Monday, April 18, 2011
Desire plunges on unsuccessful Malvinas Islands well
British oil explorer Desire Petroleum said it had not found oil at its latest well in the Malvinas Islands and would need further funds for future drilling, wiping over half the value off its shares.
Desire's disappointing well result is a further blow for the company as it comes on the back of a string of unsuccessful results, but it should not dent the remote British territory's chances of becoming a new oil province, say analysts.
"Today's news doesn't have any decisive impact on the Falklands (Malvinas) Islands as a whole, in terms of their viability as a petroleum province but it raises issues specifically for Desire," said Mirabaud Securities analyst Alex Martinos.
Shares in AIM-listed Desire crashed 56 percent to 17.75 pence at 1045 GMT, their lowest level since 2004, topping the list of fallers in London.
A large discovery made by British oil explorer Rockhopper at its Sea Lion well in Malvinas in 2010 has raised hopes that a new hydrocarbon basin will be opened up, but so far no further finds have been made.
Desire's disappointing well result is a further blow for the company as it comes on the back of a string of unsuccessful results, but it should not dent the remote British territory's chances of becoming a new oil province, say analysts.
"Today's news doesn't have any decisive impact on the Falklands (Malvinas) Islands as a whole, in terms of their viability as a petroleum province but it raises issues specifically for Desire," said Mirabaud Securities analyst Alex Martinos.
Shares in AIM-listed Desire crashed 56 percent to 17.75 pence at 1045 GMT, their lowest level since 2004, topping the list of fallers in London.
A large discovery made by British oil explorer Rockhopper at its Sea Lion well in Malvinas in 2010 has raised hopes that a new hydrocarbon basin will be opened up, but so far no further finds have been made.
COMMENTS >
Director: Orlando Mario Vignatti - Edition No. 3676 - This publication is a property of NEFIR S.A. - Issn 1852 - 9224 - Te. 4349-1500 - Paseo Colón 1196, (C1063ACY) CABA