Gaelic Resources, an Irish registered exploration company, is having merger discussions with Desire Petroleum, a British company with a listing on the Alternative Investment Market in London. A brief joint statement said a merger would be effected on the basis of one Desire share for every 18 Gaelic shares, and a further statement would be made as soon as discussions were concluded or terminated.

Desire took a 4.58 per cent stake in Gaelic in March for £550,000 sterling. These funds were raised to meet Gaelic's expenses at its Aljubarrota No 2 gas well in Portugal. Gaelic has a 25 per cent shareholding in the well.