MMS.L Regulatory News (MMS)

22 Feb 2008 07:00

Maghreb Minerals PLC22 February 2008 MAGHREB MINERALS plc Interim Results Six months to 31 December 2007 Encouraging Results Point Towards Potential in Tunisia Maghreb Minerals plc ('Maghreb' or 'the Company'), the AIM-quoted mining andexploration company exploring for and developing base and precious metaldeposits in Tunisia, announces its un-audited results for the six-month periodended 31 December 2007, a period of further substantial progress for theCompany. Highlights • Phase 1 verification drilling programme completed at Gite de l'Est • Audited Inferred Mineral Resource Statement for Gite de l'Est in accordance with JORC (2004) indicates 8.8 Million tonnes ("Mt") grading 3.16% combined Pb + Zn at a cut-off grade of 1% Pb + Zn • Written confirmation of the transfer of a 90% interest in the Bou Jabeur Exploration Permit to Maghreb • Early results of the Phase 2 drilling at Gite de l'Est extend the known zone of mineralisation •Phase 2 drilling at Gite de l'Est visually indicates 20m of strong mineralisation which adds approximately 50m to the deposit below the known mineralisation • £2.2 million in cash and cash equivalents. Commenting on Maghreb's prospects, Gordon Riddler, Executive Chairman, said: "Maghreb is continuing to consolidate its exploration portfolio. Encouragingresults from the completed work programme during this reporting period and thetransfer of the 90% interest in Bou Jabeur have made a significant contributionto the Company's goal of establishing an economically mineable resource inTunisia. Going forward, priority will be given to drilling and updating theresource statement for Bou Jabeur." ENQUIRIES: Maghreb Mineral Plc Tel +44 (0) 20 7556 0940Gordon Riddler, Executive Chairman Hanson Westhouse Limited Tel +44 (0) 20 7601 6100Tim Metcalfe/Anita Ghanekar Bankside Consultants Tel +44 (0) 20 7367 8888Michael Padley/Libby Moss Information relating to this announcement will be posted on the Company websiteat www.maghrebminerals.co.uk. The technical content of this press release has been reviewed by the ExecutiveChairman of Maghreb Minerals plc, Gordon Riddler, BSc, MBA, FIMMM, CEng, CSc,who has 40 years of experience in the mining sector and is a Fellow of theInstitute of Materials, Minerals and Mining, a recognised professionalassociation. CHAIRMAN'S STATEMENT Introduction I am pleased to provide a review of Maghreb Minerals Plc's (Maghreb" or the"Company") activites and financial results for the six months ended 31 December2007. This period has seen the completion of several important elements of thework programme that continue to produce very encouraging results. Maghreb is exploring for zinc ("Zn"), lead ("Pb"), barite ("BaSO4") and fluorite("CaF2"), in Tunisia where it holds a number of highly prospective explorationpermits ("EP") including permits covering past producing mines with un-minedresources. Summary of Results The main thrust of the work programme during this reporting period has beenfocused on the Bou Jabeur EP. The results from the exploration work undertaken in 2007 have positiveimplications for the Company in its goal towards establishing an economicallymineable resource at Bou Jabeur -Gite de l'Est. In consequence of the workundertaken in 2007 and having met its expenditure commitment under the earn-inagreement, on 7 February 2008 the Company received written confirmation of thetransfer to it of a 90% interest in the Bou Jabeur EP. Bou Jabeur - Gite de l'Est drilling results The drilling undertaken at Gite de l'Est in 2007 not only confirmed earlierOffice National des Mines ("O.N.M.") drill results but also intersectedhigh-grade mineralisation over thick widths. These intersections had higher zincgrades than previously reported and high-grade barite and fluorite associatedwith zinc mineralisation. In addition, re-assay of cores and pulps from earlierO.N.M. drilling show a significant increase in reported zinc grades versus thegrades reported by the O.N.M. Phase 1 of the verification drilling was completed at Bou Jabeur - Gite de l'Estin September 2007. Ten MBJ series drill holes for a total of 3,404 metres ("m")were completed. The first eight drill holes (MBJ1 - MBJ8) were twinned withprevious O.N.M. drill holes while MBJ9 and MBJ10 were gap infilling drill holes.Zinc and lead assay results from the MBJ series drill holes confirm and verifythe previous O.N.M. drilling results, with some zinc assays in MBJ coresreporting considerably higher grades. Several drill holes in the MBJ series, including MBJ1, MBJ4 and MBJ6, previouslyreported assayed high-grade zinc mineralisation over thick widths. For example,drill