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 3 well program, the implication is that the seismic is so good that they are virtually sure of where they are going to stick the drill bit and announce 1 billion barrels, most of it to themselves, at todays price, this makes DES a tad undervalued!

Morning All
So is this where the fun starts ?

Ehall there is more players to come on board yet and more than 1 billion barrels down there.

Regards all

Markymar

Todays chart showing strong support at 57p, my personal opinion is that it will hold current levels and then push on strongly this afternoon as the institutions move in, just my opinion though!

Looks like a classic shorting opportunity up here.

No 'new' news on the exploration front, previous figures all announced.

Partial placing with institution but not enough of an appetite to get all the funding away despite big discount, so they have to come cap in hand to the shareholders.

Big discount to Fridays close to get it away

Todays mark up means its at a 28% premium to fundraising , far to high now at 58p-60p

Dilution of trance by involving Rockhopper

Mentions likelihood of commencing a drilling programme in 2005, not guaranteed so newsflow could stop still to 2006. In fact the statement says oil rigs maybe available at the end of 2005, so news could be mid 2006

Looks like it could go all the way back to 45p-48p

Travis
Your comments will be judged over the coming days and weeks. My view is that out of 8 points stated you will score nil.

JPS: I think you have missed the point, if you are scoring out of 8 I have already won as 7 are facts: The facts are:

No 'new' news on the exploration front, previous figures all announced.

Partial placing with institution but not enough of an appetite to get all the funding away despite big discount, so they have to come cap in hand to the shareholders.

Big discount to Fridays close to get it away

Todays mark up means its at a 28% premium to fundraising , far to high now at 58p-60p

Dilution of trance by involving Rockhopper

Mentions likelihood of commencing a drilling programme in 2005, not guaranteed so newsflow could stop still to 2006. In fact the statement says oil rigs maybe available at the end of 2005, so news could be mid 2006

Watching this one with rapt interest.

Travis,there is more news to come of partners and Talisman and Encana and we already have Encana linked in with Rockhopper.


Accordingly, the Company commissioned a survey of world-wide rig availability which has identified a number of suitable units available for drilling in the North Falkland Basin towards the end of 2005. A rig contract tender document is being prepared with a view to being sent to the owners of all of these units and preparations for a three-well drilling programme are already underway. Whilst it is your Board's intention to continue its discussions with other potential farm-in partners, the current fundraising will give the Company greater flexibility in negotiating both the size and terms of any farm-out participation in addition to Rockhopper's. Should there be an additional farm-out, the Company, as a result of the current fundraising, will then be in a position, either to fund additional drilling on Tranches C and D, or to drill on its own account in Tranches I and L in the North Falkland Basin, in which the Company still holds a 100 per cent. interest.

It will be interesting to see the press reaction over the next few days/weeks following this mornings announcement. This can only be positive for Desire Petroleum share price. It will certainly propel the Falkland Islands back into the limelight.

Good morning DES,raters, Well one heck of a morning and without any intent of patronising, may I join in offering "well-dones" particularly deserved by the long-termers, the providers of so much data, technical info. etc, etc. to relative newcomers as myself. We have benefited from your unselfish input and it is very much appreciated. Today,s news is one more step for the fans! Thanks. Rgds.

I posted this on 24.12.04 and Crude Oil have changed there name to Rockhopper and we have a top man at Rockhopper a Mr Pierre Jungels now that we know Rockhopper is one of the partners to Desire Petroleum then this just makes more sence that more Farm-out Partners are to be anouced in the future.

"Accordingly, the Company commissioned a survey of world-wide rig availability which has identified a number of suitable units available for drilling in the North Falkland Basin towards the end of 2005. A rig contract tender document is being prepared with a view to being sent to the owners of all of these units and preparations for a three-well drilling programme are already underway. Whilst it is your Board's intention to continue its discussions with other potential farm-in partners, the current fundraising will give the Company greater flexibility in negotiating both the size and terms of any farm-out participation in addition to Rockhopper's. Should there be an additional farm-out, the Company, as a result of the current fundraising, will then be in a position, either to fund additional drilling on Tranches C and D, or to drill on its own account in Tranches I and L in the North Falkland Basin, in which the Company still holds a 100 per cent. interest"

"Greater Flexibility in negotiating" A lovley line

24.12.04
==============================================
December 2004 - New Licences in North Falkland Basin issued to Crude Oil and Gas Ltd
Crude Oil and Gas Ltd, a new UK exploration start-up company, has been awarded 2 licences covering 16 blocks in Quadrants 25 and 26 of the North Falkland Basin. These blocks (see A3 map available from the Downloads page) surround Desire Petroleum's blocks in the southernmost part of the North Falkland Basin. They are located in relatively shallow water (all less than 200 metres), and represent an opportunity to explore a part of the North Falkland Basin with a distinctly different structural style and stratigraphic infill to that observed further north in the area drilled during 1998.

