Desire Petroleum Share Discussion Threads

[eburne1960] 04/10/2013 06:05

Hello, Chris, oops sorry, Overvalued Companies! The old gang is back again. I'm in Boston USA at the moment, in rather better than a Travelodge! Mind you FKL have been a bit weak lately, surely a buying opportunity?

Yes, had to rub my eyes when I saw the RNS. Why didn't PMO or RKH buy DES and be done with it? The terms look odd as well considering DES was surely desperate for a deal, though perhaps we ought to wait for the document for the fine print.

[ghostofahangman] 03/10/2013 21:32

Yes can't really get my head round this deal, does not say much for the gassy south basin, if cash rich FOGL, has to come crawling to idiot daddy's boy Phipps no get a bit of north basin action, it was only 18 months ago we where being told that the south basin could contain up to 40 billion barrels because of CSEM surveys, what did they end up with, a gas field the size of greater London, great if you just happen to be located in the North Sea or the east coast of Africa, but as useful as a chocolate teapot in the Falklands, a great deal for desire as they will get more drills and no doubt for Phipps when he sells up and puts another 6 million plus in his bank, great for the shareholders as there is at least another 5 drills for them to hang round on ADVFN multiping their money by 100 ,200 times on every drill and end up losing 80percent of money invested. Arrr great times await, Rodney, this time next year.....

[agnabeya] 03/10/2013 19:20

What does the Falklands rejig mean for your holdings?
By Esther Armstrong | Thu, 3rd October 2013 - 16:59
What does the Falklands re-jig mean for your holdings?

After what one analyst described as "a long time out of the limelight", gas and oil prospects off the Falkland Islands have been thrust centre stage, with four of the region's main players presenting investors with plans to progress an enhanced drilling campaign in 2014/15.

The leader of the pack is Falkland Oil & Gas (FOGL), which has recommended shareholders approve what is essentially a takeover of Desire Petroleum (DES).

On the condition the Desire deal goes through, FOGL also has agreements in place to farm-out two licences Desire has until now had majority interests in to Rockhopper Exploration (RKH) and Premier Oil (PMO). Both the licences are in the North Falkland Basin and beside the successful Sea Lion development.

The deal would give Desire shareholders nearly two thirds of a FOGL share for each share they currently hold in Desire and, based on Wednesday's close, valued Desire at 17.6p per share - a 45% premium to its previous close.

Unsurprisingly, Desire investors were largely on board with the idea, particularly after the share price shot up 30% in response.

Over on the Interactive Investor discussion boards, 'marlonmonkey' says: "On the face of it this is a good deal for DES, FOGL and RKH. They all get the thing they didn't have without giving too much away. DES had no cash, lots of exploration upside and poor management. FOGL had lots of cash, significant exploration upside but no safety net. Rockhopper had limited exploration upside and now they have a share."

'Shiftynifty', adds: "I was hoping for a complete buyout, but this is the next best thing. Combining resources to carry on exploring, it could have been worse. I'm not heartbroken the DES board of directors won't have any effective input now [either]."

Analysts at Mirabaud were in agreement: "In our view, DES shareholders should be particularly pleased with the terms of the merger which leaves them owning a chunky 40% of the combined entity and, together with the farm-in, represents a neat solution to their lack of drilling funds."

For FOGL investors, there was much less immediate excitement and many were questioning the value of Desire's shares.

'Oliwealth' sums up what many FOGL shareholders felt: "DES is much better off on this deal. This deal has saved DES and we should have got it for half the price because DES was desperate.

'Sheffieldsteeler' was in agreement: "On the surface, at least, this is a bad deal for FOGL as DES needs FOGL more than FOGL needs DES. The market is tending to agree, but up until now the FOGL management have performed far better than the management of Rockhopper and DES combined so I am hoping that once the full details come out, it will begin to look a better deal for FOGL than on first perusal."

While the price FOGL is willing to pay for Desire has been under much scrutiny, most parties concerned believed the consolidation of efforts in the region was a positive step to finding reserves.

Once the merger and farm-out transactions are completed there will be a five-well drilling campaign with two wells in the South Falkland Basin and three in the North Falkland Basin.

Analysts at VSA Capital Research said the transactions would remove a huge amount of uncertainty in terms of future drilling. "Instead of having a group of companies seeking their own funding the new combined entity is a much stronger platform to drive exploration in the region going forward," VSA Capital adds.

Looking outside the four parties immediately involved, fellow Falklands-focused firm Borders & Southern Petroleum (BOR) was benefiting from the activity in the sector, and was up 4.5% for the day.

Malcolm Graham-Wood, oil and gas analyst, says: "People think Border will be next, so it has reignited interest in the area."

This is certainly what was on Border shareholder 'Constable B's' mind: "My money is on a Premier Oil farm-in just to add to the Falkland Islands in-breeding programme."

