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

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

I agree with Pro -this share is a dog with fleas. I'm out of here. Selling up first thing Monday morning and buying into Kenmare Resources (KMR.L). It's a flyer just waiting to take off. Des is a joke of a share!

A dog which went up 450% last year and will do again this year.

Its a shame you cant see the wood for the trees.


Good luck to you

Markymar

Up at the open, looks like the poster above didn't have much to sell because it is virtually all buys this morning. If you watched the Sterling energy fund raising recently, there will probably be very similar comparisons with Desires. The price will have to be at least 15% above the issue price so the short term target is 57.5p, I can't see any problem hitting this as the rumour mill will be kicked into action when the news is due and you should see a significant increase in volume, just keep your eye in it!

wa, if it is a dog, please explain why, i short term trade DES but also hold a substantial amount for the long term, like Markymar syas, this went up 450% last year so how can it be a dog!

Looks like the Bears still have control Eddie. Was looking good this morning for a morning star reversal. However since the Sp hit 54.5p weve had nothing but selling. Im expecting further weakness to retest 50p.

Hi all

Not the perfect morning star, but will look when I download. I will post a chart a bit later. Things looking good !

Kind Regards

Eddie

Come on Eddie whats going on ??
Regards
Berlingo

Hi all

Not quite sure yet if this will still be a morning star. Will know after I down load. What I can see is the bulls are raring to go, this is the thin line on top of the main body. But unfortunatly at the moment the bears are still wanting to take a quick profit. The bulls are not willing to let DES fall to far ie 0.50p. This is going to be as momentum suggests the support untill the news breaks. News is not far off, the (high wave) candle is a candle of indecsion, it is similar to the doji. So (hi wave) candles at the top or bottom are indicators of a (possiable) trend reversal. I say possiable because, nothings for sure ! I will say though it all looks very soon. The long thin lines on the bottom of previouse candles all indicate support at which the bulls are in. The bears just keeping DES down untill the announcement, I'm sure.





Stochastic also ready to come back up. DES is being manipulated into position then the bulls will come in in much larger quantity.


Any Thoughts Anyone ?


Kind Regards

Eddie

I think the bottom is around now, I agree eddie that it is just short termers who are selling, long term holders are just waiting for the news. As I said before, look at SEO for a comparison, the SP has to go up before the rights issue and the farm in is agreed for the placing so it must be the MM's gathering stock and taking out stop losses, another one to watch this morning, you can now buy for 50p and it is short term over sold!

Hi Everyone
Bit of an up and down day today. The bears still in control at the moment.
Eddie , what do the charts show today ?
Regards
Berlingo

Hi all

Hi Berlingo

The charts don't look like the bears are in contol any more than the bulls. If you look at todays candle we can see the bears have managed the push DES down below the 0.50p (open 0.52p, high 0.5225p, low 0.495p, close 0.5075p) a change of -0.0125p. Hardly sugesting the bears are in control. I think its more bulls are in control as they have managed to keep DES above 0.50p. It's a case of the bulls would like to buy at 0.50p, when the announcement is made, lets say they buy at 0.50p & DES goes to 1.00p ( a 0.50p gain ) if DES is at 0.70p on the announcement. There is only 0.30p gain. Also if DES goes bellow 0.50p the institutions would not see DES as good value. So it is a very well played game as you can see. The volume today was total buy & sell 1.653m, if you compare this to the volume of 11/11/04 which was 18.96m buys & sells. This is more like the volume we will see when the news breaks.





DES has only fallen -25.37% since the high. This has been controled by the market walking DES down to the 0.50p price. So bears in control ? I don't think so ! The trend that DES is currently in is +548.87% PA. As ehall says DES is about the bottom. Also if the last few trades have gone through & the cadle on the chart is correct we have a hammer. This is what we would see at the bottom of a down trend. It gives a good indication of a trend reversal.