Crude Oil and Gas Ltd plan a 2D seismic survey over their new licences within the first year of operation.

http://www.bgs.ac.uk/falklands-oil/download/download_files/A3MapDEC2004v2.jpg Good picture of there new acreage to get a better idea .

So who are Crude oil and what are there intentions.

Well it all boils down to a company called

Clarke Willmott*
1 Georges Square
Bath Street
Bristol BS1 6BA
direct dial: 0117 916 9522
e-mail: sthomas@clarkewillmott.com
*http://www.clarkewillmott.com

Regulated by The Law Society and
The Financial Services Authority
________________________________

They have four more offices and one is in Bristol and if you click on web site and location it takes you to the 4 office and this company belongs to a Mr Visick.

Now going to companies house you can check who owns the company http://www.companieshouse.co.uk which I have done and this is where the picture starts.


Crude Oil and Gas Ltd is registered to Richard Visick on the 5.10.04 and the address as a above Clarke Willmott


Hemingway Management registered 5.10.04 at the same address and then changed it to Crude oil and Gas Ltd.


And this man was the client of Hemingway Management http://www.bodecott.com/ and is now for Crude Oil


Also the biggest link here is that on the 5.10.04 Encana Ltd was set up and the address was also at Bristol address so who are Encara they are a Hugh oil company and based in Canada where Desire have been out on a so called tour back in July so we have Talisman energy and Encana, Talisman hold block F and Desire have a 12.5% share interest in block an 3D was covered in F over Liz from block C to F.

http://www.encana.com/

http://www.talisman-energy.com/

Regards all

Markymar

Hi Marky,
A good day today, a little dissappointed by market reaction, 3 wells and pretty much going it alone (at the moment). The lack of a big player has stymeid the market along with the big dilution.
As we suspected Rockhoppper have been key in this announcement and I am hopeful that there is more news on the way.
I am still sceptical of the Encana link as it is tenuous at best!. The Shell rumour is one that just won't die, so I wouldn't scratch them yet. With a rig soon to be drilling in the area, Talisman would be foolish not do something in thier Tranche. For me its Talisman, Shell then Encana.

Anyway MArky the news is fantastic and it has been a long wait, I expect the share price may well tread water/drift until the EGM is overwith and a rig is announced.

That early retirement is looking a little closer today, now where am I going to get the cash to fund my 1 for 8?

Anyway congratulations all for sticking with it. Now we are just out of the blocks................

Jon

Well said John,

"Greater Flexibility in negotiating"

Sounds good to me

Markymar

Markymar,

Thanks for all your postings,keep em coming...Did`nt we do well.

http://www.falkland-malvinas.com/Detalle.asp?NUM=5113

For the record we were a bit too bullish on the effect on Desire's price of a) the RNS giving details of the placing. Hopefully our forecasts for the effect on the price due to b) the details of the farm-in will be more accurate.

Eddieshare
a) 89p
b) 158p

Luckyswimmer
a) 66p
b) 96p

Oily Jim
a) 78p
b) 118p

Ptkenny
a) 86p
b)102p

I hope the rumour on the other board that we can expect details of an impressive farm-in in two weeks time is correct. I am also reading Rockhopper's involvement as just a preliminary step to achieve "greater flexibility in negotiating" the real farm-in deal.

Any suggestions for the next round of forecasting ? e.g. c) price on first well spudded d) price after first succesful gas flow test e) price after first succesful oil flow test f) price when oil hits $80 per barrel - oops, I'm getting carried away, what a good day, hope to meet some of you at the EGM.

Luckyswimmer

A bit to bullish lucky i think we have only been given half the story so if we had the full story then maybe those prices would of been correct.

Expect more partners in the coming weeks or months and more holes to be drilled.

"Greater Flexibility in negotiating" said the man with the aces up his sleeve and it will give Desire shareholders the best deal possible and that will add value to the share price.

Regards

Markymar

just a little mention of Desire here in the stock market reporter tonight, well i better take that good lady for a meal so have a goon night all.

Shares in Desire Petroleum jumped 4p to 56p after it said it was to raise up to 25.15 million pounds through a placing and open offer and as it said it had identified drilling targets. The oil explorer said that a 3D-seismic survey had identified drilling targets with a potential to discover over one billion barrels of recoverable oil in Tranches C and D in the North Falkland Basin. Preparations for a 3-well drilling programme in Tranches C and D were underway. The company also said it had agreed terms with Rockhopper Exploration to farm-in to the 3-well programme to earn an interest of up to 15% of Tranches C and D by funding up to 30% of the costs of the programme.

Hi all

Well it looks like we have had a mixed reaction on the stock market. This will be because DES has not yet announced the major partners. Although the news is excelent! Some will be unsure! DES picked up again in late afternoon. What is clear is DES is going forward with what is the best option for its investors. Over a billion barrels & only 15% given up! That can only mean a massive potential for investors! So when we get the full picture of the majors, maybe we will have been right about our forcasts.





Thanks for all your work markymar
Thanks to all the other positive posters

Good Luck All

Eddie