Final Results

Gold Oil PLC
30 October 2009
 
               Gold Oil PLC ("Gold" or "the Company")
 
           Final results for the year ended 30 April 2009
 
Gold, an oil and natural gas exploration and exploitation company
focused on Central and Southern America, today reports final results
for the year ended 30 April 2009.
 
Highlights
 
  * Operating loss £3.17million (2008: profit £1.59 million)
  * Loss for year attributable to equity holders £3.039 million(2008:
    profit £0.84 million)
  * Loss per ordinary share 0.62p (2008:Earnings per ordinary share
    0.18p)
  * Cash at period end of £2.2 million;
  * Revenue increased to £1.004m (2008: £0.399m)
 
Mark Pritchard, Chairman, commented "The past year has been one of
significant challenge for the Company.  In difficult circumstances,
we have been very active in advancing our portfolio of assets and I
am encouraged with the progress we have made.  We are now actively
seeking partners in our major prospects to enable us to exploit more
rapidly our exploration resources in both Peru and Colombia".
 
The Company's Annual General Meeting will be held at 10.00 a.m. on 23
November 2009 at Finsgate, 5-7 Cranwood Street, London EC1V 9EE.
 
For further information, please contact:
 
Gold Oil PLC       Tel: +44 (0) 208 332 6882
Mark Pritchard
 
Seymour Pierce Ltd Tel: +44 (0) 207 107 8000
Jonathan Wright
 
Annual Report and Accounts
 
The Company has today published and posted to shareholders its Annual
Report and Accounts for the year ended 30 April 2009 ("Annual
Report").
 
For the information of investors and shareholders alike, copies of
the Annual Report will be available for at least one month, free of
charge, at the offices of the Company's Nominated Adviser, Seymour
Pierce Ltd, being 20 Old Bailey, London EC4M 7EN. Electronic copies
are available on the Company's website, www.goldoilplc.com.
 
Notes to Editors
 
Gold Oil
 
Gold Oil Plc is  an independent oil and  natural gas exploration  and
exploitation company focused on Central and Southern America.  Shares
in Gold are quoted on the AIM market in London - (Stock Quote GOO.L).
 
The Company is seeking to maintain a balanced portfolio of  high-risk
high  reward  and  low  risk  cash  flow  projects  by   establishing
significant licence  positions  concentrated  in  a  few   geographic
areas.  The  Company  currently   has  significant  acreage  and   is
recognised as an operator for both  onshore and offshore Perú, is  an
operator with an exploration  licences onshore Colombia, is  operator
of production onshore Colombia.
 
The Company's  objective  is  to deliver  shareholder  value  through
capital appreciation.
 
CHAIRMAN'S STATEMENT
 
Introduction
 
The year under review has been one of challenge for Gold Oil and  its
shareholders. Following the resignation of Gary Moore and Pat  Mahony
I was  appointed  executive chairman  in  March this  year  and  Mike
Burchell became  a non  executive director.  In April,  Thomas  Tidow
joined the board with responsibility for operations.
 
Review of Operations
 
The year has seen considerable activity for the Group in its two main
geographic locations, Peru and Colombia.
 
Perú
 
Gold Oil Licence Interests in Peru at 30 April 2009
 
Block Licence     Expiry Date             Size (ha) Interest Operator
Name
 
Block Exploration Expires 5 May 2036      303,000   100%     Gold Oil
XXI   Licence     (Oil)                                      Plc
Block Exploration Expires 12 February     371,339   100%     Gold Oil
Z34   Licence     2037 (Oil)                                 Plc
 
In July 2008 the  Group drilled a second  exploration well, SA2X,  on
the onshore Block XXI, a kilometre  north of SA1X to test the  Verdun
and Palaeozoic sands. The well was located on the basis of a detailed
gravimetric survey  and  a  DNME  (differentially  nomalised  method)
survey. The latter is a system of mapping the subsurface  resistivity
which, when interpreted, can  indicate the presence of  hydrocarbons.
It is the first application of  this process outside of Russia  where
it has been extensively tested, but  the results on Block XXI  showed
major problems with the interpretation by the Russian contractor. The
well was plugged and abandoned in late September 2008.
 