Any Thoughts Anyone

Good Luck All

Eddie

Well done Eddie.Thanks for your analysis,makes me still feel confident. I agree it is a 1 hell of a game the MM`s play.
Looking back at your posting no.450 Eddie regarding the v.quick price rise that occurred over a few days in`98 , on the back of what news did this happen.Was it speculation before an RNS and then the RNS or something else. I know it all in the past but just curious. I am happy with my own research in DES just anticipating history repeating itself ?
Marky prob remembers too!
Regards
Berlingo

Hi berlingo

Yes markymar would be best to answer this one. But for what it's worth DES would't take a chance if there was any doubt. Nobody would ever invest in DES again. Remeber there was oil found, it was just not economical to recover it at the price at that time I think $8 pb. (sorry about that was just putting the twins to bed).


Kind Regards

Eddie

Thanks Eddie.
Regards
Berlingo

A rollercoaster ride i said and it will be i printed this on iii a few days ago and will repost it here in case not on iii nothing has changed its still there in the ground and waiting for news on Farm-out partners.

The share price has dropped and is worrying to a lot of you but if you stayed with Desire a full year last year you would be up about 400% so better than any day trader can make in a year switching from company to company.

Also think back why you bought in to Desire and after doing my homework it come down to the basics do you believe there are huge deposits of oil down there.

Forget about the daily share price look at the facts which are in front of you and on the web and in the public domain to every one.

In C&D and only part of that was covered by 3D so there is more down there


Ann Recoverable reserves figures are up to 280 MM bbls or so.

Pam Recoverable reserves figures are up to 200 MM bbls or so.

Anna Recoverable reserves figures are up to 475 MM bbls or so.

Ninky Recoverable reserves figures are up to 395 MM bbls or so.

Liz Recoverable reserves figures are up to 390 MM bbls or so.

LONDON (AFX) - Desire Petroleum PLC said a 3-D seismic survey carried out
Over tranches C & D in the North Falkland basin show that six prospects are
Large enough to contain economic accumulations of oil in the range 100-1000 mln
Barrels.
It also said that a scoping study on the economics of gas production has
Shown that, at prices well below current levels, gas accumulations would be
Economic given a field equivalent in size to a 300 million barrel oil field.
"Several of the prospects identified to date match this requirement. It
follows that natural gas can now be added to the economic prospectivity of the
North Falkland Basin," the group said.


So reading the bare minimum from the news above without talking about gas here we have a further 1.5 billion barrels in C&D and there is still about 600km not covered by 3D

The gas is a bonus and will add value on Desires share price when news of how much is there.

We have block F which we hold 12.5 % of

We have blocks I&L with substantial reserves and now surrounded by Rockhopper and these boys are not here for a free carry they have brought a Top Gun in to run this.

Rockhopper Resources were awarded a couple of
Licences recently as a small start-up. Pierre was
appointed to beef the company up, and to increase
Its oil credibility. Richard Visick is a wealthy
English lawyer and businessman. He started the
Company with his own money, employing two geologists
To review the existing data in the region.

http://www.rockhopperexploration.co.uk/

Dr Pierre Jungels CBE
Executive Chairman Dr Pierre Jungels CBE

Dr Jungels, a geology graduate of the University of Liege, Belgium (1967) and holder of a PhD in Geophysics & Hydraulics at the California Institute of Technology (1973), began his career in the oil industry as a petroleum engineer at Shell International. In 1974 he joined PetroFina SA - initially as a reservoir engineer - where he spent over twenty years in various roles, including those of Managing Director of the company's Angolan operations, and Managing Director & Chief Executive of Fina plc in the UK. In addition, from 1989-1995, he was an executive director of the holding company in Brussels.
In 1996 he took up the position of Managing Director of Exploration and Production at British Gas plc. In late 1996, he became Chief Executive of Enterprise Oil plc (then Europe's largest independent exploration and production group) which he led for five years, overseeing the group's expansion in the US Gulf of Mexico and Brazil. He has twice been President of the Institute of Petroleum, now part of the newly created Energy Institute, and was chairman of the Centre for Marine & Petroleum Technology.
He is currently chairman of AiM-listed Offshore Hydrocarbon Mapping plc and also holds non-executive directorships at Woodside Petroleum Ltd, Offshore Logistics, Inc, and Imperial Tobacco plc.
Dr Jungels joined the board in February 2005.




