CBM Oil plc
LSE : CBMP

November 28, 2008 09:49 ET

Half-yearly report

                                            CBM OIL PLC
                                                 
                                          Interim Report
                                                 
                           for the period 1 March 2008 to 31 August 2008



Chairman's Statement to Shareholders

During  the  period,  the  Company  made a loss of GBP180,000 and  its  cash  balance  reduced  to
GBP41,000, reflecting the ongoing costs of maintaining the Company's interests in the Ukraine  and
pursuing opportunities in other areas.

Of  real  concern  was  the  attempt  by the Ukrainian Prime  Minister  to  cancel  our  JOA  with
Chornomornaftogaz.   A direct meeting between Lord Gillford and Mrs Timoshenko  was  positive  and
support  from  the National Security and Defence Council has removed the threat  to  the  JOA  and
restored the normal good relationships with Chornomornaftogaz.  As a result we were able to sign a
Memorandum of Understanding with Chornomornaftogaz which added two undeveloped gas fields  to  the
JOA.  Looking ahead I expect in 2009, subject to funds being raised, to commence work on all three
projects with first gas production in 2011 to 2012.

The  Company  has reviewed two very attractive opportunities, one in Turkey and one in Azerbaijan.
However, further progress depends on raising finance with a farm-in by a strategic partner  or  on
the  market  although  at the moment the prospect for the latter looks very  difficult  given  the
current sentiment in the market.

Due  to  delays in getting the JOA to a position where it could be funded the Company  has  raised
capital  by  placing shares with current shareholders. A placement in July 2008 raised  GBP103,000
net  of  expenses,  and a further placement is expected to raise GBP75,000 in  December  2008.  In
addition,  6,500,000  shares  were issued to our consultants in March  2008  under  the  milestone
arrangements contained in their consultancy agreements.

Even  though  the Company has had to reduce the salary of our one member of staff in  Ukraine  and
stop  payments  to  our consultants in Ukraine, they all remain very loyal and supportive  to  the
Company and will receive shares in lieu of cash until the Company's financial health is restored.


Michael Burchell
Chairman

27 November 2008

The Directors of the Issuer accept responsibility for this announcement.

FOR FURTHER INFORMATION PLEASE CONTACT:

Mike Burchell
CBM Oil PLC
30 St Mary's Road
Leatherhead
Surrey
KT22 8EY

Tel:  +44 (0) 1372 361772
Fax:  +44 (0) 1372 377260

Nick Michaels
Alfred Henry Corporate Finance Limited
Tel:  +44 (0) 20 7251 3762


Consolidated Income Statement                                                                              
for the six months ended 31 August 2008                                                                    
                                                           6 months to        6 months to           Year to
                                                             31 August          31 August            29-Feb
                                                                  2008               2007              2008
                                                  Note       Unaudited          Unaudited           Audited
                                                               GBP'000            GBP'000           GBP'000
                                                                                                           
Revenue                                                             -                  -                 -
Administrative expenses                                          (180)               (24)             (589)
                                                          ------------  ------------------    ------------- 
Operating loss                                                   (180)               (24)             (589)

Investment revenues                                                 -                  -                 -

                                                          ------------  ------------------    -------------
Profit/(loss) on ordinary activities before taxation             (180)               (24)             (589)

Taxation                                                            -                  -                 -

                                                          ------------  ------------------    -------------
Profit/(loss) on ordinary activities after                       (180)               (24)             (589)
taxation

Dividends                                                            -                  -                 -

                                                          ------------  ------------------    -------------
Surplus/(deficit) for the period                                 (180)               (24)             (589)
                                                          ============  ==================    =============
Profit/(loss) per share: basic and diluted          2          (0.12)p            (0.02)p           (0.47)p
                                                          ============  ==================    =============

There were no recognised gains or losses other than those recognised in the Income Statement
above.

The company's operating loss arises from continuing operations.

