Desire Petroleum falls on disappointing drill news

Desire Petroleum, which recently made the embarrassing admission that it had found water not oil in the Falklands , has suffered a further setback. After drilling 1,313m, it found no hydrocarbons in its well on the Dawn/Jacinta prospect in the Falklands. The news sent the oil and gas explorer's shares down by 21% to 47p this morning. Desire Petrolum said today: Drilling and wireline logging data shows that no hydrocarbons have been found in the Jacinta Prospect. The well will now be drilled to the planned total depth around 1,670 metres to evaluate the deeper Dawn Prospect. Earlier this month, the company thought it had found oil in its Rachel North well in the Falklands, triggering hopes of an oil bonanza in the area. But a week later it admitted that the fluid found was in fact water, not oil.