Update on Financial Position

    RNS Number : 1295B
  Timan Oil & Gas Plc
  12 August 2008
   

    Timan Oil & Gas plc ("Timan" or the "Company")

    Director Loan and Update on Financial Position 

    Director Loan

    Timan announces that Alexander Kapalin and Boris Royter, a significant shareholder in Timan and co-founder of the Company with Mr
Kapalin, have loaned the Company in aggregate £398,000 in order to satisfy short term creditor payments. The terms of the loans have yet to
be finalised and therefore a further announcement in this regard will be made in due course.

    Financial Position

    The Directors continue to actively seek short and medium term funding solutions for the Company to enable it to continue to trade and to
develop its assets further. In addition the Board is reviewing strategic options for the Company which may involve a corporate transaction.

    Shareholders should note that it has not been possible to secure any bond financing in the international capital markets and the Company
is therefore seeking loan and or equity finance.  The Board would like to make it clear that, as far as it is aware, the Company's Russian
subsidiaries are currently compliant with their licence obligations. Further exploration and development activities however are obviously
dependent upon the resolution of the Company's financial position. 

    As a result of the current uncertainty in relation to the Company's short term funding, Timan's shares remain suspended on AIM.

    Results

    The results for 2007 will be announced when funds are available to enable sign off of the audit and the accounts will then be circulated
to shareholders together with a notice of AGM.

    Enquiries:

 Timan Oil & Gas plc
 Alexander Kapalin, Chief Executive Officer
 David Herbert, Chairman
 [phone]

 Strand Partners Limited
 Rory Murphy
 + 44 (0) 20 7409 3494



This information is provided by RNS
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