Interim Results

RNS Number:8927O
Edinburgh Oil & Gas PLC
21 August 2003


                                                                 21 August 2003



               EOG AWARDED FIVE NEW OFFSHORE LICENCES AND PROGRESS
                  TOWARDS PROJECT SANCTION ON BUZZARD OILFIELD


Edinburgh Oil & Gas plc announces its interim results for the six months ended
30 June 2003.

              Interim results for the six months ended 30 June 2003

*  Pre-tax profit #173,000, compared with #885,000 (including an exceptional
   gain of #882,000) in the corresponding period in 2002.

*  The Buzzard oilfield development is progressing towards project sanction.
   The Company is in advanced negotiations with regard to a new debt facility
   to fund its share of the development.

*  The Company was awarded five new licences, covering a total of seven blocks,
   in the UK 21st Round of Offshore Licensing. Four of the blocks lie south and 
   west of the Buzzard oilfield.

For further information, please contact:

Alf Bissett                                 Roland Cross
Managing Director                           Director
Edinburgh Oil & Gas plc                     Broadgate Marketing
0131 225 5454                               020 7726 6111


Interim Statement

The financial results for the first half of 2003 reflect the continuing disposal
of the Company's non core UK onshore assets. While turnover is down due to the
sale of producing properties, pre-tax profits were #173,000 due in part to firm
oil prices and production cost control. Last year's first half results benefited
from net gains of #882,000 resulting from the sale of non producing licence
interests. The Hatfield Moors gas storage project continues to perform steadily
but gas production from the North Yorkshire licences has been restricted by
mechanical problems with ScottishPower's generating plant. On 23 May 2003 the
Company announced that it had sold its 46.66 per cent interest in the West
Firsby oilfield for a cash consideration of approximately #400,000.

The Buzzard oilfield development is progressing towards project sanction. The
Company is in advanced negotiations with regard to a new debt facility to fund
its share of the Buzzard oilfield development. The Environmental Statement has
been issued and the Field Development Plan is close to completion. The mid range
estimated recoverable reserves are approximately 468 million barrels (24 million
barrels net to the Company's interest). The operator, EnCana (U.K.) Limited, has
proposed the drilling of a well on licence P928 (South) on a prospect north of
the Buzzard field and the Company expects this to be drilled in the second half
of this year.

On 31 July 2003 the Department of Trade and Industry announced the results of
the 21st Round of Offshore Licensing and the Company is very pleased to report
that it has been awarded five new licences covering a total of seven blocks.
Four of the blocks lie south and west of the Buzzard oilfield and the Company's
interest in the blocks, operated by EnCana (U.K.) Limited, are between 2.5 and 
5 per cent. The other three blocks, located in the Central North Sea, are
operated by Tullow Oil plc and the Company's interest is 10 per cent.


In line with our strategy the 21st Round licence awards have enabled the Company
to strengthen its acreage position around the Buzzard oilfield in the Outer
Moray Firth and also to have gained new exploration exposure in the Central
North Sea. The development of the Buzzard oilfield and the expansion of our UK
offshore exploration portfolio provide the Company with an exciting future.

C H Ross
Chairman




EDINBURGH OIL & GAS plc

Group Profit and Loss Account
for the six months ended 30 June 2003
                                             Six months  Six months        Year
                                                  ended       ended       ended
                                               30.06.03    30.06.02    31.12.02
                                                   #000        #000        #000

Turnover                                         1,616       2,012       3,296
Cost of sales                                     (780)     (1,256)     (1,965)
Depletion                                         (371)       (439)       (689)
                                              ----------  ----------  ----------
Gross profit                                       465         317         642
                                              ----------  ----------  ----------

Administrative expenses                           (335)       (278)       (510)
Exchange losses                                    (11)         (4)        (11)
                                              ----------  ----------  ----------
                                                  (346)       (282)       (521)
                                              ----------  ----------  ----------

Operating profit                                   119          35         121

Gains on disposal of fixed assets                    -         882         882
Amounts written off investments                      -           -         (32)
Interest receivable                                 67          30         111
Interest payable                                   (13)        (62)        (76)
                                              ----------  ----------  ----------
Profit on ordinary activities before               173         885       1,006
taxation

Taxation                                           (73)       (139)        (35)
                                              ----------  ----------  ----------

Profit for the period                              100         746         971
                                              ----------  ----------  ----------

Earnings per share - basic                        0.24p       1.93p       2.42p
                   - diluted                      0.23p       1.87p       2.35p
                                              ----------  ----------  ----------

Notes:
 1.  The interim accounts have been prepared on the basis of the accounting
     policies set out in the 2002 Annual Report and Accounts.

 2.  The results for the year ended 31 December 2002 do not constitute full
     accounts within the meaning of Section 240 of the Companies Act 1985 (as
     amended by Section 10 of the Companies Act 1989) and are an abridged
     version of the unqualified accounts which have been filed with the
     Registrar of Companies. The independent auditors' report did not contain a
     statement under Section 237(2) & (3) of the Companies Act 1985.

 3.  No interim dividend has been declared (2002 - nil).

 4.  Earnings per share is based on the profit after taxation of #100,000 (2002
     - #746,000) and 41,604,599 shares (2002 - weighted average 38,708,744) in
     issue during the period.

 5.  The results for each of the six month periods are unaudited.

 6.  Copies of the interim report are available from the Company's registered
     office, 10 Coates Crescent, Edinburgh EH3 7AL.







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

END
IR ILFSETAIIFIV