hole MBJ6 (twinned with O.N.M. drill hole BJ31) shows high-grade zincmineralisation over a wide interval: 42.2m grading 7.47% Zn and 0.7% Pb, whichincludes 18.9m grading 10.61% Zn and 0.8% Pb. MBJ series verification drillholes also confirm the presence of significant thicknesses of high-grade bariteand fluorite mineralisation. These high-grade barite and fluorite intersectionsare generally associated with the high-grade lead-zinc assay intervals reportedabove. The presence of high-grade barite and fluorite potentially adds significant value to the resource. These high-grade zinc, barite and fluorite results are highly significant interms of the Company progress towards delineating a resource that may beeconomically feasible to mine. In addition to twinning previous O.N.M. drill holes, mineralised core and pulpsfrom the former drilling programmes completed by the O.N.M. at the Bou Jabeur -Gite de l'Est deposit between 1977 and 1986 were discovered by the Company'sfield team in May 2007. These were sent for re-assay at an accreditedlaboratory. A comparison between the original Tunisian assays and the new assay results forzinc, lead, barite and fluorite from each drill hole that the O.N.M. drilled andfor which core pulps were available, show significant increases in the grade ofzinc, by between 33% and 43%, with the greatest increase at the higher grades.These high zinc grades have not yet been included in the resource estimatereported below. For fluorite, the new analyses indicate that the previous dataoverestimated the fluorite content between 11% and 29%, with less variation athigher grades. There are no significant differences in the results for eitherlead or barite. The new re-analyses results are highly significant and along with the resultsfrom the Company's own verification drilling (MBJ series) will be included in anupdate of the compliant mineral resource statement for the Bou Jabeur - Gite del'Est deposit in due course. Bou Jabeur - Gite de l'Est Resource Estimate Wardell Armstrong International ("WAI") was appointed to assist with thepreparation of a resource statement and to oversee the programme to upgrade theGite de l'Est zinc-lead-fluorite-barite resource at Bou Jabeur in Tunisia toJORC standards. WAI produced an audit report in December 2007 that confirmedthat the Mineral Resource estimation methodology used by Maghreb complied withthe requirements of JORC (2004). As such, to the best of WAI's knowledge, thesummary of the audited inferred mineral resources for Gite de l'Est at 1%, 2%,and 4% combined Pb+Zn cut off grade dated 12 December 2007 given in the tablebelow was an accurate estimation of the geological resources. Summary of the estimated Inferred Mineral Resources for Gite de l'Est at various combined Pb+Zn Cut Off Grade percentages ("COG")----------------------------------------------------------------------------------Pb+Zn Volume Tonnage Density Zn Pb BaSO4 CaF2 Zn Pbcombined Contained ContainedCOG (m3) (t) (g/cm3) (%) (%) (%) (%) Metal Metal (%) (t) (t) ---------------------------------------------------------------------------------- 1 2,561,949 8,836,000 3.34 2.17 0.99 21.66 5.06 191,741 87,476---------------------------------------------------------------------------------- 2 1,465,159 5,172,000 3.45 3.15 1.25 27.76 6.42 162,918 64,650---------------------------------------------------------------------------------- 4 608,848 2,195,000 3.54 5.05 1.48 33.12 7.34 110,941 32,464 Maghreb is now engaged in an update incorporating data from the re-analyses ofO.N.M. core and pulps and the MBJ drill hole series results as reported uponearlier. Bou Jabeur - Gite de l'Est Earn-In Completed and Title Transferred to Maghreb The Company's 90% interest in the Bou Jabeur EP, formerly known as the BouJabeur mine concession, which covers a significant area of mineralisationincluding the Gite de l'Est barite-fluorite zinc-lead mine has been confirmed.The earn-in agreement with the O.N.M. included a commitment by the Company tospend Tunisian Dinars 400,000 over two years on exploration and projectevaluation. A report detailing qualifying expenditure was submitted by theCompany to the O.N.M. in November 2007 and accepted by them. On 7 February 2008the Company received written confirmation of the transfer to it of a 90%interest in the Bou Jabeur EP. This will be gazetted in due course. Bou Jabeur - Gite de l'Est Phase 2 Drilling Commenced - Early Results Extend theKnown Zone of Mineralisation The second phase of resource extension and infill drilling has commenced. Drillhole MBJ12 (to a depth of 500m) has been completed. This drill hole along withMBJ11 is targeting the