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

marky,

AGM is 24th @ 6pm

eacninewhy ,

Thanks for pointing that mistake out and i See Finn has corrected his Capt.

Well sort of Markymar,

Mind you I think with a name like Juanita, I would think he is in fact a she.

Submitted by Falkland Islands News Network (Juanita Brock)

Looking foward to Eddie's update.

Well done marky - it looks like your pateince, (and other holders), will, pay off.

Good luck to you all

Hi all

Thanks to all for the updates.

Well DES did get the confirmation, todays trading had a little less volume than yesterdays. The information I have is 615000 buys, 226000 sell, 527000 unknown. The unknown may account for the shadow on top of todays candle. If the unknown turn out to be buys then we may get another run tomorrow. DES has been following a rising trend line, since 08/12/05. The support from the bulls yesterday & today, give added weight to the rising trend line. There have also been falling resistance lines (4) which DES has passed up through, each also adding to the confirmation of support. There are couple of other resistance lines which are at about 0.4300p & 0.4500p, These may give a bit of resistance as this was the open offer price. Todays candle has a shadow on top indicating there may be resistance towards the top of the shadow, however the 10 day moving average looks likley to move up through the 20 day moving average. This should add to the bullish move. The 200 day moving average has stayed the same as yesterday, this should also start to rise if the upward momentum continues. Again adding confidence in for the bulls. There are lots of other signals which suggest buy signals. Not to mention any good news. FOGL & RKH also made gains today.





Good Luck All

Eddie

Eddie superb write up on the technical side of things and just good to see the price rise today and get over 40p, I see all the Falklands Exploration stocks were up today and any good news has a knock on affect, hence are news is only rumour and should be taken that way.

Capt it makes you wonder how these rumours start!

I see FOGL are presenting at the oil-barrel conference tomorrow

http://www.oilbarrel.com/events.html

Hydrocarbons Daily Record (10/05/06)
May 10, 2006
by J. Brock (FINN)

HYDROCARBONS DAILY RECORD (10/05/06)



By J. Brock (FINN)



Crude oil futures slipped in New York and London today before the release of a US government survey expected to show increasing domestic gasoline inventories.

In London IPE Brent crude was down 23 cents at $70.84 a barrel by 1511 GMT.

At 1343 GMT crude for June delivery was trading down 21 cents at $70.48 per barrel on the New York Mercantile Exchange.

At 1800 LMT on Wednesday, 10 May 2006 Light Sweet Crude was $71.90 in the price per barrel and Brent Crude at $70.21.



TRENDS:



Even though refineries increased their run rates by 300,000 barrels, making supplies of Gasoline in the United States 347 Million and stockpiles of other hydrocarbons products world-wide, there is nervousness about whether the trend will continue. This is a factor in keeping the crude prices high.



DEVELOPING FACTORS:



(Iran)



Speculation about Irans President Ahmadinejads letter to President Bush is becoming fact with bits and pieces of it being released to the press. There seems to be little relevant to the enrichment of nuclear fuel but it does indicate a way forward for dealing with Iran politically. It is an historic letter, the first since the 1970s. At present Irans President is in Indonesia drumming up support for his position that nuclear fuel enrichment is for energy generation only. It appears that the trip has been successful. More will be known at 0800 LMT on Thursday.



(Russia)



Last night Russias President Putin, in a State of the Union Address, said that he would encourage the increased revenue from hydrocarbons to go towards increasing living standards in Russia. Also singled out for improvement, President Putin wants to improve that countrys energy infrastructure. Russia is the worlds second most productive producer of hydrocarbons behind Saudi Arabia.



(Latin America)



Companies Affected by any new taxes in Venezuela - local and foreign companies such as Spanish-Argentine Repsol YPF, China National Petroleum, the US firm, Chevron and Brazils Petrobras are seeking alternatives to paying newly proposed extraction taxes. The media are stepping up criticism of President Chavez by saying that his plan to buy off the Americas and secure absolute power over Venezuelas oil reserves is frayed and not working. Since President Chavez has begun this policy production has dropped from 3.2 Million barrels per day to 2.5 million barrels and it could be further cut if foreign investors decide to cut their losses. If contracts become unworkable they could pull out, leaving Venezuela to fend for themselves.



Bolivias President Morales is in Vienna for a meeting in Vienna with European officials and hydrocarbons industry representatives. His South American neighbours applaud his desire to give the people revenue from their gas reserves. However, Bolivia wont be able to take it all without keeping the level of investment it presently has.



