Falklands oil

[TimberWolf]

Prospects not looking good: Falklands oil unviable - Desire Petroleum

LONDON (Reuters) - Oil explorer Desire Petroleum (DES.L) will report that oil discovered in test drilling off the Falkland Islands is not commercially viable, The Sunday Times reported, citing industry sources.

The newspaper said Desire was expected to say that while it had found oil, there was not enough to justify developing the field.

[Moscow Mule]

-£450 today.

That said:

1) It's the first well of 5 (for Desire)
2) This isn't the full report on the well - it might still be viable
3) Full results of this well out later in week

So, I used this as a buying opportunity (it dropped close to 65% on opening - it's now down about 50%).

[threaded]

Just wait a few years, as prices rise, it'll become viable...

[Moscow Mule]

Just wait a few years, as prices rise, it'll become viable...

Yup.

Shell said the same when they first had a go - viable at $40 a barrel. What's the price now?

[TimberWolf]

-£450 today.

That said:

1) It's the first well of 5 (for Desire)
2) This isn't the full report on the well - it might still be viable
3) Full results of this well out later in week

So, I used this as a buying opportunity (it dropped close to 65% on opening - it's now down about 50%).

Yeah, with a drop of that magnitude, it's almost worth a punt. It's still too much of a gamble for my taste though.

[Andy2]

Sold at 50% loss
Never ever will touch the AIM shares again.

[Moscow Mule]

Sold at 50% loss
Never ever will touch the AIM shares again.

Well, I've not spent the mortgage money, but I've got a fair whack in spread bets open (maximum loss is close to £2k). I'm going to wait it out.

It seems you and lots of others like you have sold at the first sign of bad news. If that's your strategy then good luck to you, but I think there's more to come from these shares yet, so I offer my thanks for driving the price down today.

[TykeMerc]

Oil exploration shares and investments have always been very much at the casino gambling end of capitalism, anyone who doesn't realise that is in for a nasty shock.

Never invest money in that sort of thing that you can't afford to lose completely.

[Moscow Mule]

Oil exploration shares and investments have always been very much at the casino gambling end of capitalism, anyone who doesn't realise that is in for a nasty shock.

Never invest money in that sort of thing that you can't afford to lose completely.

Yup, it's definitely all or nothing.

Edit: Doh I wasn't finished. I was going to say...

Been reading the boards a bit today (but not much as they would annoy me) and some folk have got upwards of £30k invested as a private individual. That seems like madness to me unless that's part of a £2-300K portfolio.

[Jeebo72]

Well, I've not spent the mortgage money, but I've got a fair whack in spread bets open (maximum loss is close to £2k). I'm going to wait it out.

It seems you and lots of others like you have sold at the first sign of bad news. If that's your strategy then good luck to you, but I think there's more to come from these shares yet, so I offer my thanks for driving the price down today.

I'm not keen on these shares but your attitude is right. Perhaps some of these guys should read "way of the turtle" gives some good insight into the psychology of trading and why people bail too early. And sell too early!