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

JP SALKELD, thank you for your support. I think your last paragraph is the key here, "possibility of further farm in news soon". In the oil sector it is true that share prices fall towards any placing price for a while and then often go on to new heights. An interesting analogy is Sterling which today has recovered to 17.5p after a cheap placing dragged it's price down for a few weeks. The short term dip turned out to be an excellent buying opportunity and I think 54p will turn out to be an excellent buying point for Desire. Sterling already are producing oil and have used the placing to do a deal to generate impressive cash flow in two years time. In Desire's case the company, yesterday, has begun it's transition from a risky exploration stock to, possibly, a producer with an even more phenomenal cash flow than Sterling's. At some point Desire's share price will rocket -I wouldn't want to be trying to short this stock for a few pennies like Travis when the market's moods suddenly light the touchpaper.

Hi all

Florida no offence taken, water off a ducks back.

luckyswimmer good to see you still have a GSOH.

Lets look at a longer range chart (1 year). As we can see the long term trend is deffinatly up. The speculation on the BB's is that 0.50p could be the bottom line. As we can see from this chart 0.50p has a support level. If we were to draw a horizontal line at about 0.50p, you will see the candles sat on this line. This appears to give confirmation of JP SALKELD'S theory. If this theory & the candles are correct then we shouldn't see much more retracement. DES currently has 163m shares out & intends to create another (approx) 55m this would then be 218m shares out. This would then Value DES 98m @ 0.45p. If on the back of the news DES went to 100p, DES would then be valued at 218m, (this would be a substantial increase from 163m @ 100p) A difference of 55m. This would rais DES's profile substatialy & would make DES more liquid. DES is currently at 86.2m (EGM Date 10th March)




So the small retracements you see are in significant !

DES is goin up !

Thanks markymar for your postings !

Thanks to all other posters !


Good Luck All

Eddie

Hi all

Looks like we might get a bounce up off the 0.53p. The support for this level for this price starts on 17/11/04 & goes through to 10/12/04. The fact that the bears have not managed to push DES back bellow Fidays high could well indicate a bounce from this level. The next move up from this level may well be quite a move. In November between the 10th & 13th DES moved 0.06p. I hope this is the case for tomorrow !




Good Luck All

Eddie

Hi all

Another reason DES may show support today is. As I read it. The placeing of the shares are with institutions and the share holders. I take this to mean you've got to be in it to win it ! (1 for 8) So lets hope we see our support !


Good Luck All

Eddie

Showing a bit more support this morning eddie, looks like the theory could be holding out. The short termers T+10ers and those looking to top slice probably have closed out now so the momentum should be upward!

http://www.oilvoice.com/m/uploadDetail_public.asp?upload_ID=3277


Rockhopper Exploration, a new UK-based oil exploration and production company, has announced the signing of a memorandum of understanding with Desire Petroleum plc to farm-in to three wells to be drilled on Desires acreage in Tranches C and D offshore the Falkland Islands.
It is anticipated that the drilling programme will begin within about a year. As a result of its planned contributions to Desires exploration costs, Rockhopper will earn an interest in the licences of 7.5 per cent, with an option to increase that stake by up to a further 7.5 per cent by October 2005.
Rockhopper Exploration, formerly known as Crude Oil and Gas Limited, announced in December that the Falkland Islands Government had awarded it two exploration/production licences, PL023 and PL024, covering an area of 4,203 square kilometres and located 50 kilometres to the north of the Islands in the North Falkland Basin.
Pierre Jungels, Executive Chairman, commented: This agreement will enable us to accelerate our exposure to drilling opportunities in the North Falkland Basin, and broaden our portfolio significantly. We look forward to working closely with Desire as we move towards the drilling programme itself.
This farm-in agreement is another step, further to our recent licence awards, in creating an exploration play covering substantial parts of the North Falkland Basin. In addition, we continue to pursue other ways of building our portfolio by accessing further acreage both through negotiation with other licence holders and applications to the relevant authorities.

Hi all

Lets look at the intraday chart. We had a slow start to the morning, then for rest of the day the bulls have given support. What is good is DES has finnished on the high of the day. No long thin lines on top of the main body. All being well the support should be there again tomorrow.





