Silvermines Media PLC
01 March 2005


Silvermines Media PLC (the 'Company')
1 March 2005


First Day of Dealings of Enlarged Share Capital on AIM
Acquisition of Zhibek Resources Plc
Change of name from Silvermines Media PLC to Cambrian Oil & Gas Plc

Silvermines Media PLC (AIM: SLV), to be re-named Cambrian Oil & Gas Plc (AIM:
COIL), a company admitted to trading on AIM on 15 July 2004 to seek acquisition
and investment opportunities, is pleased to announce its first day of dealings
on AIM today following its acquisition of Zhibek Resources Plc ('Zhibek').

The Company announced on 4 February 2005 that it had conditionally agreed to
acquire the entire issued share capital of Zhibek (including all outstanding
convertible securities) in consideration for the issue of 40,000,000
Consideration Shares and 13,333,333 Warrants. As of 26 January 2005 (being the
date on which Ordinary Shares were suspended from trading on AIM) the closing
mid-market price of an Ordinary Share was 7.5p, valuing Zhibek at approximately
3 million and Silvermines at approximately 1.7 million.

The Company has also raised 1.95 million, net of expenses, by way of a Placing
of 45,000,000 Placing Shares, undertaken in order to provide working capital for
the Enlarged Group.

Dealings in the Enlarged Share Capital consisting of 23,115,000 existing
Ordinary Shares, 45,000,000 Placing Shares and 40,000,000 Consideration Shares
commence on AIM today.

Commenting on the successful completion of the Acquisition and Placing, John
Byrne, the Company's Non-Executive Chairman, said:

'The formation of COIL now enables Zhibek to develop its strategy of oil and gas
exploration, development and production, both internationally and particularly
in the Kyrgyz Republic. It is a very exciting time for us as we continue the
development of the initial two projects - Beshkent Togap and Tash Kumyr - and
look forward to reporting our progress in the near future.'

Full details of the Proposals were set out in the Admission Document to
shareholders dated 4 February 2005. The definitions in the Admission Document
also apply to this announcement.

For further information please contact:

Cambrian Oil & Gas Plc
Neale Taylor, Chief Executive 0207 493 7671
Paul Mc Groary, Non-Executive Director 07930568160
(former Chief Executive, Silvermines Media PLC)

W.H. Ireland
Tim Cofman 0121 6162101

Parkgreen Communications
Justine Howarth/Victoria Thomas 02074933713


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

**************************************************
Silvermines Media PLC
28 February 2005



Silvermines Media PLC

28 February 2005



Result of Extraordinary Meeting



Silvermines Media PLC (AIM: SLV), a company admitted to trading on AIM on 15
July 2004 to seek acquisition and investment opportunities, is pleased to
announce that all of the resolutions put before the Extraordinary General
Meeting today were duly passed.



Accordingly, the 45,000,000 Placing Shares and 40,000,000 Consideration Shares
have been conditionally allotted subject to Admission, which is expected to
occur at 8.00am on 1 March 2005 and the Company's change of name to Cambrian Oil
& Gas Plc will become effective at that time.



Upon Admission, the members of the Concert Party will own approximately 45.8 per
cent. of the Company's issued ordinary share capital (assuming members of the
Concert Party do not exercise any Warrants or Options). If all such Warrants and
Options were exercised the members of the Concert Party could be interested in
up to 53.8 per cent. of the further enlarged share capital of the Company.



Full details of the Proposals were set out in the Admission Document to
shareholders dated 4 February 2005. The definitions in the Admission Document
also apply to this announcement.



For further information please contact:


Cambrian Oil & Gas Plc
Neale Taylor 0207 493 7671
Paul Mc Groary, Non-Executive Director (former Chief Executive of Silvermines 07930 568 160
Media PLC)

W.H. Ireland
Tim Cofman 0121 616 2101

Parkgreen Communications
Justine Howarth/Victoria Thomas 0207 493 3713




This information is provided by RNS
The company news service from the London Stock Exchange
***************************************************
Silvermines Media PLC
01 March 2005


Silvermines Media PLC (the 'Company')
1 March 2005


Directorate Changes


Further to the announcement regarding first day dealings in the Company's
Enlarged Share Capital on AIM today, the Board of Silvermines Media PLC (AIM:
SLV), to be re-named Cambrian Oil & Gas Plc (AIM: COIL), announces the following
directorate changes.


