Preliminary Results

RNS Number:6600O
Black Rock Oil & Gas PLC
27 December 2006


FOR IMMEDIATE RELEASE                                        27 December 2006


                            Black Rock Oil & Gas PLC

              PRELIMINARY RESULTS FOR THE YEAR-ENDED 30 JUNE 2006

Black Rock Oil & Gas plc ("Black Rock" or "the Company"; stock code: BLR), the
UK-based exploration company, announces its preliminary results for the year
ended 30 June 2006.


Highlights:


   * Active appraisal and development programme; focus on Colombia and North
     Sea

   * Positive results from the Arce Field in Colombia

   * Steam injection commenced on Arce wells, estimated reserves above 5m
     barrels

   * North Sea Monterey field development options being reviewed

   * #2.1m raised in period; further #1.4m post period

   * Board restructured


Commenting on the results, Dr. John Cubitt, Managing Director, stated:


"The 2005/6 financial year has been a period of significant change for Black
Rock Oil & Gas PLC. We have initiated an active appraisal and development
programme for both the Colombia and North Sea interests, where we have made
significant finds. In Colombia steam injection has begun and the operator is
reviewing the development options for Monterey."

                                      ###

NOTES TO EDITORS:


Black Rock has holdings in the North Sea, Celtic Sea and Colombia. In the North
Sea Black Rock has a 15% interest in Blocks 49/8c and 49/9d, operated by
Wintershall. The Monterey Field was originally drilled in 1989, gas flowed and
it is estimated to contain 165 BCF of gas.


The Association Contracts in Colombia are held in conjunction with a joint
venture partner, Kappa Resources Colombia Limited ("Kappa"). As announced in
April 2005, the Company acquired, subject to certain farm-in obligations and
approval by Ecopetrol, a 50 per cent, non-operated equity interest from Kappa in
the 249,000 acre Las Quinchas Association Contract located in the prolific
Middle Magdalena Valley of Colombia. The contract contains three known fields,
Arce, Baul and Bukhara. The Company anticipates that the Arce Oil Field,
estimated to contain gross recoverable oil reserves of 5 million barrels, could
be in commercial production during 2007. In addition, the Company has a 50%
holding in the Alhucema Association Contract where initially seismic acquisition
will be undertaken this year.


Qualified Person


Dr John Cubitt (a Director of the Company) has been involved in the oil and gas
production industry for more than 26 years. Dr John Cubitt is a registered
Chartered Geologist (CGeol) and has a BSc and PhD in geology. He has compiled,
read and approved the technical disclosure in this regulatory announcement.


For further information, please contact:

Black Rock Oil & Gas plc

Dr. John Cubitt, Managing Director                               01189 001350
Peter Kitson, Finance Director                  www.blackrockoilandgasplc.com

Beaumont Cornish Limited (Nominated Adviser)

Roland Cornish, Chairman                                        0207 628 3396

Bankside Consultants

Michael Padley/Susan Scott                                      020 7367 8888
                                                                07798 863690



                              CHAIRMAN'S STATEMENT


During the last Financial Year, Black Rock Oil & Gas PLC (BLR) has continued to
capitalise on the previous year's changes. There has been an active appraisal
and development programme during 2006, for both the Colombia and North Sea
interests. Our interests in Ireland and Australia are in the process of being
disposed of. This will allow us to focus on Colombia and the North Sea, which
the Board believe offer better prospects.


There have been a number of changes to the Board over the last the year. I
became Chairman in August 2005. Dr John Cubitt was appointed in an executive
role as Technical Director, in September 2005 before becoming Managing Director
in October 2006 following Ivan Burgess' resignation and Peter Kitson was
appointed Finance Director in October 2006. The Board would like to thank those
members of the Board who have left both during and after the Financial Year for
their hard work in helping turn the Company around, and we welcome those who
have been appointed to build on the progress made.


During the year, the Company raised in aggregate #2,144,668 by the issue of
217,558,944 shares. Since the year end, it raised a further #1,405,399 by the
issue of 129,242,760 shares. These funds were used primarily to fund our
Colombian and UK oil and gas appraisal projects.