Any thoughts anyone ?


Good Luck All

Eddie

http://www.thisisnorthscotland.co.uk/displayNode.jsp?nodeId=149235&command=displayContent&sourceNode=149218&contentPK=11836822&moduleName=InternalSearch&keyword=desire%20petroleum&formname=sidebarsear


Meanwhile, oil and gas explorer Desire Petroleum saw its shares jump more than 6% to 56p after it said 3D seismic had identified large oil prospects in the North Falkland Basin.

It said the targets had the potential to produce more than a billion barrels of recoverable oil, and it was making preparations for a three-well drilling programme.

Desire now aims to raise up to 25.15million through a placing of shares and open offer to take its Falkland Islands exploration forward.

The company has also announced an agreement with new UK-based oil and gas company Rockhopper Exploration under which Rockhopper will earn up to a 15% working interest in Desire's exploration licences by funding up to 30% of the costs of the drilling.

Desire added that the new 3D seismic and existing 2D seismic had identified prospects with more than two billion barrels of recoverable oil. It said the fundraising would allow it to move more rapidly to commission a rig, and that drilling was likely to begin towards the year-end.

Hi Eddie and All

Good call yesterday and the share price has risen i think the people who sold some of there shares now to buy the ones at 45p have done that and we should see the price start to tick up.

ENN had a good day Eddie

Regards all

Markymar

Hi markyamr

Nice one !

Drilling to start sooner than I thought. That should get the price moving !

Kind Regards

Eddie

An update on the rockhopper web site about the Farn-out deal, they state we should be drilling within 1 year .

http://www.rockhopperexploration.co.uk/press/rockhopper050216.pdf

Hi all

The candles that we see from Friday last to todays, are in a short term up trend. This could change tomorrow, if we have another increase. The last two candles that we have, had lows of 0.525p. This is called a tweezers bottom with peircing pattern. If DES goes up tomorrow then we have confirmation of this being the bottom. The resistance is at about 0.60p, so the risk vs rewards are stacked in favour of reward ! So all being well DES should rise again tomorrow. If DES goes through the 0.60p we will have a break out ! This will be absolutly FAN-tastic !

DES is now sat above the 10 day moving average !





Thanks markymar, ehall


Good Luck All


Eddie

Well I take no pleasure in saying it but I did tell you so. This share is a dog with fleas. It is fanciful to imagine the share price shooting up into the stratosphere of new found wealth but the plain fact is it will never do so. It has a history for disappointing and I fear that trend will continue for quite some time yet. My advice, and good advice it most certainly is, is to bail out now -while the price is still over 50p. It wont be there too much longer!!!

If you want a share that will make you money try Kenmare Resources (KMR). It has a solid business model with sound infrastructure and brilliant forward earnings potential.

Can you please tell me pro where you get your findings about Desire for your posting

What has Pro to gain by negative postings based on nothing?

'a dog with fleas' my arse! that why its up 400% in the 12 months! just raised 16 million from insitutions, who quite obviously disagree with the flea theory. oh.. and within the next 12months will be drilling in the falklands for a possible 2 billion barrels of 'recoverable' oil.

pro (fessional) deramper me thinks!

It does seem a bit unsubstantiated to advise selling without any other reason than there not being a 'stratospheric' share price rise. The old adage rome was not built in a day. Negatives aside, IMHO, DES has responded remarkably to an issue of 30mil odd shares. Would it be fair to assume 45p as the short-term support?

Hi tau, I guess it could be, it would be disaster for the open offer if it fell below 45p. I am hopefull that 50p will be bottom here until either the placing is over or we hear more about partners or rigs.

Pro, could you please let us know what your advice is based upon? It is healthy to have two sides to a debate but there are no hard facts from you for us to consider. Without these how can anyone make rational decisions? Sorry, but A dog with fleas doesnt help me. Even if, in your opinion, this is the case about this share, then to be honest, I quite like this "dog" because given all the information and facts that are currently available to us all, 50p will be a bargain before long. Once the share issue is over next month, we can confidently expect DES to track inexorably northwards.