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

http://www.falkland-malvinas.com/Detalle.asp?NUM=5233

Mercosur
Thursday, 10 March


Oil market remains extremely bullish



Oil prices continued Wednesday their record breaking surge in spite of the United States government reporting the highest commercial inventories in eight months.



A barrel of benchmark Brent crude oil touched 54,06 US dollars in London, (1,96% increase), while in New York the US light crude reached 55,45 US dollars the barrel, (1,57% rise).
Extreme temperatures in the northern hemisphere, the US dollar weakness, solid demand from Far Eastern markets and the coming OPEC meeting in Iran, played a role in the latest sprint with investors switching out of the currency market and into commodities.

A falling greenback also prompted several consumer nations and funds with strong currencies to increase their oil holdings, denominated in dollars, and compete for limited supplies.

The US Energy Administration Office reported that crude stocks rose to 302,6 million barrels, the first time since last July that they toppled the 300 million barrels.

A report from the industry supported American Petroleum Institute showed an even higher rise in stocks, 304,3 million barrels.

The sustained growth of the Chinese economy, expected to expand a further 8/9% this year also influenced fears that demand may outstrip supply in the coming months.

OPEC is scheduled to meet in Iran where a new higher band price is forecasted to be established prompting some analysts to believe the cost of oil may climb even higher possibly close to 100 US dollars the barrel.

Yep markymar you did !

Trading started !

Good Luck All

Eddie

Your right Eddie broker to broker i think we may see a whoosh today.

One MM on 57p and rest on 59p so far and the price marked down at this moment in time0.5% down to early to call

Desire Petroleum PLC
10 March 2005


Desire Petroleum plc
('Desire' or 'the Company')

Appointment of Chief Executive

The Board of Desire is pleased to announce that Dr. Ian Duncan, currently a
Non-executive Director of the Company, has accepted the post of Chief Executive
with effect from 14th March 2005.

Following the successful fundraising from the Company's Placing and Open Offer,
the results of which were announced today, it is the intention of your Board to
operate a three-well drilling programme in Tranches C and D in the North
Falkland Basin, rig tenders for which have already been sent out. The
co-ordination and control of such an operation, together with liaison with
Rockhopper Exploration (Oil) Limited, which we have agreed terms with, requires
the full-time, hands-on oversight of the Company and Dr. Duncan will fill this
role.

Dr. Duncan, a geologist, has over thirty-years' experience in the oil and gas
industry, previously with Exxon and Clyde Petroleum, and has direct and relevant
experience in the operation of exploration programmes. In addition to the
selection of a suitable drilling rig, he has already begun the process of
selecting suitable consultants and contractors to implement the Company's
drilling programme.

Enquiries:

Colin Phipps, Chairman: 020 7409 2138

Richard Redmayne, Seymour Pierce Limited: 020 7107 8000
Ewan Leggat, Seymour Pierce Limited



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

Worth a read on OHM


http://www.oilonline.com/news/features/aog/20050202.All_at_s.17025.asp

Eddie, my thoughts re price for what they are worth:

Basic maths indictates, a real possibility that on Friday when the extra shares hit the market if the bid is above 45p a number of people will sell the new shares and take the profit. Some will take the money and run others buy back in at a lower ask price. Once the panic sets in the shares will be volitile for a week or so then should settle somewhere between 40-50p. Ultimately its all about timing, leaving your money in a share that does not move for 6-9 months will not make you money. Taking 10% profit when its offered will. Obviously this is my opinion I may be right I may not time will tell.

Good luck to us all. Roly Hamster.

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.