What do you think of FOGL? I mentioned Desire to one of my mates brothers who's into his shares and he said he had invested in an oil company in the Falklands but had gone for FOGL as they had a bigger plot and the max price is much higher. He said they were higher risk as it is deeper drilling but higher reward. Anyone looked into these?

Jose, yes I've looked at these, there are 4 companies drilling in the Falklands, Desire, Rockhopper, FOGL (falklands oil & gas) and BHP. Reason i have gone for Desire as they have the safer shallower waters for drilling first off, they have always been the driving force behind this campaign and the rest piggy back off everything desire do.

Des have the rig, (albeit loaned out to the other 4 this year also) but they drill first. The first well is quoted as good as 50/50 chance of coming out (the liz acre) as they found oil there before.

To top all this off, if desire drill in next few weeks and strike on the first spud, then the rest will generally follow. If BHP drill and strike, they have apparently more barrells per Bn (not sure how many wells des have 14), then yes in time their price will go higher, however, like most of these exploration companies, before the price hits that high, the company is likely to be brought out by a major player who will then produce the oil. Remember these four companies are exploration, they don't have the capabillity to cart it back to the UK.


Alot of investors own shares in all 4, most DES and Rockhopper as they are the major players but if you have money in any of them, and one of the companies strike...they will all rise on the back of it. you're money is pretty good in any of these four for a life changing profit albeit it risky like most oil exploration.....however....I get good information about all this and its looking good.

If anyone has brougth in, and we hit next month, I expect a Beer at the bar next tournament I'm at!!!

(snip)
Also worth looking at company CNE for a comparrison, they were 45p few years back and now £30+ ...Desire is alot bigger!!

Great buy, potential for huge gains, also worth taking a look at this forum for more information http://www.iii.co.uk/investment/detail?code=cotn:DES.L&display=discussion&it=le

good luck anyone investing!!

I have no opinion on Desire as an investment as I have done no research - it has been on my 'to do' list for ages, but I'm lazy.  However:

1. DES is bigger than CNE?  Really???  I thought it was the other way round, to the tune of £4 billion plus.  In oil company terms DES is a pimple on a gnat's backside, with all the potential upside and downside that goes with that.

2. Anyone who looks to iii or (God help us all) advfn for anything resembling a sensible or knowledgeable discussion is going to be sadly disappointed.  ADVFN is full of 12 year old rampers/derampers with IQ's less than their age.  The interesting discussions on oil E&P companies used to be on The Motley Fool, but the main protagonists have now moved to stockopedia.

How deep is the water where Desire intend to drill their 14 (14!! ) wells?  How much will that cost?  How are they going to finance it?  What seismic info are they working from?  What happens if the first two wells that they have farmed out fail?  I accept that there are probably large reserves in the area, but what if it will not flow in economic quantities?  Do they have any other prospects or is this a one shot deal?  Etc, etc, etc.  The case for investment is, being as charitable and as polite as I can be, not yet made in this thread. 

Do your own research, folks, as otherwise this is a punt not an investment.

Would anyone like to buy shares in this high horse of mine?  As always, my advice is worth exactly what you have paid for it.

Barbles,

You have some valid points and clearly you're a man in the know! however I can answer some of your points:

I agree that ADVFN and III are full of some weird and wonderful posters, some with decent (evidentual posts) but mainly rampers, shortes who really believe by posting rumours can manipulate the share price. I totally agree that you shouldnt listen to any of these and do your own research. Which I have, luckily with close ties to people close to desire plc.

Falklands islands acres are split north and south, one being deep water and one being shallow, Desires main acres are in the shallow end of the islands. Desires first well (liz) is shallow and easily reached.

The cost off hand I dont know (although can be easily found) however, Desire have arranged funding. Arcadia Petroleum have signed a contract to brunt 100% of 1 well for only a 50% share, and 85% of a second well for only a 35% share. This deal was one of the best ever seen in the business for an exploration company. Desire also have funds in the bank and recently diluted shares and offered share options to raise more money. Off the top of my head Desire have enough money in the bank to fund 6 wells of their own (100% owned by Des) plus the arcadia deal which Rockhopper will also chip in for a small %, which they have swapped with desire (7.5% swap I believe).

