Rec.Desire Merger Offer-Pt.1.

GAELIC RESOURCES PLC
27 August 1999

PART 1

This announcement is not for release, publication or distribution in or into
the United States, Canada, Australia or Japan.

Proposed  merger of Desire Petroleum plc and Gaelic Resources  Public  Limited
Company

The boards of Desire and Gaelic announce that they have agreed the terms of a
proposed merger between the two companies.

- The  Merger  will  be  effected by means of a recommended  offer  by  SG
  Securities on behalf of Desire to acquire the issued and to be issued       
  ordinary share  capital of Gaelic not already owned by Desire, with         
  accepting  Gaelic Shareholders receiving one New Desire Share for every     
  eighteen Gaelic Shares held.

- Based on Desire's closing middle market share price of 30.5p on 16 June
  1999 (the last dealing day prior to the commencement of the Merger Offer
  Period), the Merger Offer values Gaelic's existing issued ordinary share
  capital at approximately £16.3 million and each Gaelic Share at             
  approximately 1.69p which represents a premium of 35.6 per cent. to the     
  closing middle market price of 1.25p per Gaelic Share on 16 June 1999.

- Based on Desire's closing middle market share price of 24.0p on 26 August   
  1999 (the last dealing day prior to the announcement of the Merger), the    
  Merger Offer values Gaelic's existing issued ordinary share capital at
  approximately £12.8 million and each Gaelic Share at approximately 1.33p    
  which represents a premium of 6.7 per cent. to the closing middle market    
  price of 1.25p per Gaelic Share on 26 August 1999.

- Following the Merger, Desire Shareholders will in aggregate hold            
  approximately 48.2 per cent. of the Merged Group and Gaelic Shareholders
  approximately 51.8 per cent. of the Merged Group (prior to the exercise of  
  any Gaelic Warrants or options over shares in Gaelic or options over shares 
  in Desire).

- The Merged Group will have a market capitalisation of approximately £23.6   
  million based on Desire's closing middle market share price 24.0p on 26     
  August 1999.

- Dr Colin Phipps will become Chairman of the Merged Group. The rest of the
  Merged  Group's  board will comprise Dr John Martin, Dr Ian Duncan and Mr
  Stephen Phipps from Desire and Mr Ian Forrest and Dr David Quick from       
  Gaelic.

Commenting on today's announcement, Dr John Martin, a director of Desire,   
said:

'Although the analysis of all the results from the first six wells drilled in
the North Falkland Basin, in two of which Desire had an interest, is not yet
complete, it is already clear to the Desire Directors that considerable
quantities of good quality oil have been generated in the source rocks of  the
basin.  Unfortunately the conclusion of the first round  of  drilling  in  the
North  Falkland Basin coinciding with a dramatic fall in the oil price led  to
the departure of the drilling rig, the Borgny Dolphin.

Although  the oil price has recovered in recent months, it will be  some  time
before  the industry is ready to return to drill in the North Falkland  Basin.
Accordingly,  Desire  has  been seeking additional  opportunities,  which  are
currently  active.  After reviewing a considerable number  of  proposals,  the
Desire  Directors concluded that Gaelic's Portuguese acreage with an  existing
gas  discovery from the Aljubarrota No.2 well in the Lusitanian Basin, offered
the best prospects for early success.'

Also commenting on the announcement, Mr Ian Forrest, Chairman of Gaelic, said:

'While  the  results of the Aljubarrota No. 2 well, which  discovered  gas  in
Portugal  earlier this year, were encouraging, a complex and costly  programme
would  be  required  to  appraise  the discovery  and  bring  it  to  eventual
production.

The  merger  with Desire will provide the funds and expertise to pursue  such
action  and  in  addition will offer Gaelic's shareholders exposure to high 
potential  exploration plays in the Falklands as well as giving rise to cost
savings.'

The  above  summary should be read in conjunction with the full  text  of  the
following announcement.

Enquiries:

Desire  Petroleum                    Dr John Martin    ([phone])      
                                     Dr Colin  Phipps  

Gaelic  Resources                    Dr David  Quick   ([phone])

SG  Securities (London) Ltd          Andrew Osborne    ([phone])
(Advisers to Desire)                 Luke Morton       ([phone])

Davy Corporate Finance Limited       Hugh McCutcheon   ([phone])
(Advisers to Gaelic)

Millham  Communications              Simon Rothschild  ([phone])
                                     Judith Parry

This announcement has been approved by SG Securities for the purposes of
Section 57 of the Financial Services Act 1986.