The management aim of the Board remains, to acquire, explore, and appraise high
potential in the established core regions, and to continue to strive for near
term production and build Black Rock Oil & Gas PLC on a solid financial base.
The Directors are determined to identify and capitalise on new drilling
potential, and consolidate current worthwhile projects, and, where necessary,
break away from unrewarding projects.

I would like to thank the management team for all their hard work that has
ensured that Black Rock Oil & Gas PLC is in the good position it is at the end
of this Financial Year. I look forward to working with the new team to
capitalize on this in the coming year.

Communication is an important issue for all shareholders. As such, Black Rock
Oil & Gas PLC will endeavour to constantly improve accuracy and timeliness of
information through the web site (www.blackrockoilandgasplc.com) and through
various wire services, including the London Stock Exchange.



A.B. Baldry                                                  27 December 2006
Chairman
Black Rock Oil & Gas PLC



                          MANAGING DIRECTOR'S REPORT


The 2005/6 financial year has been a year of significant change for Black Rock
Oil & Gas PLC which currently has a bipolar focus with appraisal and near
production opportunities in the UK Southern North Sea and Colombia.


Colombia

In Colombia, Black Rock has an involvement with two licenses, the Las Quinchas
Association Contract and more recently the Alhucema E&P Contract. In the Las
Quinchas Contract, Black Rock is actively pursuing its obligations under the
farm-in contract signed with Kappa in April 2005 in which it agreed to fund
certain exploration drilling activities in order to earn a right to obtain,
subject to Ecopetrol's approval, a 50% interest in the Block.


Within the Las Quinchas Association contract, there have been positive results
from the Arce Field project during the financial year. Testing of the Arce 3
appraisal well commenced in August 2005 and was drilled to a total depth of
2,936 feet, encountering the reservoir objective 80 feet higher than had been
expected. The well produced oil at rates of between 25 and 36 barrels per day
using a beam pump with a stroke length of 102 inches and a rate of 2 strokes per
minute. The oil had an API gravity of 13.5 degrees.


The Arce 4 appraisal well drilled in June 2006 has also been a success, with oil
flowing at the rate of 30.5 barrels per day at standard conditions. The well has
been drilled to a total depth of 3,073 feet and intersected a gross 300 foot oil
section. Subsequently the well underwent testing and analysis of the oil
indicated that, while classified as heavy with a gravity of 16-17 degrees API,
it is liquid at room temperature and pressure.


On completion of operations at Arce 4, the drilling rig was used to re-complete
the gravel pack on Arce 2.


Our operator and joint venture partner, Kappa Resources Colombia Limited,
estimates that the mean recoverable reserves of the field have increased
significantly to above 10 million barrels following recent seismic
reinterpretation and mapping. In addition, flow rates are expected to increase
by up to 3-5 times once we have steam stimulated the field. As stated in last
year's annual report, steam injection and production is now a proven technique
used in Colombia to increase oil flow by lowering the oil viscosity and is
successfully being used for production in the adjacent fields.


A pilot steam injection project, utilizing the Arce 2, 3 and 4 wells, was also
initiated during the year. Equipment was ordered from California in early 2006
but as a result of delays in the delivery of the steam injection unit,
installation and testing commenced only in October 2006. The pad for the tanks,
pipes and steam injection equipment was prepared during Q3 2006. Long-term
testing operations are now underway and are expected to last until Q2 2007.
After cold flow production from the wells to create some void space, steam is
sequentially injected into each well for a period of 1-2 weeks, followed by a
soak period of 1-2 weeks whilst the reservoir heats up. Each well is then put
into production for the remainder of a 3-month test cycle. The steam injection
test will probably involve a minimum of 2 cycles for a total test lasting
approximately 6 months.


The dispute with the Company's Colombian joint venture partner, Kappa Resources
Colombia Limited ('Kappa'), was successfully resolved after the year end
following two days of meetings in Colombia. A disputed default notice issued by
Kappa was withdrawn and Black Rock agreed to make a payment of approximately
US$600,000 in December 2006 and a further payment of approximately US$ 1,000,000
in January 2007 to Kappa to fulfil it's obligations in the Las Quinchas farm-in.





