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

markymar

Yes to all 3 points. It was discussed yesterday on iii.

I'm only dissappointed that the RKH good news has had no effect on DES. We are currently down on the day!

Whats your thoughts on the sp. I think we are about to test the 20's again.

marrow

Hi Marrow,

Good news for all and was not reflected in Desire SP, I think the SP will rise in the coming weeks as talks over in Norway with rig contractors and oil companies starts to hits home. The feelers have been put out last month the big guns are going over there to do a deal !!!!

Am very optimistic a deal can be done and its the best chance Desire have had for about a year now of getting a rig and this will be reflected in the share price as news is leaked out on progress good or bad.

Marky

Just looked at British Bulls they have DES down as sell tonight, every time it does it drops a penny and the bounces back so it will probably drop tomorrow but as said too much going on in the back ground for Desire at this present time which is positive and with RKH .

A deal done over in Norway you will see 80p to 1 + depending on deal and time frame of rig, no deal in the coming Months or so YES 20s

Am bullish a deal can be done this time.

http://www.publications.parliament.uk/pa/cm200506/cmhansrd/cm060628/text/60628w1283.htm#column_435W

Falkland Islands
Mr. Hoyle: To ask the Secretary of State for Foreign and Commonwealth Affairs what discussions the Government have held with (a) the Falkland Islands Government and (b) the Argentine Government on exploration for oil and gas in Falkland Islands waters. [79698]

Mr. Hoon: The Government hold regular discussions with the Falkland Islands Government on the exploration for oil and gas in Falkland Islands waters. Most recently these included a meeting between both the Foreign and Commonwealth Offices Director General for Defence and Intelligence and the Overseas Territories Department, with representatives of the Falkland Islands Government, on 15 June.

There have been no discussions with the Argentine Government on the exploration for oil and gas in Falkland Islands waters since the South West Atlantic Hydro Carbons Commission ceased to meet inJuly 2000.

Mr. Hoyle: To ask the Secretary of State for Foreign and Commonwealth Affairs what Government policy is on supporting the Falkland Islands in their exploration for gas and oil in their territorial waters. [79699]

Mr. Hoon: The Government are committed to the offshore prospecting policy pursued by the Falkland
28 Jun 2006 : Column 436W
Islands Government, which is entirely consistentwith the United Kingdom's sovereign rights over the Falkland Islands.

Marky

Hope you're right mate. Its best we don't bank on it though, we've had so many false dawns.

Marrow

Hi all

Thanks to all for the updates.

Looking at the chart it looks like the markets intention has been to re test the 200 day moving average. There have been a few buy signals. Point & figure, kagi, Renco, and candles. The move back up through the 200 day moving average is also regarded as being good, all these still need confirmation. All being well this could be tomorrow.





Good Luck All

Eddie

Marrow plenty of false dawns, this is the best chance we have had for a good while, G1 is still buying thats good enough for me if you know who G1 is buying for!!!

Interim results of Scarborough Minerals used to be called Greenwich Resources

http://www.iii.co.uk/investment/detail?code=cotn:SCRB.L&it=le&display=news

Desire Petroleum plc

Scarborough has maintained its shareholding in Desire Petroleum plc, which holds
Offshore oil and gas exploration licences in the North Falkland Basin.

Desire is presently seeking to acquire a suitable drilling rig in order to
Commence a further drilling programme under these licences, either on its own or
with a joint venture partner. Although the economic conditions currently
affecting the rig market make this a difficult and costly process, the situation is expected to improve.


During the six months since 1 October 2005 the Company did not make any further
Sales from its holding in Desire.

Marky

I'd be interested to hear who G1 is buying for.

Marrow

http://www.guardian.co.uk/argentina/story/0,,1810067,00.html

http://www.jpg.co.uk/contents_06.htm

Extract only pasted, read the full paper.

Four basins surround the Falkland Islands, but only the North Falkland Basin has been drilled; six wells were drilled there in 1998. Although all six wells encountered good quality sandstones, none of them targeted the basin margins, on what are now thought to be the optimum migration pathways associated with the basins thick lacustrine source rocks. Subsequently, a 3D seismic survey acquired in 2004 was designed to identify potential basin margin-derived sandstones entering the basin along transfer zones. From this survey, a number of basin margin-attached fans have been identified; these prograded into lacustrine waters of varying depths. These Early Cretaceous alluvial/fan delta/deep-lacustrine fan systems are interpreted to provide excellent potential reservoir facies as they are intimately associated with thick, mature source rocks. They will provide the focus for the next planned phase of exploration in the North Falkland Basin.

