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

Hi all


Oh well we know why DES has gone down now. Not good news about the rig beeing delayed. DES gaped down today as a result of its announcment. After the gap down the market pushed DES down to the low of the day (bottom of the thin line under the real body of todays candle), the market then pushed DES back up to the close. This would indicate the support is at the bottom of todays candle 0.2725p. The long term rising trend line was broken today, we are now looking at the horizontal line for support, which dates back to 08/11/04. The support line is where DES started to move up from the hammer on 25/05/05. If the support holds out here, we may be seeing a double bottom.





Good Luck All

Eddie

Sorry I just troll the internet to have a laugh when I've nothing better to do. Sad really but it's an hobby of sorts. Here's a bit of stuff, you may not think it worth knowing but at least if I call back you can't complain.

I'm told Desire Pet had been in agreement for a rig till around 5-6 weeks ago. The contract in question fell apart because of a dispute over what the charges where. Desire Pet thought they agreed all aspects but they failed tie in something to do with leantime or tow time or something like. Sorry I don't use a big spanner on an oil rig so I don't really understand the details. The resulting shortfall started off at around 300k, discussing it resulted in this going up and the last figure I heard was 800k. This was for one small part I don't know the full cost but the rig was owned in europe and has now been contracted. The only way they will get a rig between now and 2007 is if someone goes bust.

Hi Driftwood
Interesting post, you do seem well conected with the content.
So what is your interest if you think Des is such a dog shit stock
you appear to spend a lot of time following it. To me shit stinks
and would only look at it once. You seem to have more than a vested
interest i can only conclude you have a large short position.
Good luck to you, but how do you view it long term do you
believe oil is there to be found, your overall view is welcome.
Regards
HUSTLER

driftwood1, at last you bring something to the party of some value. Could you let me know the source of your info (ie website), so this information isn't taken as something that you have made up off the top of your head.
By the way, I agree that it is sad if you have nothing better to do than trolling the internet like that, but it takes all sorts I guess. If I were you I would put all the info to good use...why not speculate in DES for example, you could have made a lot of money shorting a spread this week.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2005/09/23/cndes23.xml&menuId=242&sSheet=/money/2005/09/23/ixcity.html

Desire can't get no satisfaction
By Stephen Seawright (Filed: 23/09/2005)


Soaring prices have boosted the earnings of many oil companies in the past year but have stalled the plans of Desire Petroleum.
The company, which has the right to explore sites near the Falkland Islands, has been unable to get near the oil as it cannot hire a drilling rig.

Demand for rigs has soared as oil companies are keen to extract as much as possible while energy prices are high.

"We are very disappointed about it because we want to go and drill as soon as possible," said Ian Duncan, Desire Petroleum's chief executive.

"A year ago there were numerous rigs that could have drilled these wells."

The type of rig Desire needs rents for about $150,000 (84,000) a day compared with $80,000 a year ago, Mr Duncan said.

The Falklands' sites, which are Desire's only projects, could hold over one billion barrels of recoverable oil, according to the company. In preparation for exploration drilling, Desire raised 24.4m through a share placement in March.

Yesterday Desire reported first-half profits of 786,000 pre-tax, all made from interest payments and exchange rate gains on the 24.4m which was converted into dollars. Desire shares plunged 6 to 31p yesterday.

Hi Guys
Well to be honest i wasnt surprised we didnt get the news we were hoping for . I was ready for it and made a decision a long time ago to stay aboard whatever. I was surprised the price didnt drop back more and today we are seeing a small recovery!
All the fundamentals are still in place and the institutions and long term private investors know that .
Things are still v.interesting and we will just have to sit tight. C`mon Peak , time to earn your stars !
Thanks to all regular posters as usual , Eddie , Marky , Lynnzal and others . Dont lose heart . Des investors need you !!

this has got to be a share to stick with and holding for the buy opportunity as it bottoms. With the price of oil as it stands logically holding and picking up more shares has got to be a wonderful chance.

watcher. ps. enjoy learning from the regulars and appreciate the labour of love..

Thursdays sell-off confirmed my concern of a deeper setback to 33.25p (19 Sep, #1760). However, the market extended way below there to reach 27.25p. This raises further issues, as the minor breach of the former low at 28.5p changes things somewhat on the technical front and will require some further analysis on my behalf. There are a couple of scenarios that I need to work on and will post my thoughts once complete. I managed to buy some cheapies yesterday and think there is topside room (certainly the gap up to 37.25 is a draw), but would advise people to be wary of the downside.
Regards
Lynnzal

Glum because the price has dropped, no way. I see this as a wonderful opportunity. Just think of our position before the announcement, everyone knew that the potential for no rig to be announced was always a possibility and of course all of us were fearful of the damage it could do. But look at the position we are in now, only 4 points down with nothing whatsoever to set the price back apart from general market movements. We are now over the worst part of the storm and have survived totally intact.

In the early part of 2005 Phipps said something about a farm in partner was not an option to be considered at that time (or words to that effect). In his latest statement he has openly invited any farm in partner who has access to a rig.

This broadens the scope of acquiring a rig substantially. The position now is immeasurably better than it was before the announcement. He now has access to many other rigs that would otherwise be out of the equation. What's more, he has opened the door to many other companies that would have liked a piece of the action but never got the chance.

Gentleman the road is clear, top up and relax.

Kind regards to you all.

Florida

ThoughtDES wasin with Rockhopper,have they any contactsor even a drill bit,if they hop rocks, any views.

Hi all

Thanks to all for the positive input.

