Acquisition

Sound Oil PLC
26 June 2006

This announcement is not for release, publication or distribution in or into the
United States, Canada, Australia, South Africa or Japan.

26 June 2006

      SOUND OIL ACQUIRES MITRA ENERGIA AND RAISES £11.7 MILLION IN PLACING

Sound Oil (AIM: SOU), the upstream oil and gas company with cash assets of
approximately £10 million is to acquire Mitra, an unquoted gas exploration and
development company with interests in Indonesia, in a reverse takeover. Sound
Oil will acquire Mitra in consideration of an issue of new Ordinary Shares.

Highlights


   • Sound Oil is to acquire Mitra, an unquoted gas exploration and
    development company with interests in Indonesia, in a reverse takeover.
    Mitra holds a 34 per cent. interest in the Bangkanai Block onshore central
    Kalimantan and a 20 per cent. interest in the Citarum Block onshore central
    Java.

   • Sound Oil, an AIM quoted company with cash of approximately £10 million,
    will acquire Mitra in consideration of an issue of 223,376,623 new Ordinary
    Shares which values Mitra at approximately £16.2 million at the Placing
    Price.

   • Sound Oil has raised £11.7 million before expenses at an issue price of
    7.25p per share in a conditional placing of new Ordinary Shares.

   • The market capitalisation of the Enlarged Group at the Placing Price is
    approximately £50 million.

   • Sound Oil's cash resources as increased by the net proceeds of the
    Placing will be used principally for the development of Mitra's gas
    interests in Indonesia.

   • The transaction is subject to the approval of Sound Oil shareholders at
    an extraordinary general meeting to be held on 12 July 2006.

   • The Company expects the Placing Shares and Consideration Shares to be
    admitted to AIM following the EGM.

Commenting on the Acquisition and Placing, Gerry Orbell, Chairman and Chief
Executive of Sound Oil said, "This is a very good deal for Sound. Within a few
months we will have started drilling the first of four high impact exploration
wells on our licences in Java and Kalimantan. In addition we shall be developing
the Kerendan gas field in Kalimantan which we expect to give us a 20 year cash
flow starting 2008".

This summary should be read in conjunction with the full text of this
announcement.

Enquiries

Gerry Orbell, Chairman               07903 861 145
Sound Oil                            [e-mail]


Smith & Williamson, nominated adviser to Sound Oil
Azhic Basirov       020 7131 4000
David Jones         020 7131 4000

Buchanan Communications
Tim Thomson         020 7466 5000
Ben Willey          020 7466 5000
Nick Melson         020 7466 5000

The Admission Document will be available on the Company's website
www.soundoil.co.uk

                 Proposed acquisition of Mitra Energia Limited
                     Proposed waiver of rule 9 of the Code
              Proposed placing and re-admission to trading on AIM

Introduction
On 20 March 2006, Sound Oil announced that it had reached agreement in principle
for the acquisition of certain energy resource assets in Asia. As the
Acquisition will constitute a reverse takeover under the AIM Rules, trading in
the Ordinary Shares was suspended pending publication of an AIM admission
document in respect of the proposed Enlarged Group and is expected to resume on
26 June 2006. Having completed its due diligence, the Company has entered into a
formal agreement to acquire the whole of the issued share capital of Mitra. The
consideration under the Acquisition values Mitra at £16.2 million (at the
Placing Price) and will be satisfied by the allotment of the Consideration
Shares. The Company is proposing to raise £11.7 million (before expenses)
through the Placing. The net proceeds of the Placing will be used to provide
working capital to support the growth and development of the Enlarged Group.

The Acquisition will constitute a reverse takeover of the Company under the AIM
Rules and therefore requires approval of Shareholders at the Extraordinary
General Meeting.

Following Admission, certain of the vendors of Mitra who are deemed to be acting
in concert by the Panel will between them be interested in 209,415,584 Ordinary
Shares representing approximately 30.2 per cent. of the Enlarged Share Capital.
The Panel has agreed, however, to waive the obligation to make a general offer
under Rule 9 of the Code that would otherwise arise on completion of the
Acquisition, subject to the approval of the independent Shareholders at the
Extraordinary General Meeting voting on a poll. Accordingly, Shareholders'
consent will be sought at the Extraordinary General Meeting to approve the
waiver of the requirement for a general offer to be made.