A phase of drilling is also planned for the basins to the south of the Islands, where large deltaic and fan systems, slightly younger than those imaged in the North Falkland Basin, are seen on seismic to prograde from the same Palaeozoic hinterland that produced the older, North Falkland Basin fans.

This paper attempts to show how sedimentary models derived from targeted seismic programmes following initial exploration can be utilised to plan and improve new drilling campaigns in a frontier basin. It presents an analysis of sediment dispersal patterns in basins of marine and lacustrine origin linked to a single hinterland area, and highlights the nature of the relationship between relay ramp/transfer zone development and sediment dispersal patterns in the sub-surface.


http://www.publications.parliament.uk/cgi-bin/newhtml_hl?DB=semsimple&STEMMER=en&WORDS=falkland&ALL=&ANY=&PHRASE=&CATEGORIES=&SIMPLE=falklands&SPEAKER=&COLOUR=Red&STYLE=s&ANCHOR=muscat_highlighter_first_match&URL=/pa/cm200506/cmhansrd/cm060629/text/60629w1306.htm#muscat_highlighter_first_match
Mr. Hoyle: To ask the Secretary of State for Foreign and Commonwealth Affairs what estimate she has made of the reserves of oil and gas in Falkland Islands waters. [79611]

Mr. Hoon: Only further exploratory drilling will allow for a dependable estimate on the size of the reserves of oil and gas in Falkland Islands waters. Initial exploratory drilling was unable to ascertain the level of oil and gas reserves and is un-likely to restart before 2007.

Mr. Hoyle: To ask the Secretary of State for Foreign and Commonwealth Affairs what assessment the Government have made of the potential contribution of the search for oil and gas in Falkland Islands waters to the provision of energy in the UK; and whether the Government are taking action to support such exploration. [79702]

Mr. Hoon: Only further exploratory drilling will allow for a dependable estimate on the size of the reserves of oil and gas in Falkland Islands waters. It is not therefore possible currently to assess the potential contribution to the provision of energy in the UK. Initial exploratory drilling was unable to ascertain the level of oil and gas reserves and is unlikely to restart before 2007.

The Government are committed to the offshore prospecting policy pursued by the Falkland Islands Government.

Global offshore rig demand slips

By Upstream staff


Worldwide offshore rig demand slipped this week, the ODS-Petrodata Group's weekly survey showed.

Worldwide rig utilisation fell to 92.3%, with 602 rigs under contract out of a fleet of 652.

In the US Gulf, 130 rigs were under contract out of 150, down one, with utilisation down to 86.7%.

In Europe, utilisation was unchanged at 98.1%, with 101 out of 103 rigs in use, Reuters reported.

http://phx.corporate-ir.net/phoenix.zhtml?c=113031&p=irol-reportsOther

TRANSOCEAN INC. (NYSE: RIG) FLEET UPDATE

Hi all

Thanks Markymar Captguns for the updates.

DES got a good strong candle today, we should be exspecting a few more this week I think. (Well thats what the chart is suggesting). As I said the market seems to have been re testing the 200 day moving average. After todays trading it looks likley DES will be moving up.




Good Luck All

Eddie

Hi Eddie,

Thank you for update and things do seem to be falling in place with the Board going to talk to Rig operators and Oil Companies in Norway and the latest rumour to hit Desire that they are in negations with Woodside Petroleum which would make a lot of sense and Shell have a 34.79% stake in Woodside.

I see British Bulls have us back on Buy Again and 2 directors from RKH bought some share it does make you wonder if we will hear some good news in the near future.Coeliac I guess your right I am spot on !!!!

Up tomorrow as the rumour mill starts

Pip Pip

I am long on these babies so any positive news has to be good but I don't expect British Bulls will be able to help there.

And I dont go British Bulls you should know that by now but is a good stocking filler !! and Desire stocking might burst in the coming weeks.

