Final Results

Sound Oil PLC
30 March 2006


                                                                 


SOUND OIL PLC


PRELIMINARY RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2005



The Board of Sound Oil plc ("Sound Oil" or the "Company") announces its
preliminary results for its first trading period from 27 January 2005 to 31
December 2005. Trading in the Company's shares on AIM is currently suspended
following the announcement on 20 March 2006 of a possible reverse takeover.


CHAIRMAN'S STATEMENT


Sound Oil plc was admitted to AIM on 29 June 2005 with a remit to invest in
energy resource opportunities in North and West Africa and raised £10.8 million
from a share placing.


The Company has concentrated on opportunities which either gave significant
upside in the event of an early discovery or gave an early revenue return,
preferably both. Initially the Company focused its efforts on offshore areas of
West Africa and has evaluated over thirty opportunities in Liberia, Morocco,
Equatorial Guinea, Nigeria, Ivory Coast, Angola, Sierra Leone, Gambia, Gabon and
Senegal.


In its first accounting period to 31 December 2005, the Company made a net loss
of £193,000. Expenditure incurred on pursuing investment opportunities and on
administration was £361,000, partly offset by £168,000 of income from bank
deposit interest net of tax. Total shareholders' funds at the year end were
£10.7 million.


Our initial cash reserves are virtually intact and we have a strong balance
sheet. Our overheads are low and we outsource, where appropriate, to expert
associates. We are determined to find value for shareholders and not to tie up
funds in areas with little hope of early action. Towards the end of 2005 we
extended our area of evaluation outside Africa to check whether there was better
value elsewhere, while also continuing to review opportunities in that region.


On 20 March 2006 we announced that we had reached agreement in principle for the
acquisition of energy resource assets in Asia. We are making progress with this
transaction which would result in the Company acquiring interests in an
undeveloped gas field and exploration activity in Indonesia. The transaction
would represent a reverse takeover under the AIM Rules and would be conditional
on the approval of the Company's shareholders.





Gerry Orbell

Chairman

29 March 2006



PROFIT AND LOSS ACCOUNT

for the period from 27 January to 31 December 2005



                                                      Notes     £'000's

Exploration expenditure                                          (151)
                                                               ------
Gross loss                                                       (151)
Administrative costs                                             (210)
                                                               ------
Operating loss                                                   (361)
Interest receivable                                               234
                                                               ------
Loss on ordinary activities before tax                           (127)
Tax                                                      4        (66)
                                                               ------
Loss after tax                                                   (193)
                                                               ------

Loss per share (pence): basic                            5      (0.12)
Loss per share (pence): diluted                          5      (0.12)

Results for the period reflect ongoing operations which are presently
based in the UK



BALANCE SHEET

as at 31 December 2005
                                                      Notes     £'000's

Current assets
Debtors                                                  6         24
Cash and short-term deposits                                   10,839
                                                             --------
Total current assets                                           10,863
Creditors: amounts falling due within one year           7        115
                                                             --------
Net current assets                                             10,748
                                                             --------

Total assets less current liabilities                          10,748
Creditors: amounts falling due after one year                       -
Provisions for liabilities and charges                              -
                                                             --------
Net assets                                                     10,748
                                                             --------

Capital and reserves
Share capital                                                     300
Share premium account                                          10,641
Profit and loss account                                          (193)
                                                             --------
Total equity shareholders' funds                         3     10,748
                                                             --------




CASH FLOW STATEMENT

for the period to 31 December 2005
                                                     Notes     £'000's

Net cash outflow from operating activities              8       (336)

Returns on investment and servicing of finance
Interest received                                                234

Taxation                                                           -
                                                            --------
Cash outflow before management of liquid
resources and                                                   (102)
financing

Financing
Issue of Ordinary Shares                                       11,115
Costs associated with raising capital                            (174)
                                                             --------
Net cash from financing                                        10,941

Increase in cash                                               10,839
                                                             --------



