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

I think they are likely to partner up with desire, because this is such a rich source area and Desire have the rights, they're sitting on a massive asset which once finance obtained or farm ins negotiated, (my guess is that they'll go it alone on half of it by way of further share issues), will rocket the share price up into pounds rather than pence, and lets face it, most oil majors need a big new field to sustain reserves in the coming years. I think they'll soon announce one or two deals, maybe before Xmas.

robstuff, in business terms that probably means we are round the table next week with desire and keeps the competition away. You can't beat a bit of curve ball negating to make the news release a bigger splashdown than the normal. still predicting before christmas would be great news

watcher

Hi all

Well unfortunatly DES went down today. Look on the bright side so did most of the main indices. This means that DES isn't out of favour it's just the market wasn't putting money in. Trading in DES was low. Total buy's 371.122. Total sell 748.122. Total unknown 32.482. Total trades of 1.153 million. On the 11/11/04 the trades total was 18 million. This came on the back of Desires good news anouncment. So to me it looks like its mainly the small share holders going into panic. It was the 100,000 share buy at the end that saved DES from closing at 0.49p. So lets look forward to next week. Who knows, maybe we might have some good news to fuel this rocket.

Any thoughts anyone?

Good Luck All

Eddie

I will continue to hold at an average of 40p until the next news when they should spurt to 60p again...next week we can expect further news so no problems .

Mitzy

Don't see Des going near 0.40p, only bad news could take it to 0.40p. It's good news were waiting for, so up is the direction of DES!

Anyone else with thoughts?

Good Luck All

Eddie

I would recommend fellow investors having a look at the DES BB there. Some very good information, debate and thoughts being posted.
For what its worth I thought I would copy my comments I posted on iii BB earlier today:
I hope you will forgive me if this information has previously been posted. As we begin the wait for further news from Desire, (and top-up as we go!) I decided to do a little general research. Perhaps new investors may find this background information useful. With FOGL recently floating, Desires recent annoucement and then the advertisement in the Shares magazine this week for a prospectus on Falklands Gold & Minerals, this backwater is rapidly coming to the fore!

I had a look at http://www.bgs.ac.uk/programmes/landres/csm/pmg_f alk2.htm which gives a overview of the licences and previous drilling and charts etc. An important point is also made about the potential environmental impact of oil extraction. I wont post the whole article but a couple of points struck me reading through it:
1) 6 wells drilled in North Falkland Basin - 5 with shows, one with oil recovered to surface.
2) Significant levels of gas were also recorded in some wells.
3) These source rocks are of world-class quality.
4) Up to 60 billion barrels of oil may have been generated in the basin. This figure is based on the source rock pyrolysis data obtained from the wells, and assumes a 400 m thick mature interval at the base of the source succession, extending over an area of 40 km by 40 km. However, even when the calculations are based on much more conservative figures for the thickness and extent of the mature source and the richness and generative potential of the kerogens, significant amounts of expulsion are also calculated. For example, a 200 m thick mature zone, over an area of 35 km by 12 km, may have expelled over 11.5 billion barrels of oil, even at oil yields of 8 kg HC/tonne, which are towards the low end of those observed by rock-eval pyrolysis for this basin.
Also looked at http://www.falklands-oil.com where the following succint points are made (I suppose you would expect them to say some of this!):
The Falkland Islands are:
1. A British Overseas Territory;
2. Self-governing;
3. An easy place to do business.
Petroleum summary:
1. This is a petroleum province in its infancy;
2. There are several under-explored and undrilled basins;
3. We have a world-class source rock;
4. Several working petroleum systems have been proven;
5. Only 6 wells all in very small area all tested same play;
6. Live oil has been recovered to surface;
7. There are numerous undrilled targets > 200 MM bbls;
8. We have top quartile fiscal terms;
9. New licences and farm-ins are available;
10. We promote easy data access;
11. There are benign drilling conditions.
Onshore Minerals summary:
1. Exploration is underway for gold and diamonds;
2. Promising indicators have been found in stream and sediment samples;
3. Progress is being made towards exploitation.

