Falklands and oil

#1
Good thing we had a Navy to reclaim the Falklands in '82!

Desire Petroleum Surges on Oil Discovery in Falkland Well - Bloomberg

Desire Petroleum Surges on Oil Discovery in Falkland Well
By Brian Swint - Dec 2, 2010 8:19 AM GMT

Desire Petroleum Plc, the U.K. explorer focused on the Falkland Islands, surged in London after it said its Rachel North well discovered oil.

Shares rose as much as 51 percent to 160 pence and traded at 140 pence at 8:14 a.m. Earlier this year, Rockhopper Exploration Plc made the first potentially commercial find around the South American islands that U.K. Prime Minister Margaret Thatcher went to war to defend in 1982.

“This discovery, combined with Rockhopper’s Sea Lion discovery, confirms our belief that the eastern flank play fairway in the North Falkland Basin is highly prospective and that further oil fields will be discovered in this area,” Stephen Phipps, chairman of Desire, said in a statement.

Rockhopper shares jumped 10 percent, and Argos Resources Ltd., another Falkland explorer, climbed 24 percent in London trading.

After drilling the Rachel North well to a depth of 3,052 meters (10,000 feet), data indicate that it encountered 57 meters of net pay in multiple zones, Desire said in a statement in London today. The company will now complete logging and sampling to analyze the quality and significance of the discovery, it said.
 

rampant

LE
Kit Reviewer
Book Reviewer
#2

Nice to see the potential in the region is growing, let's hope the fields can be developed efficiently. FI have said, IIRC that a portion of the income will come back to the UK, will government have the sense to use this new found income as seed money for a Sovereign Wealth fund, on the Norwegian model, that can use other resources to supplement it (eg. Windfall Taxes on certain businesses, porportion of tax from other energy production sources etc etc etc etc), instead of being spunked up the wall like the last time. Long term thinking is needed.
 
#3
Good thing we had a PM with Balls at the time, not just a Navy. Would today's wishy-washy ******* have had the balls to take on the Argies?? Bring back Maggie!

Anyway, it was a good team effort at the time.


I'm happy today 'cos I bought Desire shares at 42p!
 
#5
This is very good news. Its the second proper Oil find, although it won't be clear if its commercial for some days. If it is then it will effectively prove the model for the province and so future drilling will be easier and more importantly Westminster will have to wake up.

I don't see this as being big enough for us to be able to set up a sovereign wealth fund in the medium term as we have a national debt to pay down first and also the royalties due to London are apparently not quite as generous as they were for the North Sea.

Hopefully some of this money though will head towards the MOD when it arrives in a few years.
 
#6
I'm happy today 'cos I bought Desire shares at 42p!

I bought 750 for £1.06 and the next month the were worth 36p. So I am also happy, although I would have been a lot happier if I had waited that extra month.
 
#8
Nice to see the potential in the region is growing, let's hope the fields can be developed efficiently. FI have said, IIRC that a portion of the income will come back to the UK, will government have the sense to use this new found income as seed money for a Sovereign Wealth fund, on the Norwegian model, that can use other resources to supplement it (eg. Windfall Taxes on certain businesses, porportion of tax from other energy production sources etc etc etc etc), instead of being spunked up the wall like the last time. Long term thinking is needed.
It's not our oil the revenue will go to the Falklands government and the oil companies.
 
#9
Fatboy69, I do stand to be corrected but I think I read last year that said that the FI Govt had agreed that something like 50% of the Royalties, duties & Tax would automatically go to the UK to pay for the Defence cost, foreign office costs etc and as a dividend to the UK as a thank you for us sticking with them.

Time will tell what really happens.........
 
#10
Fatboy69, I do stand to be corrected but I think I read last year that said that the FI Govt had agreed that something like 50% of the Royalties, duties & Tax would automatically go to the UK to pay for the Defence cost, foreign office costs etc and as a dividend to the UK as a thank you for us sticking with them.

Time will tell what really happens.........
I wasn't aware of that, but I hope that's the case.
 
#11
Fatboy69, I do stand to be corrected but I think I read last year that said that the FI Govt had agreed that something like 50% of the Royalties, duties & Tax would automatically go to the UK to pay for the Defence cost, foreign office costs etc and as a dividend to the UK as a thank you for us sticking with them.