(Falkland Islands)



Falklands exploration companies stocks rose today as there is optimism that a rig could be available at any time for exploration in the North Falkland Basin.



Falkland Oil and Gas Limited will be presenting a company profile and some data at the oilbarrel.com conference on Thursday, 11 May 2006.



The following Falklands exploration companies had an excellent day on the Alternative Investment Market (AIM) today:



Des up 4.75p or 13.5%up



RKH up 4p or 14.8% up results of seismic done early on in the years due near future



BOR up 2.5p or 5.5%up



FOGL up 6p or 4.3% up

http://news.independent.co.uk/business/analysis_and_features/article363767.ece

A busy day in small oils stocks included speculative support for Desire Petroleum, 4.75p better at 40p, on bulletin board speculation the group is poised to sign a deal with a major European oil player. However, some market makers remained sceptical. One said: "Why Shell would even consider a deal with a company that doesn't even have a rig out there is beyond me."

http://www.thisismoney.co.uk/investing-and-markets/tips-and-tactics/article.html?in_article_id=408974&in_page_id=23

DESIRE Petroleum's exploration work in the Falklands has been hampered by the shortage of drill rigs. Heavy buying which saw it touch 42p before closing 4p up at 40p followed rumours Desire has signed an agreement with a leading oil major and a rig will soon find its way to the oil rich area soon. If true, last year's peak of 65p could be left miles behind.

LONDON (AFX) - Buyers came for Desire Petroleum, 4-1/4 pence higher at 44-1/4, amid hopes that a drill rig could soon find its way to its activities in the North Falkland Basin.

The company's exploration work has been dogged by the shortage of drill rigs, but rumours abound that Desire has signed an agreement with a leading oil major and that a rig will soon be on the way to the oil rich area.

newsdesk@afxnews.com

http://www.berlinerboerse.de/

Berlin Exchange Desire up 35% today so far!!!

Marky, interesting article in the Independent. Surprising that a market maker tells the journalist that Shell wouldn't consider a deal with a small company that doesn't have a rig. Hmm, perhaps Shell has access to rigs and Desire has access to oil - seems a good basis for a deal to me. I think the market maker wants to shake at some more trades.

Pleased to see no RNS saying Desire have no knowledge of a reason for the SP rise

The chart does look like a break out of the channel we've been in since December. Thank you Eddie for keeping the charts on display. Onwards and upwards.

Well put Lucky will you be attending the AGM this year?

http://www.bloomberg.com/apps/news?pid=10000086&sid=a8c5Zn.RthHs&refer=latin_america#

Desire Says It Still Seeks Falkland Rig; Shares Surge in Week
May 11 (Bloomberg) -- Desire Petroleum Plc, an explorer for oil and gas near the Falkland Islands, said it's still seeking a drilling rig for the area.

``The company is pursuing several strategies to get a drilling rig and is in talks with other operators in the Falkland area,'' Ben Willey, a spokesman for the company at its outside public relations firm, said today by phone in London.

Shares of Malvern, U.K.-based Desire have soared 42 percent this week, including a 14 percent jump today, to 45.50 pence. That gives the company a market value of about 102 million pounds ($190 million).

The company in September said it may not be able to begin drilling this year after failing to find an oil rig for drilling in the Falkland Islands area.

A shortage of rigs for hire has lead to delays in the development of oil and gas fields. Record crude oil prices are prompting energy companies such as Royal Dutch Shell Plc to increase spending on oil exploration, boosting rig rates.



To contact the reporter on this story:
Renee Lawrence in London at rlawrence7@bloomberg.net

Last Updated: May 11, 2006 04:43 EDT

I too have been following the price & read the rumour of the driller too. Is it possible Shell or one of the majors has done a deal with the Falklands Oil companys as a group? I work in Aberdeen (European oil capital) for one of the larger oil service companys and I have not been able to fish out anything, but thats not new. It's long way so send a driller from any country.

Hi all

DES had another great day.

I have posted a 3 day chart with 10 minute time frame. Todays open was a whoper opening at 0.0475p, up by 0.0725p the bulls pushed DES up to the days high 0.4825p this triggered some selling which then pushed DES down to the low of the day 0.4300p. The bulls were back in at 0.4300p this is where we should now see support. The bulls then managed to push DES back up to the close of the day at 0.4525p There was also a gap up which should also give support. DES has made gains of 90.53% since 08/12/05, 40.31% of which was over the past three days. The moving averages 10, 20, 200 are all moving up now, which is a good indicator. Todays high may offer some resistance, if it does it should be short lived.