mineralisation in a deeper extension of the reeflimestone at Gite de l'Est, below the previously reported Inferred MineralResource. A visual inspection of the MBJ12 drill core indicates 20m of strongmineralisation in reef limestone between 371m and 391m, giving an extension todepth for the deposit of approximately 50m with a further 3m of lead and zincmineralisation between 398m and 401m. Assay results for MBJ12 will be announcedin due course. Further deep drilling is planned to test for high-grade mineralisation at depth.The principal target area is to the North-East of the Gite de l'Est mine shaftwhere the first phase of verification drilling has indicated the highest gradeswith total intervals in drill core up to 44m with an average grade of 0.71% Pband 7.47% Zn (8.18% combined Pb+Zn) and where no previous drill testing has beenundertaken beneath the known mineralisation. Zriba - Guebli Preliminary discussions have been initiated with potential partners who may beinterested in taking this project forward with Maghreb. The fluorspar deposit atZriba - Guebli is large in terms of fluorite-barite deposits worldwide and ithas only been partially exploited. There are indications that large potentiallyworkable tonnages apparently remain to support a new mine. The Company has beenindependently advised that it is a project worth pursuing, especially given thecurrent situation of the fluorspar market. The verification drilling at the Zriba - Guebli EP was completed between May andSeptember 2007. Fifteen drill holes (MG series) were completed for a total of2,150m. The drilling results indicated significant variations in thickness ofthe flat lying fluorite bed between 1m and 10m, even between nearby twinneddrillholes, with fluorite grades varying between 4% and 48% (average of 25%)CaF2. The drilling results are considered to have been more useful in proving theoverall extent of the deposit rather than the mineable thickness. As aconsequence, conventional statistical analyses of drilling data to derive aresource quantity are unlikely to be as reliable as an engineering examinationof existing pillar and stall workings. This should provide a betterunderstanding of the pinch/swell and its effect on mineability. Fej Lahdoum Drilling re-commenced at Fej Lahdoum in mid-October 2007. To date four drillholes (MFL25 - MFL28) have been completed and one is in progress (MFL29) for atotal of 1,073 m. MFL25 and MFL26 tested the eastern boundary of the Dar N'HalNord deposit, and MFL27 was drilled south of the Fernana quarry mineralisedoutcrop. No mineralisation was found in these drill holes. Two drill holes(MFL28 and MFL29) are along the northern extension of the Dar N'Hal Nord depositand have encountered bad ground thought to be due to small karst zones or oldunrecorded workings. Shallow mineralisation has been visually recorded infractures in the core. The drilling programme for this prospect is one of theCompany's main priorities. Djebel Lorbeus This prospect has a number of features that indicate the potential for MVT leadzinc deposits. A coincidence of anomalous O.N.M. soil geochemistry data, apositive residual gravity anomaly and rock hydrofracturing provide the basis fora very interesting exploration project to be undertaken in due course. Ouled Moussa Ouled Moussa is an EP lying immediately to the East of Bou Jabeur. Drill holeMOM3 (to a depth of 467m) was completed to test a residual gravity anomaly thatmay indicate an extension of lead-zinc mineralisation in a reef limestone unitalong the southern margin of Aptian (Cretaceous) sediments across a north-westtrending structure. The drill hole encountered only marls and the gravityanomaly was not confirmed. This may be due to a north-westerly displacement ofthe reef limestone. A second drill hole will be completed to test this conceptin due course. Financial On 20 July 2007, as an integral part of the equity fund raising in June 2007, afinal tranche of £241,000 was raised by a fresh issue of ordinary shares,details of which are set out in note 6 to these interim statements. The Group made a consolidated loss for the six months ended 31 December 2007 of£587,000 (2006 - £701,000). Administration charges for the period to 31 December2007 include a provision of £28,000 (2006 - NIL) in respect of the estimatedcost of share options as required by IFRS 2. The financial highlights are tabledbelow: Six months to Six months to 12 months to 31 December 31 December 30 June 2007 2007 2006 (£'000) (£'000) (£'000)--------------------------------------------------------------------------------Interest income 42 14 25--------------------------------------------------------------------------------Total