Information on Sound Oil
Sound Oil was incorporated on 27 January 2005 and first admitted to trading on
AIM on 29 June 2005 when it raised £10.8 million (after expenses) with the then
stated intention of evaluating and making investments in energy resource
business opportunities in North and West Africa.

The Company has evaluated a number of investments since it was first admitted to
trading on AIM. Initially the Company focused its efforts on offshore areas of
West Africa, but towards the end of 2005 the Company began to extend the area of
evaluation outside Africa to decide whether there was better value elsewhere,
while also continuing to review opportunities in that region. The Company
subsequently entered into discussions with the directors of Mitra with a view to
acquiring Mitra. The Existing Directors believe that the Acquisition will
enhance shareholder value and be in the best interests of both companies and
their shareholders. Through the Acquisition the Company will obtain a 34.99 per
cent. working interest in the Bangkanai PSC and a 20 per cent. working interest
in the Citarum PSC.

On 22 May 2006, the Company announced that it had entered into an agreement
under which it may acquire an interest in a production sharing agreement
relating to an exploration area in Bangladesh (the "Bangladesh PSC").  The
operator of the PSC is Ocean Bangladesh Corporation.  This transaction is
subject to the extension of the PSC and the approval of, the appropriate
Bangladesh authorities.

Further information on Mitra, the Bangkanai PSC, the Citarum PSC and the
Bangladesh Block 22 is set out below.

Information on Mitra
Mitra is an unquoted Mauritian company formed in 2004 by its three directors who
are interested in 93.7 per cent. of Mitra's issued ordinary shares. Mitra has a
34 per cent. interest in the Bangkanai PSC and a 20 per cent. interest in the
Citarum PSC. Mitra has not generated any revenue to date; it incurred a loss of
US$1.2 million in the year ended 31 December 2005 and its net assets at that
date were US$0.7 million.


Bangkanai Production Sharing Contract
The Bangkanai PSC encompasses an area of 6,976 km2, located approximately 200
kilometres west of Balikpapan and 330 kilometres north of Banjarmasin, the
provincial capitals of East and West Kalimantan respectively. The block is
situated on the west side of the Kutei Basin and the northern edge of the stable
Barito Shelf. The area was previously part of a larger production sharing
contract awarded to Unocal in 1972. During this period Unocal shot two 2D
seismic surveys in 1975 and 1985/1986 and drilled ten exploration wells and two
appraisal wells. The only discovery to date is the Kerendan gas field made in
1982. Although Unocal's plan of production for Kerendan was approved in 1997,
they were unable to secure a gas sales agreement for the gas, and relinquished
the contract in 2000. The Bangkanai PSC, covering a large area in which only six
wells have been drilled, including three Kerendan wells, was awarded to EBE on
30 December 2003 for a 30 year period, including an exploration period of 10
years. In September 2004 MEB (a subsidiary of Mitra) farmed in to the licence
(49 per cent.) (the "MEB Farm-In"). It has recently signed a sale and purchase
agreement for the sale of part of its farm-in interest to Medco (the "Medco
Farm-In"). This sale is not yet complete, but at completion the resulting
interests will be: EBE 51 per cent. operator; MEB 34 per cent.; and Medco 15 per
cent..


Citarum Production Sharing Contract

The Citarum PSC covers an area of 4,440 km2 in Central West Java. The northern
margin of the block is characterised by hilly terrain which is moderately
populated. The southern block is generally more mountainous and in part covered
by volcanic rock. The block is situated on the southern margin of the active oil
and gas producing areas of the North West Java Basin and includes fields such as
Subang, Jatibarang, Tambun and Pondok Tengah. Consequently the northern margin
of the block is located close to PT Pertamina (Persero)'s well-developed oil and
gas pipeline network. The Citarum PSC was awarded to BPREC on 7 October 2005 and
no wells have yet been drilled in the block. BPREC is a company with the
following shareholdings: Ranhill Energy 60% operator; BPE 20 per cent.; and MEC
20 per cent.. On 21 June 2006 BPREC (acting by its liquidator) entered into a
Deed of Assignment whereby BPREC assigned its 100 per cent. working interest in
the Citarum PSC to BPREC Pte. BPREC Pte. is a company with the following
shareholdings: West Java Energy 60 per cent. operator; BPE 20 per cent.; and MEC
20 per cent..


