Drilling Report

6 Mar 2006 07:01

Desire Petroleum PLC06 March 2006 Desire Petroleum plc ("Desire" or "the Company") EIA Update The Company reports that a four-man team has recently completed a successfulvisit to the Falkland Islands during which the Environmental Impact Assessment(EIA) for drilling in Tranches C and D in the North Falkland Basin waspresented, as required by Falkland Islands Law, at a well-attended publicmeeting in Stanley. The EIA now requires approval by the Falkland IslandsCouncil's Executive Committee. The approval of the EIA is an essential step in progress towards furtherdrilling in Tranches C and D. All other preparations for further drilling arenow well-advanced and the Company plans to be in a position to commence drillingimmediately a suitable drilling rig becomes available. The rig market continues to be very tight and the Directors believe it may besome time before it slackens. The Company is currently pursuing a number ofoptions for securing a rig, although timing remains uncertain. However, bymaking all possible preparations now, the Company will be in a position to begindrilling should a rig suddenly become available at short notice. The Company has also submitted site survey proposals at nine locations to theHealth and Safety Executive (acting on behalf of the Falkland Islands Government) for comment. It is expected that three of these will be drilled once theCompany procures a rig. This information is provided by RNS The company news service from the London Stock Exchange