Farm-In Option

RNS Number:6780V
CDS Oil & Gas Group PLC
30 April 2007



                            CDS Oil & Gas Group plc
                                        


                           CDS AGREES FARM-IN OPTION


LONDON, England: 30 April 2007 - CDS Oil & Gas Group plc ("CDS"), the
AIM-listed oil and gas explorer (CDS.L), is pleased to report that a farm-in
option has been agreed with Black Rock Oil & Gas plc (BLR.L) whereby Black Rock
has the option to farm-in down to the Carboniferous in the 800,000 hectares
Boqueron Concession located in north-west Paraguay.

Under the terms of the agreement Black Rock has a 100 day option period in which
to acquire a 20% interest in hydrocarbons occurring down to and including the
Carboniferous. The consideration for this acquisition will be a combination of a
cash sum to reimburse past costs and 40% of the costs of a 2-D seismic
programme. Should Black Rock fail to exercise the option a break fee of $50000
will be payable. CDS has the option to terminate this option in the event that
there is a change in control of the company or in the event that a third party
agrees to farm-in for a percentage greater than 30% over the same target
formation.

John Bentley, Chairman of CDS stated: "We are pleased that Black Rock has
decided to participate with us in the continued exploration of the Paraguayan
properties. This participation by an industry partner confirms our confidence in
the potential for these properties."


ENDS


Enquiries to:


Simon Rothschild
Bankside Consultants Ltd.             Tel: + (44) 20 7376 8871 (office)
                                           + 44 (0) 7703 167 065 (cell)



Note to Editors



The Boqueron Concession

As announced by CDS on 20 November 2006, CDS commissioned a study in September
2006 of the Emilia oil prospect from CAS International LLC (Collarini) of
Houston, Texas (the "CPR") to evaluate the extent of the Emilia target and its
resource potential. As set out in that announcement, the CPR estimates that the
mid-case resource potential in the 142 hectares area of the Emilia prospect is
27.2 million barrels of original oil in place, of which 6.4 million barrels are
thought to be recoverable.  There are several other Emilia analogs on the
Boqueron Concession. The key technical and financial assumptions of the report
for the 143 hectares Emilia Well area on the Boqueron Block is available in the
CDS announcement of 20 November 2006.

This information regarding the Boqueron Concession is derived from the
announcement made by CDS on 20 November 2006 and was reviewed for CDS by Steven
L. Veal. Mr Veal is a petroleum geologist with more than 26 years experience in
the petroleum and natural gas industries and is a member, and former Vice
President and Treasurer, of the American Association of Petroleum Geologists and
a Fellow of the Royal Geological Society, London.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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