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

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

keep up the good work Jp you will need plenty of money for Iceland , i hope you dont drink to much because its very expensive. Am sure you will have a holiday of a life time over there.

U.S. addiction to foreign oil deepens
Mon 19 July, 2004 09:09



By Timothy Gardner

NEW YORK (Reuters) - U.S. domestic oil production has dropped five percent since this year's peak in February and near-record oil prices are unlikely to inspire drillers to slow the country's deepening dependence on foreign oil, experts say.

"Why on earth would you drill here when we've been drilling here for 120 years and when there's vast untapped regions across the globe?" said Kyle Cooper, analyst at Citigroup Global Markets in Houston.

U.S. pumps pulled 5.43 million barrels per day of oil in early July compared to 5.70 million bpd in early February, according to the federal Energy Information Administration. The United States uses all of its domestic crude production. It relies on imports of crude and oil products for the remainder of the approximately 20 million bpd of oil it burns daily.

As domestic output dropped this summer, crude imports averaged more than 10 million bpd for a record two months, the EIA said this week.

U.S. production often falls in the summer as workers repair Alaskan oil infrastructure during the thaw. But rarely has the summer production droop been so deep.

Last year in early July, for example, domestic output was slightly above February production. By August, production had only slipped about two percent below February output.

A six-week outage of Royal Dutch/Shell's 150,000 bpd deepwater Mars platform this summer in the U.S. Gulf coast helped to cut output.

But the impact of outages is intensified by a long-term drop in U.S. oil output, said Mir Yousufuddin, who tracks oil production for the EIA in Dallas. U.S. oil output peaked during the Arab oil embargo of 1973 when production was 9.3 million bpd.

U.S. production in 2003 fell 1.5 percent to about 5.7 million bpd, and the trend is on track to fall.

GULF BOOM WONT CUT ZOOM IN FOREIGN IMPORTS

New production from the U.S. Gulf deepwater oilfields next year will help cut the U.S. decline, but a long-term drop in California production, the nations fourth largest oil producer, combined with rising U.S. demand, and a fall in domestic drilling since 2001 wont cut reliance on record imports, experts said.

Seven new field start-ups in the U.S. Gulf in the second half of 2004 as well as BP's Holstein and Thunderhorse fields in 2005 could add as much as 450,000 bpd at peak if all goes well.

But that will not stem the decline of production of mature fields in Texas and Oklahoma, and especially California. In the Golden state, output has fallen about from 842,000 bpd in 2000 to an average of 742,000 bpd from October last year to March this year, according to state records.

And U.S. petroleum demand will rise 380,000 bpd this year and another 300,000 barrels next year, the EIA estimates in its latest monthly report.

U.S. President George Bush's plan to tap the Arctic National Wildlife Reserve, believed to hold as much as 16 billion barrels of crude, has so far been thwarted by environmentalists. Even if ANWR was tapped, production would take about 10 years to begin according to government estimates.

What's more, record prices for oil futures of over $42 per barrel hit this summer have failed to dramatically boost oil exploration drilling, except in California.

Despite record oil futures, there were 168 rigs searching for oil in the United States last week, up 14 from last year, but down 55 from the same week in 2001, according to the Baker Hughes rig count.

"We've expected an increase for almost a year now," said EIAs Yousufuddin. "The industry for some reason is holding tight. They are investing in repurchasing their own stock, investing somewhere else, not in exploration drilling."

Virgin oilfields in Africa and Latin America have made major U.S. oil companies explore elsewhere. "When the fields and the production rates are so much higher, when your environmental, regulatory issues and labor costs are so much lower, you can afford pay $3.50 to $4.00 (a barrel) in transportation costs to ship oil from there to here," said Cooper. He said lifting costs can average as much as $10 a barrel abroad and as much as $20 a barrel in the states.

The impact on increased foreign oil demand on U.S. consumers is debatable.

Some see the lower lifting costs abroad as a bonus. Others see the growing dependence on foreign oil as a potential problem, especially with American drivers fondness for big automobiles.

"Its not good for the consumer to rely on foreign oil," said Jack Aydin, analyst at Keybanc Capital Markets. "But lets put it in perspective. Europe has relied on foreign oil all along. It hasn't hurt them, except they cannot have cars getting 12 miles a gallon (19.2 kilometers per 3.8 liters)."

RNS Number:0079B
Desire Petroleum PLC
20 July 2004



DESIRE PETROLEUM PLC

("Desire")

The Board of Desire announce the completion of the fast-track processing of the
804 square kilometre, three-dimensional (3D) seismic survey carried out in
Tranches C and D of the North Falkland Basin. The processed data are now being
subjected to detailed interpretation from which potential drilling locations
will be selected which, in turn, will from the basis of farm-out negotiations
with several potential partners.

For further in formation:

Dr Colin Phipps: 01684 892242

Dr Ian Duncan: 01684 568415




This information is provided by RNS
The company news service from the London Stock Exchange

END

Falklands-Malvinas
Wednesday, 21 July


Report on interview of Dr Colin Phipps.



Dr Colin Phipps of Desire Petroleum explained to FIBS that although the recent seismic survey conducted by Desire Petroleum was what is known as 3 dimensional, this was not strictly the case.



