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

DES needs news pretty soon. There really is not much buying going on at the moment & the price is constantly slipping. I was going to try repositioning but at the moment I have no idea as to what their intentions are so will just have to sit & watch whilst my profit drops in the hope that the rise happens sooner rather than later.

This is a game Chris. If the rumours are true about the placing/funding at 50p then the game for the MM's is to walk the stock down as a tree shake and pick up as much stock as they can for themselves and then to move the stock back up just before the placing, they will need at least a 20% premium so the bounce should be back to around 60p. I've seen this before and I don't blame them as they have the information and want to make money like the rest of us! They can then sell their rights and the stock that they have acquired at a very tasty profit so it is in their own interest, long term, nothing has changed and the board meeting is on Monday apparently! Phipps also stated that the news should be out by the end of Jan and he's late, he wont want to keep the market waiting for long!

For the record, I just bought 20k at 50p and 20k at 50.7p!

What a good post ehall very much appreciated. I will add to my holding this afternoon when I feel the full extent of the dip has been reached, which may be now.

Thanks again.

Hi All

Good call ehall.

Hope you got topped up Chrispine.

Kind Regards

Eddie

Hi Eddie.. yup went in at 50.50 & am holding at 47p as well.

Hi Everyone
This is turning in to a real rollercoaster share.MM`s marking this down.I believe there has been MORE buys than sells the last couple of weeks ?
Maybe MM`s getting ready for the big push,stocking up!!

The MM's were showing most of the buys as sells, see my post above. I was putting in buy orders all afternoon and most of them would have showed as sells until the last hour. As far as I can see, the fundamentals and news rumours all point to 50p as the bottom. If the placing/fund raising is at 50p, the MM's will probably push to 60p or above and the news should be leaked sufficiently beforehand to precipitate this. The real key as to whether we move to 70p or 1.20 following the announcement is the farm in partner. If it is a major oil company such as shell, 1.20 will not be a problem but that is the key. As always, DYOR but make no doubts that a rig will be in the north falkland basin by the end of this year!

Hi ehall

Agreed ! I'm waiting on the trades to finnish before making a proper assesment.
But It seems we might have a morning star pattern forming. This would be a definate buy signal.

Kind Regards

Eddie

Cheers for that Ehall. So no need to panic.......yet!

Good call ehall
Makes a lot of sense
mm's gathering stock,ramped it down 25%
those using stop losses are begining to sweat
playing right into traders hands.
However - News - Big -Fast and Good - is still urgently required
my concern is the 3d survey was completed in april 04
and results announced in november - why is it taking so long
if what we are being told is true - majors must have been in
consultation throughout the surveys.

regards HUSTLER

just a thought ifphipps is taking his wages in shares ,he might not be two concerned about the price. the lower it gets the more shares he gets

Hi all

The candles I know dont look that good. But here is what I see. Yes there has been a walk down as suggested by momentum about a week ago & by ehall today. The candles that have recently came out ie over the last 2 days were. 03/02/05 close down @ 0.535p. Todays open was 0.005p lower, this was a gap in yesterdays close and todays open. Doesn't sound much ! Well if Mondays open, opens higher than todays open & closes above the open. We will have what is called a morning star patern. This is definatly a buy signal. Put this together with the surrunding events, we will see DES increase next week. If there are anouncments also DES will rocket!




Any Thoughts ?


Good Luck All

Eddie

Couldnt agree more looks set for a swift move up next week.MM s playing a blinder.Topped sliced MMG today and topped with DES at between 50-51p

Hi momentum

Good call I think !

Timming perfect. Just need the third candle on Monday.

Kind Regards

Eddie

http://www.guardian.co.uk/business/story/0,,1406371,00.html


Oil exploration firm Desire Petroleum was said to be close to raising up to 20m to start exploratory oil drilling in the Falklands.

In December it admitted it was considering a fundraising and was talking to potential partners. The shares ticked down 2p to close at 51.5p.

Hi markymar

Come on the DES ! Yes!

They are confident

The last 20 days just reminds me of the grand old duke of york. We are at the bottom of the hill and we are gonna be marched back up again.