expenditure incurred in respectof: - Tunisia (368) (262) (544) - Algeria - discontinued operations (See Note 3) 35 (254) (281)--------------------------------------------------------------------------------Administration expenses (296) (199) (881)--------------------------------------------------------------------------------Loss for the period (587) (701) (1,681)--------------------------------------------------------------------------------Cash and Cash Equivalents 2,212 838 1,952-------------------------------------------------------------------------------- Outlook Based on a robust set of exploration results received during this reportingperiod, the Company will focus on its advanced exploration opportunities, inparticular extending the Bou Jabeur lead-zinc-barite-fluorite resource as itsmain priority, with work continuing at Fej Lahdoum following a review of theprogramme there. At Zriba-Guebli, Maghreb is looking to move forward itsstrategy to secure a suitable partner to complete the feasibility study on theZriba fluorite mine and if possible progress towards production. The Companywill continue its work programme on other exploration permits, principallyDjebel Lorbeus. Maghreb has the finance and management resources to continue its plannedprogramme. Gordon RiddlerChairman22 February 2008 CONDENSED CONSOLIDATED INCOME STATEMENT For the six months ended 31 December 2007 Un-audited Un-audited Audited 6 months ended 6 months ended 12 months 31 December 2007 31 December 2006 ended 30 June 2007 £'000 £'000 £'000 Revenue - - -Exploration expenses - continuing operations (368) (262) (544)Exploration expenses - discontinued operations 35 (254) (281)--------------------------------------------------------------------------------Gross loss (333) (516) (825) Administrative expenses (296) (199) (881)--------------------------------------------------------------------------------Operating loss (629) (715) (1,706) Investment income 42 14 25--------------------------------------------------------------------------------Loss before tax (587) (701) (1,681) Income tax expense - - ---------------------------------------------------------------------------------Loss for the period (587) (701) (1,681)-------------------------------------------------------------------------------- Earnings per share Basic and diluted loss per share from continuing operations (pence) (0.65) (0.88) (2.81)--------------------------------------------------------------------------------Basic and diluted loss per share from discontinuedoperations (pence) - (0.50) (0.56)-------------------------------------------------------------------------------- CONDENSEDCONSOLIDATED BALANCE SHEET As at 31 December 2007 Un-audited Un-audited Audited 31 December 31 December 30 June 2007 2007 2006 £'000 £'000 £'000 Non-current assetsIntangible assets 82 82 82Property, plant and equipment 173 147 156-------------------------------------------------------------------------------- 255 229 238Current assetsOther receivables 27 35 737Cash 2,212 838 1,952-------------------------------------------------------------------------------- 2,239 873 2,689Current liabilities--------------------------------------------------------------------------------Trade and other payables (45) (102) (95)Provisions - - (65)-------------------------------------------------------------------------------- (45) (102) (160)--------------------------------------------------------------------------------Net current assets 2,194 771 2,529-------------------------------------------------------------------------------- Total assets less currentliabilities 2,449 1,000 2,767--------------------------------------------------------------------------------Net assets 2,449 1,000 2,767-------------------------------------------------------------------------------- EquityShare capital 546 304 526Share premium account 6,473 3,894 6,252Share Option Reserve 195 - 167Retained earnings (4,765) (3,198) (4,178)--------------------------------------------------------------------------------Total equity 2,449 1,000 2,767-------------------------------------------------------------------------------- CONDENSED STATEMENT OF CHANGES IN EQUITY For the six months ended 31 December 2007 Share Share Share Retained Total capital premium Option earnings Reserve £'000 £'000 £'000 £'000 £'000 Balance at 31 December 2004 237 3,067 - (807) 2,497-------------------------------------------------------------------------------- Loss for the period - - - (506) (506) Issue of share capital - - - - - Balance at 1 July 2005 237 3,067 - (1,313) 1,991-------------------------------------------------------------------------------- Loss