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

simple it has taken that long to bring the price of oil up to level that makes
economic sense to drill in the Falklands.

Hlyeo

Rome was not built in a day!!!

Maybe you should ask Desire that question as i dont sit on the board of directors,but its given me 8 years of toping up and now holding a substantial holding, so am happy.

The last 2 years we have seen Desire show real commitment for drilling to recommence back in the NFB ,we have had 2 open offers one to raise money to complete a 3D seismic survey and the 2nd to fund a 3 well drilling campaign all which were successfully subscribed to.

The next step is to find a suitable rig.

Hi all

Thanks to all for the updates.

DES is looking good still, the 200 day moving average is till moving up. The 20 day moving average is about to go up through the 60 day moving average. When both the moving averages are moving up and cross, this is known as a golden cross. If this performs true to form, DES should be in for another move up tomorrow.





Good Luck All

Eddie

Thanks Eddie
All the best
Regards Berlingo

eddie - fantastic job you are doing here aided by markie and a few others.

take comfort that the info you produce is worth reading.

One of the best informed threads on Moneyam imo.

NO LET-UP IN DEMAND FOR RIGS



09:00 - 21 March 2006

The world's biggest offshore oil and gas drilling contractor Transocean has said it has a huge backlog of orders and it expects to see day rates for its fleet of drilling rigs rising significantly over the next year.

Chief executive Robert Long told an energy conference in New Orleans the company had contracts in hand that would generate 9.6billion in revenue - unprecedented in the industry. He said he expected average day rates for Transocean's high-specification deepwater semisubmersible rigs to rise to more than 180,000 by March, 2007, compared with the average of 102,000 now.

Meanwhile, oilfield service giant Schlumberger expects its annual revenue growth to continue at an average rate of "mid to high teens" at least until 2010, according to its chief executive, Andrew Gould, who was speaking at the same event.

No surprise that Transocean's share price has doubled in a year. I wonder what it would cost Des to hire a rig, never mind when.

should have bought transocean a year ago and switched into desire today, oh well, I'll remember that for the next oil boom in 2020 after oil prices have fallen back below $200 bbl. The chinese are suffering from diesel shortages according to today's papers.

Own up anyone who has been selling their Desire and buying a few RKH. two 50k purchases today and now 37p to buy.

Had a phone call to say there might be news this week from a dubious financial house, so there must be lots of rumours going around at the moment.

What has Peak drilling program in Aussie land got to do with Des in the F/lands,m/mar.

Evening All,
Rockhopper up a bit i see ?

Hi all

Well we did get the golden cross today, unfortunatly DES went down a little. The 200 day moving average also moved down a little. DES still has support at this level. the market may be feeling more bullish tomorrow.




Good Luck All

Eddie

Evening all,

Good to see RKH price rise today but it will be a couple of months before any news on findings from there Seismic results, I see we have a sell tag on British Bulls tonight and when that happens it drops for one day and rises again so will be interesting to see if we are back up to 40p come Friday.

mbugger

Peak Group or Peak Well Management is to carry out the well design and drilling project management of the planned 3-well drilling programme in the Falkland Islands. This will involve detailed well and test design, contracting for all services, and execution of the drilling programme, including materials and logistics.

http://www.peak-group.com/cms/component/option,com_frontpage/Itemid,1/

So the Aussie deal as you pointed out has been put together by Peak which gives up hope that if they can pull a deal like that together then hopefully they can source us a rig as well. Peak are working for a lot of drilling companies at the moment all over the world and quiet sure they have there finger on the button.

Lucky i have a some RKH shares now and bought them a good month back so sitting on tidy profit there,was that phone call from Price Group as they have not even updated there web site for months.....very poor when there trying to flog u Desire.

Peak might be the best thing since sliced bread everywhere in the world but if there are no rigs, or at best no rigs at prices Des can afford, that's the end of it until a consortium is put together for a much bigger campaign than Des is proposing on its own. I expect they are waiting for RKH and others to catch up with their seismics and will get together at that time. We could be waiting quite a long time more yet.
I think there is a big risk that the farm in deal for 15% of the cost of Desire's campaign could be scrapped and/or re-negotiated because of the lack of progress. No doubt Marky will know this as the resident expert but wasn't the farm-in conditional on drilling starting by the end of 2006?

