Oracle Coalfields plc

September 29, 2009 02:00 ET



                                           Oracle Coalfields Plc
                                        ("Oracle" or the "Company")
                           INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2009



 *      In-depth research reports published on Oracle by Edison Investment Research

 *      Placing raised £249,400

 *      Work programme commenced on a Bankable Feasibility Study (BFS) on the Block VI licence, including
        the Environmental & Social Impact Assessment (ESIA)

I  am  pleased  to  report  that the Company continues to make progress towards meeting  its  objective  of
delivering a cost-effective coal mine, combined with power generation, on the Block VI coal deposit in  the
Thar Coalfield of Southern Pakistan.

The project has attracted the Pakistan Government's considerable support because it sets out to address and
resolve  the  country's urgent need for new power generation facilities as current supply  is  not  meeting
demand.  Karachi, an industrial hub of almost 15 million people located in the Sindh Province,  experiences
up to 5-6 hours of load-shedding on a daily basis, and other major cities experience similar interruptions.
As  this leads to population discontent and industrial disruption and has a negative impact on the economy,
it is of primary concern to the Government.

The job creation potential of our project and its multiplier effect on the local economy are also important
considerations for the population in the Tharparkar District where our potential coal mine will be located,
many  of  whom live in relative poverty and has few income generating opportunities. It is not  surprising,
therefore, that the Company's recent meetings with Non-Government Organisations (NGOs) and Thar communities
also revealed encouraging local support for the Company's proposals.

The  work  programme for developing the 1.4bn tonne Block VI coal deposit is proceeding, with the immediate
target  of completing the BFS early in 2010. Wardell Armstrong International (WAI) was appointed to prepare
the  ESIA  which forms part of the BFS and, after a site visit, submitted a detailed Scoping Study  to  the
Company  in June.  Additional international consultants have also been identified for the various technical
studies  needed  for completion of the BFS, such as hydrogeology, geotechnical and mine design.   All  have
indicated they are comfortable with the project and its location.
The  Scoping  Study  is  an enabling document that sets out the main project parameters  for  the  baseline
studies,  and  identifies the potentially significant environmental and social impacts of the planned  open
pit mining operation.  The baseline studies are to commence shortly.

The  next stage of the ESIA process is collection of environmental and social baseline data to pinpoint the
current  site setting, and sufficient information to enable detailed impact prediction, both  in  terms  of
significance and scale.

The  Scoping Study confirmed that the proposed open pit mining operation will require the dewatering of the
two  aquifers lying above the main coal seam in Block VI.  This will have the valuable potential to provide
water for the project as well as the local population.

Oracle  has  always  intended that the planned mine-mouth power station would be owned and  operated  by  a
separate  power generating company (in which it might hold a stake, although its major investment would  be
in  the  coal mine). During a visit to Pakistan at the end of June, Oracle met with two separate  companies
involved in local power generation, each of which responded positively to the Company's plans for the  Thar
project and deemed them to have a sound technical base.   However, these power companies obviously need the
assurance  of the BFS endorsing the capability of our coal mine, with independent verification of  numbers,
in  order  for  them to advance their interest in the project.   When completed, the BFS will envisage  the
development  of our coal mine with first production, albeit small, in the latter half of 2011.   This  will
depend on timely financing being achieved.

Oracle  has  also  met  with  senior officials from the Government of Sindh Mines  &  Minerals  Development
Department  and it was very evident from these discussions that official support for our project  continues
to  grow.   Amongst other things, the Government is giving active consideration to funding the construction
of  a canal to provide additional water to the project area, undertaking the groundwork needed to link  the
project  to  the  national rail system, and upgrading the existing grid to 500KW.   As  in  the  past,  all
infrastructure investment is continuing to be undertaken by government funding.

During  the  half-year, Oracle initiated a preliminary study into other possible industrial  uses  of  Thar
coal,  in  addition  to power generation and in the domestic cement industry.  With new technologies  being
developed  outside Pakistan to convert lignite coal into more valuable end products, we intend  to  monitor
closely these initiatives for possible future applications in Pakistan.

Initially,  the long-established processes of liquefaction and gasification can be used to convert  lignite
coal  into liquefied fuels and synthesis gas.  In the Australian State of Victoria, this synthesis  gas  is
being  used  successfully as feedstock for the production of methanol, ammonia (fertiliser)  and  hydrogen.
The technology is believed to be about two years from commercialisation, but such applications could be  of
obvious relevance to Pakistan.

International Coal Market in first half of year

Since  the  beginning  of  2009, thermal coal prices have traded in a relatively  narrow  range  of  US$60-
US$80/tonne,  a far cry from 12 months ago when US$170/tonne was more typical. Benchmark prices  quoted  by
Platts International Coal Report show Richards Bay shipments (FOB 6,000kcal/kg) averaged US$68.65/t in  the
first  quarter  of this year, falling to US$60.19/t in the second. Corresponding averages for  Europe  (CIF
6,000kcal/kg) were US$71.21/tonne and US$65.29/tonne.