Sorry for such a long ramble but the facts are in front of you all, dont look at the share price look at the facts from the likes of http://www.falklands-oil.com/ Capt Guns keeps trying to point this out to you all if you dont understand it then ask a question and hopefully one of these oily men can give you an answer or a better understanding.

When the news comes it will be multi partners and multi holes drilled and if your in for the long term like 10 years I think it will be the best investment you will ever make.

I&L There will be some partnership there and dont forget block B ex shell with some 3D covered there all ready thats the sweetener for a major.

Dont look at the share price look at the facts and the share price will follow

Its not a question will it happen but when and with the BGS paid for by the government your answer is there.

Regards all

Markymar

Thank you Markymar for a timely reminder of the facts.

Luckyswimmer

Cheers Lucky, am at a loss with this share price it drops again today 3% and there was 798,000 Buys V 540,000 sells.

Regards all

Markymar

http://phillips66.yellowbrix.com/pages/phillips66/Story.nsp?story_id=64593836&ID=phillips66&scategory=Oil&

Thirst for new investment

The thirst for new investments has not just energised the market for floats, but has also given a new lease of life to stocks that have trundled along on Aim for years. Ask Colin Phipps, once head of Clyde Petroleum, and now chairman of Desire Petroleum. Desire was the talk of the spread-betting bulletin boards in November after a vague press notice whipped the market into a frenzy. Its shares raced from 30p to 61?p in a matter of days as investors responded to preliminary 3-D seismic data that suggested accumulations of oil in the range of 100m-1bn barrels. There were also "considerable indications" of the presence of natural gas.

Phipps says: "Of course we were surprised at the reaction. Over a third of the company's shares changed hands. The volumes were enormous. But the market has re-rated the sector. It knows how much new discoveries are worth. A market value of pound(s)80m may seem very, very high relative to our underlying assets, but if we were to find 100m barrels it would be peanuts."

Desire hopes to be drilling in its blocks north of the Falkland Islands next year. Until then its shares are likely to bounce around as investors try to be first in to take advantage of any Cairn-like upside. Cairn's shares were trading at just over 360p before Rajasthan. They doubled within days and are now around 1500p with Cairn nicely settled in the FTSE 100.

Phipps says: "Cairn was the spark that got the market moving, but the fundamentals had been in place for a while before that. In essence, the oil price has gone from the lows of $20/b to around $50/ b and it could be around $40/b for all of 2005."

The Falklands promises to be a hotbed of speculation as long as oil prices can hold around $30-40/b. Hedge fund RAB Capital brought Falkland Oil & Gas to the market and now has a 30% stake. RAB's chief executive, Philip Richards, says that with the right oil price the group could establish its own province. "We have acreage there the size of the entire UK North Sea. We don't know what's there, but there's huge upside." The knowledge

Hi all

Thanks markymar.

Well I know nobody wants to see this chart but here it is any way. As markymar has pointed out the buys were greater than the sells, yet DES closed lower. Everbodys profit looking less at the moment. But look at like this if your not in DES when the announcement is made then you'll not get in at these low prices. The worst case you can have is if you bought at 0.68p, so any one who has bought lower than this is still in a good position. The next supports are at 0.48p & 0.45p. This is in the middle of the big blue candle 10/11/04. Tis is about the middle of the last big rise. DES went up by +33.9% 09/11/04, 33.3% 10/11/04 then 15% on the 11/11/04. A rise of 82.2% in just 3 days. So although the short term trend is down, the up side looks much better. Even if you had sold at the top 0.68p. You might ask yourself where would you get back in. As markymar said it's going to be a rollercoaster ride you'll never forget! Not for the faint hearted ! Lets hope the announcment is soon then its back to counting the cash..



Any thoughts ?

Good Luck All

Eddie

Not so many messages on this board but the quality is a bit better than elsewhere so here's my twopennyworth. It now seems that the rumoured placing is correct so when it is announced soon would anyone like to predict a) the price following a placing announcement alone and b) the price following a placing announcement with some details of a farm-in.

To start the ball rolling and to liven up a dull wet afternoon I'll forecast;

a) 66p
b) 96p

luckyswimmer