Despite all that detractors may say, I dont think anyone would dispute the facts that the oil potential off the Falklands is huge, world demand is currently insatiable and the price of oil high. Whether Desire Petroleum is worth 30m or 100m, someone is going to get that oil and Desire currently holds some of the licences. Thats what makes DES a Must Have for long-term investors and next year will be very interesting. I wonder what the Islanders make of all this? Life is going to change very significantly for them in the not too distant future.
Perhaps its time to invest in a Buy-to-Let property in Port Stanley as well!?

Mitzy - Have you any reason to expect news next week? It would be nice but this would be earlier than "we" anticipated - just wondered if you have any indications of this.
Good weekend all!

Also i would like to put a post on this board from oil brat who posted this on iii tonight and think one of the best post i have read and agree with this post 100%

OIL BRATS POST


Whats this talk of a sliding oil price??? The current price is still a record compared to any other year, (possibly not if you adjust the 81 spike for inflation). Anyway you look at it is very high.

The majors will be taking five year plus views of a prospect not and intra week look. The oil price is over the profit margin for the Falklands and has been for the last few years. There are two types of drilling for the majors. Development drilling to harness the reserves they have already booked, ie increased daily field out put. The other type is exploration drilling to find new bookable reserves.

We have been using approximately 4 barrels of oil for every 1 barrel we find, (verses time), since the late 70s. Well guess what, that cant continue indefinitely, especially with the methods used to calculate reserves coming under question, (Shells recent debacle, five times no less!!). There has been very little drilling in the exploration sector in the last two to three years, but in the last six months we have seen that start to reverse. However the development drilling has been bonkers over the last nine months. Everyone is very busy and service companies are turning down work. This will have the short term effect of increasing production and lowering the oil price, but I dont see it crashing the oil price. In a couple of years when the production curve from the wells being drilled now has quartered we will be in the same boat but with less proven reserves.

One other point has world demand peaked, not a chance. It will be more next year and the year after. We are very close to the Hubbard Peak, (if you dont know what that is search for it on the net, if it doesnt scare you then you are either a billionaire or in your late nineties). Getting bookable reserves are a must for the majors, especially Shell.

Is Desire worth 100m market cap? No its not, its tangible assets are worth a ballpark figure of 15m, which is what Id expect someone to pay for the data they have and the earth model / interpretation, and youd have to throw a little on for the acreage. That is a liquidation price. If they have a find then they are worth several possibly even many billions. I know Ill get grief for that comment but it is roughly true. Find one, youll find more, in this scenario. Find one 400m bbls recoverable field and youll find a 3000m bbls plus recoverable province. Currently they are worth 10-15p but their potential is in the 40 quid mark may be more. So its a balance. I am 95+ % certain that there is oil down there, they found oil last time and the necessary traps and reservoirs they just didnt find them in conjunction, eventually they or someone else will. To me its geologically inconceivable that there are not oil fields down there, based on the data Ive seen from the 98 campaign. Its possible that there will not be a find on the next drilling campaign or the one after that, but they will find it eventually. If a rig was on location to start drilling tomorrow we would see the price at 150-200p, (again no pound sign on the damn yankee keyboard), as that will happen eventually they are worth somewhere between 15p and 40,000p. Currently we are at 50p with the near term hope that it will be 200p. Id think somewhere nearer 100p would be not unreasonable right now.

Hi all

Well thanks for that SALKELDJP. It makes some interesting reading, anything else on your news board you might want to share with us?

Good Luck All

Eddie

Hi All

Thanks MARKYMAR. Your input is appreciated! MARKYMAR are you sure you didn't hold down the zero key 15p to 40,000p seems quite a big jump? So more thinkers than I thought.

Good Luck All

Eddie

Nope i keep telling JP to add a 0 and he will very soon and am giving LG time as asked.

Thanks for the postings everyone. Very Interesting . Please keep news , info coming .
Good luck next week everyone
Berlingo

I am predicting an oil price of up to $80 a barrel by end 2005 and no slide in the short term out look..all bodes well for oil explorers and DES in particular.

Hi all

Just added a 0 to my portfolio. I feel much better! Thanks MARKYMAR it's good for me. Thanks for all your input. Seems like we think next week will be better.

