moving towards drilling on licences PL003
and PL004 but have experienced a significant tightening in the worldwide market
for drilling units.

Outlook
Once the results of the two CSEM surveys have been fully integrated into the
seismic studies, our knowledge of the southern, undrilled part of the North
Falkland Basin will be taken to a new level.

Processing the new 920km 2D seismic survey data is nearing completion. Once we
have the processed data, we will focus on interpreting and integrating it into
our existing knowledge of the area.

The next active step in our exploration will be the collection of the new 3D
seismic survey in licences PL032 and PL033. Once the data has been acquired,
processing and interpretation will carry the work programme into 2007.

The ultimate test of any exploration is, of course, drilling. To this end, not
only do we have the 7.5% interest in PL003 and PL004, but we are working on our
own 100% acreage with modern seismic techniques and CSEM in order to reduce risk
before committing to a drilling programme. It is our intention to co-operate as
fully as possible with other operators in the region in order to reduce costs
and maximise not only knowledge and experience, but also the chance of success.

We have achieved a great deal in this first year against a background of
increasingly difficult markets for services in the oil sector. We look forward
to being able to present the full results of our new 2D and CSEM programmes
later this year and the results of our significant 3D programme during 2007. At
that point, we will need to consider our funding options should we confirm the
presence of drillable targets in our acreage.

Summary
We remain positive about the prospectivity of the basin as a whole and of our
acreage specifically. We believe a number of completely untested plays remain in
the basin which give a better chance of success than the original drilling
campaign in 1998. The technical work is progressing as anticipated at the time
of the listing and the board as a whole remains strongly supportive of the
management team as we move closer to discovering the real potential of the
basin.

Dr Pierre Jungels CBE
Executive Chairman
5 June 2006

Hi all

Thanks markymar for the updates.

DES hasn't been doing very much over the past 10 days, but neither has most of the oil & gas sector. DES is still following the rising trend line, which started 08/12/05. There have been a few buy & sell signals but neither have amounted to much. The oil & gas sector is currently bellow the 200 day moving average but is unlikley to stay there. In one of the news clips it was suggested that DES may announce a rig contract at the AGM. Am I right in thinking this is on 26/06/06? DES is on another Buy If signal on Britishbulls.com, so we may see the bulls return.





Good Luck All

Eddie