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.falklandnews.com/public/story.cfm?get=3447&source=2

Arriving on Wednesday is Ian Duncan from Desire Petroleum. Already in the Falklands are John Armstrong and Patrick Bird from FOGL

I understand that rumours abound that Chevron may pick DES off. It'd be sad as us long term holders want to see DES strike oil independently or at least with farm in partners as we all believe that it's going to be the biggest discovery for a very long time and the sp will multiply many times. Surely a rig will be found or a new one commissioned before long. Rig co's know the potential. If des was taken over I cannot see less than 1 being successful, Clever directors tying their bonus to the Capitalisation of the co. They stand to gain a hell of a lot!

Had been involved with DES for some time now however I closed my position in favour of the almost unknown TAG which has just achieved a strike in Guatamala.

You can see the upside of a positive drill especially when the pipe lines for distribution exist.

I am sure DES will achieve in the fullness of time, although to fly I believe some serious institutional support will be required.

Again using TAG as an example 91% of their shares are held by institutions / major shareholders leaving only just over 4 million in the hands of the small investor hence the massive upside.

I will definately be back to DES when the circumstances are right although do not want to be tied in treading water for the next 6 -12 months. DYOR

Roly.

Your going to need a new map Markymar.

The web site has been updated

http://www.desireplc.co.uk/

Many thanks to Eddie and Lynnzal for the charts.

Cheers Capt,

Any thoughts looking at pictures ect ect?

Well a few Markymar,

Kath is a new babe to me.

The Liz, Beth, Jan triple decker looks off, which I find odd considering the section from the Calagary presentation.
Maybe they have named the target wrong??

If you check the shape and position of Liz and Beth on the old and new map Liz seems to have become Beth.

I'm not surprised they have not sized the target's, as in my opinion it would serve no purpose without a rig.

There were a few more potential targets in that Calagry presentation, so maybe more to come??

I'd like to know the COS on Ninky as they seem rather confident on that one if, you read the write up on the slide.

Hi all

Thanks to all for the updtes.

DES went down a little today, closing on yesterdays low. The candle has bearish implications, due to the fact DES failed to move up. Looking at the chart, we have a Fibonacci retracement line just above. The market appears uncertian about going through this level. DES had few buys today, which may mean consolidation at the lower level before moving up. Both buying and selling volumes have reduced in the past few days, which reflects indecision. Tomorrows trading may confirm the markets intentions.





Good Luck All

Eddie

Last weeks sell-off through the May low at 28.5p changed the dynamics of my analysis somewhat. The break down through the 28.5p low tells me that the recovery since the May low was not the beginning of a longer-term advance.... In other words we are still in the midst of a corrective cycle off the 69.75p high. This was always a concern in the back of my mind that I first alluded to back in April (#1147), when I pointed out that a break above 48p was needed to confirm the end of the corrective phase. To be precise I was looking at the 10 Feb low at 47.75p as a bull trigger. Anyway, I am labelling an a,b,c corrective decline from 69.75p to 28.5p, forming corrective phase A of a higher degree. Subsequently we have an a,b,c pullback to an orthodox top at 44.75p (15 Aug), forming B and we are now in what should prove to be the final leg lower C. According to my calculations, current downside risk could be in the 19.75p area.
Regards to all and keep up the great work eddie
Lynnzal

Hi all

Thanks Lynnzal, can you post the chart with your findings please ? I'm unfamiliar with the count (ABC).

The bears were in again today taking DES down to the low 0.3000p. The bulls came in at this area taking DES back up to the close 0.3750p. This may be suggesting the bulls don't want to allow the close to go under 0.3050p, this was the low close from the top close 0.6800p (doji top on the daily chart). However the hammer (25/05/05) 0.2850p has been penetrated on (22/09/05) the day of the announcement. DES has not closed under the hammer (the lowest point of the shadow), this suggests the hammer is still intact. Todays candle has bearish implications, but the lower shadow suggests the bulls were buying near the low area. Todays close is very near to the low 0.3050p. If the bulls don't manage to defend this area then bears may take DES closer to the bottom of the hammer.




Good Luck All

Eddie

Hi all,

Sorry late night in from work but got an email from old friend in the Falklands pointing out Ian Duncan was in good company in the Falklands just a whisper.