for the period - - - (476) (476) Balance at 31 December 2005 237 3,067 - (1,789) 1,515-------------------------------------------------------------------------------- Loss for the period - - - (708) (708) Balance at 1 July 2006 237 3,067 - (2,497) 807-------------------------------------------------------------------------------- Loss for the period - - - (701) (701) Issue of share capital 67 827 - - 894 Balance at 31 December 2006 304 3,894 - (3,198) 1,000-------------------------------------------------------------------------------- Loss for the period - - - (980) (980) Share based payments - - 167 - 167 Premium on shares issued - 2,358 - - 2,358 Issue of share capital 222 - - - 222 Balance at 1 July 2007 526 6,252 167 (4,178) 2,767-------------------------------------------------------------------------------- Loss for the period - - - (587) (587) Share based payments - - 28 - 28 Issue of share capital 20 - - - 20 Premium on shares issued - 221 - - 221--------------------------------------------------------------------------------Balance at 31 December 2007 546 6,473 195 (4,765) 2,449================================================================================ CONDENSED CONSOLIDATED CASH FLOW STATEMENT For the six months ended 31 December 2007 Un-audited Un-audited Audited 6 months ended 6 months ended 12 months 31 December 31 December ended 30 2007 2006 June 2007 Restated £'000 £'000 £'000Cash flows from operating activitiesOperating loss before interestand tax (629) (715) (1,706)--------------------------------------------------------------------------------Add: Depreciation charges for the period 35 30 69Add: Share option charge for the period 28 - 167--------------------------------------------------------------------------------Operating loss before working capital changes (566) (685) (1,470) Decrease in other trade and other receivables 10 7 5(Decrease)/Increase in trade andother payables (115) 48 105--------------------------------------------------------------------------------Cash(absorbed)/generated by operations (105) 55 110--------------------------------------------------------------------------------Net cash flow from operating activities (671) (630) (1,360) Cash flows from investing activitiesPurchases of plant and equipment (52) (1) (48)Interest income received 42 14 25--------------------------------------------------------------------------------Net cash from investing activities (10) 13 (23) Cash flows from financing activitiesProceeds on issue of share capital 241 894 3,474Decrease/(Increase) in receivableswith respect to issue of share capital 700 - (700)--------------------------------------------------------------------------------Net cash from financing activities 941 894 2,774--------------------------------------------------------------------------------Net increase in cash and cash equivalents 260 277 1,391 Cash and cash equivalents at the beginningof the period 1,952 561 561--------------------------------------------------------------------------------Cash and cash equivalents at the end of the period 2,212 838 1,952-------------------------------------------------------------------------------- NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 1. General information The interim financial information for the six months ended 31 December 2007 hasbeen prepared under International Financial Reporting Standards ("IFRS") asadopted for use in the European Union. The results for the year ended 30 June 2007 have been audited whilst the resultsfor the six months ended 31 December 2006 and 31 December 2007 are un-audited.The interim report is un-audited and does not constitute statutory accounts asdefined in section 240 of the Companies Act 1985. The statutory accounts for theyear ended 30 June 2007 which were prepared under IFRS, have been delivered tothe Registrar of Companies. The auditors' opinion on those accounts wasunqualified and did not contain a statement made under s237 (2) or s237 (3) ofthe Companies Act 1985. There is no material seasonality associated with the Group's activities. The interim financial report has been prepared in accordance with IFRS,including IAS34 'Interim Financial Reporting'. The interim figures are preparedon the basis of the accounting policies set out in the last annual report to 30June 2007. 2. Dividends No dividends were paid or proposed in the 6 months ended 31 December 2007 (foryear ended 30 June 2007 - £ NIL). 