Marky, yes that dodgy group from Madrid again. I would prefer a more serious source of good news.

Morning all,

Coeliac your Right RKH have a clause if a well is not spud by 31st December they can terminate the Farm out agreement with Desire if they wish.

RHK the money they raised when came to the market are using that money exactly what they said they would use it for in there prospectus and if any thing they are well in front of them selfs now, the only down side was they did not raise the full amount that they wanted and decided with the price of every thing going up in price they had to box clever hence leaving there interest to 7.5% which leaves then enough money to for fill other commitment as stated in there prospectus.

I would say they will not terminate there Farm out agreement as it makes sense to have your eggs in two baskets and Jungles is fully aware of the high rig prices and the bloke is no fool.

From RKH interim report

PL03 and PL04 are operated by Desire Petroleum plc. Rockhopper will earn an
interest of 7.5% of these licences by contributing 15% of the dry hole cost of
the expected 3 well exploration programme. The recently acquired 3D seismic data
on these licences is very encouraging and we look forward to the commencement of
drilling operations once Desire secures a suitable rig.


Next step will be for RKH is to carry out 3D seismic and have funds to do that and it just goes to show that they either have other plans or have the clout if they can pinch the GSI Admiral from FOGL to do the 2D seismic.

Another little scenario which is interesting is that Argos had there licence extended last year for one year to for fill there commitment to carry out 3D Seismic on there acreage and of the top of my head I think it is June or July this has to be done this year maybe Caps or Lucky may no the date.

Now RKH results of 2D will be ready about June or July time so its Possible for Argos and RKH to share a boat to carry out there 3D.

Ola Lucky, next time there on the phone ask them why there report is so out of date!

I seem to remember November 2006 as the extension date for Argos, but best to check.

RHK pinched the GSI Pacific, the GSI Admiral went out of commission. (As in breakdown's, more time in Port than at sea)

On the seismic front, if Argos and RKH are going too shoot 3D, they had better get their fingers out.
The Sq.km. rates are rising and the seismic vessels are as tight as the rig market.

I doubt that they would start the 3D much before November anyway, more sq. km. for their buck due to weather downtime.
Also they would get better quality data.

10+ new or conversions 3D vessels announced in the last 6 months or so.
Most of the new / conversions were booked before the build or conversion started.

Hi Capt,

Looks like they will have to pull there finger out,if you go to web site and go in to History of exploration there is a big table at the bottom of the page.

http://www.falklands-oil.com/

Argos is July

Still in Phase 1, which was in July 2005 extended for one further year to allow for the collection of a 3D survey.

I'm only going by the press release.

Argos Resources Limited (Argos Resources or the Company), is pleased to announce the extension of its exploration license for Tranche A in the North Falklands Basin. The extension of the license until November 2006 by Falklands Islands Department of Mineral Resources is on the same commercial terms as previously agreed. The Company plans to shoot a 3D seismic programme within the Tranche during 2006.

John Hogan, newly-appointed Chief Executive of Argos Resources, said:

We are delighted that the Falkland Islands Government has agreed to extend the license which will allow Argos to pursue its programme for Tranche A. The Tranche contains several structural and stratigraphic prospects with multi million barrel reserves potential in play types that were not tested during the previous drilling campaign of 1998. Argos will conduct a 3D seismic programme in 2006 to further define and rank these prospects in readiness for later drilling.

A drilling campaign covering at least 3 wells has already been announced for the North Falklands Basin, commencing early in 2006. This extension will allow Argos to benefit from the results of such drilling and be in a position to respond promptly to any successes.

Edit, just had a look at the falklands oil web site Markymar, it would appear we are both correct, let's just say H2 2006, then we will both be right.

H2 2006 sounds good to me Capt!

Forgot about micky mouse having to go in to dry dock but she did shoot over in the Argie area or was that mini mouse?

Now if you want to watch Newcastle thrash Chealsea tonight am going to turn in to Peter Pan and CP is going to say he has found a rig!

A bit more news on Peak Group what they can do!

http://www.oilonline.com/news/headlines/business/20060320.The_Peak.20674.asp