Not all is dead and if what I have been told leaks in the buying should come through if its going to happen.

Hi markymar

You'll meet yourself going out if you keep working this late.

Hope its good news, any clues ?

Kind Regards

Eddie

Hi all

A few late trades showing this morning (550,00 & 100,000). I hope they are buys.

Good Luck All

Eddie

Eddie, that 550,000 is the third such buy recently. I thought the first two might be a rollover but now we have an odd number of trades so hopefully someone is picking these up. Now is a good time for a strong bounce.
22/9 1.1m 32p
26/9 550,000 33.68
26/9 550,000 33.75
28/9 550,000 33.75

I've done some more thinking.

(dangerous, I know.)

Just got the interim report on the doormat, cash is 25.25m, shares in existence 216.8m. Net cash per share = 11.5p.

Pre the 3d survey and associated rights issue, the shares bobbed around at 8 - 12p I think. (memory fairly good on this) Thus the market attributed this price (say 10p) to the licences. Since then the oil price has more than doubled...I guess the licences are now worth 13p (?)

The 3d survey is supposed to be the dogs Bollo**s so must be worth something (3p?)

I'm up to 27.5p. These are cheap....not saying they won't get cheaper because a lot of people hacked off and dumping.

Time to buy in my book. Did so today, just a few ....

Hi all

Well nice to hear you can still think fatoldgit.

DES closed at a new low today (0.2975p), the previous low was (0.3050p). This is from the top price (0.6800p) 11/01/05. The only support I can see left is at the bottom of the hammer (0.2850p) 25/05/05. After that we would be looking back to last November at start of the rally with a gap up window (0.2800p) 08/11/05. After todays selling volume I'm suprised DES hasn't closed under these prices. Todays candle has bearish implications, however DES has not closed under the hammer. The shadow under todays candle, suggests the bulls were buying at the lower end again. The buying volume however was low. We need a lot more bulls tomorrow otherwise the support from the hammer will be gone.





Good Luck All

Eddie

Eddie it Friday soon always a good day 9 times out of time 10

Lucky i think your right someone is buying on the cheap

Hi markymar

Yes I think it's fatoldgit.

Here are the figures I have. Total trades 150. (buys 20) (sell 97) (unknown 33) = 150. (buy volume 147,000. 42,000) (sell volume 1.51million. 428,000) (unknown volume 1.09million. 313,000) a lot of unknown.

Then look at the open, high, low, close.

Open 0.3075p, High 0.3075p, Low 0.2750p, Close 0.2925p.

Take the close from the open 0.3075 - 0.2925 = 0.015p. Todays change.

Then take the low from the close 0.2925 - 0.2750 = 0.0175p. The difference between the low and the close, seem to sugest the unknown were buys. This is why the shadow is so long. It is also the reason why I'm saying the bulls seem to be buying at the lower end. (unknown value 313,000 volume 1.09million).

Kind Regards

Eddie

Hi Eddie & all.
Above is the chart that goes with my previous comment (#1808).
As I mentioned, the break down through 28.5p labelled 'A' meant that the prior recovery off that low could not be impulsive. Therefore, the terminus of '2' has yet to be seen. Near-term I think we have scope for recovery towards the 34p area as we complete the (b) leg off the 27.25p low. This should then see further downside to sub 20p under current calculations (although there is further possible downside risk). That final move would conclude the correction off the 69.75p high and be the beginnings of a major third wave advance that will carry us through 69.75p. Please note that the lines that I have appended are not indicative of the timescale that will be involved.
Regards Lynnzal

Hi all

Thanks for the chart Lynnzal.

DES managed to move up today, this therfore means the hammer is still intact. The volume was a bit lower today and also a bit odd. Todays candle has bullish implications, but cofirmation of the markets intentions is needed. So were looking at support at about 0.2850p, resistance about 0.3400p at the moment. Britishbulls.com have DES on a buy if today.





Good Luck All

Eddie

lynzal , if the A wave is as you suggest surely it should be a 5 , and not abc. I know the numbering can be a problem , perhaps you could amplify

liked the figure of 90% accuracy , pity Prechter and his boys could not manage that during 2003 , 2004 and early 2005 , they cost me with their predictions of the end of the world as we know it.