UK-listed Desire Petroleum saw its shares drop by over 25% in value early Tuesday after the Falklands explorer announced it failed to find oil with its latest exploration well off the South Atlantic islands.
In a statement, Desire said well 25/5-1 on the Dawn/Jacinta prospect found no hydrocarbons after reaching a total depth of 1,697 meters and testing the deeper Dawn prospect with the twin target well.
Desire's shares fell by up to 29% after market open in London and were trading 21% lower at 37.5 p by 1030 GMT to value the company at GBP126.6 million (around $196 million).
The stock lost 30% in value on December 29 after the same exploration well failed to find oil in the shallower Jacinta prospect.
"The implication of the well results for remaining prospectivity in this part of the basin will be assessed once the new data has been integrated and all post-well studies are completed," Desire said in a statement.
The Jacinta prospect, in Desire's 100%-owned Tranche I license, was the company's biggest prospect in the waters around the disputed islands.
Prior to drilling, the company had estimated that Jacinta could hold as much as 1 billion barrels of recoverable oil, but said its chances of success with the well were only 6%.
Desire has failed to find oil with its first two wells in 2010 in the Falklands on the Liz and Rachel prospects.
Fellow UK explorer Rockhopper Petroleum has had more luck, announcing the Sea Lion discovery last year.
--Robert Perkins
In a statement, Desire said well 25/5-1 on the Dawn/Jacinta prospect found no hydrocarbons after reaching a total depth of 1,697 meters and testing the deeper Dawn prospect with the twin target well.
Desire's shares fell by up to 29% after market open in London and were trading 21% lower at 37.5 p by 1030 GMT to value the company at GBP126.6 million (around $196 million).
The stock lost 30% in value on December 29 after the same exploration well failed to find oil in the shallower Jacinta prospect.
"The implication of the well results for remaining prospectivity in this part of the basin will be assessed once the new data has been integrated and all post-well studies are completed," Desire said in a statement.
The Jacinta prospect, in Desire's 100%-owned Tranche I license, was the company's biggest prospect in the waters around the disputed islands.
Prior to drilling, the company had estimated that Jacinta could hold as much as 1 billion barrels of recoverable oil, but said its chances of success with the well were only 6%.
Desire has failed to find oil with its first two wells in 2010 in the Falklands on the Liz and Rachel prospects.
Fellow UK explorer Rockhopper Petroleum has had more luck, announcing the Sea Lion discovery last year.
--Robert Perkins