SG  Securities,  which  is regulated in the UK by The Securities  and  Futures
Authority Limited, is acting for Desire and no-one else in connection with the
Merger  and will not be responsible to anyone other than Desire for  providing
the protections afforded to customers of SG Securities or for providing advice
in relation to the Merger.

Davy  Corporate Finance, which is regulated in Ireland by the Central Bank  of
Ireland,  is acting for Gaelic and no-one else in connection with  the  Merger
and  will  not  be responsible to anyone other than Gaelic for  providing  the
protections  afforded to customers of Davy Corporate Finance or for  providing
advice in relation to the Merger.

In this announcement all monetary values are given in pounds and pence
sterling unless stated otherwise and closing middle market prices for Desire
Shares are derived from the Daily Official List of the London Stock Exchange
and closing middle market prices for Gaelic shares are as quoted on the Stock
Exchange Automated Quotation system of the London Stock Exchange.

Copies  of  this announcement must not be distributed in or into,  the  United
States,  Canada, Australia or Japan. The New Desire Shares have not  been  and
will  not  be  registered under the United States Securities Act of  1933,  as
amended,  nor  under  the  laws of any State of the  United  States,  and  the
relevant  clearances have not been and will not be obtained from the  relevant
authorities  in  Canada, Australia or Japan, and accordingly  the  New  Desire
Shares  may not be offered, sold or delivered, directly or indirectly,  in  or
into   such  jurisdictions  except  pursuant  to  exceptions  from  applicable
requirements of such jurisdictions.

Proposed  merger of Desire Petroleum plc and Gaelic Resources  Public  Limited
Company

1.   Introduction

On  17  June  1999 it was announced that Desire and Gaelic were in discussions
with a view to effecting a merger on the basis of an agreed exchange ratio  of
one Desire Share for every eighteen Gaelic Shares. It was further announced on
23  July 1999 that any merger would be effected by a share offer by Desire for
Gaelic.  Following further discussions, the two boards can now  announce  that
they have agreed the terms of the proposed Merger.

The  Merger will be effected by means of a recommended offer for Gaelic by  SG
Securities  on behalf of Desire, subject to the conditions and on the  further
terms  set  out in Appendix I of this announcement, the Merger Offer  Document
and  the Form of Acceptance.  Under the Merger Offer, Gaelic Shareholders will
receive,  for  every  eighteen  Gaelic Shares  held,  one  New  Desire  Share,
resulting in Gaelic Shareholders holding approximately 51.8 per cent.  of  the
enlarged  issued  share  capital of Desire (assuming full  acceptance  of  the
Merger   Offer  and  no  exercise  of  options over shares in Gaelic or Gaelic
Warrants or options over shares in Desire).  Desire Shareholders  will retain
their existing Desire Shares resulting  in  existing Desire  Shareholders 
holding approximately 48.2 per  cent.  of  the  enlarged issued  share capital
of Desire (assuming full acceptance of the Merger  Offer and no exercise of
options over shares in Gaelic or Gaelic Warrants or options over shares in
Desire).

On  a  pro  forma  basis, assuming full acceptance of the  Merger  Offer,  the
combined  market capitalisation of the Merged Group based on a share price  of
24.0p per Desire Share on 26 August 1999 (the last dealing day prior to  the
announcement of the Merger) following completion of the Merger is expected  to
be approximately £23.6 million.

The  formal  Merger Offer Document, Form of Acceptance and Admission  Document
will be despatched to Gaelic and Desire Shareholders as soon as practicable.

In view of the size of the Merger, it is conditional on the approval of Desire
Shareholders at an Extraordinary General Meeting, a notice of which will be
included in the Admission Document.

2.   The Merger Offer

On  behalf of Desire, SG Securities hereby offers to acquire, on the terms and
subject  to  the  conditions set out or referred to in this announcement,  the
Merger  Offer  Document and the Form of Acceptance, all of the  Gaelic  Shares
other than those already owned by Desire on the following basis:

             for every 18 Gaelic Shares        1 New Desire Share

and so in proportion for any other number of Gaelic Shares held.

The  Merger  Offer  values the whole of the issued ordinary share  capital  of
Gaelic at £12.8 million, based on the closing middle market price of 24.0p
per  Desire  Share  on  26  August 1999 (the last dealing  day  prior  to  the
announcement of the Merger).

