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

No if when i first started this post back in December and bought you would be 50 % up on your holding now, I must point out that yes we are in a bull run in oil and i can not see it ending for a least a year in front of me as most of the country pushing the oil out are at full capasity at the moment and how long can they keep that up.

. Meanwhile in both Iraq and - increasingly in Saudi - heightened terror threats raise the spectre of very significant disruptions to supply. My ultimate wild card scenario (the House of Saudi toppled Brent at $50 plus) looks increasingly plausible.

All these factors are making the Falklands looking very exciting at what oil lies under the sea , thats why oil companies are falling over each other for a slice of action.

markymar

i was really talking about more rcent increases

Thursday, 3 June 2004
Search News:

Falklands
Mercosur
Both

Falklands-Malvinas
Thursday, 03 June


Active year for Minerals Department.



Falkland Islands Governor Howard Pearce in his annual address to the Legislative Council said that the Department of Mineral Resources had an active year with interest in exploration for hydrocarbons in frontier areas increasing in the second half of 2003 because of unrest in the Middle East and consistently high oil prices.



Enquiries from oil companies have been significant, particularly following attendance by the Minerals Department at an oil convention in Barcelona in September. Contact with companies was consolidated in April when FIG and British Geological Survey consultants attended the annual AAPG Convention in Dallas, Texas, said Governor Pearce.
Desire Petroleum which has extensive acreage in the North Falkland Basin funded this year an 800 km2 3D seismic survey this year. Results will be available next September and should assist in pinpointing drilling targets.

Spectrum Energy, a British geophysical survey company which conducted surveys in the northern offshore areas in the 1990's, has also been committed to encouraging continued exploration.

They have, at their expense, reprocessed data using new techniques and have been actively marketing these data to oil companies, indicated Governor Pearce.

The Falklands Hydrocarbon Consortium, led by Global Petroleum and with partners Hardman Resources and the Falkland Islands Company completed reprocessing and interpretation of South Falkland Basin data, and has worked closely with the Department of Mineral Resources in preparing a further work programme.

It is anticipated that the group will undertake a 2D seismic survey over their licensed acreage within the next year.

Governor Pearce underlined that prospect for further investment in exploration for hydrocarbons later this year looks positive as interest in the area increases.

Regarding onshore exploration for minerals in the Islands, there has been significant progress with a new company, Falkland Minerals Limited, registered in Stanley.

The company comprises previous licences holders and new investors, RAB Capital, a London based company. An aeromagnetic survey was flown over the Islands during April and May and the results will assist the operator, Global Petroleum, in designing a shallow drilling programme to start next summer.

Meanwhile, draft mining legislation is to be considered by Councillors later this year in parallel with environmental legislation, concluded the Governors minerals report.

INTEREST REVIVING IN THE FALKLANDS WITH SECOND 2004 SURVEY ANNOUNCED

JEREMY CRESSWELL


Global Petroleum, together Cambridge Mineral Resources and Falkland Islands Company, is carrying out a two-month aero-magnetic survey of the Falkland Islands in a bid to better map the UK dependency's hydrocarbon (coal, oil and gas) and other strategic mineral resources.

The partnership, known as Falkland Minerals Limited (FML), is using Fugro Airborne Surveys, which will track lines at 1,000m and 500m spacings, with allowance for higher-density 250m spaced lines over previously identified areas of interest.

Results of this survey are expected to be available in the middle of this year and the intention is to follow up with selective land-based drilling.

The move follows a decision by Global early last year to buy 4,340km of South Falklands Basin 2D seismic to determine the most prospective offshore areas to commence exploratory activities.

In this case, Global is working in partnership with Hardman Resources (30%) and Falkland Islands Company (20%). They collectively hold 10 South Falklands Basin blocks off the island group's south and east coasts.

The South Falklands Basin is distinct geographically and geologically from the North Falkland Basin, which was the focus of exploration activity during 1996-98, with both seismic survey and drilling carried out.

