Sheet Ice Thermal Extraction (ICE.A1) Just when Desire Petroleum was almost forgotten, a surprise IPO picked up on the infamous “Monday: The sample is OIL, Wednesday: Sorry, just water” infamous series of reports which pumped, dumped and ultimately drowned the Falklands explorer’ share price.
Apparently their first report was both right and wrong, thanks to some abnormalities in that particular region. The problem, it seems, is the Antarctic and icebergs which calve from the continent.
Sheet Ice Thermal analysis confirmed the original “faulty” oil/water sample as containing ice crystals, setting them on a hunt to confirm an obscure theory. The claim, now, is of icebergs calved from the continent actually containing pockets of oil, the very weight of the ice forcing sub surface oil reserves to leak upward into the ice. As the sheets make their way to the ocean, the pockets of oil become sealed, often sinking with the iceberg when it reaches warmer, less dense, waters in the Atlantic. They contend this resulted in Desire Petroleum “false positive” all these years ago.
The company, already floated in Dubai, aim to raise capital to conduct annual surveys of all icebergs leaving the continent, along with commencing extraction procedures. In addition, their aim is to revisit an old concept, insulating the surface of the ice with the intention of floating the massive fresh water berg to desert areas, finally realising the dream of turning deserts green while extracting crude oil during the passage. Additionally, covering the upper surfaces with Solar Panels will generate sufficient electricity to superheat sections of the ice and produce steam jets, effectively propelling itself at speed northwards.
This, perhaps, explains the excitement from investors through the Dubai exchange and results in a scenario where the forthcoming launch of Sheet Ice Thermal on the London exchange shall prove profitable.
We’re obviously a bit cynical, living in a world with just two types of ice; the clear stuff goes in your whisky, the yellow stuff in a certain relatives whisky.
Our inclination is to play safe, suggesting now above 24 Dirham should bring moves to an initial 33. Secondary, if (when) bettered, is at 49, along with the need to revisit our calculations.
The price needs melt below 15.40 Dirham to melt optimism for the future.
Finally, have a good start to April…