Falklands : Desire Shares Soar as Farm-in Agreement is Announced
Submitted by Falkland Islands News Network (Juanita Brock) 25.02.2008 (Article Archived on 10.03.2008)

Desire Petroleum has a farm-in agreement that will lead to exploratory drilling in the North Falkland Basin.

DESIRE SHARES SOAR AS FARM-IN AGREEMENT IS ANNOUNCED

By J. Brock (FINN)

At 0730hrs UK tome today the Board of Desire Petroleum plc requested a temporary suspension of trading in the 

Company's shares on Alternative Investment Market. This suspension had been made pending an 

announcement later today at 1530hrs UK time when a farm-in agreement was announced.  The Company

 press release reads:

“The Board of Desire Petroleum plc is pleased to announce that it has accepted the terms of 

an offer from a significant party to farm-in to three of the eighteen exploration prospects 

identified by Desire in the North Falkland Basin and currently carried in the Company's 

prospect inventory.

The farm-in remains subject to certain awards and approvals by the Falkland Islands Government

 which are being applied for and a further announcement, including the final terms of the 

farm-in, will be made once the necessary awards and approvals are in place.

If successfully approved, the farm-in will involve the drilling of two exploration wells, 

including the mobilization and demobilization costs associated with the two wells, at no 

cost to Desire.

At current rig rates, in addition to the two wells above, Desire has sufficient resources to 

be able to drill two wells for its own account in the North Falkland Basin. Thus, in 

combination with the two-well commitment entered into by BHP Billiton south of the Falkland 

Islands, there is now the potential to hire a rig for a minimum six-well drilling programme, 

thus defraying mobilization/demobilization costs for all parties. Desire continues its 

efforts to hire a suitable rig in partnership with all of the other companies involved in 

Falklands exploration.

Given the size of Desire's exploration inventory, the Company may seek other farm-in partners 

for other prospects, in addition to any wells drilled for its own account, and further 

discussions, which may lead to additional farm-ins, are under consideration.”

For further information please contact:

Desire Petroleum plc 020 7436 0423

Dr Ian Duncan, Chief Executive Officer

Stephen Phipps, Non-executive Director

Seymour Pierce

Jonathan Wright 020 7107 8000

Buchanan Communications 020 7466 5000

Ben Willey

Ben Romney

This article is the Property and Copyright of Falkland Islands News Network.