Bangladesh Block 22 Production Sharing Contract
The Bangladesh production sharing contract (the "Bangladesh PSC") relates to
Block 22 which covers approximately 1,250 km2 in the Chittagong Hills area in
eastern Bangladesh. Block 22 lies to the south of gas producing fields in India
and is to the east of nearby gas discoveries and the producing Sangu field
operated by Cairn energy. The operator of the PSC is Ocean Bangladesh
Corporation ("OBC"). Sound Oil Bangladesh Limited ("SOB") has entered an
agreement with OBC under which OBC will assign to SOB 50 per cent. of its
interest in the PSC. This assignment is subject to the extension of the PSC and
the approval of both the government of Bangladesh and the Bangladesh Oil, Gas
and Mineral Corporation. Sound Oil has entered into an option agreement under
which Sound Oil may be required to acquire SOB for a consideration of 14,634,813
new Sound Oil shares (or cash of US$2.0 million if agreed by both parties). The
exercise price of the option is reduced to 2,195,222 new Sound Oil shares (or
cash of US$0.3 million) if the option is exercised before the assignment of
OBC's interest in the PSC has become effective. Sound Oil may exercise its call
option to acquire SOB at any time in the four months from 19 May 2006 and a put
option may be exercised to require Sound Oil to acquire SOB at any time after
four months have elapsed from the date of the agreement, until 19 May 2086.


Intentions and strategy
The purpose of the Enlarged Group will be the exploration and production of
hydrocarbons, either as a joint venture partner with a direct ownership in a
licence or as a shareholder. The Enlarged Group may be either a non-operating
party or an operator depending on the circumstances. The Enlarged Group intends
to acquire discoveries at the appraisal stage and take the properties to
production. Exploration properties will be acquired which have a potentially
high positive impact on the worth of the company (such as Citarum), but with the
risk mitigated, for example by farm out. Other exploration and production
companies may be acquired which have a strategic fit with the Enlarged Group.
The Enlarged Group will be geographically unrestricted but will focus on Asia
and Africa in the first instance. No redeployment of the Company's fixed assets
is anticipated. Save for the Existing Directors, Sound Oil does not have any
employees. Following Admission, it is intended that the Existing Directors will
continue to be directors of the Company, and it is proposed that three new
directors, who are currently shareholders (through their shareholdings in the
three companies which prior to the Acquisition own 93.75% of Mitra) and
directors of Mitra, will also be appointed to the Board.


New Board
It is intended that the Board following Admission will comprise the following
Existing and Proposed Directors:


Existing Directors

Gerry Orbell-  Chairman and Chief Executive (Aged 59)
Gerry Orbell is a petroleum geologist with over 30 years of technical,
managerial and director level experience in the hydrocarbon and utilities
sectors. Gerry has previously held the position of executive director of Fina
Exploration and Fina Development, in charge of all Fina's hydrocarbon
exploration and production activities for the UK. He was subsequently director
of exploration and production at Premier Oil plc and was responsible for that
company's investments in areas including Pakistan, the North Sea and the
Mediterranean. After Premier Oil, he became managing director of North West
Water International, in charge of all water and waste water operations and
businesses around the world. Gerry is currently the chairman of Antrim Energy
Inc. (quoted on AIM) where he oversees business development and hydrocarbon
exploration in the North Sea. He is also a member of the board, and chairman of
the audit committee, at the compliance company Valpak Limited. Gerry has been a
director of Sound Oil since April 2005.


Tony Heath - Finance Director (Aged 69)
Tony Heath has over thirty years financial and general management experience in
a variety of roles. Qualifying as a chartered accountant in 1964, Tony joined
Burmah Oil's motor fuels development business in 1968. He then spent four years
as finance manager for Burmah Oil's North Sea oil exploration activity which was
followed by a further four years as finance director of Halford's retailing
group which included managing its Dutch and factoring businesses. He then became
group controller of Burmah Oil and was responsible for all financial information
and control of the international oil group covering operations in thirty-five
countries. Tony joined the board of Premier Oil plc as group finance director in
1990 where he had overall responsibility for all financial matters in the oil
exploration and production business in many countries around the world. He
managed a £400 million financing in the UK and USA, the financial aspects of a
major takeover and the trading of Premier Oil's oil production. Tony left
Premier at the age of 60 in 1997 and is currently chairman of a pension fund and
adviser to a charity. He has been a director of Sound Oil since May 2005.


