Results of Open Offer

10 Mar 2005 07:00

Desire Petroleum PLC10 March 2005 Desire Petroleum plc ("Desire" or "the Company") Results of the Open Offer On 14 February 2005 the Board of Desire announced the terms of a placing of35,555,556 new ordinary shares of 1p each in the Company ("New Ordinary Shares")at 45p per share and an open offer of up to 20,335,100 New Ordinary Shares at45p per share, on the basis of 1 New Ordinary Share for every 8 existingordinary shares of 1p each in the Company ("Existing Ordinary Shares"), to raisein aggregate up to approximately £24.4 million (after expenses). The Board ofDesire is pleased to announce that the open offer has been significantlyover-subscribed. The Directors intend that the net proceeds of the placing and the open offerwill enable the Company to conduct a three-well exploration drilling programmeon Tranches C and D in the North Falkland Basin. The Board of the Company is pleased to announce that by 3.00 p.m. on 8 March2005, being the latest time and date for receipt of application forms andpayment in full under the open offer, in excess of 20,335,100 New OrdinaryShares offered via the open offer had been applied for. Shareholders will beadvised by the Company's registrars of their allocation of New Ordinary Shareswithin the next 7 days. All existing shareholders of the Company who applied forNew Ordinary Shares under the open offer will receive their basic entitlement toNew Ordinary Shares, which is 1 New Ordinary Share for every 8 Existing OrdinaryShares held at the relevant date. However, where existing shareholders appliedfor excess New Ordinary Shares under the open offer using the excess applicationfacility, the applicant will receive approximately 38.7 per cent. of the excessapplied for. A further 35,555,556 New Ordinary Shares have been subscribed for by investorsunder the placing. Accordingly, subject to the passing of the resolutions proposed at the Company'sextraordinary general meeting to be held at 10.00 a.m. today, a total of55,890,656 New Ordinary Shares are to be issued under the placing and the openoffer which, at the issue price of 45p per share, amounts to approximately£25.15 million before expenses. Application has been made for a total of 55,890,656 New Ordinary Shares to beadmitted to trading on the AIM market of the London Stock Exchange plc. Dealings in the New Ordinary Shares are expected to commence at 8.00 a.m. on 11March 2005. This information is provided by RNS The company news service from the London Stock Exchange