Desire Petroleum narrows annual losses

Desire Petroleum narrowed its losses in 2012 as the oil and gas company slashed costs of production.

Desire Petroleum narrowed its losses in 2012 as the oil and gas company slashed costs of production.

The North Falkland focused company saw the loss for the year decreased from $42.5m to $3.8m, mainly due to a drop in exploration and evaluation expenses from $41.7m to $1.8m.

During the period, the group won licence extensions with the Falkland Islands and completed a two-year drilling campaign in the North Falkland basin.

A total of 16 exploration and appraisal wells were drilled which have proved up a hydrocarbon system with a commercial oil discovery at the Sea Lion field where the company has now turned its focus.

The firm's cash resources were reduced to zero following settlement of all outstanding demobilisation liabilities.

"Desire has been active in proving up the exciting hydrocarbon potential in our acreage, firstly, in the Sea Lion area, and secondly over our other acreage which we believe has the best remaining exploration potential in the North Falkland Basin," said Chairman Stephen Phipps.

"On the strength of this extensive prospect inventory, the board took the decision to commence a farm-out process in order to attract further investment into our licences.

"With the next drilling campaign expected to commence in late 2014, a successful farm-out would not only ensure that part of this campaign will be focused on Desire's licences, but also provide an attractive method of funding our ongoing exploration activities."

Shares fell 2.26% to 16.25p at 13:24 Monday.

RD

Recommended

Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022
Share tips of the week – 1 July
Share tips

Share tips of the week – 1 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
1 Jul 2022
Bunzl: boring is good for business
Share tips

Bunzl: boring is good for business

Food-service distribution company Bunzl is not a terribly exciting business, but it looks cheap and could be a great investment, says Rupert Hargreave…
30 Jun 2022
Five dividend stocks to beat inflation
Share tips

Five dividend stocks to beat inflation

During periods of high inflation, dividend stocks tend to do better than the wider market. Here, Rupert Hargreaves pick five dividend stocks for incom…
30 Jun 2022

Most Popular

How to find the best dividend stocks
Income investing

How to find the best dividend stocks

Stocks that pay dividends tend to outperform the market over the long run - as well as providing an income. Here, Rupert Hargreaves explains the best …
28 Jun 2022
Gold has been incredibly boring to own – but that’s no bad thing right now
Gold

Gold has been incredibly boring to own – but that’s no bad thing right now

Stocks, bonds and cryptocurrencies have all seen big falls this year. But gold remains at its one-year average. It may be dull, but it’s doing what it…
29 Jun 2022
What the end of the 1970s bear market can teach today’s investors
Stockmarkets

What the end of the 1970s bear market can teach today’s investors

The 1970s saw the worst bear market Britain has ever seen, with stocks tumbling 70%. Things have changed a lot since then, says Max King. But there ar…
28 Jun 2022