Hi all

Thanks to all for the updates.

DES moved up a little more today, todays candle is a spinning top this shows the market is indecisive in which direction to move. The Britishbulls.com have DES on a hold form the recent buy signal. The oil & gas sector moved down a little today which may have had a bearing on todays trading. All being well DES will continue up.




Good Luck All

Eddie

Falklands : Hydrocarbons Daily Record (04/07/06)
Submitted by Falkland Islands News Network (Juanita Brock) 05.07.2006 (Current Article)
Speculation that Desire are talking about getting a rig is ripe.


HYDROCARBONS DAILY RECORD: TUESDAY, 04 JULY 2006







By J. Brock (FINN)







At 1800 LMT on Tuesday, 04 July 2006 Light Sweet Crude was unreported due to the US Independence Day holiday. Last Fridays quote was $73.93 on the New York Mercantile Exchange and Brent Crude dropped .80 cents to $72.59 per barrel on Londons ICE Futures Exchange.







TRENDS:







Indications are that the gasoline supply in the United States remains unscathed after the heavy road usage during Independence Day celebrations. Conflicts in Iraq and Gaza contribute to general nervousness as conflict in the mid east puts a price tag of many USD on the per barrel price of crude. Weather in the Gulf of Mexico remains unthreatening.







THE MARKETS







FTSE:







At the close of play, the FTSE100 was just 0.9 points down at 5,883.5. The FTSE250 was up 8.8 points at 9,505.6 and the FTSE Small caps ahead 13 points at 3,412.4. Volume was thin with just 1.889 billion shares changing hands in 231,936 deals.







DOW JONES AND NASDAQ:







Both markets were closed due to the 4th of July holiday.







The Dow Jones Index closed up 0.07% and settled at 11,228.02 and the NASDAQ closed up0.84% and settled at 2,190.43on Monday, 03 July 2006.







DEVELOPING FACTORS






LATIN AMERICA:







(Venezuela)







Venezuela has joined MERCOSUR, a trading block comprising Argentina, Brazil, Paraguay and Uruguay. The country has seven years to drop trade sanctions with the partners. It has been reported that Venezuela wants free trade but with its Latin American Neighbours and not with the United States.







(Mexico)







Supporters of leftist Sr. Andres Manuel Lopez Obrador have vowed to take to the streets if there is not a re-count of ballots in Mexicos Presidential Election held on Sunday, 02 July 2007. Sr. Felipe Calderon has secured a lead of less just over .01% or 400,000 votes. Both candidates have claimed victory. At stake is Mexicos philosophy concerning their economic future, with Sr. Obrador wanting to nationalise the hydrocarbons industry and Sr. Calderon wanting free trade markets to dictate his countrys wealth.







(Falkland Islands)







The latest speculation is that Desire Petroleum are in very advance stages of negations with Woodside Petroleum Ltd who are based in Australia. Seeing that Dr Jungles is Executive Chairman of Rockhopper and is on the board of Woodside and Chairmen of offshore Hydrocarbon mapping Plc, there could be substance to the speculation. Shell Energy Holdings Australia Ltd own nearly 35% holding in Woodside and are the largest shareholder and means Shell can have a direct interest in the NFB.







http://www.woodside.com.au/Home.htm







No official announcement has been made about these numerous reports that have come to FINN from many sources. When the announcement comes, it will be published in this forum.







From the FIH Report:







Falkland Oil and Gas ('FOGL') and Falkland Gold and Minerals ('FGML') in which the Company has significant shareholdings of 16.3% and 14.4% respectively, continued their exploration efforts. FOGL raised a further 10 million from investors in May 2005 and we subscribed 2 million in that placing. We took the opportunity in February 2006 of recouping that cash outlay when we sold 1.8 million shares generating proceeds of 2.4 million and a profit of 2.1 million.











Falklands Oil Stocks End of Day Price for the 4.7.06







Desire Petroleum up 0.25 or 0.7% on the day to stand at 35.75p







Falklands Oil and Gas up 3.5 or 3.2% on the day to stand at 114.00p







Rockhopper Exploration up 1.0 or 3.1% on the day to stand at 33.5p







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

JB clearly reads the iii board. Sometimes her snipets are word for word. Uncanny!!

m