We are now planning to acquire more detailed information on the block
in order to generate a new drilling prospect and are scheduling a  2D
seismic survey in the first quarter of 2010, close to the SA1X  site.
The main object is to try and identify the extent of a trap updip  of
the oil and gas logged in the Palaeozoic and Verdun in SA1X.  Testing
of the Palaeozoic and  Verdun in SA1X was  impossible because of  the
mechanical condition  of the  well and  the influx  of highly  saline
water which we believe came from a zone at the base of the Palaeozoic
which exhibited good reservoir properties and trapping conditions  in
the Palaeozoic.
 
We  have  recently  presented   an  application  for  the   necessary
environmental permits to allow us to conduct the survey and we expect
to receive the required consents  shortly. It is encouraging to  note
that there is considerable activity on the neighbouring block  (Block
XIII) where reported  production from  recent wells  is around  3,000
bopd.
The Z34  block is  immediately to  the west  of four  of the  largest
developed oil fields in Northern Peru that have produced 1.6  billion
barrels and, in 2006, the Group farmed out half its interest in Block
Z34 to Plectrum Petroleum plc ("Plectrum"). Following the acquisition
of Plectrum  by Cairn  Energy  Plc ("Cairn")  in September  2007  the
Company had been in  negotiation with Cairn about  the future of  the
block. As Cairn had no strategic focus in the region, in October 2008
the Company reacquired the 50% of the block from Plectrum giving it a
100% interest. As well as returning its interest, Plectrum also  made
a payment to the Group of US$1.5 million. With the Group holding 100%
of the Block the US$1.5 million was deposited in an escrow account in
Lima as a  guarantee against  the seismic work  programme. The  Group
finally  received  its  environmental  permit  from  the  Environment
Ministry in August 2008. In April 2009 SCAN Geophysical, a  Norwegian
company specialising  in  the  acquisition  of  marine  seismic,  was
contracted to acquire 2,013 kms of  2D seismic on Block Z34 in  water
depths of 200m  to 3,000m.  This was successfully  completed in  June
2009. Initial  processing  indicated  a variety  of  leads,  some  in
200300m of water.  It is very  encouraging to note  that the  seismic
survey has confirmed the initial  geological model with a  definitive
presence of turbidite  style structures trapped  in 'geological  mega
structural features' similar to  the neighbouring Z2B oilfields,  and
their extension into Z34. The Z2B oilfields which are located to  the
east in shallower water have produced over 300 MMbbl of light oil and
still have large  proven reserves. Some  reprocessing of the  onboard
processed data and improvement  of the acquired  seismic lines is  in
process and will help  to improve the  interpretation and refine  the
mapping of the initial leads. The  data collected from the survey  is
considerable and needs to be analysed thoroughly. However, we believe
that even at  this initial  stage the  five leads  identified so  far
could have substantially more reserves then those of the neighbouring
block Z2B.
 
Colombia
 
Gold Oil Licence Interests in Colombia at 30 April 2009
 
Block Name         Licence      Expiry Date  Size  Interest  Operator
                                             (ha)
BurdineMaxineNancy NIT          03/09/2015  10,598    58.5%     Union
                   830.132.9595                              Temporal
                                                                 II&B
Rosa Blanca        NIT          03/07/2037  44,392      40%  Gold Oil
                   900.074.8172                              Colombia
                                                                  SAC
Azar                            12/12/2030  20,897      20%      Gran
                                                               Tierra
 
During  the  year  under  review  the  Group  agreed  to  acquire  an
additional 18.05% working interest in the prolific NancyBurdineMaxine
fields through the acquisition of a 100% shareholding in  Inversiones
Petroleras de Colombia SA to give a total interest to the Company  of
58.05%. The  consideration paid  for the  additional stake  was  US$4
million. With a majority stake in this project, the Group became  the
operator of the fields. In July 2009, on receipt of the Environmental
Permits for three Burdine wells, the Group commenced work on them  to
evaluate their condition. Burdine 1, 4 and 5 were found to be in good
mechanical condition and were put on short term production tests. The
initial, restricted, flow rate from  Burdine5 was around 60 bopd  and
bottom  hole  pressure  analysis  indicates  that  this  well  is  an
excellent candidate for reperforating  the producing intervals.  Well
Burdine1 is now on a longer term production test with around 300 bopd
of light crude. The short term plan is to workover the Burdine  wells
and subsequently  upgrade  the  construction  of  Burdine  production
facilities. The medium term plan (Q2 in 2010) is to locate one or two
new prospects for the drilling of  development wells on the crest  of
Nancy after interpretation of available seismic lines. At present the
Nancy structure  has only  one  producing well,  N1, from  which  the
actual identified reserves are being drained, but N1 is on the  flank
of the structure and, as expected, production is declining.
 