North Sea

Within Black Rock's second core area, the UK Southern North Sea, Black Rock has
a 15% interest in Blocks 49/8c and 49/9d, operated by Wintershall Noordzee. The
Monterey Gas Field is located in Block 49/8c and was estimated by Carrizo (based
on analysis then provided by the field operator, Wintershall Noordzee) to
contain 165 billion cubic feet of gas reserves although no formal resource or
reserve has yet been prepared under any of the accepted standards such as the
SPE or CIM.


Discovered in 1989, the field is located approximately 15 kilometres west of the
Windermere gas platform and south of the Schooner and Ketch gas fields. The
water depth in this location is about 35 metres. After the year end funding for
up to US$4.274 million (approximately #2.4 million) in respect of the Monterey
49/8c-4 was to be provided by Gemini Oil & Gas Fund II, L.P. ('Gemini') without
recourse in return for an entitlement for Gemini to receive interest and
principal repayments based on Black Rock's share of future revenues from the
Monterey Gas Field. Gemini will therefore receive no repayment of the funds
provided until the Monterey Field is taken into production with the Company's
cash flow position being further hedged by the Gemini payments being capped at
33% of Black Rock's gross revenue less its share of operating costs in any
month.


Testing of the Monterey appraisal well was completed in November 2006. The well
flowed natural gas (principally methane, ethane and propane) from several
perforated intervals in the Carboniferous reservoir section during the well test
period, at approximately 850,000 cubic feet/day through a 2 inch choke. Observed
flow rates might have been impeded by relatively low reservoir quality and
reservoir damage within the well. In common with many vertical appraisal wells
in the Southern North Sea, the gas flow rates were less than can be expected
from a horizontal development well. The drill stem testing results indicated
reasonable reservoir permeability and pressure in intervals of the tested
reservoir, while other intervals were tighter.


The field operator is preparing a series of development options put to the Joint
venture Partners. Amongst the options being considered is to sidetrack the
appraisal well to the optimum reservoir interval and then complete the well as a
horizontal producer. Typically, such wells will have horizontal sections of 500m
or more in order to obtain commercial rates and the well may also require
hydraulic fracturing. If developed, the field operator intends to
sub-sea-complete and the gas will be piped to the nearby Markham Gas Field and
from there to Netherlands.


Other interests

Black Rock has proactively rationalized it's portfolio of interests and risk
exposure in the UK by allowing licence P1140 (Black Rock interest 40%) in the
Southern North Sea to expire in September 2005. This follows a detailed seismic
reprocessing and interpretation project that found no significant structural
closure within the Rotliegendes target level within the Block. In addition,
Black Rock recognized that the costs associated with our interests in licence
P1152 (20%) had become unsupportable with the rapid rise in drilling rig day
rates and were therefore re-assigned to the Joint Ventures.


In terms of the UK onshore non-core area, the Sandhills 2Z well on the Isle of
Wight was completed, and reached a total depth of 4,960 feet. Black Rock Oil &
Gas PLC had only a 5% carried interest in this project. Wireline logs evaluation
identified that there was insufficient quantities of movable hydrocarbons, and
it has since been plugged and abandoned. Due to its minimal interest in this
project, this well had limited impact on the activities of Black Rock Oil & Gas
PLC.


As identified in the 2005 Annual Report, longer term projects that do not meet
expectations will be pruned rather than consume vital funds and management time.
As such, Black Rock Oil & Gas PLC did not renew the expiring option in Ireland
during the financial year, and will not renew the three remaining Irish options
due to expire in October 2006. Final reports are in the process of being
generated for submission to the Irish Authorities. Two licences in Australia
have also been disposed of, and the intention is to dispose of the remaining
two.