I'll start with a weekly chart (candles have 1 weeks value), which shows where a rising support line. If you look to the left of the large green candle you will see a small green candle which shows the days low price as (02/11/04) 0.2450p, then draw a line from this candle to the low of (08/04/05) 0.2850p. This should give you a rising support line. This weeks close is above this line. This indicates the support is at this area still. On a daily baisis DES has traded bellow this line but not closed under it. Yesterdays trading volume was 9.19 million, this definatly tested the support line, DES closed right on the line. Today DES has recoverd some of yesterdays loss and move up off the support line. It has been said by a few on the bb this is a good time to top up. I think so after 9.19 millon volume testing the support. The big green candle has not let us down since last November.




On the daily chart you can see the falling window (gap down), the resistance area as Lynnzal has said may be at the top of the window. This is the bottom of the red candle on the day before the gap down (0.3725p).

Lynnzal I'm keen to hear of your fresh assesment (0.2750p low).




Good Luck All

Eddie

Hi all,

Some great input put into this thread today and liked your post Florida, why the deal fell through with Pride South Atlantic I dont know I for one thought it was in the bag, but that Desire Petroleum and its many ups and down I have had with it since 1998.

I believe in what the BGS have stated could possibly be recoverable oil in the NFB and hope to get an up date soon with the very long awaited re vamp of there very old and out of date web site on the new prospects which lie in are acreage.

There is so much we dont know of other prospects which lie in are acreage and suspect there was a slight hint in the interims that more is to come and look forward to that news.

The board of directors have a slating of recent and I feel its been unjustified as they have always been honest and up front and have had acted in are best interests, maybe a little poor on the PR side but Phipps will do it on his terms only and dont forget they have more to loose than any of us as the biggest shareholders in Desire if he does not succeed which is a big plus for me.

Thanks, Florida, Marky, Eduardo and Lynnzal for informative posts.

After a day of some gloom, I've perked up a bit.

Net asset value of DES is 16p per share....(being all cash)

Value of oil in the ground (if any) is immeasurable (unmeasurable?) but on all best guesses might be say 10 per share....what's that worth today???

I would guess at least 10p in todays value allowing for the fact that we may well have to wait another year for some drilling.

So, (according to my logic) the shares ought to find an absolute bottom level of 26p (which funnily enough they found yesterday).

Any price under 30p per share looks a damn good buy to me...remember before they did the last 3d seismic two years ago, they were priced at 10p then and all they had was licences to drill.

I am in the camp that says we may stagnate for a bit, but below 30p I shall be adding...I missed out yesterday because I was feeling a bit glum...Hey-ho!!

Fat oldster.

http://www.guardian.co.uk/business/story/0,3604,1577287,00.html

Desire Petroleum, the oil exploration company focused on the Falklands, bounced back from Thursday's 20% fall. Traders reckon a rival may take advantage of the decline, which was triggered by news that Desire cannot get its hands on a rig, to make an offer. The shares rose 2.25p to 33.25p.

Hi markymar

Thanks for that. Just goes to show its not all doom & gloom. Did you manage to top up. ? I got in at 0.3225p, just a modest amount. A bit skint after our holiday.

Kind Regards

Eddie

Morning Eddie,

Yes I managed to re-top up on a few more as it looks to cheap, will nearly 26 million sitting in cash and extensive 3D seismic been done on acerage C and D and its just a waiting game to find out what other prospects are there and with a market cap of only 73 million compared to BOR at 45 million and FOGL at 109 million it cheap as chips.

When you look at what the market cap is for the others and only have 2D at present and not a lot more has come off them as to what is down there or future funding in place or partners you can see why Desire are a snip at this price and years in front of them.

Am sure as pointed out in the Guardian article that other oil companies will be thinking the same as the potential of what could be a new oil province is a snip at 73 million when you think of the huge profits they are making at moment in there billions.

Hi markymar

Glad you got in, it should prove to be a good price. Was yours the 1.17 million 375 k trade ? This should prove to be a good price to buy, after the massive test of the hammer (25/05/05). The hammer stood up to a massive test (9.19m volume), for the hammer to have failed, DES would have had to close under the long shadow (0.2850p). If you draw a horizontal line from the lowest point of the shadow (25/05/05) to Thursdays candle, you can see how much work the bulls had to do to defend it. This will be why the 1.17m trade was at the end of the day. The market had pushed DES back up off the low of 0.2725p upto the close 0.3100p. As Florida says top up and relax. This may be the last chance at such a low price. If there is speculation in the market DES could move up just as fast.

Kind Regards

Eddie

From todays Guardian. Desire Petroleum company focused on the falklands, bounced back from thursdays fall. Traders reckon may take advantage of the decline, which was triggered by news that Desire cannot get its hands on arig, to make an offer. The shares rose 2.25 to 33.5p. This should encourage other oil companies to offer a takeover bid shortly, possible Chervron and Exxon, within a short period.

Hi all

DES went up a little, looking at the trades there are more sells than buys. Todays trading opend at 0.3300p, moved upto 0.3400p, this is where the price stayed untill the bears moved DES back down to 0.3300p. The bulls then gave support moving DES back up to the close. The close wasn't at the high of the day, this suggests the the bears are still around. The volume has reduced slightly, we may see some consolidation around this area before moving up. News of a rig, farm in partners or bid would bring the bulls out in force.




Good Luck All

Eddie

Thank you Edddie,

At the End of the day there was a sell on AM site which looked like a buy of 550,000 also the 100,00 as well and AM had 32p and Buy 35p at end?