There’s a lot of emails requesting information on Desire Petroleums present true value post the Ninky well duster. The general consensus from the market is that a 7/8p intrinsic value is still inherent in the stock. However I would suggest that given the amount of data they now hold from the various failed drills down in the Falklands basin that a 10p minimum value is more realistic. After all information even from failures has a value. Exploration Oilers learn from it. The problem Desire have is that they DO NOT have sufficient funds to carry on drilling, the Desire plan is to shoot 3D seismic which hopefully shows oil anomalies thus allowing Desire to tap the market; unless they raise money from the city on the back of good seismic then it’s curtains.
They do still have in excess of $35 million dollars in funds. So although I see much better opportunity elsewhere. There’s 4 choices here for the company. 1/ Carry on. 2/Takeover. 3/Go bust. 4/Change the Board. Take your pick. But a drastic change of fortune is needed.