NOTES TO THE FINANCIAL INFORMATION

for the period to 31 December 2005


1. Accounting policies


The financial information contained in this document does not constitute
statutory accounts within the meaning of section 240 of the Companies Act 1985
but has been extracted from the audited statutory accounts for the period to 31
December 2005. The audited statutory accounts received an unqualified auditors'
report which did not contain a statement under section 237 of the Companies Act
1985 and will be delivered to the Registrar of Companies in due course. The
audited accounts have been prepared under the historical cost convention and in
accordance with the Oil Industry Accounting Committee Statement of Recommended
Practice - 'Accounting for Oil and Gas Exploration, Development, Production and
Decommissioning Activities', using the accounting policies set out in the
Company's 2005 statutory accounts.



2. STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

for the period to 31 December 2005

                                                                      £'000's

Net loss for the period attributable to members of                     (193)
the company

Total recognised losses                                                (193)





3. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS FUNDS

for the period to 31 December 2005
                                                                       £'000's

Total recognised losses relating to the period                          (193)
New shares issued                                                     11,115
Costs associated with raising capital                                   (174)
                                                                      ------
Total movements during the period                                     10,748
Shareholders' funds at 27 January 2005                                     -
                                                                      ------
Shareholders' funds at 31 December 2005                               10,748
                                                                      ------



4. Tax on profit on ordinary activities

Analysis of tax charge                                                 £'000's

Loss on ordinary activities before tax                                  (127)

Loss on ordinary activities at Standard Rate of UK Corporation Tax        38
(30%)
Non-deductible expenditure at Standard Rate                             (108)
Small companies relief                                                     4
                                                                      ------
Total tax - current                                                      (66)
                                                                      ------



The most significant event to affect the tax charge in the future will be the
establishment of exploration activities which will allow certain expenses to be
deducted, and losses from the trade to be offset, in the calculation of the
charge.



5. Loss per share


The calculation of basic loss per Ordinary Share is based on the loss after tax
and on the weighted average number of Ordinary Shares in issue during the
period. Diluted earnings per Ordinary Share reflect the notional exercise of the
weighted average number of dilutive Ordinary Share options outstanding during
the period. Basic and diluted loss per share are calculated as follows:

                                               Loss   Weighted    Earnings
                                               after  average     per share
                                               tax    number      pence
                                                      of shares
                                          
                                             £'000s               Pence
Basic                                         (193)      165     (0.12)
Diluted                                       (193)      166     (0.12)





6. Debtors: amounts due within one year                         £'000's

Prepayments                                                         24
                                                               -------
                                  Total                             24
                                                               -------

7. Creditors: amounts falling due within                        £'000's
one year

Trade creditors                                                    11
Corporation Tax                                                    66
Accruals                                                           38
                                                             --------
                                  Total                           115
                                                             --------



8. Cash flow statement analysis

                                                               £'000's
a. Reconciliation of operating loss to net cash flow from
operating activities

Operating loss                                                  (361)
Increase in debtors                                              (24)
Increase in creditors                                             49
                                                            --------
Net cash outflow from operating activities                      (336)
                                                            --------

b. Reconciliation of net cash flow to movement in net debt
                                                               £'000's

Increase in cash in the period                                10,839
Cash flow from movement in liquid resources                        -
Change in net cash resulting from cash flows                       -
                                                            --------
Net cash as at 31 December 2005                               10,839
                                                            --------



c. Analysis of Net Cash

                                                                     At
                                                 Cash Flow  31 December
                                                                 2005
                                                   £'000's      £'000's

Cash in hand and at bank                             144          144
Short term deposits                               10,695       10,695
                                                 -------     --------
Total net cash                                    10,839       10,839
                                                 -------     --------



9. 2005 Report and Accounts


Copies of the 2005 report and accounts will be sent to shareholders in due
course. Further copies will be available from the Company's nominated adviser,
Smith & Williamson Corporate Finance Limited, 25 Moorgate, London EC2R 6AY, free
of charge.






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