Any more thoughts?

Good Luck All

Eddie

RNS Number:4502F
Westmount Energy Limited
19 November 2004


19 November 2004

Westmount Energy Limited (the "Company")
Shareholding in Company


On 19 November 2004, the Company was informed by Brewin Dolphin Securities that
Amodeo Investments Limited is now the holder of a total of 1,000,000 ordinary
shares of 10p each, representing 6.66% of the issued share capital of the
Company.


Could be a safe bet for them and gives them plenty of up swing if Desire Farm-in comes together and very limited down swing if all goes wromg.

Well done to Shares rag for pointing this one out at 33p in July.. they siad it could rise to 400p if they get a farm-out partner..

Taken from MONEYWEEK:

Beneath these tiny islands in the South Atlantic ocean lies 60 billion barrels of oil

Enough to put them in the worlds top 10 oil nations, and turn the population into millionaires

Is this why Argentina really invaded the Falkland Islands?

With oil hitting $50 a barrel, North Sea supplies dwindling and the Middle East in crisis this is the ace up Britains sleeve!

You could see gains of 300% to 1,400% from the company poised to profit when the oil bonanza sends Falklands property prices sky-high!

Dear Investor,

Imagine if youd invested in the United Arab Emirates or Kuwait before they struck oil

Overnight, these countries turned into the worlds wealthiest as oil brought status, power and billions of dollars worth of investment.

But this is the extraordinary position you may find yourself in today.

Deep in the South Atlantic Ocean, just off the coast of the Falklands, lies 60bn barrels of untapped oil. According to the US Department of Energy this is a world-class resource enough to turn these British islands into "the new Kuwait" (The Times) and spark a South Atlantic oil bonanza (The Observer).

Theres been barely a word written about this in the media since 1996 but when the oil starts pumping, the Falklands will become one of the wealthiest oil regions in the world above Nigeria, Venezuela and even Russia! Oil workers and wealthy contractors will pour onto the island, skyrocketing land prices and property prices. Money will flow into roads, housing, shops, farms, fishing and redevelopment.

There is only one pure Falkland Island investment play available right now and, in this letter, I am going to show you how you could profit from it!

The company controls almost every aspect of the islands economy, and even a stake in the conglomerate that will pump the oil. Investors who get in now could see gains of as much as 300% to 1,400% in the next eighteen months.

The oil opportunity of the century?

Since the Argentinian invasion in 1982, the Falklands have been the heavily guarded jewels of the British Empire our most expensive and heavily fortified outpost since we sent 12,000 servicemen to defend the islands from Argentine invasion in 1982, with loss of nearly 300 British lives and over 1000 Argentinians.

But why all this fuss over sheep-covered islands that some of Thatchers cabinet allegedly couldnt find on a map?

In the mid 1970s, American geologists discovered oil off the coast of the islands enough oil to turn the Falklands from a grassy South Atlantic outpost into a prize comparable to the oil reserves of the United Arab Emirates!

Take a look at this chart. It shows that the Falklands could be one of the 10 largest oil regions in the world. As you can see, it lies just behind the United Arab Emirates and above Russia.


Rank Country Proven oil reserves (2003, in billion barrels)
1.
Saudi Arabia 261.6

2.
Iraq 115.0

3.
Iran 100.1

4.
Kuwait 98.9

5.
United Arab Emirates 63.0

*6.
Falklands Islands 60.0

7.
Russia 58.8

8.
Venezuela 53.1

9.
Nigeria 32.0

10.
Libya 30.0



*estimated reserve

Sources: US Department of Energy, British Geological Survey


Back in 1982, Argentina claimed that oil wasnt a reason for their invasion. Yet only three days after they invaded, an adviser to the US Department of Energy, Dr Lawrence Goldmuntz, told the press that the islands were a world-class potential resource. General Galtieri, leader of the Argentinian junta, was obviously aware of this because he was already trying to sell drilling concessions for the island.

As was Mrs Thatcher, who told of her determination to rebuild, rehabilitate and develop the islands and increase the settler population. Not with Argentinians, she said, but others who would develop the Falklands' offshore oil and fishing resources.

