DES.L Regulatory News (DES)

For immediate release 28 October 2011

Desire Petroleum plc

("Desire" or the "Company")

 Competent Person's Report and rig update

Desire Petroleum plc (AIM:DES), the exploration company wholly focused on the North Falkland Basin, is pleased to announce the conclusions of a recently completed Competent Person's Report (CPR) on part of the Company's extensive exploration acreage in the North Falkland Basin.

Desire is also pleased to give an update on the Ocean Guardian drilling rig.

The CPR covers only 40% of the Company's northern licences Tranches C, D and F and is focussed on the areas of the fast-tracked fully processed 3D data covering the northern part of Tranche D (PL004) and the Ann prospect sub-area within Tranche C (PL003).

Highlights

·; 11 prospects identified in the area covered by the fast-tracked 3D seismic data

·; Best estimate gross recoverable resources of 638 million barrels of oil (MMstb)

·; Best estimate net recoverable resources of 322 MMstb net to Desire

The CPR was prepared by Senergy (GB) Limited, a major independent consultancy specialising in reservoir engineering, geology, geophysics and petroleum economics.

Senergy evaluated Desire's leading prospects in the northern part of PL004, namely the Sea Lion Extension, Casper West, Casper East, Shona West, Shona East, Beverley, Jayne and Catriona, as well as the Ann/Orca South prospect in the Ann sub-area.

The evaluation recognises the results of the recently completed 14/10-8 well drilled by Rockhopper Exploration PLC ("Rockhopper") to the north of the eastern part of PL004, and takes account of Desire's revised equity interests in PL004 (Area 1 and Area 2) following the farm-out to Rockhopper announced on 12 October 2011.

A fully interpreted update of Desire's complete prospect inventory, including the Liz gas/condensate discovery and incorporating the full extent of the 3D seismic survey over Desire's acreage, will be prepared in the first half of 2012.

The key conclusions of the CPR are as follows (all volumes are unrisked prospective resources):

·; 638 MMstb gross best estimate potential; high estimate gross potential of 1,207 MMstb

·; 322 MMstb best estimate potential net to Desire; high estimate of 605 MMstb net to Desire

·; At $85/bbl realised oil price, the minimum economic threshold (at NPV 10%) is 43 MMstb recoverable for a stand-alone development and 10 MMstb recoverable for a sub-sea tie back development

·; Prospect sizes range from 15 MMstb to 132 MMstb, with an average prospect size of 71 MMstb

·; The prospects include a possible extension of the Sea Lion discovery with gross best estimate potential of 59 MMstb, which will be targeted by the Rockhopper Area 1 farm-out well

·; Farm-out Area 2, operated by Desire with 75% equity, includes the Beverley and Jayne prospects which have gross best estimate potential of 64 MMstb and 131 MMstb in multiple targets

·; The geological chance of success (COS) on all prospects ranges from 27% to 52%. The average COS is 35%, better than 1 in 3

·; Many of the East Flank prospects lie within 10km of the Sea Lion development area

·; The Ann/Orca South prospect is confirmed with gross best estimate potential of 132 MMstb and COS of 32%, approximately 1 in 3

A full copy of the CPR and a map of the prospects evaluated can be found on the Desire website: www.desireplc.co.uk.

Ocean Guardian rig update

Diamond Offshore Drilling (UK) Limited ("Diamond") is in discussions with a third party which may result in the Ocean Guardian rig leaving the Falkland Islands in Q1 2012. Until such time as a follow on contract for the Ocean Guardian is confirmed, there is no end date for the current contract, which allows for an unspecified number of further rig options to be taken by providing Diamond with notice on or before the spud of the preceding well in the campaign.

Commenting on the CPR, Stephen Phipps, Chairman of Desire, said:

"The CPR summary published today confirms our belief in the prospectivity of the fast track areas of PL003 and PL004. The farm-out agreement with Rockhopper announced on 12 October 2011 will ensure that at least one well is drilled on this acreage in the current drilling campaign."

For further information please contact:

This statement has been approved by Mr Ken Black , Exploration Director of Desire Petroleum plc, who is a member of the Petroleum Exploration Society of Great Britain , with over 30 years experience in petroleum exploration and management.

This statement has been approved by Senergy (GB) Limited.