The  Merger Offer represents a premium of 35.6 per cent. based on the  closing
middle  market prices of 30.5p per Desire Share and 1.25p per Gaelic Share  on
16  June  1999 (the last dealing day prior to the commencement of  the  Merger
Offer  Period)  and a premium of 6.7 per cent. based on the closing  middle
market price of 24.0p per Desire Share and 1.25p per Gaelic Share  on  26
August 1999 (the last dealing day prior to announcement of the Merger).

Full  acceptance of the Merger Offer would involve the issue of  approximately
50.9  million New Desire Shares, representing approximately 51.8 per cent.  of
the  enlarged issued share capital of Desire, assuming no exercise of  options
under  the  Desire Share Option Scheme and no exercise of Gaelic Warrants  or
options  over Gaelic Shares under the Gaelic Share Option Scheme and assuming
no other issue of shares by either Gaelic or Desire.

The  New  Desire  Shares issued pursuant to the Merger Offer  will  be  issued
credited  as  fully  paid and will rank pari passu in all  respects  with  the
Existing  Desire  Shares,  including the right to receive  all  dividends  and
distributions hereafter declared, made or paid on such shares.

The  Gaelic Shares will be acquired free from all liens, charges, encumbrances
and other interests and together with all rights now or hereafter attaching to
them  including  the  right to receive all dividends and  other  distributions
hereafter declared, made or paid on such shares.

Fractions of New Desire Shares will not be allotted to Gaelic Shareholders who
accept  the Merger Offer (including such holders who are deemed to accept  the
Merger  Offer)  but  will be aggregated and sold in the  market  and  the  net
proceeds of the sale will be retained for the benefit of the Merged Group.

3.   Recommendation

The  Desire Board (excluding Dr Colin Phipps who is a director of both Desire
and  Gaelic and who has abstained from participating in the Desire Board
decision to recommend the Merger Offer to Desire Shareholders), who have
received financial advice from SG Securities, consider that  the terms of the
Merger Offer are fair and reasonable so far as  Desire Shareholders as a whole
are concerned. In providing advice to the  Board,  SG Securities has taken
into account the Desire Board's commercial assessment of the  Merger. 
Accordingly,  the Desire Directors (excluding Dr Colin  Phipps) unanimously 
recommend  Desire  Shareholders  to  vote  in  favour   of   the resolutions 
to be proposed at the Extraordinary General Meeting  of  Desire. The  Desire
Directors intend to vote in favour of the resolutions in  respect of  their 
own  beneficial holdings of 14,336,600 Existing Desire  Shares in aggregate, 
representing approximately 30.3 per cent. of the existing  issued share
capital of Desire.

The  Independent  Directors  of  Gaelic, who have  been  so  advised  by  Davy
Corporate  Finance,  consider the terms of the Merger Offer  to  be  fair  and
reasonable.  In providing advice to the Independent Directors, Davy  Corporate
Finance   has  taken  into  account  the  Independent  Directors'   commercial
assessments  of the Merger. Accordingly, the Independent Directors unanimously
recommend  Gaelic  Shareholders to accept the Merger Offer as  they  (together
with  their immediate families and connected persons) intend to do in  respect
of 144,129,585 Gaelic Shares in  aggregate, representing approximately 15.0
per cent. of the issued ordinary share capital of Gaelic in which they have a
beneficial interest.

4.   Information on Desire

Desire  is  an  independent  oil  and gas exploration  company  registered  in
England.  It was established in May 1996 to participate in the first round  of
petroleum  production  licensing offshore the Falkland  Islands.   Desire  was
admitted to AIM on 27 May 1998.

The  first phase of exploration drilling in the North Falkland Basin commenced
in  April  1998.   Six  wells were drilled in total, in two  of  which  Desire
participated.   Although  no  economic  accumulations  of  hydrocarbons   were
discovered,  the drilling programme demonstrated the existence  of  extensive,
high-quality hydrocarbon source rocks and oil shows were encountered  in  five
of  the  wells.  Unfortunately, the historically-low oil price then prevailing
caused  a major reduction in exploration drilling around the world and  was  a
major factor in halting further exploration in the North Falkland Basin.

