ADRIATIC OIL PLC: Preliminary Announcement of Final Results

28 February 2013 

                               Adriatic Oil Plc                                
                  ("Adriatic", the "Company" or the "Group")                   
                   Preliminary Announcement of Final Results                   

The Board of Adriatic Oil Plc, the ISDX Growth Market quoted international oil
and gas exploration company, is pleased to present results for the twelve
months to 30 September 2012 (the "Period"), which has seen positive
developments at the Company and a diversification of its portfolio interests,
offering investors an opportunity to be part of a fast moving business run by
management with demonstrable track records.


• Four successful equity Placings in the Periodraising a total of GBP 564,000
gross (2011: GBP 213,050);

• Purchase of Pelagian Oil Limited;

• Goodwill written off in the P&L account and the balance sheet;

• Award of Licensing Option 12/5 and farm-out of the Licensing Option to
Fastnet Oil & Gas plc;

• 25% Farm-In to Seaward Production Licence P1921 in relation to Blocks 12/18
and 12/19c with option to increase to 50%;

• Jean-Denis Bouvier appointed as a Non-Executive Director;

• Diversified asset base; and

• Relatively low operating costs and overheads and no debt.

The Company's strategy is to add shareholder value by proving and developing
leads and plays in areas which the Company's Board considers to be high
potential oil and gas provinces. Current activities are focused on the North
Celtic Sea, the UK North Sea and the Adriatic Sea Basin. Adriatic Oil's
ordinary shares are quoted on the ISDX Growth Market (operated by ICAP
Securities & Derivatives Exchange Limited) under the ticker symbol 'ADOP'. The
Company's new website is available at

During the period the Company incurred a loss after taxation but before the
writing off of goodwill, of GBP 229,954, which would have represented a basic
loss of 0.11p per share as compared to a loss after taxation in the previous
year of GBP 204,776 and a basic loss per share of 0.29p per share. The
Directors however decided as a matter of policy to write off the goodwill in
the Group's balance sheet associated with the Company's acquisition of Pelagian
Oil Limited, which amounted to GBP 904,412. When this write off of goodwill is
included in the profit and loss account, it shows a loss for the year after tax
for the Period of GBP 1,134,366, representing a basic loss per share of 0.53 p
(in 2011 the loss for the year after tax was GBP 204,776 and the basic loss per
share was 0.29p).


IRELAND - North Celtic Sea

In October 2011, Adriatic and two partners submitted an application for six
exploration blocks in the North Celtic Sea. These part-Blocks, 49/18, 49/19, 49
/20, 49/23, 49/24 and 49/25 cover an area of 881 square kilometres. In November
2012, the Petroleum Affairs Division of the Irish Department of Communications,
Energy and Natural Resources issued licensing option 12/5, "Shanagarry" (the
"Licensing Option"), over the six applied exploration blocks to Adriatic (80%)
and its two partners (20%). The Licensing Option commences from 1 December 2012
until 31 May 2014.

Well 49/19-1 was drilled by Marathon Oil Corporation and Enterprise Oil in 1984
and was not fully tested due to operational issues and poor gas economics, as
the Kinsale gas field satisfied the Irish domestic market and no gas
interconnector existed to the UK at the time.

Immediately after the completion of the Licensing Option grant, Adriatic and
its partners farmed out, (subject to government approval), 64.5% of the
Licensing Option to Fastnet Oil & Gas plc ("Fastnet"), with Adriatic retaining
15.5% of its original 80% participation in the Licensing Option. Fastnet will
become the operator of the Licensing Option and will carry Adriatic through the
whole work programme and acquire a minimum of 200 square kilometres of new 3D
seismic data over the area.

