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

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!

Bought an initial small holding today with the spare cash in one account.

Should the news be as expected, I will be adding to this in due course.

North Falkland Basin: High Risk for Good Prospects
July 21, 2004
by J. Brock (FINN)

NORTH FALKLAND BASIN: HIGH RISK FOR GOOD PROSPECTS



By J. Brock (FINN)



With the Board of Desire Petroleum announcing on Tuesday that fast track processing of the 3D seismic survey carried out in tranches C and D in the North Falkland Basin comes the anticipation that detailed interpretation will provide excellent ionformation as to where Desire will sink their first exploratory well. According to the press release, the re-worked and detailed analysis of the data will form the basis of farm-out negotiations with potential partners. It is expected that the data will be ready for this process at the end of the year, and the new year could see a rig brought down from Brazil to sink the first well, this according to the last interview Dr. Colin Phipps had with FINN.



Data and samples collected from the North Falkland Basin show that, while thick, the source rock, when penetrated in the right place will generate hydrocarbons. Dr Phipps had indicated that in many cases, the wells drilled thus far did not completely penetrate the source rock an oversight that is not likely to happen during the forthcoming exploration.



Its crunch time. One would hope that the rig will be placed above the right spot and a huge oil reserve will make investors very happy indeed. However, it is likely that any potential source will be capped while experts further analyze the data and samples. Dr. Phipps maintains that another well would be commercially drilled instead of using the one that was capped. That analysis could take months but the wait for an oilfield could also take years to realise. This depends on several factors.



When the oil companies pulled out of the North Falkland Basin in 1998, the price per barrel of Brendt Crude was averaging $10.00 per barrell. Now it is four times that amount. To break even in 1998, the industry needed an oil price of $14.50 per barrel now, nearer to $16.00, with some sources quoting higher. Who knows what the price per barrel will be by the time the oil is found and extracted commercially.



Though todays oil prices may be conducive to sinking more exploratory wells, the North Falkland Basin is considered to be a frontier area. The costs of bringing in rigs and other infrastructure needed for the industry are tempered by time and transport prices. In our case, a rig must be brought in at great expense. This simply cannot happen overnight.



An excellent exploratory result also must be weighed against the need to extract hydrocarbons. Other oil provinces are generating enough oil at present to meet world demand. This could further change if exploration in those provicnes is fruitful. Good business decisions to opt for a frontier area need to be made on good financial advice, the preponderance of which points to investing in known provinces. If the risk of investing in a frontier area is too great, investors will opt for investments in oil provinces.



Conflicts, wars and politics also play their part in assessing whether or not a hydrocarbons industry can go ahead in any area. Though there is no conflict in the Falklands area at present, the costs of meeting political demands could outweigh any desire to do business here, for example the 3% tax the Argentines want to charge for commercial hydrocarbons taken from the North Falkland Basin. That issue still hasnt been resolved.



There is an element of risk in any investment that you make, whether it be in the Mid-East, West Africa, or the North Falkland Basin. We Will not know whether weve got oil until that all-important gusher is reported. That takes many attempts, not just the exploratory wells that have already been drilled. It is my hope that those who take the risks for the oil industry here will have that happy ending.

Personnel thanks for the artical Markymar, the Capt lurks but does not post.

cheers capt, when are you back on rig?
JP email me on am site might have some news for px

Early / Mid August. probably 5+ weeks. Looking forward to bringing home my hammock!!
That 2nd article was the interview done in the Falklands?? No reply from FIBS.
As ever the Capt. maybe making 2 + 2 = 6

So you will miss all the action , meic has your email so he can keep you informed ? Is there a computer there you can use to keep in touch or is that there for mail only.Still waiting for news of that wave i was on other day could be intresting.

Meic will keep me up to date hopefully, + a fat parrot. E-mail yes but stocks and shares surfing on the internet are filtered. They are considered as gambling!!
Look forward to your news.

Capt there is no return mail address ? Still waiting for news of wave , but one splash came back and was looking at wave but having trouble if wave was up or down.Sent 3 splashers out 2 more waiting , just hoping they come back with a tidle wave and not a ripple.

Thanks for trying Markymar, I have to remain under cover , I hope you understand.

Your name says it all, your a captain of an army of desire fernatics who have a lot of guns and CP is the boss man who knows a lot of girls names and i hope he comes up with some newer names as well.Argos looks good with Adelie ?

Here ya go folks, latest targets:-

Ladies and Gentlemen,

OK, in the last few weeks we've seen a bit more news bubbling and taken on board some new players too. Time to put my neck on the line again.

We are still probably a month+ away from any definitive news but the ball is rolling and during August I'm expecting that news flow will increase.

PX Targets
Rest of this week, well, px has again tried to test 38p without success and unless something comes from Shell tomorrow which refers to Falklands I envisage this stock 'sulking' back a bit so px range this week 34p - 38p
I think its unlikely to sit any lower than this but intra day this stock does have a habit recently of dipping before support drives it back up. I for one will be buying like mad if it does briefly fall below 34p.

First week in August, well, I'm in Iceland so I'll miss the fun but my pricing model indicates a very substancial price move up! I've re-run my numbers and still I get the following:- 42p - 46p.

So in summary for next 5 - 7 working days looking to suggest slight dip near term then very end of week/start on next a concerted push straight through the 38p level.

Please keep the comments and info coming. I for one am now getting very excited about this stock.

Good luck and happy hunting folks
JPDM FM

Sorry to hear about the job JP, but a man with your skills will go far , am a great beliver of one door closers another one opens be lucky markymar.

Capt CP is not in the Falklands nor is he going in near future says a splash

JPDM, you've called this one so spot on it's uncanny! Looks like tomorrow AM could be a good time to buy (what do you think Stu?), good luck with the job hunting, not much call for city boys in Devon I'm afraid!