The Group finalised its acquisition of a 20% working interest in  the
Azar Block in the Putumayo Basin  of Colombia. The Group was  carried
through the Palmera1 work  over and will be  carried for half of  its
20% working interest in the first exploration well on the Block.  The
workover of the Palmera1 well tested 15o API oil at 45 bopd  although
a bottomhole  pressure survey  indicated a  pumped potential  of  300
bopd. It  is  suspended  pending  studies  on  its  completion  as  a
producing well and additional economic  studies. A 3D and 2D  seismic
programme has been completed on the block to confirm the location  of
the next exploration well  and firm up other  prospects on the  block
for possible drilling in 2010.
 
On the Rosa Blanca block the  Group had farmed out half its  interest
to Osage Exploration  and Development Inc  ("Osage") who carried  the
Group for the cost of the  well and 30 days of testing.  Subsequently
Osage farmed  out  part of  its  interest to  Lewis  Energy  Colombia
("Lewis Energy") who  operates the  block to  the south  of the  Rosa
Blanca block. The first exploration well on the block was drilled and
then suspended  in  December  2008  pending  testing.  The  well  was
extensively tested  over two  periods in  late January  2009 and  mid
March 2009. However, as only water was tested from all four zones the
well was  plugged  and abandoned  in  late March  2009.  As  recently
announced, Lewis Energy and Osage have left the licence group so Gold
Oil (90%) and  Empesa S.A.  (10%) will use  the funds  lodged by  all
parties with ANH (Agence Nacional  de Hidrocarburo) to shoot  seismic
later this year. Lewis  Energy has signed an  agreement to come  back
onto the Rosa Blanca Block for 25% equity and reimbursement of  their
share of past costs incurred by Gold Oil and Empesa.
 
With our increased level of activity in Colombia, the Group opened  a
small  office  in  Bogota  and   recruited  Mr  Carlos  Gaviria,   an
experienced engineer, as Country Manager.
 
Cuba
 
In Cuba no progress has been made in getting the Cuban Government  to
approve negotiations for a PSA (production sharing agreement). We are
keeping  this  project   under  review  and   will  report  back   to
shareholders if any progress is made.
 
Operational Outlook
 
In Peru we are planning  to farm out part  of our interests in  Block
Z34 and Block  XXI and  we have  active negotiations  in process.  In
Colombia our primary efforts will  focus on increasing production  of
Nancy  and  Burdine.  We  are  also  exploring  the  possibility   of
negotiating an extension of the licence for the Nancy Burdine  fields
and the  initial indications  are that  this should  be possible.  In
addition, subject to  the results of  the seismic interpretation,  we
intend to participate in one exploration  well on the Azar block  for
which our interest is partially carried. Activity on the Rosa  Blanca
block will  depend on  the outcome  of the  new seismic  and  further
geological and geophysical work
 
Financial Review
 
Revenue for the  year increased to  £1,004,000 (2008: £398,000).  The
loss  after  tax  for  the  year  was  £3,039,000  (2008:  profit  of
£837,000).
 
At the year end the Group had cash of £2,179,000 (2008: £5,150,000).
 
The Directors recommend that no dividend be paid (2008 £nil).
 
Corporate Review
 
During the year two  share placings were  undertaken by the  Company:
the first in July 2008 saw  22.92m of the Company's ordinary  shares,
that had  previously  been  held  for  the  account  of  the  Company
following the  disposal  of its  interest  in Minmet  Resources  plc,
issued at 8p per share to raise £1.8m; and the second in January 2009
where 16.125m  new  shares were  issued  at  4p per  share  to  raise
£645,000, both amounts before expenses.  A dispute arose with  regard
to the second placing which has now been resolved (see below).
 
The Company faced two  legal disputes during  the period. A  wrongful
termination case brought by Mrs Imelda Moore following her redundancy
in April 2008 was settled on terms favourable to the Company in  July
2009. The dispute, arising out of  the placing of 16.125m new  shares
in the Company undertaken in January 2009, was settled out of  court,
again with a positive outcome for the Company.
 