In December 2005, Advent Energy Ltd., an independent Australian oil and gas
exploration company, acquired Black Rock Oil & Gas's 8.3% interest in licence
EP-325, Offshore Carnarvon Basin, Western Australia. Under the terms of the
agreement, Advent Energy Ltd will pay Black Rock a 0.8% royalty on any sales of
hydrocarbons from EP-325, and will assume responsibility for all future cash
calls relating to EP-325 and any successive renewals, permits or licences. This
will ensure that management time and financial resources are focused on core
Columbian and North Sea projects, while enabling participation in any
exploration success on EP-325.


At the present time, Black Rock is undertaking a full review of the structure of
and risks associated with its portfolio of assets and it is recognized that some
modifications to the portfolio may be required in 2006/7 to increase our breadth
of opportunities and reduce our exposure to financial risk.



J.M. Cubitt                                                  27 December 2006
Managing Director
Black Rock Oil & Gas PLC



CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE YEAR-ENDED 30 JUNE 2006

                                          2006                   2005
                          Notes           #            #         #           #


Group turnover              2                          -                     -

Cost of sales                                          -                     -
                                               _________             _________

Gross profit                                           -                     -

Administrative expenses
Administrative expenses
before
impairment of exploration
expenditure and goodwill          (907,557)              (637,858)

Impairment of exploration
expenditure and goodwill
                                  (760,794)              (837,760)

                                             (1,668,351)           (1,475,618)

Group operating loss                         (1,668,351)           (1,475,618)
(comprising total
administrative expenses)

Interest receivable                                9,011                11,313

Loss on ordinary                             (1,659,340)           (1,464,305)
activities before
taxation

Taxation                    4                          -                     -

Loss on ordinary
activities
after taxation                               (1,659,340)           (1,464,305)

Retained loss for the                        (1,659,340)           (1,464,305)
year

Loss per share
Basic                       3                    (0.40p)               (0.53p)




STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

FOR THE YEAR-ENDED 30 JUNE 2006



                                                   2006                  2005
                                                      #                     #

Retained loss for the year                  (1,659,340)           (1,464,305)

Exchange differences on retranslation of         30,015              (51,477)
net assets of foreign currency operations
Total gains and losses recognised for the   (1,629,325)           (1,515,782)
year









CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2006

                                          2006                     2005
                         Notes             #            #          #           #

Fixed assets
Intangible assets          5                    1,576,740                675,964
Tangible assets                                         -                  6,012

                                                1,576,740                681,976

Current assets
Debtors                               62,340                  15,032
Cash at bank and in hand             551,723                 773,175

                                     614,063                 788,207

Creditors: Amounts                 (181,093)                (39,646)
falling due within one
year

Net current assets                                432,970                748,561

Total assets less                               2,009,710              1,430,537
current liabilities

Provision for                                     (7,347)                      -
liabilities and charges

Net assets                                      2,002,363              1,430,537

Capital and reserves
Called up share capital    6                    2,883,564              1,795,767
Share premium account      7                    6,598,271              5,541,400
Merger reserve             7                      212,023                212,023
Other reserve              7                       56,483                      -
Profit and loss account    7                  (7,747,978)            (6,118,653)

Shareholders' funds                             2,002,363              1,430,537



CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 30 JUNE 2006

                                        2006                  2005
                          Notes       #            #          #            #


Net cash outflow from         9               (692,275)               (906,583)
operating activities

Returns on investments
and Servicing of
finance
Investment income                                 9,011                  11,313

                                              (683,264)               (895,270)
Acquisitions and
disposals
Net funds used for              (1,661,570)             (1,089,272)
investing in
exploration
Acquisition of                     (21,286)                 (8,862)
tangible fixed assets

Net cash outflow from                       (1,682,856)             (1,098,134)
acquisitions

Net cash outflow                            (2,366,120)             (1,993,404)
before Financing

Financing
Proceeds from issue of            2,217,311               2,139,492
share
Issue costs                        (72,643)                (60,312)

Cash inflow from                              2,144,668               2,079,180
financing

(Decrease)/increase in       10               (221,452)                  85,776
cash



Notes to the Financial Information


1.                   Basis of preparation and going concern


The financial information has been prepared in accordance with the historical
cost convention and in accordance with applicable accounting standards and the
Statement of Recommended Practice "Accounting for Oil and Gas Exploration,
Development, Production and Decommissioning Activities".