Simon Davies - Non-executive Director (Aged 47)
Simon Davies is chief executive of Threadneedle Asset Management, which manages
over £62 billion in equities, bonds, property and hedge funds for individual and
corporate investors. Simon began his career in 1981 with Rothschild Asset
Management, where he worked as an analyst and fund manager. In 1986 he moved to
Gartmore Investment Management as a pension fund manager and was subsequently
appointed to the board of Gartmore Pension Fund Managers. In 1990 he transferred
to the international side of Gartmore's investment management business, becoming
head of global funds and then head of international equities. In 1995 he joined
Threadneedle as chief investment officer and was appointed chief executive in
January 1999. Outside Threadneedle, Simon is a director of the Investment
Management Association and JP Morgan Fleming Overseas Investment Trust and is
also on the investment committee of Westminster Abbey. Simon has been a director
of Sound Oil since April 2005.


Michael Nobbs - Non-executive Director (Aged 57)
Michael Nobbs has a thirty year track record in investment banking, with a focus
on corporate and project finance. He was a managing director and senior credit
officer for Citigroup/Citibank and was the group finance director for Tishman
International Companies, a major global real estate development and investment
business. He is currently a non-executive director of GTL Resources Plc and
Ithaca Energy plc, both of which are quoted on AIM. In his career, Michael has
participated in many capital raisings, both debt and equity, and in the areas of
securitisation and initial public offerings. He has held positions in London,
New York and Los Angeles. He has been a director of Sound Oil since April 2005.


Proposed Directors

Jusuf (Jossy) Rachmantio - Proposed Executive Director (Aged 45)
Jossy Rachmantio obtained a BSc in Material Engineering in 1985 from the Case
Western Reserve University USA and subsequently received his Masters in
International Management in 1987. From February 1990 to July 1994 Jossy was head
of marketing at PT. Karya Titan in Jakarta. Jossy was a director of Repindo Info
Media in Jakarta from January 1999 to September 2000. From 1999 to 2000 Jossy
was also president director of Repindo Nusa Jaya, a company which developed
power projects in Indonesia with the national state utility company. After this
he joined Flotec as managing director, where his responsibilities included
setting up the Indonesian market for bandwidth optimisation software. From
September 2001 to September 2004 Jossy was a Managing Partner at Profescipta
Wahana, where he acted as adviser to a number of clients on company
restructuring and other strategic issues. Jossy co-founded Mitra with Patrick
Alexander and Ilham Habibie in 2004.


Patrick Alexander - Proposed Non-executive Director (Aged 53)
Patrick Alexander has over 25 years of investment banking experience and is
currently Managing Director of Batavia Investment Management Ltd (previously
Peregrine Batavia Investment Management Ltd), where he has worked since 1993.
Patrick began his career at the Australian Department of Foreign Affairs, where
he worked for four years. He moved on to work at Chase Manhattan from 1980 to
1988 in New York, Indonesia and finally Hong Kong, where he rose to position of
director. He was subsequently appointed Chief Executive Officer of Robina
Investments Hong Kong, and thereafter worked at Morningside Asia Investment in
Hong Kong, from 1989. From 1991 Patrick was executive director of Lippo Asia
Investment Management Ltd, before moving to Peregrine Batavia Investment
Management Ltd in 1993. Patrick is currently an Independent Commissioner of PT
Astra International, one of Indonesia's largest listed companies and a dominant
company in Indonesia's automotive industry. Patrick co-founded Mitra in 2004,
together with Jossy Rachmantio and Ilham Habibie.


