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 rather warm EGM with a lot of shareholders squeeed into a small room but nevertheless encouraging. It was my first contact with the board and I was impressed with Mr Phipps who was straight forward and clear with his comments. The main points were:

1) A successful placing and open offer means that the 3 well campaign is on but the date is subject to rig availability, probably occuring at the end of the year.

2) No further farm-in partner is now being sought unless an incredibly good offer is made.

3) OHM technology is interesting but not expected to be part of this 3 well campaign

4) Sharing of rigs with partners other than Rockhopper is unlikely owing to the greater depth of water in the south, 1000m instead of 200m, bad luck FOGL

5) The preference for a placing/offer and Rockhoppers involvement is to minimise the dilution effect for shareholders, a deal with a major would have left us shareholders holding less than half of the % in the company we currently have.

6) A drill ship is a possible alternative to a semi sub for just 3 wells as although the daily rate is high it can steam into position in much less time. However if the campaign extends beyond 3 wells then a semi-sub becomes cheaper.

7) The site survey hasn't been organised yet because there is a possibility that the HSE will allow the detailed 3D knowledge to be sufficient if some shallow drilling is done first to eliminate the possibility of gas pockets

8) Dr Colin Phipps is in excellent health and does 40 press ups a day so we can be sure he will continue to look after our interests well.

9) Dr Ian Duncan is our new Chief Executive and will now manage the procurement stages with his 30 years of experience in the industry.

10) Rockhopper is clearly a significant event with our Chairman wearing a Rockhopper tie throughout proceedings.

11) Tomorrow they are intending to decide on the three drill sites - I wish them plenty of luck.

Thanks for that lucky swimmer.

Must say i'm very surprised and concerned at point 2. Did he (CP) really say that?

thanks again

ming

Thankyou luckyswimmer for the quickfeed back.

Just a couple of questions:
1) I like ming am surprised that no more partners are being sought, this seems at odds with the placing documents.
2) So 3 wells is it. We are not to expect anymore.
3) Was there any talk about Rockhopper and their finances as we are reliant on them stumping up quite a few million.
4) Any talk of what other oil companies had been in negotiations with DES. Who have we turned down, who wanted the 3D?

thanks
Jon

is it poss that cp means no more partners because he,s tied up another deal with rockhopper ,to farm out more of a percentage later in the year when rockhopper has more funds (floats)

Thank you for that Lucky

Cheers Lucky Swimmer.

Good luck everyone.

Hi guys
Well what a day. I`m exhausted.Dont know about you guys.DES oversubscribed and the price goes down BEFORE the EGM started ! Correct me if i`m wrong , on that point. So i think there is a hell of a lot of market manipulation going on here!!
Its all or nothing , we know that , so this is not a share for the light hearted. There will be articles tomorrow so interesting to see what happens. We are finally going into the deep end , ok , 200m end later this year. I am staying put and i bet you this share will not be quiet between now and then cos the more people here about it the more (brave ones) will come aboard HMS DESIRE! IMHO naturally.
Evening Eddie. You are nearly always right , actually always i think. Get your head round the events of today. What do the charts show ? What do you think ? Were you surprised DES went down ?
Regards
Berlingo

I am in with you on HMS DESIRE, Berlingo

Hi all

Well what a day !

Yes berlingo I was supprised DES went down.

DES has more buys than sells & still goes down ? MMs at again. The candle we have is a bearish engulfing patern. There was support at 0.52p which is the recent support for the short term trend. The visit to this support pushed back up towards the end of the day. This may indicate a late rally. What we dont want to see is DES close under the support. The volume was realativly low considdering the announcement. The bulls may have just let the bears push DES down to the support, this would then be a good buying area. So if the shadow on the bottom of the candle was a late rally then we should see it continue tomorrow. The last few days I have posted the quote (from the top menu bar) which has nearly always been right (DES went up). This morning the quote said DES was down. I didn't get the prices as they went off before I had time. This is where I think the MMs are deciding the close, or there abouts. I know it might seem daft but the prices & percentages were correct. So anyone fancy looking tomorrow morning between 07:30 - 07:50 to see if the same happens. The short term support is still in place. The long term trend is still up. So hopefully the MMs will give us a good end to the week.