While both basins are under-explored, North has at least been drilled, whereas South has only been subject to seismic (8,000km shot in 1993).

This basin is said to be analogous to the Malvinas and Magallanes Basins in Argentine waters to the west, where a well drilled by Exxon in the early-1980s flowed 3,200 barrels per day of oil, demonstrating, according to Hardman, a nearby working petroleum system.

2004 is becoming an active year in the Falklands sector, which has been virtually moribund since the disappointing late-1990s drilling campaign.

During Q1, UK-listed Desire Petroleum shot seismic across a number of key targets in the North Falklands Basin, claiming promising early results.

In March, Energy reported that Pan American Energy had acquired interests in the Malvinas Basin offshore Tierra del Fuego - in other words, Argentine waters, but which border on to the Falklands sector.

Pan American has secured a 35% interests in blocks 40 and 46 operated by Repsol-YPF. Total, which has a 31% stake in block 46, has apparently ordered a seismic campaign across both blocks (aggregate area 6,500sq km) with a view to exploration drilling starting next year.

We reported in March that there was a twist to the Pan American transaction in that it would put BP in the South Atlantic as it is a 60% stakeholder in the company, with Argentinean corporation Bridas holding the balance of ownership.

Whether this campaign can in any way be made to link with Desire's aspirations to restart drilling in Falklands waters is open to question, though it will perhaps be investigated. BP's indirect involvement could prove important in this regard.

The super-major did not participate in the Falklands drilling campaign of 1997-98 as its priorities lay elsewhere at that time. The Tierra del Fuego manoeuvre begs the question as to what BP might do next in the South Atlantic.

An industry source told Energy last month that the UK Government was making a serious mistake by not implementing and funding a systematic search for oil and gas in Falklands waters, especially as the North Sea is now in decline.

He questioned why 20 years had effectively been squandered since Prime Minister of the day, Margaret Thatcher, took Britain to war with Argentina over Falklands sovereignty.

I see Desire made it into 'Upstream' again :-

Speedy turnaround on cards for Falklands data
Upstream, Friday June 4
By Iain Esau

UK MINNOW Desire Petroleum is trying to accelerate the interpretation of seismic from a Falkland Islands survey in order to allow early viewing of data, writes Iain Esau.

Chairman Colin Phipps said all of the 3D data acquired in the North Falkland Basin had now been loaded and processing was proceeding well.

However, to expedite data interpretation, Desire's board has decided to implement a fast-track process which, it is expected, will allow interpretation to begin at the end of this month, with preliminary results available by late August.

The company said these results will then form the basis of continuing discussions with potential farm-in partners, including the selection of drilling locations.

Desire operates Tranches C, D, I and L in the North Falkland basin where eight prospects had been mapped earlier.

These include Ann (282 million barrels potential), Pam (201 million barrels) and Liz (392 million barrels) in Tranche C, Ninky (376 million barrels) straddling C and D and Anna (477 million barrels) in tranche D.

Tranche I holds Dawn (146 million barrels) while L contains Ruth (259 million barrels) and Kate (285 million barrels).

Fugro's 800 square kilometre plus 3D shoot covered the three largest structures in Tranches C and D and also extended in to Tranche F who may also host part of the Ninky prospect

thanks to oily for this one.

Desire in farm-in talks - Falkland Islands

Wednesday, June 9, 2004 19:06 (GMT-0400)


UK oil company Desire Petroleum is in discussions with potential farm-in partners for its four exploration blocks in the Falkland Islands' northern basin, Desire chairman Colin Phipps told BNamericas.

The farm-in partners would operate the blocks while Desire would participate with a non-operating share, he said. "Anyone who farms in is almost certainly going to want to operate it in order to control the costs."

"The increase in the oil price has attracted a lot more attention to the Falklands in general, and we are in particular seeing more interest, which is helping our negotiations as far as a farm out is concerned," Phipps said.