Consolidated Balance Sheet                                                                     
As at 31 August 2008                                                                           
                                                                 As at              As at             As at
                                                             31 August          31 August       29 February
                                                                  2008               2007              2008
                                                  Note       Unaudited          Unaudited           Audited
                                                               GBP'000            GBP'000           GBP'000
Current assets                                                                                 
Receivables                                                         39                172                16
Cash and cash equivalents                                           41                298               130
                                                             ---------    ---------------     -------------
                                                                    80                470               146
                                                             ---------    ---------------     -------------
                                                             ---------    ---------------     -------------
Total assets                                                        80                470               146
                                                             =========    ===============     =============
                        
Equity and liabilities                                                                         
                                                                                               
Capital and reserves                                                                           
Called up share capital                            3               161                124               143
Share premium account                                              578                371               363
Retained earnings                                                 (851)              (106)             (671)
                                                            ----------   ----------------     -------------
Total equity                                                      (112)               389              (165)
                                                            ----------   ----------------     -------------
Current liabilities                                                                            
Trade and other payables                                           192                 81               311
                                                            ----------   ----------------     -------------
Total equity and liabilities                                        80                470               146
                                                            ==========    ===============     =============


                                                                                                            
Consolidated cash flow statement                                                                            
for the six months ended 31 August 2008                                                                     
                                                             6 months to        6 months to          Year to
                                                               31 August          31 August      29 February
                                                                    2008               2007             2008
                                                   Note        Unaudited          Unaudited          Audited
                                                                 GBP'000            GBP'000          GBP'000
Operating activities                                                                                        
Cash flow from ordinary activities                  4              (322)              (124)            (304)
                                                              ----------   ----------------     -------------

Financing activities                                                                                        
Equity issued net of expenses                                        233                395              407
                                                              ----------   ----------------     -------------
Cash increase/(decrease) in the period                               (89)               271              103
Cash and cash equivalents at the beginning of the period             130                 27               27
                                                              ----------   ----------------     -------------
Cash and cash equivalents at the end of the period                    41                298              130
                                                              ==========    ===============     =============

Consolidated statement of changes in equity                                                                 
                                                                 GBP'000            GBP'000          GBP'000
Surplus/(deficit) for the period                                   (180)               (24)            (589)
Increase in share capital                                            233                395              406
                                                              ----------   ----------------     ------------
                                                                      53                371             (183)
Opening shareholders' funds/(deficit)                              (165)                 18               18
                                                              ----------   ----------------     -------------
Closing shareholders' funds/(deficit)                              (112)                389             (165)
                                                              ==========    ===============     =============
                                                 


Notes to the Interim Report


1. Accounting Policies

These  interim  accounts have been prepared in accordance with International  Financial  Reporting
Standards and on the historical cost basis, using generally recognised accounting principles.  The
Company  adopted International Financial Reporting Standards (IFRS) adopted by the European  Union
as the basis for preparation of its financial statements from 1 March 2006.


2. Loss per Share


                                             6 months to        6 months to             Year to
                                               31 August          31 August         29 February
                                                    2008               2007                2008
                                                   Pence              Pence               Pence
(Loss) per ordinary share                                                                      
Basic and diluted                                 (0.12)             (0.02)              (0.47)
                                              ==========    ===============        =============

The  loss  per  ordinary share is based on the Company's result for the period of  GBP180,000  (29
February  2008:  loss of GBP589,000; 31 August 2007 - loss of GBP24,000) and a basic  and  diluted
weighted  average  number of shares in issue of 150,795,959 (29 February 2008  -  120,760,303;  31
August 2007 - 101,982,143).


3. Called up Share Capital

During  the  period,  the  company issued 17,155,467 new ordinary shares  for  a  total  value  of
GBP233,000, net of expenses.

4. Reconciliation of operating loss to net cash outflow from operating activities

                                                       6 months to         6 months to            Year to
                                                         31 August           31 August        29 February
                                                              2008                2007               2008
                                                         Unaudited           Unaudited            Audited
                                                           GBP'000             GBP'000            GBP'000
                                                                                                         
Operating loss                                               (180)                (24)              (589)
(Increase) in receivables                                     (23)               (169)               (14)
Increase in payables                                         (119)                  69                299
                                                        ----------    ----------------       -------------
                                                             (322)               (124)              (304)
                                                        ==========     ===============      =============

5. Financial information

The  unaudited  results  for  period ended 31 August 2008 do not  constitute  statutory  financial
statements  within  the meaning of Section 240 of the Companies Act 1985. The comparative  figures
for  the  year ended 29 February 2008 are extracted from the statutory financial statements  which
have  been  filed  with  the Registrar of Companies and which contain an  audit  report  which  is
unqualified but contains an emphasis of matter on the going concern basis of accounting,  and  did
not contain statements under Section 237(2) or (3) of the Companies Act 1985.


Copies  of the Interim Report are available for collection at the registered office of the Company
at: Finsgate, 5-7 Cranwood Street, London EC1V 9EE during normal office hours.

Contact Information

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