Licences have been awarded in respect of seven Tranches of blocks in the  area
offshore the Falklands designated for oil exploration by the Falkland  Islands
Government.  The table below sets out Desire's current interests  in  five  of
these seven Tranches:

Tranche   Number of       Total area   Licence interest
          blocks
C         6                 1,610km2                25%
D         6                 1,610km2                25%
F         6                 1,599km2              12.5%
I         6                 1,588km2               100%
L         12                3,149km2               100%

In  terms of size, Tranches C, D, F and I each comprise the equivalent of  six
North  Sea  Blocks and Tranche L comprises the equivalent of twelve North  Sea
Blocks.

Desire is currently interested in a gross 36 blocks with a gross area of 9,556
square  kilometres representing a net 21.75 blocks with a net  area  of  5,742
square  kilometres.   However, following the decision by  LASMO  International
Limited,  Svenska  Petroleum Exploration AB and ROC OIL  (Falklands)  Limited,
Desire's  partners in Tranches C and D, to withdraw from the Falkland Islands,
Desire  has  entered into agreements to acquire their interests in Tranches  C
and  D  subject to the approval of the Governor of the Falkland Islands, which
is  expected  to be forthcoming shortly. Sodra Petroleum plc has the  majority
interest in Tranche F and is the operating company.

Desire  has  informed  the Falkland Islands Government of  its  intention  to
relinquish blocks 15/12, 15/7 and the eastern areas of blocks 15/11 and 15/16,
together amounting to approximately 805km2 of Tranche D; the western parts  of
blocks 14/12 and 14/17, together amounting to approximately 268km2 of Tranche
C and blocks 26/12, 26/13, 26/17, 26/18, 26/22 and 26/23, together amounting
to approximately 575km2 of Tranche L.

In  line  with  its  stated  policy of considering  appropriate  opportunities
outside  of  the  Falkland  Islands, the Desire  Board  identified  Gaelic  as
offering  an  investment of the right scale and prospectivity  and,  in  March
1999,  Desire  acquired an interest in Gaelic amounting to 4.58%  of  Gaelic's
issued ordinary share capital.

In  the year ended 31 December 1998, Desire made a loss on ordinary activities
before taxation of £7.908 million and losses per share of 18.18p. Desire had a
cash  balance  of  £7.027 million and net assets of £8.330 million  as  at  31
December 1998.

5.   Information on Gaelic

Gaelic  is  an  independent  oil  and gas exploration  company  registered  in
Ireland.   It  acquired  its main operating subsidiary, European  Hydrocarbons
Limited, in October 1997 and is now principally involved in gas exploration in
Portugal.  Gaelic's ordinary shares are dealt in on the Exploration Securities
Market of the Irish Stock Exchange.

Gaelic, through its wholly owned subsidiary European Hydrocarbons Limited, has
the rights to a 25% working interest in a number of joint ventures which cover
a  large  area  of the onshore and offshore Lusitanian Basin in Portugal.  The
Lusitanian Basin is one of a number of oil and gas bearing sedimentary  basins
which occur along much of the Atlantic margin both onshore and offshore.   The
operating  company  for  each of the joint ventures  is  Mohave  Oil  and  Gas
Corporation, a private US company based in Houston, Texas.  There  are  up  to
four other members of the joint ventures.

The joint ventures hold one appraisal license and two exploration licences and
applications  are  pending for two further exploration  licences.   The  table
below sets out details of the licences:

Licence area       Status   Type           Total area         Award     Expiry
                                                               date       date
                                           
Aljubarrota-A      Current  Appraisal      578km2 onshore   09/07/99  09/07/02
Sao Pedro de Muel  Current  Exploration    206km2 onshore   29/07/97  29/07/05
                                           673km2 offshore
Sao Mamede         Current  Exploration  1,023km2 onshore   29/07/97  29/07/05
                                           160km2 offshore
Monte Real           Under  Exploration    544km2 onshore         -          -
               application
Rio Maior            Under  Exploration    796km2 onshore         -          -
               application        
                                           
                                           Total 3,980km2         
                                 

To  date,  two  exploration wells have been drilled on  behalf  of  the  joint
venture partners in the Aljubarrota concession.  The first, Aljubarrota No. 1,
was completed in February 1998.  This well had indications of hydrocarbons but
well  testing  did  not  give  any flow to surface.   Aljubarrota  No.  2  was
completed in April 1999 and produced gas to surface at a stabilised flow rate.
The  Aljubarrota  joint  venture partners are  now  considering  an  appraisal
programme  involving  the drilling of several wells and  extensive  production
testing  with a view to evaluating reservoir characteristics, flow  rates  and
volumes.  Fiscal terms in Portugal are attractive. A gas distribution network,
which  is currently under construction, passes only a few hundred metres  from
the  Aljubarrota No. 2 well.  Furthermore, Portugal has a growing economy  and
few indigenous sources of energy.