However in this type of survey the lines of survey were 10m apart as opposed to 1km apart in 2 dimensional seismic surveys. This gave an effect, which was virtually 3D.
This increased density of surveying of course meant one hundred times the amount of processing of the date. Dr Phipps explained that processing was necessary to remove from the findings any extraneous factors such as the effect of waves or any electro-magnetic influences from the ship itself. The result of such processing would be a clean and near as true picture of the seabed.

Next step after processing was the interpretation of the results of the seismic survey, which would give the closest possible indication of where precisely drilling should be done. This, Dr Phipps estimated, would take a further two to three months.

In answer to Sue Gyfords question as to when drilling might begin, Dr.Phipps said that he hoped it might be as early as the beginning of next year, though this would depend on rig availability amongst other things. Hiring a drilling rig was, he said, a hugely expensive process and it could also be very time-consuming, unless there happened to be a rig available relatively close to the Falklands, for example in Brazil.

Source: FIBS by Sue Gyford

hi all, i jumped in today taking advantage of the dip. hopefully we'll get some farm in contracts announce soon to give a further push. Good luck to all.

In a thin day for small cap news the highlight was an announcement which will no doubt soon trigger talks of Penguins being washed up on the beach at Port Stanley covered in oil. That was the silly story that used to circulate last time there was any Falklands Islands drilling excitement. We are not there yet but Desire Petroleum announced that it was working to complete interpretation of the 3D seismic it has shot in the area and will use that data as the basis of farmout discussions. It sounds promising and Desire added 1.75p to 36.75p.

Tip from www.t1ps.com

Desire Petroleum (DES):
Few would able to deny that small caps are slightly up against it at the moment so I thought that it would be a positive gesture on my part to pick out three of the more bullish looking stocks in this area. I must also admit that although many stock market pundits like to suggest that whatever they are looking at could be a ten bagger, I hardly ever do. This seems to be more for marketing purposes, because unfortunately the bigger the target that is put on a stock or market, the more it tends to be believed. Desire may eventually be a ten bagger, but at least the first leg up from its current value should be the combination of both the 2003 and 2004 resistance lines at just over 40p. The stop loss is a two day close below the May support line at 25p.

Good trading today, nice to se the bounce bag providing fundamental support for the base indicating further upward movement towards the 40p resistance lines. As speculation increase regarding the farm in partners, the resistance upwards will be tested further and will be broken once automatic sells at 38p are mopped up. From there, there is little chart indication as to the next point of resistance, 60p may prove tough but it is a hard chart to read.

PX Target update latest thoughts

Rest of July: 31p/32p - 38p

This stock is going to settle for a while as next big news probably not til end of August or even well into September

Late August up to 60p

Hold ya nerve through the dips, on todays dip I purchased 9999 @ 33.5p and 19192 @ 34.4p (9999 was a coded buy for those on iii and 19192 was additional purchase to outdo fellow investor on iii who bought 19191.)!

38p is gonna be a killer of a resistance to break through but above that I see next stopping point to be 45p (probably mid Aug time).

Happy Hunting
JPDM FM

The Falkland Islands have seen excitement wax and wane but most
geologists reckon there is oil in big quantities offshore if only it can
actually be discovered.
Westmount Energy (WTE) owns big stakes in Desire Petroleum (DES)
and Sterling as well as a couple of other companies, making it a safer play
on both West Africa and the Falklands.
Desire holds exploration blocks to the north of the Falkland Islands
which it hopes contain 2.4 billion barrels of recoverable oil. They are
part of the Falklands Trench, an ancient valley which is believed to have
filled with deposits from tributary rivers.
Seismic surveys on some of the bigger targets were completed earlier
this year. The results are being analysed by computers at the moment
and will be released next month. 3D seismics have made big advances in
the past 20 years, but they can never guarantee a sandstone reserve holds
oil rather than water. Even so, Desire plans to farm-in a major partner if
the results are good.
At 33.75p Desires market value is 54 million and has already
ballooned this year. Assuming, say, a 10% free carry, the company could
one day be worth over 1 billion could be. The smart approach is to run
the shares but take some profits ahead of the news in August.
Falkland Island Holdings (FIH) announced last month that its joint
venture with Global Petroleum and Hardman had been joined by hedge
fund RAB Capital which will fund the exploration budget for the next 18
months. A number of promising leads in water depths of 400 to 1,850
meters have been identified. Analysts say these reservoirs could hold
between 200 million and 2.5 billion barrels of oil.
The joint venture plans a 3,500 km survey which might be expanded.
The licenses cover 33,700 sq km and are located to the south and east of
the Falklands. No wells have been drilled in these areas but two wells in
the adjacent Malvina Basis to the west have been successful with oil
flows of 3,000 barrels a day.
These areas therefore look more promising than the waters to
the north of the islands which were explored without joy between 1996
and 1998.

SHARE MAG TIPPED TODAY.

As excitement builds over major potential oil reserviors in the north falkland basin, rumour has it that penguin cleaners are on standby and are equiped and ready to fly out from RAF Brize Norton at short Notice. OIL IS THERE! Definitely a buy!