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 Plc
XXI  Licence          (Oil)                                                                            ÂÂ
Block Exploration Expires 12 February2037    371,339  100%    Gold Oil Plc
Z34  Licence          (Oil)                               ÂÂ
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 ubsequently 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 orkover 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
                                                          ÂÂ
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                 2,183
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.ÂÂ
                                                                                                           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           4,832         2,151
                                                                                        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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