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

"You seem to think I want something from you, I don't.

I'll have my fun and you think what you like laddie.

One point, b*shit ? check what I've told you, have I been wrong ? perhaps you are just too stupid to work it out kipper."

Listen here pup, you have not been wrong because you have never stated any clear facts, just usual cryptic messages that mean nothing. You are a dreamer and amuze yourself with silly games. Yes, I can think what I like and I know what I know.... I have been in the city over 20 years and suspect I could teach you just a thing or two laddy. You clearly don't impress anyone on this bb and although that does not mean that you have no right to comment in open forum, you ought to grow up a little.

http://www.thisismoney.co.uk/investing-and-markets/tips-and-tactics/article.html?in_article_id=404365&in_page_id=23

Framlington's star manager
David Burrows, This is Money
17 October 2005
THIS week, in our regular Fundwatch column, David Burrows talks to the man behind the top-performing Framlington Monthly Income fund.

GEORGE Luckraft's Framlington Monthly Income fund has a record for consistent top performance that other fund managers must envy. The fund currently has a top-five ranking over one and three years showing returns of just under 70% over three years.

Luckraft explains some of the key themes that have helped him to outperform most of his peers.

He identifies oil as a major play. 'The oil price is likely to stay above $50 a barrel for the foreseeable future with a danger that it could spike considerably higher if we get either unrest in some of the oil exporting nations, or we see new violence in Iraq,' he says. 'There's plenty of oil in Iran and Iraq but with their regimes not particularly stable, it will be difficult to get the investment that's required there. Also, the quality of crude in Iraq is declining due to a lack of proper operations within the fields, which is just worsening the current shortages.'


Oil companies within Luckraft's portfolio include Royal Dutch Shell and BP.


One area that he is not keen on is High Street retailers as he has real concerns over consumer debt in the UK. 'The levels of growth we have seen in personal debt are unsustainable and, as such, the UK economy is going through a tougher time. Generally, I'm not favouring consumer-related stocks because of this current environment.'

He feels there has been a definite slow down already in retail spending with oil prices acting as an added tax on the consumer's pocket. Luckraft is also concerned that the current oil situation will have a knock on effect on inflation levels.


He believes corporate activity in particular merger and acquisition will pick up providing good buying opportunities. He believes large European corporates will use the low interest rates to make acquisitions in the UK.

'It's going to be a stockpicker's market, and, providing we avoid the pitfalls, we'll reap some benefits from bid approaches. The pipeline for new issues looks very busy and, as always when there's a lot of corporate activity happening, there's the good, the bad and the ugly to sift through. We hope to identify the good ones and make some money for our investors.'


Luckraft picks out some of the 'good' names that have been added to the fund portfolio, one of which is in line to benefit from Chinese eating habits. 'Devro, the sausage skin manufacturers is an interesting story. We expect this stock to benefit from the predicted increase in sausage consumption expected in China. Then there is Renova Energy, which turns grain into ethanol. This is performing well, following recent US legislation passed to increase the amount of ethanol to be used for reducing the dependence on oil, but also because of greenhouse gas emissions.'


Cambrian Mining is another stock Luckraft is bullish on. 'The company has stakes in Asia Energy and Western Canadian, both of which have substantial coal deposits that they are in the process of bringing to market.'

One of the few familiar retailer names to figure in the fund is Topps Tiles. Luckraft concedes that the stock is experiencing tougher trading conditions, but points out that it is still experiencing gross margins of above 60%.


Luckraft also mentions three recent purchases he has made over recent weeks. 'Brit Insurance is a Lloyd's insurer that offers an attractive yield in an industry where the strong will grow stronger. Diageo is a drinks company that has seen its shares underperform and we thought a prospective yield of 4% provided an attractive entry point.


'And finally, we added Rockhopper Exploration to the fund. The company has oil exploration rights in the Falkland Islands. On one of their blocks, Shell found oil which was uneconomic when oil prices were well below $20 a barrel. At current levels, the economics could work well.'

Hi all

Thanks to all for the updates.