As  stated  in  our previous commentaries, the Company will not be dependent upon the international  market
spot price for coal as we will not be exporting our production which would be fully consumed locally.


The  financial results of Oracle for the first six months interim period ending 30th June 2009 show a  loss
after taxation of £122,235 (2008: £194,948).  At the period end, the Group had cash at bank and in hand  of
£108,337 and total assets less current liabilities of £647,139. The basic loss per share was 0.103p  (2008:
loss  0.179p).  The loss is attributable to the development of the Company's coal licences in Pakistan  and
administrative expenses.


The Board is pleased that the Block VI, Thar coal project Bankable Feasibility Study (BFS) is underway. The
objective  is  to  de-risk the project guided by international principles and standards. For  this  reason,
international  consultants are being appointed with experience in developing coal mine operations  of  this

The  year to date has been challenging for most natural resources companies worldwide.  This is largely due
to  investor  caution in investing in the natural resources sector, driven by global economic downturn  and
world  financial  markets  turmoil in the last twelve months.   In addition,  in  our  case,  the  security
situation  in  Pakistan has also been fragile in recent months due to political and economic  uncertainties
and the recent army offensive in the northern area of Pakistan. In spite of these difficulties, the Company
has been steadfastly working on completing the BFS in early 2010.

There seems to be renewed momentum to invest in the natural resources sector, while there are signs of  the
global  economy gradually improving and that the worst of the recession now coming to an end.  In Pakistan,
the  military  offensive in the northern area of the country has been successful in restoring stability  in
the  area.   It  is  important  to  note that Sindh Province as a whole,  including  our  project  area  in
Tharparkar,  has  remained peaceful throughout and has not been affected by the military offensive  in  the
north. Geographically, our project area is distant from the north of the country. Furthermore, the national
economy  is  being  strengthened  by substantial foreign aid in support  of  the  Government's  efforts  to
stabilise the political situation and boost investor confidence.

Against  this background, the Board is reviewing the possibilities of taking the Company to the AIM  market
as  soon  as it is practical and will keep the market updated on this development.  Listing the Company  on
AIM would raise its profile and make it more attractive to a larger institutional investor base.

Finally,  the  Board is grateful for the patience our shareholders have shown in supporting our  management
team in the realisation of our objectives in this difficult period.  We also extend our thanks to the Mines
and  Minerals Development Department, Government of Sindh, and the Sindh Coal Authority for their continued
assistance and our local partners, Sindh Koela Limited, for their valuable local support.

We will continue to update the market on our progress.

Shahrukh Khan

The Directors of the issuer accept responsibility for this announcement.


Oracle Coalfields PLC
Shahrukh Khan, Chairman
Telephone: +44 (0) 1366500722

St Helens Capital Partners LLP
Duncan Vasey or Mark Anwyl
Telephone: 020 7368 6959

Lothbury Financial
Michael Padley
Telephone: 020 7011 9411


About Oracle:

Oracle  Coalfields plc is a London-based resource exploration and development company with an 80  per  cent
owned  subsidiary (Sindh Carbon Energy Limited) operating in Pakistan. The Company's shares are  quoted  on
the  PLUS  markets  (symbol: ORCP). The Company's flagship project is the Block VI coal  project  which  is
located on the Thar coalfield in the eastern Sindh province, Pakistan. Block VI is host to a JORC compliant
resource of 1.4 billion tonnes and 371 million tonnes in the proven category.

The  Company  also owns the Indus East project in Pakistan. A pre-feasibility study carried  out  by  Dargo
associates confirmed an inferred resource for the area (in line with the JORC Code) to 365 million  tonnes,
of which the boreholes KHW-1 and KHW-2 give an indicated resource of c.24 million tonnes.

Oracle Coalfields plc




                                                       6 MONTHS TO                     6 MONTHS TO
                                                       30/06/2009                      30/06/2008
                                                       £                               £
CONTINUING OPERATIONS                                                                                    
Revenue                                                -                               -
Administrative expenses                                (122,759)                       (199,280)
                                                       _________                       _________
OPERATING LOSS                                         (122,759)                       (199,280)
Finance costs                                                 -                               -
Finance income                                              524                           4,332
                                                       _________                       _________
LOSS BEFORE TAX                                        (122,235)                       (194,948)
Taxation                                               -                               -
                                                       _________                       _________
LOSS FOR THE PERIOD                                    (122,235)                       (194,948)
                                                       _________                       _________
Basic loss per share                                   (0.1031p)                       (0.1788p)
Diluted loss per share                                 (0.0844p)                       (0.1510p)


1.  The  financial  information for the period ended 30 June 2009 has not been audited  and  does  not
    constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.  It has 
    however been subject to a review by the company's auditors.

2.  Basic loss per share has been calculated using the weighted average number of shares of 118,593,406
    (2008 - 109,060,071).   Diluted loss per share has been calculated using the weighted average number 
    of shares of 144,835,460 (2008 - 129,140,071).

3.  The Directors of the issuer accept full responsibility for this announcement.

Contact Information

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