CBM Oil plc
LSE : CBMP

July 04, 2008 13:05 ET

Trading Update and Placing

4 July 2008
                                                CBM OIL PLC
                                        TRADING UPDATE AND PLACING

CBM Oil Plc ("CBM" or "the Company") wishes to announce it has commenced a placing to existing shareholders
to subscribe for 10 million ordinary shares of GBP 0.025p at 1p per share.

Background

In  September  2007  the  Company  signed a Joint Operating Agreement ("JOA")  with  Chornomornaftogaz  but
subsequent  political  issues  in Ukraine culminated in the Prime Minister  ordering  Chornomornaftogaz  to
cancel our JOA, amongst others.

The Board were advised that under the JOA and Ukrainian law the agreement could not be cancelled.

The  Company  was  supported by the National Security Council in Ukraine who had  ruled  on  other  similar
situations, and have been  supportive of the Company,

A recent meeting with Mrs Timoschenko, the Prime Minister, has resulted in her verbally confirming that she
would contact the President of Naftogaz and tell him to resume normal operations with CBM

This would include projects additional to Gordievicha as outlined in the original Plus Admission Document

These  issues  have  resulted in a delay to progress of the JOA and CBM have asked shareholders  to  inject
GBP 100,000  to  raise  sufficient working capital for the next 6 months when  the  Company  will  review  the
situation.

CBM  have  invited  shareholders to subscribe for 10 million ordinary shares of GBP 0.025p at  1p  per  share.
Shares not taken up will be distributed pro-rata amongst those who subscribe.

We expect to announce the result of the placing within two weeks.

The Directors of the Issuer accept responsibility for this announcement.

FOR FURTHER INFORMATION PLEASE CONTACT:

Mike Burchell, Chairman
Tel: +44 (0) 1372 361772
Email: mikeburchell@hotmail.com

Nick Michaels
Alfred Henry Corporate Finance Limited
Tel: 020 7251 3762


Contact Information

  • CBM Oil plc