KAROO ENERGY PLC – Interim Results For The Six Months Ended 31 October 2015

29 January 2016

Karoo Energy Plc
(“Karoo Energy”, the “Group” or the “Company")

Interim Results For The Six Months Ended 31 October 2015

CHIEF EXECUTIVE OFFICER STATEMENT

I am pleased to report that the Company has made continued progress over recent months both at a corporate and operational level.

Earlier this month we were delighted to announce the acquisition of the remaining 15% of Tamboran Botswana (Pty) Ltd (“Tamboran Botswana”) that our 86.95% owned subsidiary, Equatorial Oil & Gas plc, did not already own. The consideration for the remaining holding was £400,000, settled through the issue of 10,000,000 new ordinary shares of 0.25p each in the Company to Tamboran Resources Ltd at 4p per share. Tamboran Resources Ltd has agreed not to dispose of any of the consideration shares for 18 months following completion of the acquisition, except with the prior approval of the Company, or in certain limited circumstances.

Tamboran Botswana currently has a 100% interest in three prospective shale gas licences: EL001/2012 (covering c.53,544 km²), EL161/2015 (covering c.23,980 km²), and EL162/2015 (covering c. 34,435 km²). Discussions are progressing with the Botswana Government with regard to obtaining a four-year extension to licence EL001/2012 which, if granted, would see the relinquishment of approximately 50% of the original licence acreage.

We are pleased to have completed the acquisition of the outstanding shares in Tamboran Botswana, and to take full ownership of the licences, which are highly prospective for hosting shale gas.

At a corporate level the Company name was changed to Karoo Energy to better reflect the focus of the Group’s operations in Botswana’s Kalahari-Karoo basin. Meanwhile, we were delighted to welcome Alan Golding as a Non-Executive Director of the Company. Alan has extensive experience in coal, coal bed methane and underground coal gasification in Botswana, as well as other African regions and has been involved in multiple coal and coal bed methane projects in Botswana. We have worked with Alan for some time and he has already made a significant contribution to the Company’s development in Botswana and thus we are delighted to welcome him as a director.

FINANCIALS

The financial results for the six months to 31 October 2015 show a loss after taxation of £81,006 (2014: £46,907)

OUTLOOK

I am pleased at the progress made since my last report to shareholders and believe we are on the cusp of unlocking value from our vast portfolio of licences in Botswana. We look forward to providing investors with detail on further progress over the coming weeks.

Noel Lyons
CEO
29 January 2016

The Directors of the Company accept responsibility for the content of this announcement.

ENQUIRIES:

Company
Karoo Energy plc
Noel Lyons
Telephone: 020 3130 0674

Corporate Adviser
Peterhouse Corporate Finance Limited
Guy Miller / Mark Anwyl
Telephone: 020 7220 9795

Consolidated Profit and Loss Account for the 6 months ended 31 October

Consolidated Balance Sheet as at 31 October

*The 2014 interim balance sheet has been restated for the effect of accrued additions to intangible assets of £25,000.

Consolidated Statement of Cash Flows for the 6 months ended 31 October

Notes to the interim results

1.   Basis of preparation

The interim results are unaudited and do not constitute statutory accounts and have not been reviewed by the Company’s auditors.

2.   Earnings per share

Basic earnings per share is calculated by dividing the earnings attributable to Ordinary Shareholders by the weighted average number of Ordinary Shares outstanding during the period.

The Group does not have any potentially dilutive shares in any of the periods presented, therefore the basic and diluted earnings per share are the same.

Basic earnings per share

The weighted average number of Ordinary Shares used in the calculation of basic earnings per share are as follows:

3.   Dividends

The directors do not propose to pay a dividend for the period.