Desire carried out an 800sq km. 3D seismic survey in 2004 in its North Falkland basin acreage, and is now processing the data. Results could be available in August, which Desire would use to determine its drilling and investment program.

Exploration drilling could begin in 2005, with production possibly starting up in 2007-2008, he said.

Desire has identified eight major prospects in its blocks, with a total 2.4 billion barrels of potential oil reserves. The company holds a 100% interest in 3,650sq km. in the North Falkland basin in Tranches C, D, I and L, and owns 12.5% of Tranche F, operated by Canada's Talisman Energy.

Desire has invested about US$20mn so far in seismic studies and drilling in the north basin since 1998, Phipps said.


By Julian Dowling

BNamericas.com

the ship is sailing dont miss the boat .....good little rise again today

Well we finally got a bit of press Today and its the good old Daily Mail again.

Just sit back and enjoy the ride !!

DAILY MAIL
* American bid hopes make punters scramble for Egg - Speculation that Desire Petroleum is in talks with Shell about farming out its licenses in the Falkland Islands to Shell - Profile Media a Charles Stanley buy

SEISMIC data collected in the Falklands is undergoing a fast track processing route and should be ready for interpretation at the end of the month.
Penguin News yesterday contacted Dr Colin Phipps, Chairman of Desire Petroleum plc, to ask if he could confirm rumours that oil giant Shell had shown interest in returning to the Falklands to carry out exploratory drilling.
Dr Phipps said he could say nothing about, ...who might or might not be coming in. This is something that would have to be put out to the Stock Exchange.
However he said all the 3D seismic data recently collected in the Falklands has been loaded for fast track processing, ...and it all should be ready for interpretation at the end of this month or the beginning of next month.
He said the data will take approximately six weeks to interpret, ...then well know what our principle objectives are and we will be able to sit down and hopefully organise a deal for exploratory drilling in tranches C and D.

Desire Petroleum (AIM: DES) 33p
Desire is the ultimate blue sky story and
serious newsflow is due within two months.
Desire holds 100% of four tranches in the North
Falklands Basin and 12.5% of a fifth. Detailed
3D seismic surveys were completed in May
and the first results are expected in late
August. 3D seismics have grown steadily more
accurate over the years but they still have
trouble telling between sandstone containing
oil and sandstone filled with water. Even so,
Desire has already made cheerful hints and
this suggests the news should be good
enough to entice companies to sign
exploration partnerships.
Six holes were drilled in 1998 near the
Falklands. Four found serious signs of oil but
not enough to be commercial. The oil price
then collapsed and interest dwindled. Desire
points to structures in its tranches which
might hold 2.4 billion barrels of recoverable
oil. Even if Desire holds only 10% after bringing
in partners, this would translate into
valuation of 400p per share or zero if nothing
is found. At 33p the company is valued at 38
million. Expect the price to rise in the coming
weeks as excitement builds. Westmount
Energy (AIM: WTE) holds 3.4% of Desire and
Greenwich Resources (GRWA) has 4.2%.

Jeffmac 35p now

Hello folks, first posting for me on this board, been posting PX targets on iii for last few months using a pricing model that seems to be fairly intune with how Desire are progressing. Markymar suggested you folks may be intersted in my postings so here below is my screen dump of latest posting from iii.

Good luck everyone
Happy Hunting
JPDM :-

Hello folks,

The mag news does change things a bit so heres a quickie update:-

Lifting July PX range as follows:- Mid px 31p - 45p
this is made up of 32p - 38p (old pricing model) + potential upside px premium of 7p (Press news premium). Potential also increases for a wider spread especially towards end of trading hours.

Thanks everyone for all the info and thks wildman for your px thoughts, really helpful.

The nature of this stock is entering a new phase now! do watch out for the 38p level, as previously mentioned this is a resistance point and there could be a limited amount of profit taking around that level, roll on the press news!