DES moved down a tad more today. The volume was up from Fridays.
Todays candle is the hammer, which is said to be hammering out the bottom. DES also touched the area I still see as support 0.2450p. The hammer was formed by the bears pushing DES down to the low, then the bulls pushed the price back up. This created the long lower shadow. The hammer has bullish implications, but must be confirmed tomorrow. If the support 0.2450p is going to hold, DES should move up tomorrow. For the chart pattern Adam & Eve we are also expecting a move up between days 14 - 21 after the target price was hit (0.2800p). Britishbulls.com has DES on a buy if.





Good Luck All

Eddie

Nice work eddie, thanks.
Assuming we have seen the base (wave 5 terminus) of the decline from 31.5p then we should see a recovery towards the 27~29p area. If however, the market turns lower from current levels (25.5p) then we should see initial weakness towards 22.5p before a bounce. A break below 22.5p would scew the current wave count, but we'll cross that bridge if we come to it.
Regards all
Lynnzal

D1

Is there anything more you can add further to your earlier comments?

kind regards

m

Hi all

There appeared to be more buys than sells today, I feel DES was cheated out of a move up. Todays candle has bearish implications, however the support I see as 0.2450p is still intact. Todays close is just above the support, which means we will have to wait till tomorrow to see if it holds up. Just a little to close for comfort, we may yet see the lower support Lynnzal has mentioned 0.2250p.
The hammer is still support untill DES closes under 0.2450p.




Good Luck All

Eddie

Hi all.

Nearly halved in the last two months.
With nothing to give support so where are we realy going
sub 20p why not. 16p cash support and still nobody wants
to buy us out ??. I am now seriously concerned about the 3D survey,
has anyone a clue what level to average down if any, my stoploss was 50p
but hung in as most supporters believing drilling was around the corner,
greed took over. Begining to sound like a small drug company all over again,
promise the earth take your money and deliver nothing.
just look at the chart
we are being slaughtered.
So where is the management,
25 mill in the bank fat wages and on the piss
who is looking after who here
HUSTLER

Hustler
A stop is a stop. Nevermind you know what to do next time. I dont hold any des but my friends do.I am thinking of going long at 20p but if keep falling then will not touch.My stop will not be more than 3p.

Hustler

You are right to be angry. The management have failed their shareholders and yet again dissappointed the market. With luck there will be something to Driftwoods posts about a farmin partner and the current board will be replaced.

kind regards

marrow

While I agree with what you have said Marrow, as a trader I think it is more important to consider the timing of such events (farmins). Certainly as the SP falls away there may be increasing pressure on the current board, but when holding shares in this company, how long and how far can people be expected to tollerate increasing losses? There have been numerous mentions of farmins over several months on other BB's but none of any real substance. Until someone has facts rather then speculation I would tend to discount it.

Hustler, my advice is for you to re-establish a game plan and then stick to it regardless of your emotions. i.e. dont let your heart rule your head.
Pick a stop for your holding (or at least part of it) and then pick a level where you would re-establish what you have taken out. Remember to pick one level that is lower than where you have stopped and one that is higher than where you have stopped incase the market decides to turn when you weren't expecting it.

Morning all,

When in business it does not matter how hard you plan things out and try to plan for the future s*it happens and things change and you must pick yourselves up and adapt to them changes and re-plan again and I believe the board are doing this to the best of there ability and still very pleased that we have Peak Group doing this on behalf of Desire.

This time last year we were awaiting the results of the 3D seismic and did not have any money and the share price was about the same level as it is now so what has changed?

We have 25 million in the bank ready to fund a 3 well dual target drilling program

We have a partner who is fully committed with funds in place at the moment.

The 3D seismic came up trumps and was of excellent quality and the BGS are over the moon with its findings and we have a total of 16 prospects identified so far of which all of them are large.

Oil price $60 a barrel

Acquired a 100% interest in Tranche F

We await Peak Group to find a suitable rig to re start drilling and preparation for all other logistics to be put in place, and that is the only problem we have apart from the SP is at the same level as it was a year ago, I for one am sitting on large losses(KO Smiles there) but that will change when a suitable rig is found and drilling re-starts until that time am happy to sit back and top up when ever I can and take advantage of the low share price and benefit from the longer this takes the less capital gains tax I will pay when I come to sell my shares when drilling commences.