Hey Tonto. Little smoke Big fire!!!

Kind Regards

Eddie

Thanks for the email Edd, it should all come out in the wash over the next few weeks. Imo the fund raising is the final chapter to revealing the farm in partners and drilling plans.

Nice one Marky. News is imminent. The late rally yesterday showed support for DES is positive. I wonder if all those people waiting in the wings will come on board next week. The MM`s have stocked up , ready for the surge. They are gonna make a killing if this goes off!
Have a good weekend everyone.

p.s We are all gonna make a killing too.Fingers crossed.Love to know how the journalist got the info and when.

A little late been Januarys addition but still press

January: Exploration Technology: Falklands affair fuels desire and more

Two oil companies are separately targeting the seas around the Falkland Islands in the South Atlantic with plans to further explore its hydrocarbon systems.

John Bradbury, Offshore Editor, can be reached via e-mail at jbradbury@hartenergy.com.



The Falkland Islands have been relatively quiet since the sparring between the United Kingdom and Argentina 22 years ago. But thats about to change.

"It is just coming to a head now," said Phyll Rendell, director of mineral and agriculture for the Falklands Islands government. "Desire Petroleum has stayed interested in the northern region since 1998, and they are acquiring 3-D seismic," she said. "We could expect drilling within 18 months."

Desire holds exploration licenses for blocks in the North Falkland Basin, covering trenches C, D, F, I and L. In April 2004 it completed acquisition of 310 sq miles (804 sq km) of 3-D seismic data over blocks C and D, and after fast-tracking interpretation of that data by RPS Hydrosearch in September 2004, it concluded the prospectivity of the region was better than expected. Desires chairman Dr. Colin Phipps said in a 2004 interim report, "The fast track interpretation will, therefore, provide the company with an early basis for continuing discussions with potential farm in partners."

Phipps said the North Falklands was established as containing, "one of the worlds richest oil source rocks and that substantial quantities have been generated and expelled from it." Phipps he later said, "At current oil prices, reserves as low as 30 million bbl of recoverable oil would be commercial."

The company has identified up to eight prospects in the territory with estimated reserves of 2.4 billion bbl of oil (see map).

Meanwhile, Falklands Oil and Gas (FOGL) is targeting new exploration to the south after raising US $21.6 million from the London stock market to finance a 2,187-mile (3,500-km) 2-D survey off the south Falklands. FOGL officials have said there are at least eight leads with estimated reserves of between 200 million bbl and 600 million bbl of oil in water depths from 1,312 ft to 5,490 ft (400 m to 1,800 m). FOGL formed in early 2004 to explore 13,008 sq miles (33,700 sq km) south and east of the islands and has seven production licenses. The company plans to use the 2-D survey to further delineate and rank the eight identified leads followed by a 580 sq mile (1,500 sq km) 3-D program in 2005 to identify drilling locations. Offshore drilling is expected in late 2006 or early 2007.

Rendell is realistic and cautious about what lies ahead, "We are at the very, very early stages, similar to the UK North Sea in the early 1970s," she said.

The new exploration campaign will take place against the backdrop of the war, when Argentina invaded the islands in March 1982. After a brief and bloody war lasting 2 months, British troops regained possession of the islands. Despite this, Argentina has not relinquished its claim to the islands since, and friction between Argentina and the United Kingdom over the islands continues.

Although the Falklands are just 400 miles (640 km) from the Argentine mainland, it still looks to the United Kingdom for protection. Since the Falklands war, a large military base and airfield has been built on the island.

Rendell said Argentine President Nestor Kirchner has taken a "fairly firm" line in relations with the Falkland Islands, contrary to previous presidents who had sought more friendly relations. "The Argentines are not particularly looking for cooperation with the islanders, and there will be some challenges here," she said.

But while the military presence on the islands remains, it will bolster confidence in the political climate there. Uncertainty over Falklands geology may be the bigger concern, and its prospectivity warrants further investigation by exploration companies if they desire.
http://www.eandpnet.com/ep/previous/0105/0105exploration_tech.htm