A condition of the Licensing Option is that a detailed specified work programme
is to be carried out. The main elements of the work programme include;
reprocessing 600 km. of 2D seismic data, analysis of the data for the drill
stem tests carried out in the Basal Wealden and Purbeck reservoir sequences and
a regional analysis of the working petroleum systems encountered in the 49/19-1
well. The working capital requirement for Fastnet arising in respect of the
work programme under the Licensing Option is expected to be approximately GBP

IRELAND - Atlantic Margin, North Porcupine Basin, Licence 1/04

In the second half of the year ended 30 September 2011, Adriatic negotiated the
acquisition of a 0.6% Net Profit Bonus ("NPB") in respect of each hydrocarbon
accumulation within the area of the Frontier Exploration Licence 1/ 04 (the
"Frontier Exploration Licence") in the North Porcupine prospect Atlantic
Margin, in offshore Ireland. The Frontier Exploration Licence, located at the
northern limit of the North Porcupine Basin comprises of part blocks 26/27, 26/
28, 35/2 and 35/3. As part of this acquisition, Adriatic Oil will be carried
through all capital investment in exploration, appraisal, development and
production and, will also have no exposure to any operating costs.

The Frontier Exploration Licence contains the undeveloped Connemara oil field
and two exploration opportunities, the "H" and the "C 1" Prospects. Third party
information available to the Directors indicates the following: The Connemara
oil field was discovered and partially appraised by BP during 1979-1984. In the
period 1995-1999, Statoil of Norway acquired new 3D seismic and appraised the
North East area of the field by drilling two horizontal wells. These wells have
flowed light oil, at rates of up to 6,000 barrels of oil per day ("bopd").

The operator of the Frontier Exploration Licence, San Leon Energy Plc has
informed that the current phase of the Frontier Exploration Licence requires a
well commitment to move to the next stage of licensing and is looking for
interested parties to participate in an exploration programme and to fund part
of the exploration well costs. Water depths are up to 400m, with a well target
depth of 3,000m.

UK NORTH SEA - Inner Moray Firth

In December 2012, Adriatic announced a 25% Farm-In to the Seaward Production
Licence P192, in relation to Blocks 12/18 and 12/19c which are located in the
Inner Moray Firth area of the UK's North Sea (the "Seaward Production
Licence"). Adriatic has also secured an option whereby, for an increased
capital commitment, the Company can increase its stake in the Seaward
Production Licence to 50%. The Farm-In has been approved by the UK Department
of Energy and Climate Change.

Blocks 12/18 and 12/19c were originally applied for and secured under licence
in the 26th UK Seaward Licensing Round by Elixir Petroleum Limited, the
previous 100% interest holder (pre-Farm-In) and operator. The work obligations
in relation to the Seaward Production Licence involve the purchase of 3D
seismic data and a "drill-or-drop" decision is required to be made by early

The Seaward Production Licence blocks are contiguous and are located
approximately 150km north east of Inverness, approximately 40 km east of Wick
in north-east Scotland and in a water depth of approximately 75m. The Seaward
Production Licence blocks lie to the north east of the Beatrice oil field,
located in Block 11/30a and to the west of the Captain oil field in Block 13/

A regulatory announcement made by Elixir in January 2012 stated that "A single
large stratigraphic prospect has been identified in the Middle Jurassic
Beatrice Formation on the northern edge of the Smith Bank High. The prospect is
predicted to have Beatrice Formation sands as the reservoir, which has been
identified as an acoustic impedance anomaly on several 2D seismic lines. No
wells to date have targeted the Smith Bank High in the Blocks."

Under the terms of the Farm-In Agreement, Adriatic Oil has agreed to pay a cash
consideration of GBP 9,000 and to fund the cost of interpreting 3D seismic
data, up to a maximum of GBP 60,000. Costs thereafter will be met pro rata to
participating interests.

Once the relevant 3D seismic data has been interpreted, the Company will be
entitled to exercise its option to acquire a further 25% interest. If it is
determined that the data needs to be reprocessed then the consideration will
comprise an obligation to pay 50% of Elixir Petroleum Limited's then 75%
participating share of the reprocessing costs. If the data does not require
reprocessing, the consideration will comprise of GBP 100,000 in cash and the
grant of a 10% gross overriding royalty on the Company's participating

Adriatic has funded the acquisition of 3D seismic data and the interpretation
of this data commenced in early January 2013. The Board is pleased to assist
with the development of the prospect, (which Elixir Petroleum Limited has named
the "Sunset" prospect) towards achieving drill-ready status.