3. Business and Geographical Segments The Group's operations are located in Tunisia and the United Kingdom. TheGroup's exploration activities are located in Tunisia, and its administrationand management is based in the United Kingdom. In the financial year ended 30June 2007, the decision was made to terminate further exploration over the TanChaffao permit in Algeria. Segment operating loss and loss for the period by geography are reconciled toentity operating loss and entity loss for the period as follows: Segment Operating Loss Loss For Period Un-audited Un-audited Audited Un-audited Un-audited Audited 6 months 6 months 12 months 6 months 6 months 12 months ended 31 ended 31 ended 30 ended 31 ended 31 ended 30 Dec 2007 Dec 2006 June 2007 Dec 2007 Dec 2006 June 2007 £'000 £'000 £'000 £'000 £'000 £'000Algeria -discontinuedoperations 35 (254) (281) 35 (254 ) (281)--------------------------------------------------------------------------------Tunisia (368) (262) (544) (368) (262) (544)--------------------------------------------------------------------------------United Kingdom (296) (199) (881) (254) (185) (856)--------------------------------------------------------------------------------Entity operatingloss and entity loss (629) (715) (1,706) (587) (701) (1,681) At 30 June 2007, the Company provided for land taxes and other expenses inAlgeria. The provision of £35,000 is no longer required and has been reversed inthe period to 31 December 2007. 4. Taxation No liability in respect of income tax has arisen during the period, as a resultof trading losses in each of the Group companies. No deferred tax liability orasset has been recognised in the period. 5. Earnings (losses) per share Basic losses per ordinary share have been calculated on losses attributable tomembers from continuing activities of the parent company and on 90,745,886 (31December 2006 - 50,734,002) ordinary shares, being the weighted average numberof ordinary shares in issue for the 6 months to 31 December 2007. All warrants and share options in issue decrease the loss per share for theperiod, and as such are deemed anti-dilutive. Therefore the diluted loss pershare is the same as the basic loss per share. 6. Share Capital and Warrants On 20 July 2007, 3,457,142 new ordinary shares of 0.6p per share were issued ata price of 7p per share. The issue raised cash of £241,000. On 23 December 2007, 8,529,501 warrants to subscribe for ordinary shares at asubscription price of 20 pence per share expired, without any having beenexercised. Following the issue of new shares on 20 July 2007, and the expiration of thewarrants on 23 December 2007, the resultant issued share capital and warrants ofthe Company are as follows: Called up, allotted and fully paid Share Capital Nominal Value Warrants inOrdinary shares of 0.6 pence each 2007 2007 Issue 2007 Number Number '000 £'000 '000--------------------------------------------------------------------------------Balance at 1 July 2006 39,559 237 8,530--------------------------------------------------------------------------------Issued on 3 August 2006 11,175 67 11,175--------------------------------------------------------------------------------Issued in June 2007 36,843 222 ---------------------------------------------------------------------------------Balance at 30 June 2007 87,577 526 19,705--------------------------------------------------------------------------------Issued on 20 July 2007 3,457 207 ---------------------------------------------------------------------------------Warrants expired on 23 December 2007 - - (8,530)--------------------------------------------------------------------------------Balance on 31 December 2007 91,034 733 11,175-------------------------------------------------------------------------------- 7. Transactions with Directors Fees for Services Rendered Un-audited Un-audited Auditedexcluding Share Based Payments 6 months ended 6 months ended 12 months ended 31 Dec 2007 31 Dec 2006 30 June 2007 £'000 £'000 £'000--------------------------------------------------------------------------------G P Riddler 35 32 76--------------------------------------------------------------------------------R M Storer 21 21 54--------------------------------------------------------------------------------R J C Collier 19 12 44--------------------------------------------------------------------------------C J Clayton 12 - 8--------------------------------------------------------------------------------A W Baird 12 - 8-------------------------------------------------------------------------------- Payments for services to G P Riddler and R M Storer relate to consultancyservices paid to related parties for services rendered by them as Directors ofthe Company. C J Clayton and A W Baird were appointed directors of the Company on 2 July2007. Payments