Companies: DES   

Long-time Aim hopeful Desire has reported renewed activity in the Falkland Islands following Talisman Energy's takeover of Lundin Oil and its former Aim-listed subsidiary Sodra Petroleum. Sodra has been conducting a review of north Falklands prospects in which it has stakes and apparently concluded that Desire's majority-owned blocks in the area have better prospects than the ones it operates. It is now examining data from 2 of these blocks, Tranches C and D, prior to deciding whether to pursue an exploration programme in the region. The hope is that drilling will be possible at the end of 2003, especially given renewed exploration activity in south Falklands. This would make securing drilling rigs much easier, and more economic, for any consortium looking to drill in an area the British Geological Survey reckons could hold up to 11bn barrels of oil. Big riches could be made from this one, but at the risk of losing everything. The company made a loss of £350,000 in the 6 months to June and is going to pay its directors in shares from now on to preserve cash. Cash resources stand at just £200,000. Speculative punt for mining fans only.