The six million  shares which were  the subject of  the dispute  were
returned and subsequently  placed out  at a  price of  4.5 pence  per
share to raise £270,000 in additional cash for the Company.
 
Upon my appointment as Chairman, an immediate reduction of  overheads
was implemented. Strict cost controls remain in place.
 
Management and Staff
 
I would like to thank all my colleagues for their efforts during  the
year. We are currently a small  team within the Company and this  can
have an effect on timelines. It  is important that we strengthen  our
management team  as  soon  as  is practicable  and  bring  in  direct
technical expertise.
 
Conclusion
 
The  current  macroeconomic  climate   makes  for  very   challenging
conditions at  the present  time for  small oil  and gas  exploration
companies such as  Gold. Exploration  for hydrocarbons  is a  capital
intensive business and in the year under review the steep decline  in
world equity markets  and the  contraction of  credit markets  placed
serious limitations on  access to  capital. All  E&P businesses  have
suffered during this period  as the high risk  sectors have been  hit
particularly hard  by  the financial  crisis  and the  price  of  oil
declined significantly.
 
Notwithstanding the above, we are moving all of our assets forward at
the current  time. I  believe  we have  an interesting  portfolio  of
assets with  a  strategy in  place  to  try and  balance  "blue  sky"
exploration risk with solid  production and that  we have retained  a
good geographic  focus. A  significant challenge  facing the  Company
will be to raise sufficient  capital, either directly or  indirectly,
to realise the potential of our assets.
 
Finally I want  to thank  shareholders for the  patience and  support
they have demonstrated throughout the year.
 
Mark Pritchard
 
Chairman
 
29 October 2009
 
STATEMENT OF NET OIL RESERVES & CONTINGENT RESOURCES AS DETERMINED ON
1 JULY 2009 (AND 31 MAY 2008)
 
At 1 July 2009: Colombia - Nancy-1 Well: Gold Oil Net Interest 27.4%
 
1. NET RESERVES
 
                                                          Production
                                        As of       As of 1.5.2008 to
                                  1 July 2009 1 July 2008   30.4.2009
                                     Oil Mbbl    Oil Mbbl    Oil Mbbl
Proven                                   29.6        50.5        30.9
Probable                              1,287.2           *
Proven plus Probable                  1,316.8        50.5
Possible                              2,007.5           *
Total Proved plus Probable plus                                  30.9
Possible                              3,324.3       121.0
 
* Independent Expert report not available at the time of printing
 
2. NET CONTINGENT OIL RESOURCES
 
As of       As of
 
                        1 July 2009 1 July 2008
 
                           Oil Mbbl    Oil Mbbl
 
Contingent Undeveloped        6,250           +
 
Prospective Undeveloped       3,201           +
 
Total Resources               9,451       9,267
 
Notes:
 
1. The Reserve and Resource estimates shown in this report are  based
upon the joint reserves  and resource definitions  of the Society  of
Petroleum Engineers
2. Reserves and  Contingent Resources have  been prepared by  Morning
Star Consultants, LCC of Houston, Texas, USA
3. Net  volumes  have  been  calculated based  on  Gold  Oil's  58.5%
Participating Interest, which after Royalty amounts to 27.4%
+ Analysis not available
 
Azar (Palmera-1 well)
 
The unaudited Operator's estimate of reserves is
as shown below
Gold Oil Net Interest 18.4%
                                                      P10   P50   P90
Reserves Mbbl Gold Oil's Interest                  117.39 82.06 46.96
 
The Operator of Azar has calculated that Potential Resources of three
structures could amount to 40.2  million barrels of which Gold  Oil's
interest could be 7.4 million barrels.
 
CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 30 APRIL 2009
 
2009    2008
                                               £'000   £'000
 
Revenue                                        1,004     398
 
Cost of sales                                  (925)   (148)
 
Gross profit                                      79     250
 
Development expenditure written off          (1,932) (1,083)
Administration expenses                      (1,321)   (757)
 
Operating loss                               (3,174) (1,590)
 
Finance income                                   101     208
Goodwill impairment                              -     (129)
Exceptional items
 Gains on sales of assets                        -     2,652
 
Profit/(loss) on ordinary activities
    before taxation                          (3,073)   1,141
 
Income tax expense                                34   (304)
 
Profit/(loss) on ordinary activities
    after taxation                           (3,039)     837
 