Ilham Habibie - Proposed Non-executive Director (Aged 43)
After qualifying as an engineer in Germany in 1987, Ilham worked as a scientist
and lecturer at the Technical University of Munich for seven years. He went on
to work as an engineer at the Boeing Commercial Airplane Group in the United
States, from 1994 to 1996. While working in the United States, Ilham also
assisted the President Director of Industri Pesawat Terbang Nusantara ("IPTN")
the state-owned aerospace company in Indonesia, on the N2130 Regional Jet
Program. This project eventually evolved into leading engineers and technicians
in the design of a new and highly technologically advanced regional jet. In 1996
Ilham advanced to become the Executive Vice President/Program Manager for the
Regional Jet Division at IPTN, subsequently the Executive Vice President of the
Airplane Business Unit and then the Operation & Commercial Executive Vice
President there, a position he held until 2000. During the year 2000, IPTN
changed its name to Pt. Dirgantara Indonesia (Indonesian Aerospace). Ilham left
PT. Dirgantara Indonesia in June 2001 to pursue his career in the private
sector. From 1996 to 1998 Ilham was also the assistant to the Chairman of Badan
Pengkajan dan Penerapan Teknogi ("BPPT") for Aeronautics and Advanced
Technology. Since 2002 Ilham has held senior positions at a number of Indonesian
companies in the private sector, including CEO/President Director of PT. Ilthabi
Rekatama and Commissioner of PT. Citra Tubindo tbk, a company listed on the
Jakarta stock exchange. He has also been CEO/President of a number of aerospace
and other companies which he founded. Ilham owns 50 per cent. of Ilthabi Ltd, a
company which owns 100 per cent. of Ilthabi Sdn Bhd. As well as its stake in
Mitra (prior to Mitra's acquisition by the Company), Ilthabi Sdn Bhd also has an
investment in Aviation Support Ltd, a start up company which is to provide
aviation services. Ilham holds a PhD in aeronautical engineering from the
Technical University of Munich and a MBA from the University of Chicago. Ilham
co-founded Mitra in 2004, together with Jossy Rachmantio and Patrick Alexander.


The Acquisition
Under the terms of the Acquisition Agreement, Sound Oil is, subject to the
satisfaction of certain conditions, to acquire the entire issued share capital
of Mitra in consideration of the allotment and issue of the Consideration
Shares. The value of the Consideration Shares at the Placing Price is
approximately £16.2 million. The Consideration Shares will be issued credited as
fully paid and will, in aggregate, represent approximately 32 per cent. of the
Enlarged Share Capital. The Acquisition is conditional, inter alia, on: (i)
approval at the EGM; (ii) the Placing having become unconditional in all
respects save as regards completion of the Acquisition and Admission; and (iii)
Admission becoming effective.


The Placing
The Company proposes to raise approximately £10.7 million (net of expenses)
through the Placing. Pursuant to the Placing Agreement, Hichens has agreed to
act as the Company's agent in relation to the Placing. However, Hichens will not
be underwriting the issue of the Placing Shares. The Placing is conditional upon
the Placing Agreement becoming unconditional in all respects and not having been
terminated in accordance with its terms by Hichens or Smith & Williamson. The
Placing Shares will be issued credited as fully paid and will, in aggregate,
represent approximately 23 per cent. of the Enlarged Share Capital. The Placing
Agreement is conditional, inter alia, upon approval of the Acquisition and the
Waiver at the EGM, the completion (subject only to Admission) of the Acquisition
and the Admission of the Placing Shares.


The net proceeds of the Placing will be used principally to fund the development
and exploration programmes at Bangkanai and Citarum during the remainder of 2006
and 2007. It is expected that during this period four development wells
(including two re-entry wells) and two exploration wells will be completed at
Bangkanai and one exploration well will be completed at Citarum. The Company
expects production to commence at Bangkanai in 2008 and to fund further
exploration and development work after 2007 at Citarum and potentially in
Bangladesh from trading cash inflows, debt funding, farm-in(s) and/or the issue
of further Ordinary Shares as appropriate in the circumstances.


Extraordinary General Meeting
A notice convening an Extraordinary General Meeting of the Company, which is to
be held at 10.30a.m. on 12 July 2006 at the offices of Smith & Williamson
Corporate Finance Limited, 25 Moorgate, London EC2R 6AY will be set out in the
Admission Document. The resolutions to be proposed at the EGM will be as
follows:

(1) to approve the Acquisition for the purposes of Rule 14 of the AIM Rules; and

(2) to approve the Waiver.

As required by the Panel, resolution 2 will be decided on a poll. Resolutions 1
and 2 will be proposed as ordinary resolutions and are conditions of the
Acquisition, which will only proceed if both the Resolutions are carried.