Happy Hunting
JPDM FM

fill ya boots

JP thankyou

JP, as above but I think 38 will prove less resistance, more institutional buying than first thought and they want more than 38p as a sell, we could go straight past. One more thing, more people read iii than post including me, keep up the good work and remember that what you are posting IS having a material impact on the SP, people know who's got a brain, natural instinct.

well good tick up today,thought i saw 40p befor just off....next stop 60p if we get past 40p

LONDON, July 16 (Reuters) - U.S. oil prices held firm near $41 on Friday as the most robust demand growth for more than two decades pushes OPEC to keep pumping crude at near capacity, leaving world supplies vulnerable to the slightest production hiccups.
U.S. light crude rose 18 cents to $40.95 a barrel, just a hair away from a six-week high of $41.12 touched on Wednesday. And prices are near June's $42.45 peak, a record for the contract's 21-year history.
European benchmark Brent was up 29 cents at $37.77 a barrel, buoyed by an exceptionally strong cash crude market in the North Sea.
Gains were spurred this week by an unexpected decline in U.S. crude and gasoline inventories, plus worries that heating oil supplies are not being built-up quickly enough ahead of the winter.
The U.S. oil data added to fears over supply disruptions at a time when output capacity was being stretched by rapidly growing demand -- estimated to be expanding at 2.5 million barrels per day (bpd) this year, its fastest clip in 24 years, according to the International Energy Agency (IEA).
The Organisation of the Petroleum Exporting Countries (OPEC) is proceeding with its planned output ceiling hike of 500,000 bpd from August 1 in an effort to cool prices, but it looks unlikely to mean more crude.
The group, which controls around half the world's oil exports, is already pumping nearly two million bpd over its new 26 million bpd August quota, very near the its maximum capacity.
With little to discuss, the cartel cancelled next week's planned ministerial meeting. It will next meet September 15.
"The cartel perhaps concluded that aside from the Saudis, the rest of the group is pretty much tapped out in terms of exports," said Ed Meir, analyst at brokers Man Financial. "Therefore, having a meeting to discuss more 'phantom' quota increases would be of little use."
Kuwait said on Thursday it had spare oil production capacity of almost 100,000 bpd, while Saudi Arabia, which has been producing around 9.1 million bpd, has the capacity to crank it up to 10.5 million bpd.
"The meeting is cancelled because the market is stable. There is no problem at the moment because the decision to increase 500,000 bpd from August 1 is in place," OPEC president Purnomo Yusgiantoro told Reuters on Friday.
HEATING OIL WORRIES
Distillate supplies in the United States, where the Northeast region is a major winter-time consumer of heating oil, have emerged as an early driver for the energy complex as dealers fretted over the pace of pre-winter inventory building.
Heating oil futures reached a year-and-a-half high of $1.1080 a gallon this week, the strongest on record for July, when gasoline is typically the market's strongest product. On Friday, it was trading up 22 points at $1.1008.
Seeking to avoid panic buying, the U.S. government Energy Information Administration (EIA) said on Thursday there was plenty of time to boost heating oil inventories before the winter heating season arrives, so traders should not bid up fuel prices.
It's much too early to worry about heating fuel supplies, EIA administrator Guy Caruso told reporters.
This week's EIA data reported a significant build up of 2.7 million barrels in middle distillate inventories for the week ended July 9, putting them three percent above this time last year.
Caruso conceded that the United States came out of the spring with relatively low heating oil stocks, but added that if crude imports continued to average 10 million bpd and there were no major refinery outages, heating oil stocks should be in the "normal zone" by November.
Still analysts said that, while stock levels looked comfortable on the surface, rapid economic growth could place more demands on inventories than in previous years.
Tetsu Emori, chief commodities strategist at Mitsui Bussan Futures in Tokyo, said fund speculators would remain on the buy side of the market on persistent fears of disruptions to crude flows in Iraq and possible refinery outages in the United States.
"There are no bearish factors in the market. Already we are over $40 and there is still room to move higher," he said.

meic is that you ?

