10 Sep 2009 07:00
| For immediate release | 10 September 2009 |
Desire Petroleum plc
("Desire" or "the Company")
Drilling Rig Contract - Letter of Intent
Desire signs LOI for North Falkland Basin drilling campaign
Desire Petroleum plc (AIM:DES) the exploration company focusing on the North Falkland Basin, is pleased to announce that it has exchanged a letter of intent with Diamond Offshore Drilling (UK) Ltd for the drilling unit the Ocean Guardian to undertake a four well minimum drilling campaign in the North Falkland Basin.
The Ocean Guardian is currently in the North Sea and following a programme of shipyard work will mobilise in November 2009. Projected arrival in Falkland waters is early February 2010. Desire has options to drill a further four wells for itself and or its partners. Further details will be announced post contract completion which is subject to various approvals, including Desire Board, Partner and regulatory approvals.
The Company believes that with a rig becoming active in the North Falkland Basin the Company should endeavour to drill as many wells as possible to test the full potential of this highly prospective area. To this end Desire is investigating with its advisors the best course of action to raise additional funds prior to mobilisation to ensure the area is appraised as widely as possible. It is Desire's intention that shareholders will have the opportunity to participate in the fund raising.
Commenting on the development, Stephen Phipps, Chairman of Desire said:
"The Board of Desire is delighted to be able to report today's news on securing a rig to drill our prospect inventory in the Falkland Islands. Subject to the anticipated timing, we will be commencing activity in early 2010, where we intend to explore as many play types as possible, thus maximising our chances of success."
For further information please contact:
| Desire Petroleum plc | |
| Stephen Phipps, Chairman Ian Duncan, Chief Executive Officer | 020 7436 0423 |
| Seymour Pierce Limited Jonathan Wright Richard Redmayne | 020 7107 8000 |
| Buchanan Communications | 020 7466 5000 |
| Ben Willey Ben Romney |