ALBANIA - application offshore Adriatic, North Rodoni

The Board reports to shareholders that discussions with the Ministry of
Economy, Trade and Energy, the National Agency of Natural Resources and
Albpetrol remain on-going and Adriatic's application process has been delayed
due to political reasons and the privatisation of the former state oil company,

Offshore Albania, in the Southern Adriatic, is one of the least explored shelf
areas of the western Mediterranean Sea, with only six wells in 12,000 square
kilometres. Hydrocarbons are present in four out of six wells drilled in
Albanian waters, and have also been found to be present under the waters of
Italy and Montenegro.

The Aquila oil field under Italian waters of the Southern Adriatic, discovered
in 1981 in water depths of 850m but not developed until 1993, has produced 25
million barrels of oil since production started in 1998. In two other areas
under Italian waters, hydrocarbons have been found: an un-appraised oil
accumulation in the Giove area and an un-appraised gas accumulation in the
Falco discovery. The Company is aware of increased exploration activity in the
Southern Adriatic.


In February 2012, Adriatic completed the acquisition of the entire share
capital of Pelagian Oil Limited. Pelagian Oil Limited is an oil and gas
exploration company with applications for four oil and gas production sharing
agreements focused in the Adriatic. The experience and knowledge of Pelagian
Oil Limited has helped Adriatic to expand and develop its current exploration
assets and has assisted Adriatic in its further expansion.

I am pleased to welcome to the Board Jean-Denis Bouvier, who was appointed as
Non-Executive Director in August 2012. A qualified geologist with a BSc in
Geology and a MSc. in Mining Engineering/Geology from the University of Geneva,
Jean-Denis has more than 30 years of experience in oil and gas exploration and
production. Jean-Denis is the Chief Executive of Petrogas E&P LLC which
produces approximately 60,000 barrels of oil per day from fields in the
Sultanate of Oman, Egypt and India.

In December 2012, Adriatic appointed Yellow Jersey PR Limited as its financial
public relations adviser to handle the Company's communications and media

To strengthen its balance sheet, Adriatic raised further equity finance in the
year ended 30 September 2012 and after this period. Cash balances currently
stand at approximately GBP 450,000 (cash balances as at 28 February 2012 stood
at approximately GBP 50,000).


Although the continuing backdrop of the global economy and the small cap arena
remains challenging, the Board remains excited about the Company's future
prospects. Entering 2013 the management team remains energised and committed to
the achievement of the Company's agreed business plan, which projects the
achievement of further growth across the Company.

As Chairman, I would like to take this opportunity to thank all shareholders
and staff for their continued support.

Jack Wilson
Non-Executive Chairman
On behalf of the Board

CONSOLIDATED PROFIT AND LOSS ACCOUNT                                           

For the year ended 30 September 2012                                            

                                 Notes               Year ended      Year ended
                                                   30 September    30 September
                                                           2012            2011
                                                            GBP             GBP

Turnover                                                      -               - 
Administrative expenses                               (229,954)       (204,776) 
Goodwill on subsidiary               5                (904,412)               -
acquisition written off                                                         

                                                     ----------      ----------

Operating loss                                      (1,134,366)       (204,776) 
Interest received                                             -               - 
Loss on ordinary activities                         (1,134,366)       (204,776)
before taxation                                                                 
Tax on loss on ordinary                                       -               -

                                                     ----------      ----------

Loss after taxation                                 (1,134,366)       (204,776) 

                                                     ----------      ----------

Basic loss per share:                                   (0.53)p         (0.29)p 
                                                 ----------      ---------- 
All of the Group's operations are classed as continuing. There were no gains or
losses in the period other than those included in the above consolidated profit
and loss account. 
CONSOLIDATED BALANCE SHEET                                                  
As at 30 September 2012                                                     

                                               Year ended        Year ended 
                                             30 September      30 September
                                                     2012              2011
                                                      GBP               GBP

Fixed assets                                                                
Intangible                                        155,116            30,000 
Investments                                        45,395            45,000 

                                               ----------        ----------

Total fixed assets                                200,511            75,000 
Current assets                                                              
Prepayments                                         6,899             4,226 
Cash at bank                                      364,391           136,124 

                                               ----------        ----------

Total current assets                              371,290           140,350 
Current liabilities                                                         
Creditors                                        (24,019)         (101,856) 

                                               ----------        ----------

Net current assets/liabilities                    347,271            38,494 

                                               ----------        ----------

Other liabilities                                       -                 - 
Net assets                                        547,782           113,494 

                                               ----------        ----------

Capital and reserves                                                        
Called up share capital                         1,458,768           608,213 
Share premium                                   1,075,100           357,000 
Profit & loss account                         (1,986,086)         (851,719) 

                                               ----------        ----------

Total shareholders' funds                         547,782           113,494 

                                               ----------        ----------


Note 1 - Accounting policies

There have been no changes to the accounting policies adopted by the Group
during the year ended 30 September 2012 and the year ended 30 September 2011.

