SHARE VALUATION

Johnston Carmichael CA, Aberdeen was again appointed to provide a share valuation for the shares Trading Day of 31 August 2009.

The agreed value of an Ordinary £1 share is $13.91 as at 31 December 2008.

This has decreased from the $15.03 per share valuation at 31 December 2007 due to the decline in forecasted gas and oil prices.

The value of a £1 Ordinary share as at 31 December 2008 would have been £9.60 based on an exchange rate of 1.45 at that date.

The price as at 31 December 2007 was £7.51 per share (based on an exchange rate of 2.00).

So, although the US dollar valuation has decreased the Sterling value increased due to the deterioration in the dollar exchange rate during 2008. Conversely, Sterling has strengthened considerably against the dollar so far during 2009.

Accordingly due to all the revenues and a significant proportion of the Company’s costs being denominated in US dollars but the price per share being stated in £ Sterling, the valuation is, and will continue to be, susceptible to exchange rate fluctuations.

In the circumstances the Board has decided, in an attempt to bring more certainty into the valuation exercise by reducing the susceptibility to exchange rate fluctuations that the valuation price should be quoted in US dollars this year and in future.

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