24 Sep 2010 15:47
For immediate release 24 September 2010
Desire Petroleum plc
Placing of 16,294,600 new ordinary shares at 140 pence each to raise £22.8 million
Highlights
·; Desire to raise £22.8 million through a placing of new shares at 140 pence each
·; Placing proceeds will be used to acquire and process further 3D seismic over the Desire acreage
·; Ocean Guardian rig due to revert to Desire imminently to drill Rachel prospect
Desire Petroleum Plc (AIM:DES), the exploration company focussing on the North Falkland Basin ("NFB"), is pleased to announce the successful placing of 16,294,600 shares at 140 pence each to raise £22.8 million before expenses. The new shares have been placed by Seymour Pierce with a range of new and existing institutional and other investors.
These funds will be predominantly used to acquire and process further 3D seismic over the Desire acreage on the east flank of the NFB in Tranches D and F. Following the Sea Lion oil discovery by Rockhopper Exploration plc ("Rockhopper"), Desire has concentrated on identifying prospects in the same play type as Sea Lion and has outlined a fan sandstone play fairway in the eastern flank. These fan sandstones can only be fully identified on 3D data and currently Desire has 3D coverage over only half of this fairway on its acreage. Desire believes that it is essential that it acquires and processes new 3D seismic data as quickly as possible in order to fully understand the potential of this play.
Tenders for a 3D seismic survey have been received and Desire intends to award a contract for the acquisition and processing of the survey in the near future. In addition, discussions are underway with other NFB oil operators regarding a joint seismic program that could go some way to mitigate the significant cost of the mobilisation/demobilisation of a seismic vessel to Falkland waters. The Board of Desire currently expects that the seismic programme will begin in December 2010.
Now that Rockhopper has concluded the successful flow test on the Sea Lion discovery, the Ocean Guardian drilling rig will revert to Desire to drill a number of its prospects. The first to be drilled will be the Rachel prospect and a further announcement will be made once the well has been spudded.
For further information please contact:
| Desire Petroleum plc | 020 7436 0423 |
| Stephen Phipps, Chairman |
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| Dr Ian Duncan, Chief Executive Officer |
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| Seymour Pierce Limited | 020 7107 8000 |
| Corporate Finance, Jonathan Wright / Stewart Dickson |
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| Corporate broking, Richard Redmayne / Paul Jewell |
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| Buchanan Communications | 020 7466 5000 |
| Ben Romney Tim Thompson |
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