Since shell up and left Falklands in 1998 (6 wells drilled, 5 oil shows), Desire have spent money after money using the new 3D seismic data available which apparently is the most advanced available and was not available during the last campaign / North sea exploration. The results which can be found on the website, show unbelievable results. These results are what made Arcadia Petroleum get involved with costs of drilling.

All the info anyone needs regarding all this can be found at www.desireplc.co.uk (all data, prospects, news).

just for info, on the last campaign, the share price was approx £1.50 on the day of the first drilling (takes 20 days approx for first results) half way through this campaign, on anticipation, the share price peaked at £4.55 with no news. Investors are anticipating the same type of trend if you believe what the brokers tell you.

Also, another bit of information thats easily found on the net, Colin Phipps (RIP) was sent to the falklands in 1975 by the UK Government to report on possible oil prospects. Dr Phipps reported back to the home secretary that in his opinion Falklands Islands were sat on massive oil wells. When the UK went to war with Argentina, Dr Phipps was in the war cabinet advising Margaret Thatcher on this information....if you have ever wondered why the UK fought a bloody battle over tiny islands 8000 miles away, maybe there is your answer.

Good luck to anyone who has brought in, next few months are very interesting. Rig arrives on site on 14th Feb with drilling to commence within 48 hrs.

Hope this helps.

Hi

I was just wanting to ask a Question to people that have bought shares before.


I know you can just go to my HSBC store and ask to buy shares.
The price of the shares are only an indication price for that day.
She said to me that the excution date will be 4th Feburary.
Does that mean I will get x amount of shares at "Best price" on the 4th of Feburary or the best price up to 4th of Feb?

Hi, I have an online HSBC investment account, when I purchase shares on that, they are executed within the next 15 minutes. So whatever the price is at the second of execution is the price I pay.


I know people who have gone in and purchased over the counter and get a price based within the next hour or so, I've never heard that you purchase them and they dont execute til 4th Feb. Thats ridiculous! Imagine if in the meantime the company goes bust....it doesnt add up.

I would phone HSBC and check this out as it doesnt seem right, if this is their way of doing it, I would go somewhere else. You need to know what you are buying at what price. The share price by 4th Feb is anticipated to be a lot higher than it is at the minute, even by end of next week it is expected to be 130p - 140p.

Let me know what they say, I cant believe this is correct.

Note worth a read from Seymour pearce today

Desire Petroleum 3,4,5 (BUY) - Drilling update
DES.L (118.75p) Market cap: £378.4m
Desire anticipates spudding the maiden well in its Falklands drilling campaign around the middle of February. There are ten undrilled high graded prospects on Desire's acreage in the North Falklands Basin and these have, at the P50 level, a total net unrisked prospective resource potential (taking no account of prospect dependencies) of just over 2.0 billion barrels of oil. Of these ten prospects, whilst the drilling schedule will be flexible based on well results, Liz is likely to be the first to be probed. Net to Desire, Liz has an unrisked P50 resource potential of 260 million barrels. To put this in context, based on the NPV calculations in the economic assessment work done by the independent expert, if the resource was to be converted to reserves (success case) we estimate that it would be worth the equivalent of 675 pence per share. Liz partly overlies the Beth prospect and can be accessed by the Liz well. Depending on the Liz results, Desire will decide whether or not to drill an appraisal on Liz or to deepen the well to test Beth. To put Beth in context, the prospect has a net unrisked resource potential of 166 million barrels. Using the same factors as in our estimate for Liz, on a success basis, we estimate that Beth is worth the equivalent of 430 pence per share.

Alan Sinclair | Oil & Gas Research | 020 7107 8094 | alansinclair@seymourpierce.com

advfn.com is a great site for shares, rumours, sharing information etc, I just know for DES specifically III.com seems to be good and ADVFN gets the iii posts.

Going back to the drilling campaign of 98, if my memory serves me correct, they drilled 4 wells and oil showed in 3. Problem was, they were not certain of how much was there and oil was $10 a barrel so it was not worth them carrying on. Falklands is 8,000 miles away, not likely they will create an oil pipe along the sea bed for this one!!

ok, so...shell sold off their acres and desire picked them up. Dr Colin Phipps (Phipps & Co - who basically own DESIRE PLC) was convinced at the reports and made it his life to get this oil out of the groun. Unfortunately he passed away with cancere last year after they signed an oil rig to send down there to get it.