Dividends                                        -       -
 
Surplus/(deficit) for the year               (3,039)     837
 
Profit/(loss) on ordinary activities
    after taxation is attributable to:
Equity shareholders                          (3,039)     837
Minority interests                               -       -
 
                                             (3,039)     837
 
Earnings per ordinary share
   Basic                                     (0.62p)   0.18p
   Diluted                                   (0.62p)   0.18p
 
CONSOLIDATED BALANCE SHEET AT 30 APRIL 2009
 
2009    2008
                                             £'000   £'000
Assets
 
Non current assets
Property plant and equipment
--- oil and gas assets                         144     183
--- others                                      14      17
Intangibles                                  2,399   2,105
Goodwill                                     1,862 -
 
                                             4,419   2,305
Current assets
Inventories                                    123     214
Trade and other receivables                  2,696   3,187
Cash and cash equivalents                    2,179   5,150
 
                                             4,998   8,551
 
Total assets                                 9,417  10,856
 
Equity and liabilities
 
Capital and reserves
Share capital                                  125     120
Share premium account                       10,752  10,124
Foreign exchange translation reserve           876
Retained earnings                          (4,683) (1,644)
 
Total equity                                 7,070   8,600
 
Current liabilities
Trade and other payables                     2,347   2,256
 
Total equity and liabilities                 9,417  10,856
 
The financial statements  were approved and  authorised for issue  by
the Board of  Directors on  29 October 2009  and were  signed on  its
behalf by:
 
Mark Pritchard        Michael Burchell
Director              Director
 
Company registration number: 5098776 (England and Wales)
 
COMPANY BALANCE SHEET AS AT 30 APRIL 2009
                                             2009                2008
                                            £'000               £'000
Assets
 
Non current assets
Property plant and
equipment
--- oil and gas
assets                                        102                 183
--- others                                      -                   1
Exploration and
evaluation                                   503  -
Investments                                 4,864               3,356
 
                                            5,469               3,540
Current assets
Trade and other
receivables                                 1,292               3,243
Cash and cash
equivalents                                 1,967               2,229
 
                                            3,259               5,472
 
Total assets                                8,728               9,012
 
Equity and
liabilities
 
Capital and reserves
Share capital                                 125                 120
Share premium account                      10,752              10,124
Foreign exchange
translation reserve                            91
Retained earnings                         (6,300)             (3,305)
 
Total equity                                4,668               6,939
 
Current liabilities
Trade and other
payables                                    4,060               2,073
 
Total equity and                            8,728               9,012
liabilities
 
The financial statements  were approved and  authorised for issue  by
the Board of  Directors on  29 October 2009  and were  signed on  its
behalf by:
 
Mark Pritchard        Michael Burchell
Director              Director
 
Company registration number: 5098776 (England and Wales)
 
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 APRIL 2009
 
Group                                        Foreign
                           Share   Share    Exchange Retained
                         Capital Premium Translation Earnings   Total
                           £'000   £'000       £'000    £'000   £'000
 
As at 1 May 2007             116   9,305         -    (2,758)   6,663
 
Shares issued                  4     819         -        -       823
Profit for the year          -       -           -        837     837
Foreign exchange
translation                  -       -           -        277     277
 
As at 30 April 2008          120  10,124         -    (1,644)   8,600
 
Shares issued                  5     676         -        -       681
Costs of share issue           -    (48)           -        -    (48)
Profit for the year          -       -           -    (3,039) (3,039)
Foreign exchange
translation                  -       -           876              876
 
As at 30 April 2009          125  10,752         876  (4,683)   7,070
 
Company
As at 1 May 2007             116   9,305         -    (1,122)   8,299
 
Shares issued                  4     819         -        -       823
Loss for the year            -       -           -    (2,372) (2,372)
Foreign exchange
translation                  -       -           -        189     189
 
As at 30 April 2008          120  10,124         -    (3,305)   6,939
 
Shares issued                  5     676         -        -       681
Costs of share issue           -    (48)           -        -    (48)
Profit for the year          -       -           -    (2,871) (2,871)
Foreign exchange
translation                  -       -            91               91
 
As at 30 April 2009          125  10,752          91  (6,176)   4,792
 
Share capital is the amount subscribed for shares at nominal value.
 
Share premium  represents the  excess of  the amount  subscribed  for
share capital over  the nominal value  of those shares  net of  share
issue expenses.
 