The fight was on for the new Kuwait.

So why hasnt the oil been pumped yet?

Youd think the drilling would have begun a few years after we won back the islands. But in the 1980s and early 1990s, the story goes cold

During this time, Middle Eastern oil was cheap and plentiful, so nobody saw reason to pursue the far-flung, and relatively costly, Falklands oil potential.

The buzz returned in 1993, when geologist Phil Richards said that there was not only enough oil around the islands to match the North Sea reserves, but even a chance of finding a giant field comparable to the mega-sized fields of the Middle East.

The Times dubbed the Falklands, the new Kuwait. The Observer predicted a South Atlantic oil bonanza (27 March 1994.) And oil magazine, Offshore, claimed that the Falklands could become one of the biggest production areas of the next decade. In the wake of the hype, over 60 oil companies clamoured for a piece of the Falklands pie.

But in 1996 oil prices had hit record lows so, again, these companies abandoned their search for suitable drilling sites.

Now things have changed dramatically. With oil hitting $50 a barrel, sabotaged pipelines in Iraq and doubts over Saudi Arabias reliability, our old sources of cheap black gold have become unstable. This is why the Falklands are now the ace up Britains sleeve.

Yet since the mid-90s, the mainstream media appear to have forgotten about them entirely.

But YOU can profit from the ignorance of the crowd

Today Id like to send you full details on one of the best ways you can invest in the Falkland Islands without risking a penny of your subscription fee Plus the lowdown on another oil play on the Falklands that you cant get into yet but be ready for it to float on the market soon the gains will be monstrous!

Once this story hits the mainstream press in the next six months, these shares are going to be scarce on the ground and expensive to buy so its crucial you ACT NOW.

First off, the AIM-listed company I will tell you about who owns a 28% stake in the oil conglomerate that will pump the oil. To give an idea of how lucrative this will be, let me tell you about one of the companies that owns the drilling rights. It bought a stake in an oil licence in Mauritania back in January. Six months after the oil was found it sold its stake for 300% profit.

In fact, placing bets on undervalued oil areas like this has helped the company grow from $4m market cap to its current $1.2bn in just seven years. So if IT is involved in the drilling rights for the Falklands, you know youre onto a winner.

But this investment is about more than pure oil

The company I want to show today has more than just a stake in the oil profits. It also owns a major chunk of the Falkland Islands themselves the shopping complex, houses and flats in Stanley, the slaughterhouse and hundreds of acres of red-hot development land.

And how will this make the company money? Well, when the money starts rolling in from oil production, the islanders will become extraordinarily wealthy. In the 1990s, The Times estimated each islander could get 16m over the life-span of the oil projects. But this estimate was made when oil was trading at $18 per barrel not over $40!

With over 60bn barrels of oil and only 1,800 people, never before in history has so much potential oil wealth been spread among so few people. As a previous Falklands governor once told Reuters, his people could easily become mega-rich.

Land prices and property prices will skyrocket even before drilling begins. Added to this, the contractors and new settlers who come pouring onto the islands will drive prices up further.

Look at it this way. A single 4.50 share in this company right now would get you 0.24m2 of Port Stanley land. But in a land where everyone has become a millionaire, how much would land in the capital be worth? Maybe 100 per square metre, or 200? Probably substantially higher.

See the potential? Landowners could be looking at 300% to 1,400% gains. So just think what you will be making if you invest in the company that owns the land! Today you can access all their details plus how to get in first on that pure Falklands oil play I mentioned earlier. (Please remember that the past is no guide to future performance.)

Looking at some of the trades today... if I was a betting man, you
understand, I would not be surprised if there was an announcement
shortly... seems odd.. large buy trades in a down market... decidedly
fishy....

Well lets hope it the black stuff and not fish they produce

would it be fair to say that some big fish swim around waiting for DES to publish their findings and then get stuck into negotiations thus shoulder barging the enemy out of the way but ask DES to keep a lid on things. Might just suit DES to get approached and keep the all the big fish at the table.

any thoughts.

watcher