Hi folks, yep on bit of a guilt trip over Maggie, read it all wrong, posted an apology on iii.

Been trying to punch in some numbers over the weekend to come up with some px ranges and its becoming steadily more and more difficult. Without giving too much away, I've got this pricing model that I've been running over last few months based on previous news and investor reaction to that news. Basically i number facts on a 1- 10 scale of positiveness and likewise with the resulting price move, volume and investor sentiment.Then, I apply some of my own gut feeling (in todays trading world gut feeling seems to have gone out the door but as a somewhat 'oldie' in my late 30's I find it really works!).

I believe we still have a good 4 - 5 weeks to go before news of the 3D can be expected. Over the last week Desire has gone up a good 30%+ and I don't think that growth can be continued at the same pace without some dips on the way. I see this stock at 60p by Mid/late August which seems to tally with a lot of other opinion. I'm lifting my price range for the coming week very slightly to 34p - 42p. If the price does touch 45p next week then as I have an average price in the mid teens I will take a 10% profit and might put some of that cash into Hardman. Long term I'm a strong Buy. Stocks such as Desire don't often come along!

Good luck everyone and again, Maggie, if ya reading, my apologies.

Happy Hunting folks
JPDM FM

Ladies and Gentlenmen,

THe following is a 'late night 'ramble'' and personal overview which I hope is of use in your investment descision with Desire:-

World consumption of oil is rapidly increasing, China, Asia, Brazil etc. Saudi Arabia and Iraq have massive reserves but also suffer from a growth in political unrest.
Russia has a mass of untapped reserves but is still to be regarded as an emerging market that apart from the Yukos affair suffers from inferstructure problems. all of this creates uncertainty.

The oil majors and Shell in particular are desperate to find new reserves, currently more oil is being used than is being found.

The Falklands Islands are a British protectorate and our conflict with Argentina was not just for two thousand islanders, it is the gateway to the Antarctic, has rich fishing grounds and also massive potential for oil!

Existing 2D surveys and rock samples have shown the North Falkland Basin to hold source rocks which are the second known richest in the world, FACT! Its like a sponge that you use to wash your car except we are talking oil. Over millions of years the source rock (sponge) gets squeezed from above, below, the side etc and the oil migrates. What you then need is a barrier that acts like a dam and the oil forms in a pool (your oil field). The North Falklands Basin, at least parts of it are currently believed to be not dis-similar to that of the brent structure in the North sea. I understand that it took 17 wells before oil was found in the North sea and look at what has been since recovered!

Desire is a unique stock, it was set up purely to prospect for oil in North Falklands. 6 wells were drilled in the late 90's and 5 wells found at least traces of oil. Unfortunately it was a somewhat rushed 'wildcat' drilling programme that was terminated by oil prices falling to 10$ a barrel. From the subsequent analysis it appears to be generally confirmed that they did not drill in the best locations.

This is frontier stuff, if the 3D survey shows the potential for one or more oil fields the we have a potential new world oil province and Desire owns a massive acreage!!!

The potential for this stock is therefore incredible, on a positive side 5, 10+ is a real potential. On the downside I see only a 3D result that is inconclusive. Inconclusive still gives in my opinion some value to this stock of say 10p. So looking at the max downside and the max upside we have a stock that is more than just a toss of the coin.

Over the next few weeks we are going to probably see this stock rise in anticipation of news from the 3D survey and also from any possible farmin arrangement. On the way we will also see dips.

My personal view as a holder of well over 100,000 shs is that I couldn't miss this opportunity to be part of something so exciting in potential.

To new investors I urge you to read up on the history and facts from the last 6 years to gain the full picture of the potential.

Good luck and good fortune to everyone, end of this month I'm off to Iceland for a week but will take my laptop to keep in touch (girlfriend probably wont be too impressed!)

Happy Hunting

JPDM FM