Smit Berry and Haresh Kanabar have resigned from the Board as Non-Executive
Chairman and Executive director respectively, with immediate effect, to focus on
their other business activities. Paul Mc Groary will step down as Chief
Executive to become a Non-Executive Director of the Company.


In addition, the Board of the Company is delighted to appoint John Byrne, aged
55 as Non-Executive Chairman, Neale Taylor, aged 62 as Chief Executive, Jurgen
Hendrich, aged 43 and lan Ennis, aged 63 as Executive Directors, and Jonathan
Malins, aged 57 as Non-Executive Director, all with immediate effect. The newly
appointed directors are all directors of Zhibek Resources Plc.


For further information please contact:

Cambrian Oil & Gas Plc
Neale Taylor, Chief Executive 0207 493 7671
Paul Mc Groary, Non-Executive Director (former
Chief Executive 07930 568 160
of Silvermines Media PLC

W.H. Ireland
Tim Cofman 0121 616 2101

Parkgreen Communications
Justine Howarth/Victoria Thomas 0207 493 3713




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

This is the RNS from SLV regarding the takeover, for anyone that did`nt see the SLV thread
Dexter
**************************************************
Silvermines Media PLC
04 February 2005


For immediate release: 4 February 2005


Silvermines Media Plc
('Silvermines' or 'the Company')

Proposed Acquisition of Zhibek Resources Plc
Approval of waiver to be granted by the Panel on Takeovers and Mergers
Proposed change of name to Cambrian Oil & Gas Plc
Placing of 45,000,000 Ordinary Shares of 1p each at 5p per share
Proposed issue of Warrants
Silvermines to hold Extraordinary General Meeting on 28 February 2005


Key Highlights

Silvermines has conditionally agreed to acquire the entire issued share
capital of Zhibek in consideration for the issue of 40,000,000 Ordinary
Shares at 5p each and the proposed issue of 13,333,333 Warrants

At a closing mid-market price of 7.5p per Ordinary Share on 26 January
2005, the date on which the Ordinary Shares were suspended from trading on
AIM, the acquisition values Zhibek at 3 million and Silvermines at 1.7
million

Placing through W.H. Ireland to raise 2.25 million gross (1.95 million
net) for working capital for the Enlarged Group

Proposed change of name to Cambrian Oil and Gas Plc

Under the AIM rules, the acquisition constitutes a reverse takeover and
requires shareholder approval at an EGM

The Directors and major shareholders, representing approximately 69 per
cent. of the existing Ordinary Shares in Silvermines, have irrevocably
undertaken to vote in favour of the proposed Resolutions

Enlarged Group will comprise the oil and gas exploration and development
assets of Zhibek, currently located primarily in the Kyrgyz Republic

Full details of the Proposals are attached

Copies of the Admission Document posted to Shareholders today are available from
W.H. Ireland, 26 Bennetts Hill, Birmingham B2 5QP. Suspension of the existing
Ordinary Shares is expected to be lifted following publication of this
announcement.



For further information please contact:

WH Ireland Silvermines Media PLC Parkgreen Communications
Tim Cofman-Nicoresti Paul Mc Groary, Chief Executive Justine Howarth / Victoria Thomas
+44 (0) 121 665 4615 +44 (0) 7930 568 160 +44 (0) 20 7493 3713





SILVERMINES MEDIA PLC ('Silvermines' or the 'Company')
Proposed Acquisition of Zhibek Resources Plc
Approval of waiver to be granted by the Panel on Takeovers and Mergers
Proposed change of name to Cambrian Oil & Gas Plc
Placing of 45,000,000 Ordinary Shares of 1p each at 5p per share
Proposed issue of Warrants

W.H. Ireland Limited
Nominated Adviser and Broker


The Board of Silvermines today announces that the Company has conditionally
agreed to acquire the entire issued share capital of Zhibek (including all
outstanding convertible securities) in consideration for the issue of 40,000,000
Ordinary Shares and 13,333,333 Warrants. As of 26 January 2005 (being the date
on which the Ordinary Shares were suspended from trading on AIM) the closing mid
market price of an Ordinary Share was 7.5p, valuing Zhibek at approximately 3
million and Silvermines at approximately 1.7 million.

The Company has also conditionally raised 1.95 million, net of expenses, by way
of the Placing which is being undertaken in order to provide working capital for
the Enlarged Group.

