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

Eddie, I enjoy reading your charts and feel I am learning along the way, keep up the appreciated work - HM

It would appear Eddie that DES is weakening to the downside.57p area is crucial to hold.Any weakness at this point would see a quick return to 50p. Each day news doesnt arrive there are fewer buyers re-entering the market adding to the weakness.

Hi Momentum. If the price does drop to 50p would you see this as a good point to top-up, or as an indication of cheaper prices to follow. I do feel that the SP currently is built on a lot of sentiment and expectation (I am partly to blame!!!)but still feel that long-term the prospects are good.

i am watching these very very carefully because if the big boys do come in then the probability of an oil strike is to my mind that much higher , i.e. they believe but to say the longterm prospects are good without a pint of oil out of the ground ,well my response is ?

Hi Maddoctor. I understand what you mean. Obviously if you wait until the big boys are in then you will miss the massive potential gains, although clearly still achieve great gains on the back of a strike. How would you find out if they are in or not?

Stuart , morning ,no disrespect - lost many an opportunity waiting and with a whisper of a partner these will leap. Only answer is as i said watching and any sign of odd volumes and i will join you.

50p would imho be a great buying opportunity. Although long term 60p is a screaming buy.

Eddie , keep posting the charts. Shares holding up well again. They keep coming back up. IF they dropped to .5op i would buy loads more.
Cheers everyone.

Hi all

Hustler we all visit this site for news. Markymar is the man, Parrot & crystal ball. So no need to apologise.

Well with this news marky it looks like the news of drilling is getting closer & bigger.

Momentum I'm in agreement with your post. Buying opertunities definatly. I've just got rid of some under performers. I'm buying again at this support.

Thanks to all those who have posted.

The charts need I say it are still in an up trend. DES is up 480.49% since the low date of 04/03/04 which was 0.1025p. This is our main trend which is solid.
The candles that we are seeing of recent days are showing support at 0.59 / 0.60p. The long thin lines under the main body is where the bears have tried to push des down. As you can see not much going on above the main body (not much lines. correct term shadows). The longer the support is in place the more confident the bulls will be when it time to get in. The support candle was on 13/12/04 the big blue one.





Good luck All

Eddie

Berlingo

Don't you own half of DES already ?

Kind Regards

Eddie

Hi Eddie
Wish i did own half of DES. I am using my Premium Bond money to get more.Better bet at the mo by a mile.I`ve got in 3 times now just as the lines shown in your chart postings have crossed and each time have risen . Thats why the charts are a good indicator .
All the best
Berlingo

An interesting question was asked on another BB: Could DES redrill/reopen the wells drilled in 1998?

I understand that 4 out of the 5 drilled had oil shows and these were capped. This strategy (if adopted by DES) makes immense sense to me and must surely reduce costs and timescales I'd have thought.
It would also mitigate some of the risk to us "investors" when drilling commences.
Keep up the good work all. I enjoy the read!

JP the next drilling will be in C&D Blocks and may be F and off the top of my head only one hole was drillied in that C&D area last time may be ask Oily on ADVFN as he is the man.

It was 6 wells drilled last time and 5 had oil shows the one in the B block x shell owner had free flowing oil when that was drilled last time.

Regards

Markymar

Hi chaps,

None of the wells previously drilled are in DESIRE's acreage. As marky has stated, 5 had 'shows' which only indicate the presence of a hydrocarbon system. The wells were drilled to intercept structural highs above a proposed source rock. These shows were NOT recoverable oil . Post drilling analysis has shown that the oil generated (billions of barrels?) has more than likely migrated to below the source rock or to the basin margins(plays that were not fully tested) an any of the 6 wells.
The fact that Shell recovered free flowing oil and Gas in Tranche B was extemely encouraging (with reports of heavy flaring), but Shell subsequently and surprisingly gave up their rights to this block, which has always been a conundrum.

www.falklands-oil.com has an extremely informative section on the drilling of each well, which play was tested and why it was unsuccessful.

I don't think the idea of uncapping previous wells is a goer at all. Don't forget that these were exploratory wells, drilled only to establish the presence of oil/gas accumilation.
The fact is should DES strike oil in one of their upcoming exploratory wells(fingers crossed), It is extremely unlikely it would be used for production. Again I state exploration wells are for discovering oil/gas and establishing the presence of a reservoir. Further production wells are usually drilled drain the reservoir in an optimal manner. Often additional wells are also drilled as water injectors to 'push' oil to the production wells.

If Des strikes oil it will be 4-8 years before any production starts.

of course the share price should be many multiples of what it is today, if we ever got to that position as an independant company.
Jon

Hi John,

Your right no wells have been drilled in the present acerage held by Desire but was a well drilled near by

"No wells have been drilled in the licence as it presently stands, although one well (Lasmo 14/13-1) was drilled in a now relinquished part of the licence."

Must be getting old and thank you for that post john.

Regards

Markymar

John

Many thanks for clarifying the position and the info given. It will be interesting to see if Shell can be enticed back as a partner.
P.S Nice to see that DES is "flat" today rather than Red! (so far).
Good weekend all.

Hi all

Charts look interesting so far. (intraday) Will look again at the close.

Momentum do you see anything ?

Good Luck All

Eddie

Just a tight consolidating phase, however a few indicators are starting look interesting. Had a good week with MMG, took a large position early last week when OBV spike up after being flat for quite sometime. Like the look of BPRG. nice engulfing candle produced today, bought a few today. However will pile in if 66p and 20 EMA is broken as i beleive the worm is turning.

Anything juicy on your radar Eddie

Eddie did you nerve hold with COP.