Any thoughts ?

Good Luck All

Cheers Eddie the MMS have been playing games for some time now i hope they get the comings soon.

I will be topping up again with some money left and some new money in the coming days.

Regards

Markymar

Cheers Eddie
I shall look at the menu 1st thing !
Any thoughts on the days events Markymar?
I`m off to play 5-a-side football shortly and i think someones going to get a kicking !
Regards

Berlingo you still buzzing?

Am waiting to have a chat with someone who was at the EGM today to get the full crack.

Also i need to check with parrot a few things first in the coming days.

But a good day with news and EGM out the way and of course Newcastle wining 3-1 i would say a canny day.All those late buys today hmmmm

Regards

Markymar

Hi all

I think this bit is what we should be looking at.

Accordingly, subject to the passing of the resolutions proposed at the Company's
extraordinary general meeting to be held at 10.00 a.m. today, a total of
55,890,656 New Ordinary Shares are to be issued under the placing and the open
offer which, at the issue price of 45p per share, amounts to approximately
25.15 million before expenses.

Application has been made for a total of 55,890,656 New Ordinary Shares to be
admitted to trading on the AIM market of the London Stock Exchange plc.

Dealings in the New Ordinary Shares are expected to commence at 8.00 a.m. on 11
March 2005


Good Luck All

Eddie

Evening, Marky.

Have you heard from the parrot yet ? Would be interesting to know what he heard today. I believe he went ?

Onwards and upwards.

Oily.

Oily that email does work?

Further feedback on the EGM.

Ming, regarding your concern about point 2, a shareholder asked Dr Phipps directly if more farm-in partners were sought and he replied that there had been many discussions but he had chosen the route to minimise the dilution effect for shareholders and indicated that there were other offers but he was happy to go ahead with just Rockhopper in the "consortium" unless a particularly good offer appeared. He's clearly keen to retain the current 85% interest in tranche C and D. I interpret that as confidence in the 3D survey.

Jon B, a question was asked about Rockhopper's finances and Dr Phipps confirmed that the 15% funding had already been proven and the second 15% of funding was subject to Rockhopper's own fund raising exercise. Presumably that meant that Rockhopper could do a Global Pet and raise some funds itself on the AIM market. If they were successful they were expected to increase their contribution to the 3 well exploration costs to 30%.

trjones, the deal with Rockhopper seemed to be final for the 3 well campaign in C and D but as Rockhopper own the blocks around I and L there is clearly scope for further deals with Rockhopper and I am left with the impression that there is a strong bond with Rockhopper and a lot more news to come from a company run by a distinguished player in the Oil industry (PJ).

Thank you Eddie for your informative daily reports on candlesticks, I must admit I expected today to be more of an up day.

Markymar, the source I mentioned regarding news only has Desire rated as HOLD

I wonder if we might get some press attention now that the funding is in place, Luckyswimmer

Morning all a little bit of press in Guardian


http://www.guardian.co.uk/business/story/0,,1435048,00.html


The Falkland Islands has long been seen by some as a possible new oil source but one that has never delivered on its promises. Desire Petroleum - an old hand in the region - has just raised new money to explore there.

Borders & Southern and Rock Hopper are two new firms planning to visit the stock market on the back of a fresh interest in the Falklands.

Luckyswimmer

I often read articles relating to events that I have visited and wonder if I have been dreaming - but not this time.

Your summary of the points raised at yesterday's EGM were as accurate as it is humanly possible to get and those unlucky enough not to have been there should read and then reread them again.

Yep I'll agree with that, very very accurate notes.

Thank you Provost and Capt Guns, next meeting we will have to devise a code to recognise each other.