Desire Petroleum saw its shares drop with the news that its first effort in drilling for oil in its Rachel prospect in the North Falklands basin had failed. Shares in Desire stock dropped 5 pc to 92 p. The company has three more wells to drill due to the funds of 23 million pounds secured from investors this past September.
Desire spokesperson said: “”Due to wellbore stability issues through the deviated section of the wellbore, a forty-degree hole inclination, it was not possible to reach the target depths in the first wireline logging run. The hole is now being cleaned out prior to making a further attempt.”
Last week the shares for Desire Petroleum soared 76% in only one day in the hopes it had found oil in the South Atlantic. In the wake of the shares soaring the company had to deny takeover bid rumors. Rockhopper, another explorer with a focus on oil drilling in the Falkland Islands owns a 7.5 per cent stake in the license where the Rachel prospect drilling project is located; the remaining balance is owned by Desire Petroleum.
Another company hoping for oil bu facing disappointment was Faroe Petroleum. With exploration of its Anne Marie prospect off the Faroe Islands only traces of oil were realized. The news resulted in a drop in shares of 9 pc to 177 p.
Graham Stewart, chief executive of Faroe, said: “While we did not encounter thick reservoir sands at the Anne Marie well location, the discovery gives us significant encouragement to continue exploration efforts in this licence, which we have held, together with ENI, for over 10 years.”