Dealings and trading
Application will be made by the Company for the Enlarged Share Capital to be
admitted to AIM following publication of the Admission document. It is expected
that Admission will take place and trading in the Ordinary Shares will commence
on the first dealing day following that on which the Resolutions and relating to
the Acquisition are passed at the Extraordinary General Meeting. All Ordinary
Shares, including the Consideration Shares, may be held in either certificated
or uncertificated form (i.e. in CREST).


General
The Admission Document, which contains details of the Proposals, was sent to
Shareholders on 23 June 2006 and copies are available at the offices of Smith &
Williamson Corporate Finance Limited, 25 Moorgate, London EC2R 6AY.

The Admission Document is not being made, directly or indirectly, in or into the
United States, Canada, Australia, South Africa or Japan.

Smith & Williamson Corporate Finance Limited, which is authorised and regulated
in the United Kingdom by the Financial Services Authority, is acting exclusively
for Sound Oil and no one else in connection with the Proposals and the matters
described herein and will not be responsible to anyone other than Sound Oil for
providing the protections afforded to its customers or for giving advice in
relation to the proposals or any other matter referred to herein.

This announcement does not constitute, or form part of, any offer for, or any
solicitation of any offer for, securities.

Definitions
In this announcement, unless the context requires otherwise, the following
expressions shall have the following meanings:

"Acquisition"  the proposed acquisition of the entire issued share capital of
               Mitra from the Vendors by the Company
"Acquisition   the share purchase agreement for the entire issued share capital
Agreement"     of Mitra dated 23 June 2006 between: (1) the Vendors; (2) Mitra;
               (3) Sound Oil International Limited and (4) the Company
"Admission"    the re-admission of the Existing Shares and the admission of the
               New Shares to trading on AIM becoming effective in accordance
               with the AIM Rules following the Acquisition and the Placing
"Admission     the document sent to Shareholders containing information on the
Document"      Proposals
"AIM"          the AIM market operated by the London Stock Exchange
"AIM Rules"    the rules governing the operation of AIM as published by the
               London Stock Exchange from time to time
"Bangladesh    the Production Sharing Contract dated 16 February 1997 relating
PSC"           to Bangladesh Block 22 (Chittagong Hill Tracts) entered into
               between OBC, the Government of the People's Republic of
               Bangladesh and Bangladesh Oil, Gas and Mineral Corporation
"Bangkanai     the Production Sharing Contract dated 30 December 2003 in respect
PSC"           of the Bangkanai Block East Kalimantan entered into by Badan
               Pelaksana Kegiatan Usaha Hulu Minyak Dan Gas Bumi and EBE
"Board" or     the Existing Directors and the Proposed Directors
"Directors"
"BPE"          PT. Bumi Parahyangan Energi
"BPREC"        PT. Bumi Parahyangan Ranhill Energia Citarum
"BPREC Pte."   BumiParahyangan Ranhill Energia Citarum Pte. Ltd, a company
               incorporated under the laws of Singapore, with registered number
               200600938R
"Citarum PSC"  the Production Sharing Contract dated 7 October 2005 in respect
               of the Citarum Block West Java entered into by Badan Pelaksana
               Kegiatan Usaha Hulu Minyak Dan Gas Bumi and BPREC
"Code" or      the City Code on Takeovers and Mergers
"Takeover
Code"
"Company" or   Sound Oil plc
"Sound Oil"
"Concert       Ilham Habibie, Thareq Habibie, Jusuf Rachmantio and Patrick
Party"         Alexander
"Consideration the 223,376,623 new Ordinary Shares to be allotted to the Vendors
Shares"        on completion of the Acquisition in accordance with the terms of
               the Acquisition Agreement
"CREST"        the relevant system (as defined in the CREST Regulations) in
               respect of which CRESTCo is the Operator (as defined in the CREST
               Regulations) in accordance with which securities may be held and
               transferred in uncertificated form
"CRESTCo"      CRESTCo Limited
"CREST         the Uncertificated Securities Regulations 2001 (SI 20001/3755)
Regulations"   including (i) any enactment or subordinate legislation which
               amends or supersedes those regulations and (ii) any applicable
               rates made under those regulations or such enactment or
               subordinate legislation for the time being in force
"EBE"          Elnusa Bangkanai Energy Limited
"Enlarged      the Company and its subsidiaries, associated companies and
Group"
               investments as enlarged by the Acquisition
"Enlarged      the issued share capital of the Company at Admission comprising
Share Capital" the Existing Shares and the New Shares
"Existing      the existing directors of the Company, who are Gerry Orbell, Tony
Directors"     Heath, Simon Davies and Michael Nobbs
"Existing      the existing 300,272,309 Ordinary Shares in issue as at the date
Shares"        of this announcement
"Extraordinary an extraordinary general meeting of the Company to be held at
General        10.30a.m. on 12 July 2006, or any adjournment thereof
Meeting" or
"EGM"
"FSA"          the Financial Services Authority
"FSMA"         the Financial Services and Markets Act 2000
"Hichens"      Hichens Harrison & Co. plc
"London Stock  London Stock Exchange plc
Exchange"
"MEB"          Mitra Energia Bangkanai Limited, a company incorporated under the
               laws of Mauritius, with Registered No. 53167/C2/GBL and wholly
               owned by Mitra
"MEB Farm-In"  The farm-in agreement between EBE and MEB dated 1 October 2004
"MEC"          Mitra Energia Citarum Limited, a company incorporated under the
               laws of Mauritius with Registerd No. 58947/C2/GBL and wholly
               owned by Mitra
"Medco"        PT Medco E&P Bangkanai
"Medco         The share sale and purchase agreement entered into by Medco, MEB,
Farm-In"       Mitra and PT Medco Energi International TBK dated 14 March 2006
"Mitra"        Mitra Energia Limited, a company incorporated under the laws of
               Mauritius, with Registered No. 53116/C2/GBL
"New Shares"   the 392,155,039 new Ordinary Shares to be issued by the Company
               pursuant to the Acquisition (223,376,623 Ordinary Shares) and the
               Placing (161,500,000 Ordinary Shares) and including certain
               Ordinary Shares issued to professional advisers and Existing
               Directors (7,278,416 Ordinary Shares)
"Notice of     notice of the EGM
EGM"
"Official      the Official List of the UK Listing Authority
List"
"Ordinary      ordinary shares of 0.1p each in the capital of the Company
Shares"
"Panel"        the Panel on Takeovers and Mergers
"Placing"      the placing of the Placing Shares at the Placing Price
Placing        "the agreement dated 23 June 2006, between (1) the Company, (2)
Agreement"     the Existing Directors, (3) the Proposed Directors, (4) Hichens
               and (5) Smith &Williamson relating to the Placing
"Placing       7.25p per Ordinary Share
Price"
"Placing       the 161,500,000 new Ordinary Shares to be issued by the Company
Shares"        pursuant to the Placing
"Proposals"    the Acquisition, Waiver, Placing and Admission
"Proposed      the proposed directors of the Company following Admission, who
Directors"     are Jossy Rachmantio, Patrick Alexander and Ilham Habibie
"Ranhill       Ranhill Energy SDN BHD
Energy"
"Resolutions"  the resolutions referred to in the Notice of EGM
"Shareholders" holders of Ordinary Shares
"Shares"       ordinary shares of 0.1p each in the capital of the Company
"Smith &       Smith & Williamson Corporate Finance Limited
Williamson"
"UK Listing    the Financial Services Authority in its capacity as the competent
Authority"     authority for the purposes of the admission of securities to the
               Official List
"United        the United States of America (including any states of the United
States"        States of America and the District of Columbia), its possessions
               and territories, and all other areas subject to its jurisdiction
"US person"    a US person as defined in Regulation S under the United States
               Securities Act of 1933 (as amended)
"Vendors"      Patrick Alexander, Jusuf Rachmantio, Ilham Habibie and Thareq
               Habibie, who, through intermediate holding companies, together
               own approximately 93.75 per cent. of the issued share capital of
               Mitra, together with Hichens as legal owner of approximately 6.25
               per cent. of the issued share capital of Mitra held in trust by
               Hichens for and on behalf of the beneficial owners of such shares
"Waiver"       the waiver by the Panel of the obligation of the Concert Party to
               make a general offer under Rule 9 of the Code
"West Java     West Java Energy Pte Ltd, a company incorporated under the laws
Energy"        of Singapore






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