Gaelic  therefore now requires additional funds to meet the cost of its  share
of  the  forthcoming  appraisal programme. If the  proposed  Merger  does  not
proceed Gaelic will have to raise these funds either by farming-out part of
its acreage or an equity fund-raising.

In  the year ended 31 December 1998, Gaelic made a loss on ordinary activities
before  taxation of IR£538,682 and losses per share of IR0.06p. Gaelic  had  a
cash balance of IR£251,633 and net assets of IR£4.103m as at 31 December 1998.

6.   Current trading and background to and reasons for the Merger

Although the analysis of all of the results from the first six wells  drilled
in  the  North Falkland Basin, in two of which Desire had an interest, is not
yet complete, it is already  clear  to the Desire Directors that considerable
quantities of good quality oil have been generated in the source rocks of the
basin.  An  extensive,  thick, lacustrine source rock, of Cretaceous  age, 
has  been encountered  in  Tranches A, B, C and F and, based upon seismic 
correlation, also  appears to be present in Tranches D, I and L.  The
development  of  the North Falkland Basin was characterised by relative
quiescence, such that  the source  rock  is,  in  most areas, its own seal. 
This has  resulted  in  the containment  of most of the oil generated below
the shallow reservoir  rocks, penetrated  by  all  six wells, although some
oil has clearly  migrated  into these reservoirs in Tranches A and B, albeit
not in commercial quantities.

It  is  likely  that  the  large volumes of oil generated may,  however,  have
migrated  somewhere  beneath the source-rock seal and  the  next  anticipated
round of exploration drilling in the North Falkland Basin will concentrate on
identifying  reservoirs  and  traps beneath  the  seal.   Desire's current 
effort  in Tranches C, D, F, I and L is focused on this.

The  conclusion  of the first round of drilling in the North  Falkland  Basin
coinciding  with  the  recent, dramatic fall in the  oil  price  led  to  the
departure of the drilling rig, the 'Borgny Dolphin'.  Although the oil  price
has  recovered in recent months, it will be some time before the industry  is
ready  to  return to drill in the North Falkland Basin because  of  the  high
costs  involved.  However, two factors may enhance the prospect  of  drilling
should  the  oil  price  remain firm.  Firstly, it is the  intention  of  the
Falkland Islands and Argentinian Governments to licence new exploration areas
west  of  the Falklands in the 'Area of Special Co-operation' and,  secondly,
major  drilling activity is planned offshore Brazil next year.  These factors
are  likely  to  renew interest in the North Falklands Basin and  to  provide
access  to  drilling  rigs within reasonable distance  and,  hence,  at  more
reasonable cost.

Desire  has  just  completed a detailed analysis  of  the  new  seismic  data
acquired on Tranches I and L and is awaiting the results of a major study  on
Tranche  F.   When  all these data are to hand, it is Desire's  intention  to
prepare farm-out brochures for Tranches C, D, F, I and L and actively to seek
new  partners  for  exploration in the North Falkland Basin.   However,  this
process  is likely to take some time and, even if there is immediate  success
in  farming-out,  the logistical problems are such that it  is  difficult  to
envisage  drilling  recommencing in the next 12-18 months.   Accordingly,  as
indicated  in the Chairman's Statement in the 1998 Annual Report, the  Desire
Board  has been seeking additional opportunities which are currently  active.
After  reviewing a considerable number of proposals, it is the  view  of  the
Desire Board that the merger with Gaelic offers the best prospects for  early
success.

Gaelic  is  currently  involved  in  the  appraisal  of  the  gas  discovery,
Aljubarrota  No. 2, in the Lusitanian Basin in Portugal.  It  is  anticipated
that a first appraisal well to this discovery could begin drilling before the
end  of  this year, which is expected to be followed by additional  appraisal
and exploration drilling in the year 2000.  Gaelic has a significant interest
(25%)  in  a  considerable  acreage package covering  a  large  part  of  the
Lusitanian  Basin and success in producing commercial gas in the  energy-poor
Iberian Peninsula could provide important value to the Merged Group, with the
prospects  in the North Falkland Basin still to be explored.  After providing
sufficient  funds to maintain its licence interests in the Falkland  Islands,
Desire  has sufficient funds to drill the Portuguese appraisal wells and  the
Merged  Group  will  provide shareholders with exposure  to  a  well-balanced
portfolio of appraisal and exploration opportunities in oil and gas.

