Trades and observations from a British contrarian stock investor

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Sunday, March 28, 2010

Times publishes story that Desire Petroleum's well is non-commercial

According to today's Times , The first well drilled off the Falkland Islands in 12 years has struck oil — but not enough to be commercially viable. Furthermore, "Desire is expected to say that the well drilled at its Liz prospect was “technically successful”, meaning it found oil, but that it is “non-commercial”, meaning that there was not enough oil to justify developing the field. The company declined to comment. Sources close to the situation said it had not finished drilling, but the signs were not encouraging. A source said: “It’s not a duster [a dry well], but it’s not commercially successful.” Desire has been working on the well for the past month.

Given this news is based on unofficial sources and the company has not commented it would be surprising if an RNS is not released tomorrow morning to clarify the situation as Desire Petroleum's share price (and the other Falkland drillers) will fall substantially on these rumours given they are published in a relatively reputable source of the Times newspaper. If true, very bad news for my Falkland's oil portfolio - I guess you win some, lose some!!

Source: http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article7078788.ece)
Posted by Contrarian Investor UK at 11:31 AM
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1 comment:

  1. UnknownMarch 28, 2010 at 5:00 PM

    The article is based on malicious information - and did NOT come from the Company.
    I've been in touch.
    We will get an RNS to this effect at 07.00 tomorrow morning.

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