Its not a question any more if we will drill any more but when and how much oil we find when we do.

Marky/Lynnzal

I fully agree with your posts but would wish to add that we (as shareholders) should have been better informed. I am still of the opinion that with different management we would have been drilling this year.
I think our problem is that CP has too much control and not enough skill to broker the bigger deal.
I truely believe that we will have our day but not sure there is a timetable in place.

kind regards

marrow

D1

Given that Tuesday has past and gone (for a week) would I be right in thinking there is now to be no deal done?

kind regards

marrow

The share price should of gone up again today looking at the trades.more buys than sells and the price goes down the same as yesterday.

Hi all

Yes Markymar it does appear that way, even if you add the unknown to the sells. Unfortunatly DES closed under the support 0.2450p today, this means it is no longer valid. The next support area as Lynnzal has said is 0.2250p. We are also running out of days (14 - 21), is suggested there should be a significant recovery. The change is from when DES meets the target price. The calculation use to arrive at (0.2800p) target, is 69% acurate. Knowing our luck it will be on the 31% side. Todays candle has bearish implications, all the more reason to be visiting 0.2250p. The oil & gas sector went down today, only 6 moved up. Britishbulls.com has DES on a wait.





Good Luck All

Eddie

Marrow, D1 frequetly makes comments without real substance. If u had read my sarcastic response you would perhaps have gathered that. Anyway, like I said before, lots of speculation regarding farmins and rig announcements over the past few months and if you keep acting like you know something, you will eventually be right (as long as you remains vague enough about what you alledgedly know). In other words take his remarks with a pinch of salt.
Markymar manages to come up with all sorts of intersting snippets of info, so watch out for those and make your own mind up and Eddie give great tech analysis of the candlestick chart.
Regards
Lynnzal

Further to my #1904, the market extended slightly lower to a minimal wave five projection at 24.25p (think it traded 23.5p at some point). The subsequent bounce has been sharp and may have already met an ideal recovery objective at 28p as my calculations suggest somewhere between 27p and 28.75p for a pullback.
Gains through the former base at 28.5p would suggest that the longer-term decline from 69.75p is indeed corrective, although firm confirmation can only be considered above the 45.25p lower high.
Risk still remains to the downside and there are various supports clustering around 20p that act as a draw. Note, the confluence of several supports can often be a good sign in terms of the strength of support or resistance in a particular area.
Regards
Lynnzal
21/10/05 NOTE - having reviewed my data this morning I notice that Thursday's high has been editied to 26.5 by my data vendor. Therefore, we still have scope for further recovery towards 27~28.75p.

Hi all

Thanks to all for the input.

Nice to see a move up at last. Todays candle has bullish implications, if DES continues up tomorrow, we will have whats known as a spring. This will show on the weekly chart as a small puncture of the support (0.2450p). This is regarded as a bullish move. The Britishbulls.com have the 3 day pattern as a morning star which is also regarded as a bullish signal ( this is not the classic morning star however). The Britishbulls.com has DES on a buy if again, we will need confirmation of this tomorrow. All being well we should see a continuation up tomorrow. DES was 7th highest mover by % in the oil & gas sector (UB07) today.





Good Luck All

Eddie

Happy talk, keep talking happy talk
Talk about things you like to do
You got to have a dream, if you don't have a dream
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Making all the music he can make!
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Talk about things you like to do
You got to have a dream, if you don't have a dream
How you come not have a dream come true?
Talk about the sparrow looking like a toy
Peeking through the branches of a tree
Talk about the girl, talk about the boy
Counting all the ripples on the sea
Happy talk, keep talking happy talk
Talk about things you like to do
You got to have a dream, if you don't have a dream
How you come not have a dream come true?
Talk about the boy saying to the girl
Golly, baby, I'm a lucky cuss
Talk about the girl saying to the boy
You an' me is lucky to be us
Happy talk, keep talking happy talk
Talk about things you like to do
You got to have a dream, if you don't have a dream
How you come not have a dream come true?
If you don't talk happy, and you never have dream
Then you'll never have a dream come true!
It's good idea, you like? Ah ah ah!

Oh,FFS!