7.   Financial effects of acceptance

The financial effects of acceptance of the Merger Offer for Gaelic are set out
in Appendix II.

8.   Board, Management and Employees of the Merged Group

The board of the Merged Group will draw upon the skills of the existing boards
of both Desire and Gaelic, which the Desire Directors and the Gaelic Directors
believe will create a strong management team for the Merged Group.

The members of the board of the Merged Group will be as follows:

Dr Colin Phipps ^* (Chairman)
Mr W Ian Forrest *
Dr Ian Duncan ^ 
Dr A John Martin ^
Mr Stephen Phipps ^
Dr David Quick*

^ Existing director of Desire
* Existing director of Gaelic

Mr Ian Forrest will chair the audit committee and Dr Ian Duncan will chair the
remuneration committee. Sir Rex Hunt and Mr Lewis Clifton will resign from the
Desire  Board  and Mr Robert Keith, Mr Thomas Fussell and Mr  Malcolm  McCants
will resign from the Gaelic Board upon completion of the Merger.

9.   Name of the Merged Group

The  boards of Desire and Gaelic have agreed that the Merged Group will retain
the Desire Petroleum name.

10.  Gaelic Warrant Offer and Gaelic Share Option Scheme

An  appropriate offer or proposal will be made by Desire to holders of  Gaelic
Warrants  in the Merger Offer Document which is expected to include a share
offer  based on  the extent to which the Gaelic Warrants are in the money,
that is the value  by which  the  Merger Offer for each Gaelic Share exceeds
the exercise  price  of each  Gaelic Warrant at the last practicable date
prior to the posting of  the Merger Offer Document.

An  appropriate  offer or proposal will be made in due  course  by  Desire  to
participants in the Gaelic Share Option Scheme.

11.  Gaelic Deferred Shares

No offer is being made by Desire for the Gaelic Deferred Shares, which are not
considered to have any value.

12.  Interests in Gaelic Shares

At  the  date  of  this announcement, Desire holds 44,000,000  Gaelic  Shares,
representing approximately 4.58% of the existing issued ordinary share capital
of  Gaelic.   In addition, Dr Colin Phipps, who is currently both a Director
of Gaelic and Chairman of Desire and therefore deemed to be acting in  concert
with Desire, holds options to subscribe for 10,000,000 new Gaelic Shares at an
option exercise price of 1p per share.  These options expire on 8 September
2007.  Phipps & Company Limited, a company in which Mr Stephen Phipps, a
director of Desire, has a 25 per cent. beneficial interest, holds 96,975,000
Gaelic Shares, representing 10.1 per cent. of the existing issued ordinary
share capital of Gaelic and holds 60,000,000 Gaelic Warrants.

13.  Overseas Shareholders

The  making of the Merger Offer and the availability of New Desire  Shares  in
countries other than Ireland or the United Kingdom, or to persons not resident
in  Ireland or the United Kingdom or who are citizens, residents or  nationals
of other countries (''Overseas Shareholders''), may be affected by the laws of
the  relevant  jurisdiction. Overseas Shareholders  should  inform  themselves
about  and observe any applicable legal requirements. It is the responsibility
of  any  overseas shareholders wishing to accept the Merger Offer  to  satisfy
themselves  as to the full observance of the laws of the relevant jurisdiction
in connection therewith, including the obtaining of any governmental, exchange
control  or  other consents which may be required, the compliance  with  other
necessary formalities which are required to be observed and the payment of any
issue, transfer or taxes due in such jurisdictions.

