Desire Petroleum Completes Falkland Seismic Survey

Desire Petroleum says that Wavefield InSeis has completed the full site survey program on Tranches C, I and L as planned. The entire survey was successfully acquired in 6 days with no weather downtime.

The outstanding lines in Tranche C were acquired in addition to new site surveys over 4 prospects in Tranches I and L. With the Environmental Impact Assessment over Tranches I and L due to be completed in 2008, Desire will be in a position to drill in Tranches C, D, I and L as soon as a rig becomes available.

Following BHP's commitment to drill at least 2 wells in the area to the south of the Falklands, it is expected that Desire, as well as other parties, will take part in an extended drilling campaign and that the mobilization and demobilization costs of bringing a rig to the area will be shared. As a consequence, Desire expects, at current prices, to be able to drill at least two, or possibly three wells from its own resources.

Desire is continuing discussions with a number of companies interested in farming-in to the Desire licenses due to the very considerable reserve potential identified in the North Falklands Basin. However, the Board remains mindful of its commitment not to enter into any agreement, which may unduly dilute shareholders' exposure to this exploration potential.