The Company wishes to inform the market that the Company has received notice of termination of the Memorandum of Understanding between the Company and Shell Exploration & Production Ukraine Investments (1) BV announced on 21 November 2007.

The Company is considering its options for the development and commercialisation of its Ukrainian assets. A further announcement will be made in due course.

For further information, please contact:

Regal  Tel: 020 7408 9500
David Greer, Chairman & CEO

Evolution Securities  Tel: 020 7071 4300
Robert Collins

Mirabaud Securities    Tel: 020 7321 2508
Pav Sanghera