Production Licence

1 Jul 2005 17:07

Desire Petroleum PLC01 July 2005 Desire Petroleum plc Production Licence The Board of Desire Petroleum plc (Desire) are pleased to announce that theGovernor of the Falkland Islands has approved the assignment of productionlicence PL005 from Talisman Energy Sweden AB to Desire effective from 25thNovember 2005, which is the end of the first exploration period of the licence. PL005 comprises of Blocks 14/24 and 14/25 (1599 km2) which are the remainingblocks on Tranche F in the North Falkland Basin. All of the work commitments forthe first exploration period have been fulfilled. The second exploration phase,beginning 25th November 2005, requires the drilling of one well and, as of thatdate, Desire will hold 100% of Tranche F and become the Operator. Dr Ian Duncan, CEO of Desire, commented: "We are very pleased to have acquired100% of Tranche F, which lies immediately south of the Liz and Beth prospects inTranche C, both of which may be drilled as part of Desire's three-well drillingprogramme.The current, world-wide rig market is very tight as a response to current highoil prices and we have not, as yet, been able to acquire a suitable rig for thethree-well programme.However , essential work for the programme is progressing well in preparationfor drilling in 2006." Contacts: Dr Ian Duncan 01684 892242Mr Stephen Phipps 020 7409 2138 This information is provided by RNS The company news service from the London Stock Exchange