for Messrs Clayton and Baird relate to consultancy services paidto related parties for services rendered by them as Directors of the Company. Payments to R J C Collier are in respect of Director's fees. There were no amounts owed to related parties at 31 December 2007, 31 December2006 and 30 June 2007. Share Based Un-audited Un-audited AuditedPayments 6 months ended 6 months ended 12 months ended 31 Dec 2007 31 Dec 2006 30 June 2007 £'000 £'000 £'000--------------------------------------------------------------------------------G P Riddler - - 16--------------------------------------------------------------------------------R M Storer - - 4--------------------------------------------------------------------------------R J C Collier - - 16--------------------------------------------------------------------------------C J Clayton - - ---------------------------------------------------------------------------------A W Baird - - --------------------------------------------------------------------------------- During the period certain directors were awarded share options as part of theirremuneration package as follows: Share Options Number Award Date Exercise Price Exercise Period Awarded (p)--------------------------------------------------------------------------------A W Baird 100,000 12/10/07 7 2008 - 2012--------------------------------------------------------------------------------C J Clayton 100,000 12/10/07 7 2008 - 2012--------------------------------------------------------------------------------R J C Collier 550,000 12/10/07 7 2008 - 2012-------------------------------------------------------------------------------- The awards were made at a premium to the market price on that day and the awardswill lapse on the earlier of five years, cessation of employment or winding upof the Company. Exercise of the options can be made in equal instalments vestingon the first, second and third anniversary from when the award was granted. The policy of the Company is to estimate the total cost of all optionsoutstanding and to make the appropriate provision in accordance with IFRS 2. Thefollowing amounts have been provided in this period in respect of the estimatedcost of these options using the Binomial valuation model. Share Option Based Un-audited Un-audited AuditedPayments 6 months ended 6 months ended 12 months ended 31 Dec 2007 31 Dec 2006 30 June 2007 £'000 £'000 £'000--------------------------------------------------------------------------------G P Riddler 8 - 44--------------------------------------------------------------------------------R M Storer 5 - 38--------------------------------------------------------------------------------R J C Collier 5 - 27--------------------------------------------------------------------------------C J Clayton 4 - ---------------------------------------------------------------------------------A W Baird 4 - ---------------------------------------------------------------------------------G W Heard - - 5-------------------------------------------------------------------------------- At 31 December 2007, the share options held by the Directors are as follows: Share Options held at 31 December 31 December 30 June 2007 2006 2007--------------------------------------------------------------------------------G P Riddler 1,200,000 1,200,000 1,200,000--------------------------------------------------------------------------------R M Storer 800,000 800,000 800,000--------------------------------------------------------------------------------R J C Collier 1,200,000 650,000 650,000--------------------------------------------------------------------------------C J Clayton 600,000 - 500,000--------------------------------------------------------------------------------A W Baird 600,000 - 500,000-------------------------------------------------------------------------------- 8. Contingent Liability At 30 June 2007, the bank balances included £23,000 held in a guarantee account,under an agreement with GOLDIM FILIALE O.R.G.M., which is the investment arm ofthe Algerian O.R.G.M. This balance was included under the contingent liabilitynote to the financial statements for the year ended 30 June 2007. This balanceremained under guarantee until 17 September 2007 whereafter it was drawn down tosettle drilling expenses incurred in Algeria. At 31 December 2007, the Companyhad no contingent liability. 9. Availability of report Copies of this report are to be sent to all shareholders and are available fromthe Company's business address at Blackwell House, Guildhall Yard, London, EC2V5AE. This information is provided by RNS The company news service from the London Stock Exchange