The Consideration Shares will represent 37 per cent. of the Enlarged Share
Capital and in view of the size of Zhibek relative to the Company, the
Acquisition will constitute a reverse takeover of Silvermines under the AIM
Rules and therefore requires the prior approval of Shareholders at an
Extraordinary General Meeting. In conjunction with the Acquisition, Silvermines
proposes to change its name to Cambrian Oil & Gas Plc.

Additionally, because the members of the Concert Party (comprising certain of
the Zhibek shareholders and associated parties) will own more than 30 per cent.
of its Enlarged Share Capital as a result of the Acquisition and the
participation of Cambrian in the Placing, the Company is seeking a waiver under
Rule 9 of the City Code, which would otherwise require the members of the
Concert Party to offer to acquire those Ordinary Shares that they do not own. A
proposal seeking Shareholder approval for such a waiver is included in the
notice of the Extraordinary General Meeting set out at the end of the Admission
Document which has been posted to Shareholders today.

BUSINESS AND STRATEGY

The share capital of Silvermines was admitted to trading on AIM on 15 July 2004.
The prospectus issued by it at that time stated that the Directors intended to
seek acquisition and investment opportunities in the media, advertising and
marketing sectors. However, whilst the Directors believed that there were a
number of opportunities for such investment, the strengthening in the
advertising sector has, in the opinion of the Directors, caused an increase in
price expectations such that the Directors have been unable to find investments
of the appropriate quality at a price which the Board was prepared to sanction.
Accordingly, the Directors have looked at other business sectors for
opportunities which they consider capable of providing an appropriate return on
investment.

Under the Proposals, the Company will enter the field of investment in oil and
gas exploration and development, through the acquisition of Zhibek, the existing
business of which will be continued and developed. This will bring with it not
only the oil and gas exploration and production interests described in Part II
below, but also a continuing relationship with Cambrian, which, on
implementation of the Proposals, will have an interest in 27 per cent. of the
Enlarged Share Capital and which has agreed to offer all of its potential future
opportunities in oil and gas interests to the Company in the first instance.

Cambrian's principal business is the exploration for and development of mineral
deposits. However, because Cambrian is actively looking at investment
opportunities in a number of countries that also have oil and gas reserves, its
directors often become aware of opportunities to invest in the exploration and
development of such assets. The Directors and Proposed Directors therefore
believe that the Proposals will enable the Enlarged Group access to a number of
further investment opportunities.

DIRECTORS AND PROPOSED DIRECTORS

The Board currently comprises three Directors as follows:

Smit Berry (aged 35) Non-Executive Chairman

Smit is the founder of Equitylink Limited, a publisher of two investment
newsletters which provide research on fully listed and AIM stocks across a
variety of industry classifications. He is Chief Executive of Silentpoint plc
and, until March 2004, served as a non-executive director of Knowledge
Technology Solutions PLC which he co-founded in 1999. Smit obtained a BEng(Hons)
in Computing Science from Imperial College, University of London in 1991.

Paul Mc Groary (aged 47) Chief Executive

Paul is Chairman of Eyeconomy Holdings PLC, an OFEX traded company which invests
in knowledge based companies. He was until March 2004 commercial director of
Knowledge Technology Solutions PLC, an AIM quoted publisher of market data
solutions on a subscription basis, which he helped to found in 1999. He was
formerly Chairman of Latin American Copper PLC and is an active investor in the
mining industry including most recently taking a personal stake in a prospective
Canadian Uranium property. Paul in a personal capacity is a serial investor in a
number of private businesses.

Haresh Kanabar (aged 46) Finance Director

Haresh qualified as a certified accountant in 1986. Following a number of
finance positions with Fisons plc, Reed International plc and Texas Homecare
Limited he became finance director of F E Barber Limited, a subsidiary of
Hillsdown Holdings Limited, in 1994. In 1997 he was appointed group finance
director of Whitchurch Group Plc which he left in May 1998 to become finance
director of TMV Finance Limited. In December 1999 he left to join Corvus Capital
Inc. as chief executive, and in November 2002 he left to become finance director
of Gaming Insight plc. Haresh is also currently Chief Executive of Blue Star
Capital plc, non-executive Chairman of Greenfield Construction Group, India
Outsourcing Services plc and Silentpoint plc and executive director of Bombay
Restaurants plc, Knighteagle plc and Aurum Mining Plc. Haresh was also a
director of Spiritel plc until July 2004.

