Stat of the day: 50%

The amount of value Desire Petroleum's shares have lost after its oil 'discovery' turned out to be water.

by Elizabeth Anderson
Last Updated: 09 Oct 2013
There’ll be some red faces at Desire Petroleum this morning, after the oil company admitted a new well it had ‘discovered’ in the north of the Falkland Islands turned out to in fact be, er, water.  

Desire raised the hopes of thousands of investors when it reported last Thursday that it had struck oil on its Rachel North well in the north of the Falklands during a preliminary test. The news saw share prices rocket by 24%. But since the embarrassing revelations that ‘the mobile fluid is water,’ they've lost almost half their value.

Some investors are now calling for an investigation into why the company announced the revelation before being sure. Meanwhile, Desire hasn’t given up hope that, after years of searching, it might still strike lucky in the Islands. It's now moved on to another prospect in the south of the Falklands basin, but will probably think twice before hurrying to release the news if it finds something. Once bitten, etc etc...

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