Time will tell what really happens.........
It doesn't matter what "FI Gov" agree about specific taxes levied on extraction that's small fry, there's the little issue of Corporation Tax, Mr Osborne will be rubbing his hands together regardless. Unless of course Argentina continue to make it difficult to land the oil in which case profits will fall significantly and Mr Osborne will be kicking himself for not coming to a mutual agreement with the Argentinian Govt..................
 

rampant

LE
Kit Reviewer
Book Reviewer
#12
It's not our oil the revenue will go to the Falklands government and the oil companies.
Yes it is their oil, well done for noticing, I believe the FI Govt have said they are prepared to give a portion of the revenue from the oil to the UK Govt.
 
#13
I read only yesterday that desire petroleum was disappointed with their finds, since then their shares have plummeted. And actually I think Cameron would quite happily defend the Falklands, he seems quite stubborn and historically Conservatives are more interested in economic growth than workers rights.
 
#14
I read only yesterday that desire petroleum was disappointed with their finds, since then their shares have plummeted.
At the moment, they are £1.31
 
#15
Actually I have to be honest...I nearly bought loads when it was 93p, then I was relieved because it went down to around 44p!! Had I had purchased them then....I would have made a tidy profit by now, but then what do I know about the stock market, it mostly seems a gamble.
 
#16
Actually I have to be honest...I nearly bought loads when it was 93p, then I was relieved because it went down to around 44p!! Had I had purchased them then....I would have made a tidy profit by now, but then what do I know about the stock market, it mostly seems a gamble.
Without a doubt for the “ Private Investor “ it can well be the luck of the draw … even if you research a Company . Oil Company Share prices can be really volatile , no pun intended . I bought shares in Tullow Oil just over 5 years at about £2 per share … they are currently at about £11.50 but have lost about £1.50 in the past couple of weeks . I have always looked to the long term for investments .
If I am honest after I read andy632’s OP I did start to monitor Desire Petroleum price and was tempted but have not purchased any shares …. yet
As I said on another thread I am still researching investment in Rare Earth Mining Companies where I think there is also the chance of a good return .
 
#17
Without a doubt for the “ Private Investor “ it can well be the luck of the draw … even if you research a Company . Oil Company Share prices can be really volatile , no pun intended . I bought shares in Tullow Oil just over 5 years at about £2 per share … they are currently at about £11.50 but have lost about £1.50 in the past couple of weeks . I have always looked to the long term for investments .
If I am honest after I read andy632’s OP I did start to monitor Desire Petroleum price and was tempted but have not purchased any shares …. yet
As I said on another thread I am still researching investment in Rare Earth Mining Companies where I think there is also the chance of a good return .
I am led to believe that Black Angel is looking very promissing-

Angel Mining - Welcome

With the caveat that I'm a van driver on minimum wage sowhat would I know...
 

Grumblegrunt

LE
Book Reviewer
#18
it will be interesting to see what happens with the revenue as the FI could do a dubai and buy up half of kensington and chelsea or even a load of argentine assets so they could threaten to ruin the country if they try it on again.

the FI all ready do rather well with 28 million in fishery revenues and duty on millions of tinnies for mpa. if they are smart then they will take their time, build a refinery and sell value added products to the world, utilising waste gas for agricultural hot houses so the world can enjoy the falklands banana!

there was a report that if they had the people they could process their own fish and squid and make 280 million a year with little effort but it was the infrastructure regards heat and power which held it back - guess thats not so hard now.
 
#19
I am led to believe that Black Angel is looking very promissing-

Angel Mining - Welcome

With the caveat that I'm a van driver on minimum wage sowhat would I know...
Probably infinitely more knowledge than those who have been running , or rather ruining , our Banks ove rthe past few years .
 
#20
While things are looking better for the Falklands explorers, they do still very much appear to be a punt and anyone contemplating buying shares should only put in as much as they could afford to lose as while some of the prospects may be commercial, it is not yet certain. An acquaintance, an experienced investor, whom is in an out of the Falklands Oilies on a weekly basis lost about £50k earlier this week when the price unexpectedly collapsed just prior to the announcementof the find. He sold, when he should have stuck and its this sort of instability that is a regular problem that occurs with shares in the AIM market. For those whom have balls of steel then its the place to play.
 

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