Immediately prior to Admission, Smit Berry and Haresh Kanabar will resign from
the Board, and Paul Mc Groary will step down as Chief Executive to become a Non-
Executive Director of the Company.

Particulars of all service contracts with more than 12 months to run between the
Company and the Directors and the Proposed Directors are set out in the
Admission Document.

Save in respect of the executive Directors, Silvermines does not have any
employees.

Details of Proposed Directors

Upon completion of the Acquisition and Admission, the following directors of
Zhibek will join the Enlarged Group Board:

John Byrne (aged 55) Non-Executive Chairman

John is the Chairman of Western Canadian Coal Corporation and Chief Executive
Officer of Cambrian, and is also on the boards of a number of other companies
which are listed in Part XI of the Admission Document. John has more than 26
years experience in the resource industry as an investor and resource business
developer.

Neale Taylor (aged 62) Chief Executive

Neale B.Sc (Applied Geology, Hons), MS (Pet Eng), MBA FAICD has over 30 years'
technical, operating and commercial experience in oil and gas exploration and
production. Through his involvement with Esso Australia, Terra Gas Trader and
Nexus Energy, he has been involved in acquisitions, marketing and joint venture
management. He is a non-executive director of the ASX-listed company, Tap Oil
Ltd and of the AIM quoted company Zari Resources Plc. He is a member of the
Society of Petroleum Engineers and a Fellow of the Australian Institute of
Company Directors.

Jonathan Malins (aged 57) Non-Executive Director

Jonathan qualified as a Chartered Accountant in the early 1970s. After
qualification he founded his own accountancy firm and was in practice until
1982. From 1993 to date, he has run his own coal processing equipment supply
company predominately supplying equipment to Russia. Currently he is a
non-executive director of OreVest Plc, a manganese mining company which is
trading on OFEX, a non-executive director of the AIM listed Asia Energy Plc, a
coal mining and exploration company, as well as an executive director of AIM
listed Cambrian Mining Plc, a London-based mining finance house.

Jurgen Hendrich (aged 43) Executive Director

Jurgen gained his petroleum industry experience with Esso Australia over 12
years as a petroleum geologist before joining leading Australian private stock
broking firm, JB Were and Son, as their Energy Analyst in 1996. Following four
years in this role, Jurgen joined boutique equities fund manager BM Capital
Management as a senior investment analyst. In early 2001 he established his own
consulting company.

Ian Ennis (aged 63) Executive Director

Ian Grad. Dip. Mineral ProcTech. (Bendigo) was a founding director of Action
Hydrocarbons Limited and brings skills in international business development,
marketing, sourcing of opportunities and shareholder/joint venture relations. He
has managed oil and gold exploration programs in Australia, New Zealand, the
Philippines and the Kyrgyz Republic. He is involved in environmental technology
development, including the securing of USEPA grant funding for mine waste
research programs.

CURRENT TRADING

The Ordinary Shares of Silvermines were admitted to trading on AIM on 15 July
2004. At that time the Company had cash of 610,000 and no other significant
assets or liabilities. Since then, Silvermines' business has been solely to look
for an appropriate acquisition and as at 31 December 2004 it had cash of
605,000. Following Completion, Silvermines will assume and undertake the
business of the Zhibek Group.

Silvermines' interim results were published on 30 December 2004 but have been
superseded by the information, including the Accountants' Report on Silvermines,
set out in the Admission Document.

CITY CODE ON TAKEOVERS AND MERGERS

The terms of the Proposals give rise to certain considerations under the City
Code. Brief details of the Panel, the City Code and the protections they afford
are described below.

The City Code has not, and does not seek to have, the force of law. It has,
however, been acknowledged by government and other regulatory authorities that
those who seek to take advantage of the facilities of the securities market in
the United Kingdom should conduct themselves in matters relating to takeovers in
accordance with high business standards and so according to the City Code.

The City Code is issued and administered by the Panel. The City Code applies to
all takeover and merger transactions, however effected, where the offeree
company is, inter alia, a listed or unlisted public company resident in the
United Kingdom. The Company is such a company and its shareholders are entitled
to the protection afforded by the City Code.

Rule 9 of the City Code is designed to prevent the acquisition of control of a
company to which the City Code applies without a general cash offer being made
to all shareholders of that company. Under Rule 9, a person who acquires,
whether by a series of transactions over a period of time or not, shares which
(taken together with shares held or acquired or acquired by persons acting in
concert with him) carry 30 per cent. or more of the voting rights of a company
is normally required by the Panel to make a general offer to all the
shareholders of that company to acquire the balance of the shares not held by
such person, or group of persons acting in concert, at the highest price paid by
him or them or any person acting in concert.