The financial information contained in this report does not constitute full
statutory accounts within the meaning of Section 240 of the Companies Act 1985.
The figures are extracted from the audited full financial statements for the
year ended 30 June 2006 which will be filed with the Registrar of Companies in
due course.


The financial statements have been prepared on the going concern basis as, in
the opinion of the Directors, at the time of approving the financial statements,
there is a reasonable expectation that the Group will continue in operational
existence for the foreseeable future. In forming this opinion, the Directors
have taken account of the following facts and assumptions:


At 30 June 2006, the Group had a cash balance of #551,723.


As set out in the post balance sheet events note (note 12) to the financial
information, the Company, since the year end, has raised #1,405,399 from new
issue of shares. Also since the year end, the Group has spent US $1.592 million
(#877,000) to meet the first two tranches of its Colombian commitments. This and
taking into account the Group's net cash outflow from its operating activities
since the year end, the Company may not be able to meet the final tranche of its
Colombian commitment of US $1.022 million (#563,000) payable in January 2007
unless it is able to raise new funds of between #550,000 to #600,000 through a
successful placing of new shares or is able to arrange a bank loan facility to
cover such an amount.


The Directors, based on their discussion with the Company's brokers, believe
that there have been sufficient interests expressed by prospective investors in
the Company's interest in the Colombian project, which they consider to be of
substantial value because of its potential for significant commercial oil
reserves. This, in their view, should result in a successful placing of shares
or the arrangement of the necessary bank loan within the required time frame.


The Directors therefore believe that it remains appropriate to prepare the
financial statements on a going concern basis.


2. Turnover


At the end of the financial year, the Group had not commenced commercial
production from its exploration sites and therefore had no turnover in the
period.


3. Earnings per share


The loss per ordinary share of 0.40p (2005: 0.53p) is based on the loss for the
financial year of #1,659,340 (2005: #1,464,305) and 417,621,226 ordinary shares
(2005: 277,146,871), being the average number of shares in issue for the year.


No diluted loss per ordinary share has been disclosed because the conversion of
share warrants would decrease the net loss per share.


4. Taxation
                                                           2006           2005
                                                              #              #

Current Tax
UK corporation tax on profits for the year                    -              -

                                                              -              -

Factors affecting tax charge for period
Loss on ordinary activities before tax             (1,659,340)     (1,464,305)

Tax on loss on ordinary activities at the

standard rate of UK corporation tax of 30% (2005:    (497,802)       (439,291)
30%)

Effects of:

Expensed not deductible for tax purposes                76,108         271,837
Depreciation                                             7,631               -
Capital allowances                                           -               -
Tax losses                                             408,271         173,243
Other tax adjustments                                    5,792         (5,789)

Total current tax charge                           -              -



5. Intangible assets - Group


The movements during the year were as follows:
                              Exploration                      Goodwill Total
                                     and
                                appraisal
                              expenditure
                                        #                 #                 #

Cost                            1,571,937           503,397         2,075,334

At 1 July 2005
Additions                       1,661,570                 -         1,661,570
Relinquished interest in      (1,108,163)                 -       (1,108,163)
projects
                                2,125,344           503,397         2,628,741

At 30 June 2006

Amortisation and impairment
At 1 July 2005                (1,067,793)         (331,577)       (1,399,370)
Impairment for the year         (588,974)         (171,820)         (760,794)
Relinquished interest in        1,108,163                 -         1,108,163
projects

At 30 June 2006                 (548,604)         (503,397)       (1,052,001)

Net book value
At 30 June 2006                 1,576,740                 -         1,576,740

At 30 June 2005                   504,144           171,820           675,964


Impairment for the year includes the remaining book values written off in
connection with the acquisition of Wildlook Enterprises Pty Ltd, the company
acquired from the Company's former managing director, Ivan Burgess in September
2004. These are in respect of:

                                                          2006          2005
                                                             #             #

Exploration and appraisal expenditure                   39,140             -
Goodwill                                               171,820       114,546
                                                       210,960       114,546