Note 2 - Loss per share from continuing operations attributable to the equity
                                                     2012              2011
                                                      GBP               GBP

Loss for the purpose of basic and             (1,134,366)         (204,776)
diluted loss per share being net                                           
(loss)/profit attributable to equity                                       
Number of shares                                                            
Weighted average number of ordinary           213,852,675        70,532,089
shares for the purposes of basic loss                                      
per share                                                                   
Loss per ordinary share:                                                    
Basic                                             (0.53)p           (0.29)p 
                                           ----------        ---------- 
Basic loss per share is calculated by dividing the loss attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the year. 
The calculation of diluted loss per share assumes conversion of all potential
dilutive ordinary shares, all of which arise from share options or warrants. A
calculation is done to determine the number of shares that could have been
acquired at fair value, based upon the monetary value of the subscription
rights attached to outstanding share options and warrants. 
Given the Group's reported losses for the year, outstanding share options and
warrants are not taken into account when determining the weighted average
number of ordinary shares in issue during the year, and therefore the basic and
diluted loss per share are the same. 
Note 3 - Announcement information 
The information contained within this announcement has been agreed with the
Group's auditor. The financial information set out in this announcement does
not constitute statutory accounts. 
The results for the ended 30 September 2012 are consolidated figures due to the
acquisition of Pelagian Oil Limited during the year, whereas the results for
the year ended 30 September 2011 relate solely to Adriatic Oil Plc. 
Note 4 - Dividend 
The Directors do not propose to recommend the payment of a final dividend for
the year ended 30 September 2012. No final dividend was paid in relation to the
year ended 30 September 2011. 
Note 5 - Goodwill on subsidiary acquisition written off 
Goodwill arising on the acquisition of Pelagian Oil Limited amounted to £
939,266. Following an impairment review, an amount of £904,412 was written 
This represents a non-cash item. 
Bruno Müller
+44 (0) 20 3178 4060 
SVS SECURITIES PLC - ISDX Growth Market Corporate Adviser
Peter Ward / Alexander Brearley
+44 (0) 20 7638 5600 
Dominic Barretto / Anna Legge
+44 (0) 20 3664 4087 
Adriatic Oil Plc is a publicly quoted UK-incorporated international oil and gas
exploration company with a portfolio of activities focused on the North Celtic
Sea, the UK North Sea and the Adriatic Sea Basin. 
In the North Celtic Sea, the Company has agreed with Fastnet Oil & Gas plc to
farm-out 64.5% of its original 80% interest in a Licensing Option which covers
an area of 881 sq. km. Following execution of the Farm-in Agreements, the
Company will hold 15.5% of the Licensing Option. The Company has a second small
carried interest in offshore Western Ireland. 
Separately, in the Inner Moray Firth area of the UK's North Sea, Adriatic Oil
has secured a 25% Farm-In, approved by the UK Department of Energy and Climate
Change, to Seaward Production Licence P1921 in relation to Blocks 12/18 and 12/
19c and the Company has an option for a further 25%. 
Adriatic Oil is also focused on making and progressing applications for
offshore exploration opportunities in Albania, which holds the largest onshore
oilfield ever found in Europe with 5.7 billion barrels of oil in place. 
Adriatic Oil's strategy is to add shareholder value by proving and developing
leads and plays in areas which the Directors of the Company consider to be high
potential oil and gas provinces. Adriatic Oil's ordinary shares are quoted on
the ISDX Growth Market (operated by ICAP Securities & Derivatives Exchange
Limited) under the ticker symbol 'ADOP'. The Company's website is available at 
-0- Feb/28/2013 15:42 GMT
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