Retained  earnings  represents  the  cumulative  loss  of  the  Group
attributable to equity shareholders.
 
CASH FLOW STATEMENT FOR THE YEAR ENDED 30 APRIL 2009
 
Group   Company     Group  Company
                                    2009      2009      2008     2008
                                   £'000     £'000     £'000    £'000
 
Operating activities             (2,476)     3,013   (2,440)  (1,220)
 
Investing activities
Return from investment and
servicing of finance                 101       106       208      206
Sale of investment assets            -         -       3,006    1,206
Acquisition of investment
assets                               -     (2,028)     (303)  (1,130)
Acquisition of goodwill          (1,698)       -         182        -
Loan advanced to
subsidiary                           -     (1,935)       -    (1,418)
Purchase of intangible
assets                             (294)       -       (209)        0
Purchase of tangible fixed
assets                             (143)      (99)       (8)      (1)
Share of joint venture
bank balance                         -          48       -        -
Received on acquisition of
subsidiary *                         906       -         -        -
 
                                 (1,128)   (3,908)     2,876  (1,137)
Financing activities
Proceeds from issue of
share capital                        633       633       823      823
 
Net cash inflow                  (2,971)     (262)     1,259  (1,534)
 
Cash and cash equivalents
at the beginning of the
year                               5,150     2,229     3,891    3,763
 
Cash and cash equivalents
at the end of the year             2,179     1,967     5,150    2,229
 
Reconciliation to Consolidated
Balance Sheet
Cash and cash equivalents          2,179     1,967     5,150    2,229
 
* This arises from the acquisition of Plectrum Petroleum Limited at a
consideration of $32.165M. Plectrum was owed $33.665M by the seller
and, as a result, a net sum of $1.5M was paid to the Group.
 
NOTES TO THE CASH FLOW
STATEMENT
 
Operating activities
 
Operating loss for the
year                             (3,174)   (1,100)   (1,615)    (452)
Depreciation and
amortisation                          21         9       128      122
Tax paid                            (47)      (66)      (50)     (50)
Foreign exchange
translation                          876        91      (56)    (195)
 
Operating cash outflows
before movements in
working capital                  (2,324)   (1,066)   (1,593)    (575)
 
Increase/(decrease) in
inventories                           91       -       (214)      -
Increase/(decrease) in
receivables                          491     2,032   (2,601)  (1,354)
(Decrease)/increase in
payables                         (1,361)     1,420     1,968      709
Short term loans received            627       627       -        -
 
Net cash outflows from
operating activities             (2,476)     3,013   (2,440)  (1,220)
 
Segmental Information
 
In the opinion of the Directors the Group has once class of business,
being the exploration for, and development and production of, oil and
gas reserves, and other related activities.
 
The  Group's  primary  reporting  format  is  determined  to  be  the
geographical segment according  to the  location of the  oil and  gas
asset. There are currently three geographic reporting segments: South
America and Spain, which are involved in production, development  and
exploration activity, and the United Kingdom being the head office.
 
Exploration and production 2009
                                         United         South
                                        Kingdom Spain America   Total
                                          £'000 £'000   £'000   £'000
Revenue - oil                               -     -     1,309   1,309
                                                            -
Cost of sales                               -    (39) (1,191) (1,230)
 
Gross profit                                -    (39)     118      79
Development expenditure written off       (129)   -   (1,803) (1,932)
Administration expenses                   (783)   (3)   (535) (1,321)
 
Operating profit/(loss)                   (912)  (42) (2,220) (3,174)
 
Finance income                               53   -        48     101
Goodwill impairment                         -     -       -       -
Gains on disposal of assets                 -     -       -       -
 
Profit/(loss) before taxation             (859)  (42) (2,172) (3,073)
 
Income Tax expense                          144     1   (111)      34
 
Profit/(loss) before taxation             (715)  (41) (2.283) (3,039)
 
Assets and liabilities
Segment assets                              306   123   6,809   7,238
Cash and cash equivalents                 1,560     7     612   2,179
 
Total assets                              1,866   130   7,421   9,417
 
Segment liabilities                         679    10   1,324   2,013
Current tax liabilities                     111    37     186     334
 
Total liabilities                           790    47   1,510   2,347
 
Other segment items
 
Capital expenditure                         -     -       142     142
 
Depreciation and amortisation                 1   -        19      20
Acquistion costs - oil and gas assets       -     -       -       -
 