The book value of the exploration and appraisal expenditure can be analysed in
the following geographical areas:


                                                         2006           2005
                                                            #              #

Australia                                                   -         39,140
Europe                                                 89,202        169,194
South America                                       1,487,538        295,810

                                                    1,576,740        504,144

                                                                     


6.                               Share capital

+------------------------------------------------+-----------+---+----------+
|Authorised                                      |       2006|   |      2005|
|                                                |           |   |          |
|                                                |          #|   |         #|
|                                                |           |   |          |
|1,600,000 ordinary shares of 0.5p each          |  8,000,000|   | 2,000,000|
|                                                |           |   |          |
|(2005: 400,000,000 ordinary shares of 0.5p each)|           |   |          |
|1,000,000                                       |           |   |          |
+------------------------------------------------+-----------+---+----------+
|Allotted, called up and fully paid              |           |   |          |
|                                                |           |   |          |
|As at 1 July 2005                               |  1,795,767|   |   892,437|
+------------------------------------------------+-----------+---+----------+
|Shares issued                                   |  1,087,797|   |   903,330|
+------------------------------------------------+-----------+---+----------+
|As at 30 June 2006                              |  2,883,564|   | 1,795,767|
+------------------------------------------------+-----------+---+----------+
|                                                |           |   |          |
+------------------------------------------------+-----------+---+----------+


During the year 8,152,256 ordinary shares of 0.5p each were issued at 1.5p and
2.0p pursuant to the exercise of share warrants.


In addition, the following issues of new shares for cash in the Company took
place:


1. A total of 62,315,400 new shares were issued at 1.0p each on 6 January 2006.


2. A total of 147,091,288 new shares were issued at 1.0p each on 27 April 2006.


The movements in the share capital and the warrants are summarised below:

+----------------------------------------------+------------+---+-----------+
|                                              |   Number of|   |  Number of|
|                                              |      shares|   |   warrants|
+----------------------------------------------+------------+---+-----------+
|                                              |            |   |           |
+----------------------------------------------+------------+---+-----------+
|Opening balance at 1 July 2005                | 359,153,826|   | 40,531,178|
+----------------------------------------------+------------+---+-----------+
|Shares issued for cash                        | 209,406,688|   |          -|
+----------------------------------------------+------------+---+-----------+
|Share warrants conversion                     |   8,152,256|   |(8,152,256)|
+----------------------------------------------+------------+---+-----------+
|Share warrants issued                         |           -|   | 10,000,000|
+----------------------------------------------+------------+---+-----------+
|                                              | 576,712,770|   | 42,378,922|
|                                              |            |   |           |
|At 30 June 2006                               |            |   |           |
+----------------------------------------------+------------+---+-----------+


7. Statement of movements on reserves


Movements in the share premium, merger reserve, other reserve and profit and
loss account during the year were as follows:



                                      Share      Merger       Other         Profit
                                    premium     reserve     reserve       and loss
                                          #           #           #              #
At 1 July 2005                    5,541,400     212,023           -    (6,118,653)
Issue of shares                   1,056,871           -           -              -
Share based payment                       -           -      56,483              -
Retained losses                           -           -           -    (1,659,340)
Exchange differences                      -           -           -         30,015
                                  6,598,271     212,023      56,483    (7,747,978)

At 30 June 2006


The merger reserve arose a result of acquisition of Wildlook Enterprises Pty
Limited for a share for share exchange and represents the difference between the
fair value of the consideration given for the shares and warrants issued and the
nominal value of those instruments.



