DESIRE Petroleum, the UK-listed oil and gas explorer which is 100% focused on the North Falkland Basin, said yesterday it had conditionally placed 60million shares at 70p each to raise £42million before expenses.
The funds will be used to pursue Desire’s planned exploration drilling campaign in the South Atlantic, for which Diamond Offshore Drilling’s Ocean Guardian rig has already been signed up.
Desire also said it intended to invite qualifying shareholders to participate in an open offer which was anticipated to raise up to a further £20million at the same issue price as the placing. These funds will also be spent on exploration and possibly appraisal drilling.
Desire chairman Stephen Phipps said: “Having secured a suitable rig on excellent terms, we will be able to maximise the use of the rig to both drill and hopefully test a number of plays in the North Falkland Basin. The response from institutional shareholders to the placing has demonstrated the enormous potential of our assets in the area. I look forward to announcing the launch of the proposed open offer soon.”