Corporate update, offer talks terminated

    RNS Number : 8409J
  Black Rock Oil & Gas PLC
  10 December 2008
   

 For immediate release  10 December 2008

    Black Rock Oil & Gas Plc
    ("Black Rock" or the "Company")
    Corporate Update
    Offer talks terminated

    As announced on 27 August 2008, the Board has been active in identifying potential merger opportunities and seeking additional business
partners. Since the Annual General Meeting the Board had discussions with a number of parties. 

    While there can be no assurance at this stage that these discussions will result in an acceptable re-financing of the Company, the
Directors are in advanced discussions with a potential investor regarding the possibility of an equity subscription and hope to agree a
satisfactory outcome such that the Company has sufficient finance available for its ongoing requirements and hope to conclude matters within
a short time frame. In this context, the Company has terminated discussions with other third parties regarding any possible offer for the
Company and accordingly is no longer being treated under the City Code on Takeovers and Mergers ("City Code") as being in an offer period.

    As previously announced the Board implemented wide-ranging operational cost reductions to substantially reduce the working capital
required by the Company to finance its ongoing central costs and the Board anticipated that ongoing central costs could be covered by
existing funds until late 2008. In order to provide the Company with additional funds while discussions in relation to the proposed equity
subscription referred to above are progressed, John Cubitt, a director of the Company, has made available an initial short term loan of
£2,500 to the Company. The loan is unsecured and non-interest bearing and will be repaid as and when the Company secures new third party
finance. The provision of the loan is a related party transaction. Accordingly, the independent Directors (being the Board other than John
Cubitt) consider, having consulted with the Company's nominated adviser, that the terms of the transaction are fair and reasonable insofar
as its shareholders are concerned. Further financial support for the Company will be required pending completion of the discussions regarding the equity subscription referred to above from the Directors
or other sources and a further announcement will be made in due course in relation to any further such support.


    Enquiries:

 Black Rock Oil & Gas Plc                      Tel: [phone] 
 Dr John Cubitt, Managing Director             www.blackrockoil.com

 Beaumont Cornish Limited (Nominated Adviser)  Tel: [phone]
 Michael Cornish                                


    ENDS

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