Directors' interests

The interests (all of which are beneficial) of the Directors who served during the year and their families in the ordinary shares of the Company are shown below, together with their share options under the Desire Petroleum plc Unapproved Share Option Scheme and share appreciation rights.

	9 Mar 2007 1p ordinary shares	31 Dec 2006 1p ordinary shares	1 Jan 2006 1p ordinary shares
Dr C B Phipps	2,840,000 (1.27%)	2,840,000	2,840,000
Dr I G Duncan	321,714 (0.14%)	321,714	321,714
Mr S L Phipps	33,422,633 (14.99%)	32,944,394	32,944,394
Mr E Wisniewski	-	-	-
Mr D L Clifton	937,500 (0.42%)	937,500	937,500
Mr A G Windham	-	-	-

Number of shares in public hands equates 16.82% in total

Dr Colin B Phipps exercised options over 478,239 shares at 20.11p on 27 February 2007. Mr S L Phipps' interest is through his shareholding in Phipps & Company Limited.

Dr C B Phipps and Mr S L Phipps have an interest (included above) in 2,840,000 (31 December 2005 - 2,840,000) shares through their interest in the Phipps & Company Retirement Benefit Scheme. On 27 February 2007 Phipps & Company purchased 478,239 shares.

At 31 December 2006, the interest of Dr I G Duncan included 107,143 (2005 - 107,143) held by Chase Energy Limited of which he is a director and shareholder. His interest also includes 92,571 (2005 - 92,571) shares held by Hargreave Hale Nominees Limited.

The interests of Mr D L Clifton includes 325,000 (2005 - 325,000) held by Byron Holdings Limited of which he is a director and shareholder.

No options were exercised by any of the current Directors in the year. On 27 February 2007, Dr C B Phipps exercised options over 478,239 shares at 20.11p which were subsequently sold on the market.

No options lapsed during the year.

Mr S L Phipps interest includes share options granted over 4,857,119 (2005 - 4,857,119) shares which are beneficially held by Phipps & Company Limited in which he is interested as a director and shareholder.

Share Options

	At 1 January 2006	Granted in year	At 31 December 2006	Exercise Price	Exercise Period
Dr C B Phipps	1,079,358	-	1,079,358	23.07p	up to 8 September 2007
	478,239	-	478,239	20.11p	up to 6 May 2009
	335,356	-	335,356	21.74p	7 May 2007 to 7 May 2011
	100,000	-	100,000	33.00p	1 June 2008 to 1 June 2012
Dr I G Duncan	478,239	-	478,239	20.11p	up to 6 May 2009
	335,356	-	335,356	21.74p	7 May 2007 to 7 May 2011
	100,000	-	100,000	33.00p	1 June 2008 to 1 June 2012
	1,500,000	-	1,500,000	39.50p	21 July 2008 to 21 July 2011
Mr S L Phipps	478,239	-	478,239	20.11p	up to 6 May 2009
	335,356	-	335,356	21.74p	7 May 2007 to 7 May 2011
	4,857,119	-	4,857,119	17.92p	up to 23 June 2010
	100,000	-	100,000	33.00p	1 June 2008 to 1 June 2012
Mr D L Clifton	100,000	-	100,000	33.00p	1 June 2008 to 1 June 2012
Mr A G Windham	100,000	-	100,000	33.00p	1 June 2008 to 1 June 2012
Mr E Wisniewski	100,000	-	100,000	38.75p	13 June 2008 to 13 June 2012

Awardees

Name	Position	SARs (Percentage of current issued sharecapital)
Dr C B Phipps	Chairman	1.1
Dr I G Duncan	Chief Executive Director	1.1
Mr A G Windham	Non-Executive Director	0.4
Mr D L Clifton	Non-Executive Director	0.4
Mr S L Phipps	Non-Executive Director	0.4
Mr E Wisniewski	Non-Executive Director	0.4
Mrs A Neve	Company Secretary	0.2

Upon exercise of the SARs, the relevant Awardee will be issued with shares with a market value at the date of exercise equivalent to the notional gain that the Awardee would have made, being the amount by which the aggregate market value on exercise of the number of shares in respect of which the SAR is exercised exceeds the aggregate base price of that number of shares. The base price of a SAR will be 33.75 pence per share (being the middle-market quotation of a share on the dealing day immediately preceding the date of grant).

SARs can be satisfied by either the issue of new shares or the transfer of existing shares.

No further awards of SARs will be made to the above Awardees.

No consideration is payable on the grant of a SAR. SARs granted under the Plan will become exercisable on 23 January 2009.

Other than shown above, no Director had any interest in the shares of the Company or any of its subsidiaries at 31 December 2006.

Directors' interests

SHARE PRICE: 88.00GBp

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