- Desire Petroleum has struck oil off the Falkland Islands, threatening to reignite the diplomatic row between Britain and Argentina over sovereignty in the region. (Independent)
- Shares in Desire Petroleum rose by 24% in a day after the Falklands explorer said it is testing to see whether an oil discovery is commercially viable. (Telegraph)
- Desire Petroleum has admitted a well described as an ‘oil discovery’ last week in fact contains just water. The oil company’s share price crashed by almost half, dropping 66 to 67¼p, following the embarrassing reversal of fortunes. (Telegraph)
- Less than a week after proudly announcing an oil discovery in the Falklands, Desire Petroleum has today revealed the well had in fact hit water. The Rachel North well will now be plugged and abandoned. (Guardian)
Easy come, easy go, as they say. And the company is called Desire Petroleum. I’m also amused to discover that Desire was recommended by Goldman Sachs last month in a briefing called ’50 E&Ps to change your portfolio’. Any investor slow into the office yesterday will be certainly have found their portfolio changed.
Aside from being very funny, it’s also a bit of a relief. Britain fought a short and nasty war with Argentina over the Falklands Islands. Britain ostensibly won, in as much as it’s still considered an overseas British territory. Finding oil there was going to reopen old wounds. Without wanting to wish ill on Desire or the other operators in the field, it would probably be best if we don’t make any substantial finds in the area.