Stocks and Shares Tips

[Cottonbud]

(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.

Nice post good research too. I guess we will just have to wait and see.

[jack2off]

(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.

[Josedinho]

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?

[jack2off]

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!!!

[Cottonbud]

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?

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

Amen

[rossfourfive]

Whats the latest on this? SP had a rough week.

Assuming drilling success, how long are you going to have to hold to realise a decent return?

[jack2off]

Whats the latest on this? SP had a rough week.

Assuming drilling success, how long are you going to have to hold to realise a decent return?

Stock Market has been battered, oil price per barrell is down $10, so all oil shares down. The latest is that the rig arrives in approx 6 days (if on schedule), drilling will commence within 72 hours (very very latest), approx 20 days after drilling some news should start either leaking or come from company regards to results on the drill.

Ive held for over 5 years, I brought in very low, share price today £1.01....if they strike first well you're looking at 5-8 x this price minumum...with 13 other wells to drill...£20 end of year is what is speculated...if the company strikes and is brought out....so....lets say....a month for short term profit....6-8 months for massive profit (if all the results are favourable)!!

[nirvana]

There was an article in the Times on Sunday about the 4 main companies competing in that area. Mildly interesting but not very depthful

[Woodsey]

See the news fellas? Argentina not happy..........

[titaniumbean]

See the news fellas? Argentina not happy..........

Yeah them banning ships going through their water must mean they pissed about what they gonna find

[gatso]

sell quick if they hit oil. the shares will be worth a lot less when the company's drilling in a warzone

[titaniumbean]

http://news.bbc.co.uk/1/hi/business/8519807.stm

[Cottonbud]

Get there Oil!!!

[StuartHopkin]

Anyone know anything more upto date?

I gleefully bought a pile of these shares so I could bathe in their oily goodness and today they are lower than ever!

[outragous76]

Anyone know anything more upto date?

I gleefully bought a pile of these shares so I could bathe in their oily goodness and today they are lower than ever!

buy more obv :0)