Following these most recent developments, the news flow from the Falklands will likely be under far greater scrutiny over the coming weeks and months.

If the consolidation is successfully passed, investors will expect a concerted exploration effort next year with a view to seeing some production in the region by 2015.

FOGL said the next drilling campaign is expected to be fully funded from existing cash and various farm outs.

Interactive Investor user 'Grewber' on the FOGL discussion board praised the firm's savvy: "Again FOGL demonstrate they are the shrewdest deal makers in the Falklands exploration game. One way or another FOGL will now have oil."

The truth of this remains to be seen, but by taking action FOGL will hope the odds are stacked in its favour.

[agnabeya] 03/10/2013 14:37

JLT - yep - that cap fits. :)

I see that by the end of the year - despite DES remaining as a Private company - us DES holders will become FOGL holders.
I'm presuming that the DES BOD will still receive their share of anything FOGL finds. I wonder how the IIs will feel about that? Relieved, probably.

[undervalued companies] 03/10/2013 14:34

MR H looks like Truly S is screwed in fogl, trp, new, emed dear o dear o dear emailing from the travelodge i rather think Mr E is making vasts amount of income via falkland holdings to afford better.

[just like that] 03/10/2013 14:17

Okay, in future I shall refer to "UC" by his intials only... (Useless C...) ;-)

[agnabeya] 03/10/2013 13:33

HI Truly - long time.
I've filtered too - but take heart that when the Loonies arrive to deramp - it's always been good for DES.

I'm confused by some posters referring to this a sale of DES to Fogl - I don't see it that way. What are your thoughts?
I see it as FOGL have the CON - but will operate in the interests of themselves and their partner. DES will still exist - albeit as a Private company according to the presentation. SO I still hold DES shares. The difference is their value has been tied to FOGLs.

[trulyscrumptious] 03/10/2013 13:17

Oh dear, oh dear, oh dear, Chris Oil, aka Fakelands has now become undervalued, haha, haha, once a sore loser, always a sore loser, eh Chris. Filtered the pair of muppets.

[agnabeya] 03/10/2013 13:07

Sheesh - we're back to these days again - pages of filtered blabbering.




Undervalued Companies
3 Oct'13 - 12:16 - 46084 of 46087 0 0 (Filtered)

Undervalued Companies
3 Oct'13 - 12:19 - 46085 of 46087 0 0 (Filtered)

GhostofaHangman
3 Oct'13 - 12:31 - 46086 of 46087 0 0 (Filtered)

GhostofaHangman
3 Oct'13 - 12:33 - 46087 of 46087 0 0 (Filtered)

[ghostofahangman] 03/10/2013 12:33

Mr e is on his holidays, not sure they have wifi in his Travellodge so he won't know the news here, where is Truely gone ?

[ghostofahangman] 03/10/2013 12:31

Roll on next year, when the ring arrives and we can have another good laugh

[undervalued companies] 03/10/2013 12:16

ps where the hell has mr E gone ?

I hope he at least is doing well out of your mess.

[agnabeya] 03/10/2013 12:14

JLT - I won't bother unfiltering him to see what he's dribbling about - probably some high level meeting at another building site...:D LOL

[just like that] 03/10/2013 12:13

...at least they (he) seems to know who I'm referring to Agna! "If the cap fits...", as they say... ;-)

[agnabeya] 03/10/2013 12:04

JLT -
I wondered if that was the Savoy Cabbage and his smelly little pal.
Isn't the filter function bliss? :)
Monthy Python - what DON'T they know about the meaning of life?

[just like that] 03/10/2013 11:58

Ay up, the loonies are back... that's always a good sign!

[undervalued companies] 03/10/2013 11:41

looking at the deal you may do well mr h flipping wait till rkh for me post tax worries in 2014 when the muppets have all done a panic and sold.

[ghostofahangman] 03/10/2013 11:28

Morning Chris, this mob are moving up in the world, gone from 12p muppets to 16p muppets far better deal for the Des holders then fogl

[undervalued companies] 03/10/2013 11:19

Morning mr H long time no hear !

Old mathon court jazz parties to come and rumour is they put the idiots loot into buy to lets in banbury and bunglows in colwall.

[agnabeya] 03/10/2013 11:16

OK -
The way I see it -

Fogl and Des have merged into one company sharing the combined value of both 60/40.

DES are now the silent partners - and the BOD of DES will simply let Fogl make the decisions, and Des will take whatever profits come their way.
As Des shareholders - it's the same for us.

If Fogl rise - we will rise.
If Fogl fall - we will fall.

Fogl get 60% of anything Des find-
and Des get 40% of anything Fogl find.

I was hoping for a complete buyout - but this is the next best thing.
Combining resources to carry on exploring.
It could have been worse.

I'm not heartbroken that the Des BOD won't have any effective input now.

Have I got the basics of this combination thing right?