8. Reconciliation of movements in shareholders' funds - equity only

                                                          2006           2005
                                                             #              #
Loss for the period                                   (1,659,340)       (1,464,305)
Dividends                                             -              -  -
                                                      (1,639,340)       (1,464,305)
Issue of new shares for cash (net of expenses)        2,144,668         2,079,180
Issue of new shares for non cash                      -                 270,000
Issue of share warrants for non cash                  -                 32,023
FRS 20 share warrants charge                          56,483            -
Currency translation differences on foreign currency  30,015            (51,477)
operations

                                                      571,826           865,421
Opening shareholders' funds                           1,430,537         565,116

Closing shareholders' funds                           2,002,363         1,430,537



9. Reconciliation of operating loss to net cash outflow from operating
activities

                                                          2006           2005
                                                             #              #
Group operating loss before interest                  (1,668,351)      1,475,618)
Impairment of exploration expenditure and goodwill    760,794          837,760
Increase in debtors                                   (47,308)         (749)
Decrease/(increase) in creditors                      141,447          (219,349)
Effect of foreign exchange rates                      30,015           (51,477)
Depreciation                                          27,298           2,850
FRS20 share warrants charge                           56,483        -  -
National insurance charge on share warrants           7,347            -

Net cash outflow from operating activities            (692,275)        (906,583)



10. Analysis of changes in net funds

                                 2005              Cash flows        2006

                                 #                 #                 #

Cash at bank and in hand         773,175           (221,452)         551,723






11. Reconciliation of net cash flow to movement in net funds

                                                     2006           2005
                                                        #              #
(Decrease)/increase in cash                      (221,452)           85,776

Movement in net funds                            (221,452)           85,776
Net funds at 1 July 2005                         773,175             687,399

Net funds at 30 June 2006                        551,723             773,175



Post balance sheet events


i) The Company issued 129,242,760 new shares and raised a total cash sum of
#1,405,399 as follows:


112,838,415 shares were issued at 1.1p on 7 July 2006.


40,700 shares were issued at 2p on 13 July 2006.


16,363,645 shares were issued at 1p on 4 August 2006.


ii) The parties to the agreement between the Company and Kappa Resources
Colombia Limited ("Kappa"), its joint venture partner in Colombia entered into
in April 2005, have agreed to amend the agreement following two meetings in
Colombia on 6 and 7 December 2006. The original agreement was in respect of the
Company meeting the terms of its farm-in-obligations in the Las Quinchas
farm-in.


The agreement has been amended as follows:


On satisfactory completion of the work programme commitments (comprising
farm-in-obligations) as set out below, the Company will acquire the right to
exercise its option to earn a 50 percent non-operated equity interest from Kappa
in the 249,000 acre Las Quinchas Association Contract located in the Middle
Magdalena Valley of Colombia. This is subject to approval from Ecopetrol, the
national oil company of Colombia.


The commitments, including that paid prior to the meetings on 6 and 7 December
2006, are:


Cash payment of US $1m on 28 September 2006.


Cash payment of US $0.592m on 11 December 2006.


Cash payment of US $1.022m on 7 January 2007


The two payments as set out in (a) and (b) above were made at their due dates.


iii) In September 2006 the Company entered into an arrangement with Gemini Oil &
Gas Fund II, LP ("Gemini") whereby Gemini is to fund up to US $4.27m in respect
of the drilling of the Company's 49/8c-4 well in the Monterey Gas Field of the
Southern Gas Basin in the North Sea. The loan will be without recourse in return
for an entitlement for Gemini to receive interest and principal payments based
on the Company's share of future revenues from Monterey Gas Field.


Note:

The financial information in this announcement has been derived from the
Company's statutory accounts for the year ended 30 June 2006, which were
approved by the Directors on 21 December 2006 and on which the auditors have
given an unqualified opinion. The financial information set out in this
announcement does not constitute statutory accounts within the meaning of
section 240 of the Companies Act 1985. Statutory accounts for the year ended 30
June 2005 will be delivered to the Registrar of Companies in accordance with
section 242 of the Companies Act 1985. The financial information for the year
ended 30 June 2005 is derived from the Company's statutory accounts, which have
been delivered to the Registrar of Companies and on which the auditors gave an
unqualified opinion.


Black Rock's Annual Report and Accounts for the year ended 30 June 2006 is being
posted to shareholders on or before Friday 29 December 2006. A copy of the
Annual Report can be obtained by sending a request to the Company at Davidson
House, Forbury Square, Reading, Berkshire RG1 3EU, telephone number: 011 8900
1350.


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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