Exploration and production 2008
                                         United         South
                                        Kingdom Spain America   Total
                                          £'000 £'000   £'000   £'000
Revenue - oil                               -     -       398     398
 
Cost of sales                               -     -     (148)   (148)
 
Gross profit                                -     -       250     250
Development expenditure written off        (18)   -   (1,065) (1,083)
Administration expenses                   (750)   -       (7)   (757)
 
Operating profit/(loss)                   (768)   -     (822) (1,590)
 
Finance income                              206   -         2     208
Goodwill on consolidation written off       -     -     (129)   (129)
Gains on disposal of assets               1,052   250   1,350   2,652
 
Profit/(loss) before taxation               490   250     401   1,141
 
Income Tax expense                        (179)  (75)    (50)   (304)
 
Profit/(loss) before taxation               311   175     351     837
 
Assets and liabilities
Segment assets                            4,384   -     1,322   5,706
Cash and cash equivalents                 1,430   181   3,539   5,150
 
Total assets                              5,814   181   4,861  10,856
 
Segment liabilities                          44     0   1,908   1,952
Current tax liabilities                     254    37      13     304
 
Total liabilities                           298    37   1,921   2,256
 
Other segment items
 
Capital expenditure                           1   -         7       8
Depreciation and amortisation                 1   -       128     129
Acquistion costs - oil and gas assets       -     -       209     209
 
Loss for the period
 
As permitted by section 230 of the Companies Act 1985, the holding
company's income statement has not been included in these financial
statements. The loss for the financial year is made up as follows:
                                                      2009       2008
                                                     £'000      £'000
 
Holding company's loss                               2,871       2183
 
Earnings per share
 
Loss per ordinary share                             2009         2008
- Basic                                          (0.62p)        0.18p
- Diluted                                        (0.62p)        0.18p
 
Earnings per ordinary share is based on the Group's loss for the
financial year of £2,696,000 (2008 - profit of £837,000).
 
The weighted average number of shares used in the calculation is the
weighted average ordinary shares in issue during the year.
 
                                                    2009         2008
                                               Number       Number
Weighted average ordinary shares             488,567,333
in issue during the year                                  474,408,008
Potentially dilutive                                   -            -
warrants issued
 
Weighted average ordinary shares for         488,567,333  474,408,008
diluted earning per share
 
Cash and cash
equivalents                       2009                  2008
                              Group     Company     Group     Company
                              £'000       £'000     £'000       £'000
 
Bank current
accounts                        461         300       318          78
Bank deposit
accounts                      1,718       1,667      4832        2151
 
                              2,179       1,967     5,150       2,229
 
Bank deposit accounts comprise cash held by the Group and short-term
bank deposits with an oriignal maturity of three months or less and
earn interest at respective short-term deposit rates. The carrying
amount of these assets approximates to their fair value.
 
As at 30 April 2009, bank deposits included £1,200,000 (2008 -
£600,000) that is being held as a guarantee in respect of a letter of
credit and is not available for use until the Group fulfills certain
licence commitments in Peru. In June 2009, these commitments were met
which would enable the guarantee to be released but, should the Group
decide to move to the next stage of exploration, then the guarantees
would remain in place.
 
Trade and other payables          2009          2008
                               Group Company Group Company
                               £'000   £'000 £'000   £'000
 
Short term loans                 627     627   -       -
Trade payables                    31      27    33      32
Other creditors                  409   2,881   833     690
Accruals and deferred income     982     357 1,086      16
Deferred consideration           -       -     -     1,067
Taxation                         298     168   379     268
 
                               2,347   4,060 2,331   2,073
 
Share capital                                             2009  2008
                                                         £'000 £'000
Authorised
1,000,000,000 ordinary shares of £0.00025 each             250   250
 
Alloted, called up and fully paid
Equity: 480,853,909 ordinary shares of £0.00025 each       125   120
 
On 9 May 2008, 575,000 ordinary shares were issued at 1p per share on
the exercise of warrants.
 
On 19 May 2008, 2,875,000 ordinary shares were issued at 1p per share
on the exercise of warrants.
 
On 20 January 2009, 16,125,000 ordinary shares were issued at 4p  per
share on the placing of the shares. As at 30 April 2009, 6,000,000 of
this placing remained  unpaid but  the amount due  has been  received
since the year end.
 
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This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.