In the meantime, since 98. desire have contracted a company with up to date equipment for seismic reports which have come along way, to send over the falkands waters to get more detailed information on oil in the falklands. These reports come back with unbelievable results (all online at the desire website). These results were shown to Arcadia (massive oil company with rigs, tankers the works ) and they agreed to fund 1 well 100% costs for 50% share, and a 2nd well 85% costs for 35% share. (there are 14 wells i believe). This deal was one of the best ever made for oil exploration.

So since these reports, desire have been trying to organise a rig to send down, at £300,000 a day doesnt come cheap when it takes 76 days to get there - and daily rates start from the minute it leaves. The rig market was at its worst. Due to oil hitting $150 per b, all rigs were taken on contracts. So its taken 5/6 years to tie a rig down. This is now almost there (due mid feb), and now its the risk 1/4 i belive to get it out, however on one ell (possibly the gas ne) they are sure its 50/50. If the oil comees out price....anyting up and over of £20..!!

Also mneant to say, check out the forum for really good info

http://www.iii.co.uk/investment/detail?code=cotn:DES.L&display=discussion&it=le

look out for a poster called JPDM, Gallileo1 - these two get the info spot on 99% of time

So as a complete beginner how would one go about purchasing some of these shares?

I had to set-up a share dealing account with my bank account took a few days before I could transfer the money in. Then once done you have a search option you type in the code for the company you want to buy in this case the code would be DES then you can trade at certain times in the day buy or sell for example. I think Dr Quinn might be able to explain better than me though.

I personally did mine through HSBC, there are a couple of options, walk into a bank,give the name DES and purchase what you want cash, they will then send youa  share certificate adn you trade via a broker (they give you the details). You can set up an online account with your own bank and transact through that or you can register with an oline company such as www.iii.com and do it through there

Share price fell last year for a couple of reasons, The market crash, no rig deal (one kept being promised but kept falling through), and the simple fact the companys assests were purely cash in the bank...!

however, they signed a deal with a major oil company (arcadia) to pay for 2 out of the 13 wells (1st 85% for 35 % share on 1 well and 100% costs for 50% share) then they signed a rig contract with diamond offshore drilling, to take the Ocean Guardian 8k miles down to the falklands ata price of approx 300k per day (and takes 3 months to get there), they are not paying that money for nothing, Arcadia arent paying 100% for 50% for nothing! (on just one of the wells).

Yes its risky, any oil exploration is, however, its a calculated risk if you trade well!!

I can agree with Cottonbud, I brought in Desire initially 5 years ago at 45p, again at 32p and alot more at 19p, i did buy some at 93p to top up, however just took up my share option at 70p which I will find out what I get tomorrow. Another 31% hopefully at 70p with price currently about 112p.

Also worth looking at company CNE for a comparrison, they were 45p few years back and now £30+ ...Desire is alot bigger!!

Great buy, potential for huge gains, also worth taking a look at this forum for more information http://www.iii.co.uk/investment/detail?code=cotn:DES.L&display=discussion&it=le

good luck anyone investing!!

Three way deal in the £300. £6250 each and play for £2k

That will pay for a new Tyre for Cottonbuds 911, well played fellas!!  anychance of having the spare 2k?

Cottonbud just hit Quads on Final table of £300, can you ask him where is his tasch he was sporting in Blackpool GUKPT ?? it has hero status back here in swindon

Sorry didnt realise Adam Collins was out 25th!! well played Adam!!,

we post a link to this page on our KC POKER CLUB facebook group!! the club is watching you Blonde Poker!!!

Good luck to Cottonbud in the £300 and Adam Collins in the main event, both KC Poker club members from swindon!!! done the club proud again lads, good luck.

Any pics of Adam or James if possible??? cheers!!

great updates as usual

13 left in the 300. Cos, cf, Cottonbud all going strong

Come on Cottonbud!! great year for him, nice wins, nice new wheels (Porche 911), nice new mrs (just as nice as the 911)

Any news on James Williams in the £300? cheers guys