Desire: Rig Contract for Ocean Guardian Amended

Desire announced that the rig contract with Diamond Offshore Drilling (UK) Ltd for use of the drilling unit Ocean Guardian for operations in the North Falkland Basin has been amended.

Under the amended contract an undefined number of optional wells may be drilled up to March 1, 2012, at which time the Ocean Guardian will leave the Falklands on a long term contract with another operator. Desire must declare the exercise of such options on or before the spud of the previous well in the campaign.

The rig is currently drilling well 14/10-9 for Rockhopper Exploration PLC who have announced they will follow this with a well on the Desire farmin area PL004b.

Desire is investigating all the possibilities to utilize the Ocean Guardian until the end of the contract.

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