In  particular,  the  Merger  Offer  is  not  being communicated, directly  or
indirectly,  in  or  into, or by use of the mails  of,  or  by  any  means  or
instrumentality (including, but without limitation, fax, telex  or  telephone)
of  interstate  or  foreign  commerce of, or  any  facilities  of  a  national
securities exchange of, the United States, Canada, Australia or Japan and  the
Merger  Offer cannot be accepted by any such use, means or instrumentality  or
from  within  the United States, Canada, Australia or Japan.  Copies  of  this
announcement,  the  Merger Offer Document and the Form of Acceptance  and  any
related  documents are not being and must not be distributed or sent in,  into
or  from  the United States, Canada, Australia or Japan including, but without
limitation, to Gaelic Shareholders, holders of Gaelic Warrants or participants
in  the  Gaelic  Share Option Scheme with registered addresses in  the  United
States,  Canada,  Australia or Japan or to custodians,  trustees  or  nominees
holding  Gaelic  Shares  for such persons. Persons  receiving  such  documents
(including,  but without limitation, custodians, nominees and  trustees)  must
not  distribute  or  send  them in, into or from the  United  States,  Canada,
Australia or Japan or use the United States, Canadian, Australian or  Japanese
mails  or  any  such  means  or instrumentality for any  purpose  directly  or
indirectly related to acceptance of the Merger Offer and doing so shall render
invalid any related purported acceptance of the Merger Offer.

The  New  Desire Shares have not been, and will not be, registered  under  the
United  States Securities Act of 1933, as amended, and the relevant clearances
have not been, and will not be, obtained from the securities commission of any
province  of  Canada. No prospectus in relation to the New Desire  Shares  has
been,  or will be, lodged with or registered by the Australian Securities  and
Investments  Commission, nor have any steps been taken or will  any  steps  be
taken  to  enable the New Desire Shares to be offered in Japan  in  compliance
with applicable securities laws in Japan. Accordingly, such shares may not  be
offered,  sold, resold or delivered, directly or indirectly, in  or  into  the
United States, Canada, Australia or Japan.

14.  General

The  Merger  Offer  is  conditional, inter alia, on  the  approval  of  Desire
Shareholders.  The principal conditions of the Merger Offer  are  set  out  in
Appendix  I. The terms and conditions of the Merger Offer will be set  out  in
full in the Merger Offer Document and the Form of Acceptance.

The  Merger  Offer will comply with the rules and regulations  of  the  London
Stock  Exchange and with the Irish Takeover Panel Act, 1997 (Takeover)  Rules,
1997.

The  Merger Offer Document and the Form of Acceptance will be posted to Gaelic
Shareholders  and,  for information only, to Desire Shareholders  as  soon  as
practicable. Full acceptance of the Merger Offer, assuming no exercise of  the
Gaelic  Warrants or options under the Gaelic Share Option Scheme or the Desire
Share  Option Scheme, would result in the issue of approximately 50.9  million
New  Desire  Shares  representing approximately  51.8  per  cent. of  Desire's
enlarged issued share capital.

Application will be made to the London Stock Exchange for the Existing  Desire
Shares  to be re-admitted and the New Desire Shares to be admitted to  trading
on   AIM.    The   Admission  Document,  including  a  notice  convening   the
Extraordinary  General Meeting, will be posted to Desire Shareholders  and  to
Gaelic Shareholders as soon as practicable.

The Desire Directors accept responsibility for the information contained in
this  announcement other than information contained in this  announcement  for
which  the  Gaelic Directors  take responsibility.   To  the  best  of  the
knowledge and belief of the Desire Directors (who have taken all reasonable
care  to  ensure  that such is the case), the information  contained  in  this
announcement for which they have accepted responsibility is in accordance with
the  facts  and  does not omit anything likely to affect the  import  of  such
information.

The Gaelic Directors accept responsibility for the information contained in
this  announcement relating to Gaelic, themselves and their  immediate  family
and  persons connected with them.  To the best of the knowledge and belief  of
the  Gaelic Directors  (who have taken all reasonable care to  ensure  that
such  is  the case), the information contained in this announcement for  which
they have accepted responsibility is in accordance with the facts and does not
omit anything likely to affect the import of such information.

This  announcement does not constitute an offer or invitation to purchase  any
shares.

Any person who, alone or acting together with any other person(s) pursuant  to
an  agreement  or  understanding (whether formal or informal)  to  acquire  or
control  securities of Desire or of Gaelic, owns or controls, or  becomes  the
owner  or controller, directly or indirectly of one per cent. or more  of  any
class  of  securities  of  Desire or Gaelic is generally  required  under  the
provisions of Rule 8 of the Rules to notify the Irish Stock Exchange and  the 
Panel of every dealing in such securities during the Merger Offer Period.


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