Here is the 6 month chart with daily candles.





Good Luck All

Eddie

Eddie thank you.

This rumour is not going away and have tried to get to the bottom of it and Desire are staying very quiet and now of the opinion some thing is going on in the back ground as suggested in the annual report.

Good luck to all that hold !

Marky, yes I'm hoping to attend the AGM, might bring a tie this year. It would be nice to meet up, particularly if we finally have something to celebrate.

Nice strong finish today and no dreaded RNS saying no known reason for rise, this is looking good.

Falklands : Hydrocarbons Daily Record (11/05/06)


(Falkland Islands)



Desire Petroleum share lead the charge of frantic buying in the first 10 minutes and saw the share price hit a high of the day of 48p after positive newspaper reports on that Desire Petroleum was close to closing a deal with a Oil Rig Owner or a Oil Major after one of the biggest trading days in volume for years a total of more than 9,500,000 shares were bought and sold giving Desire a end of the day share price of 5.5p up to 47p.


Falklands exploration companies stocks rose today as there is optimism that a rig could be available at any time for exploration in the North Falkland Basin.



http://www.sartma.com/art_2920.html

Falklands : Hydrocarbons Daily Record (12/05/06)
Submitted by Falkland Islands News Network (Juanita Brock) 13.05.2006 (Current Article)
Desire Petroleum are talking to someone about a rig but aren't saying who.


HYDROCARBONS DAILY RECORD: 12/05/06


By J. Brock (FINN)


At 1800 LMT on Friday, 12 May 2006 Light Sweet Crude was $72.04 per barrel and Brent Crude at $72.32 per barrel.


TRENDS:


Stock markets across the world have recorded losses today and this affected the price of oil by the barrel.


DEVELOPING FACTORS:

(Nigeria)


What has been described as vandalism has caused an explosion on a pipeline near Lagos in Nigeria, killing nearly 200 people. It is understood that people tap into the pipeline and sell the fuel on the black market at less than the going rate. The unaffordable price of fuel has created this black market commodity.


(Iran)


An analyst, Professor Shaul Bakhash from George Mason University in Washington, DC has said publicly that the letter sent to President Bush from the president of Iran may not have been an attempt at dialogue but to establish the moral high ground in his attempt to win the hearts and minds of fellow Muslims. It is thought in some circles that assertiveness by Iran over its enrichment of nuclear fuel for power generation could work against them if they do not make a genuine effort for dialogue and negotiations.


(Russia)


Aside from obviously pointed articles saying that oil and democracy dont mix in Russia, there has been little rhetoric. Russia stands by its stance that dialogue and negotiations with Iran are better than sanctions.


(Latin America)


Though Venezuela and Bolivia have heated up their rhetoric in Vienna, Brazil and Petrobras have also stood their ground. They have agreed to have talks but Bolivia is firm about not giving back assets that belong to foreign investors. Rumours that Venezuela was interfering in Bolivian affairs were quickly dispatched by Bolivias Minister of Foreign Affairs, Mr. David Choquehuanca.



Venezuelas President Chavez will be visiting Britain this weekend but reportedly will be avoiding the Prime Minister, Tony Blair, who has warned energy rich states to act responsibly towards their neighbours when he visited Vienna this week.


(Falkland Islands)


Speculation is ripe that Desire will be procuring an oil rig. It has not been confirmed who the people Desire are talking to are but it is thought to be Shell. Even if one is found, it will still take time for paperwork and for it to be transported to the Falklands. It could be that there wont be any exploratory drilling in 2006 but this depends on how quickly a rig arrives. Desire Petroleum are ready to get straight to work on several interesting prospects that it has in its tranches in the North Falkland Basin.



A bad day on the London stock Exchange left investors feeling the pain as the FSTE index tumbled back below 6000 for the first time in six weeks with a loss of 129.9 points to 5912.1 this did not help any of the Falklands Exploration Stocks today.




Falklands Exploration Shares end of day price for the 12.0.06


Desire Petroleum down 3.25p or 7.2% and closing price of 42p


Rockhopper Exploration down 3p or 8.6% to close at 32p


Falklands oil and Gas down 4p or 2.7% to close at 145p


Border and Southern down 2.25p or 4.4% to close at 49.25p

As the saying goes "There is no smoke without Fire" applies here. Could it be Shell or Total? Monday should be interesting! Sunday papers may have some news about this speculation!