Rule 9 also provides, inter alia, that where any person, together with persons
acting in concert with him, holds shares carrying not less than 30 per cent. but
not more than 50 per cent. of a company's voting rights and such person, or any
person acting in concert with him, acquires additional shares which increase his
percentage of the voting rights in that company, such person is normally
required to make a general offer to all shareholders of that company at not less
than the highest price paid by him or them or any persons acting in concert.

An offer under Rule 9 should be made in cash and at the highest price paid in
the preceding 12 months for any shares in the Company by the person required to
make the offer and/or any person acting in concert with him.

The City Code also provides that, where any person, together with persons acting
in concert with him, holds more than 50 per cent. of a company's voting rights,
no obligations will normally arise under Rule 9 to make a general offer to all
shareholders of that company, save as described below, from any acquisitions by
such person or any person acting in concert with him of any further shares
carrying voting rights in the company. However, the Panel will regard as giving
rise to an obligation to make an offer, the acquisition by a single member of a
concert party of shares sufficient to increase his individual holding to 30 per
cent. or more of a company's voting rights, or, if he already holds more than 30
per cent. but less than 50 per cent., which increases his percentage
shareholding.

For the purposes of the City Code, a concert party arises where persons acting
in concert pursuant to an agreement or understanding (whether formal or
informal) actively co-operate, through the acquisition by them of shares in a
company, to obtain or consolidate control of a company, irrespective of whether
the holding or holdings give de facto control.

The Panel has determined that the members of the Concert Party are acting in
concert for the purposes of Rule 9 of the City Code.

Under Rule 9, unless a specific waiver is obtained from the Panel and the terms
of the Acquisition Agreement for the issue of Consideration Shares and Warrants
to members of the Concert Party together with any participation by the members
of the Concert Party in the Placing are approved by Shareholders on a poll, the
Concert Party would be obliged to make a mandatory cash offer for the entire
issued ordinary share capital of Silvermines since the Concert Party would hold
more than 30 per cent. of the voting rights in the Company. Your Board believes
that this consequence is not in the best interests of Silvermines or its
Shareholders.

The expected interests of the Concert Party in the share capital of Silvermines
following Admission are summarised below. The percentage of the Enlarged Share
Capital is calculated assuming only the Warrants and Options held by the members
of the Concert Party are exercised. The Warrants are exercisable, in whole or in
part, at any time up to 31 December 2006 and the Options are exercisable at any
time up to 1 March 2008.

Ordinary Shares Warrants Options % Following % Assuming
Admission exercise of
Concert Party
Warrants and
Options

Action 19,230,769 4,711,425 - 17.8 18.9
Cambrian 29,230,769 8,244,994 - 27.0 29.6
John Byrne - - 400,000 - 0.3
Neale Taylor - - 2,000,000 - 1.6
Jonathan Malins - - 400,000 - 0.3
Jurgen Hendrich 1,076,924 376,914 1,100,000 1.0 2.0
Ian Ennis - - 1,100,000 - 0.9
Alwyn Davey - - 300,000 - 0.2

Total 49,538,462 13,333,333 5,300,000 45.8 53.8


Immediately following the implementation of the Proposals, the members of the
Concert Party will own approximately 45.8 per cent. of the Company's issued
ordinary share capital (assuming members of the Concert Party do not exercise
any Warrants or Options).

In addition, pursuant to the exercise of the proposed Warrants and Options the
members of the Concert Party could receive up to a further 18,633,333 Ordinary
Shares. If all such Warrants and Options were exercised the members of the
Concert Party could be interested in up to 53.8 per cent. of the then further
enlarged share capital of the Company assuming that, prior to such exercise, no
further Ordinary Shares are issued.

The Panel has agreed, subject to the passing of Resolution 2 in the notice of
EGM by independent Shareholders on a poll, to waive the obligation to make a
general offer that would otherwise arise as a result of the Acquisition.

On the assumption that the Proposals are completed, that the Placing is fully
subscribed and that the members of the Concert Party exercise their Warrants and
Options in full, since the members of the Concert Party would hold more than 50
per cent. of the Enlarged Share Capital of the Company, and so long as they
continue to be acting in concert, the members of the Concert Party would be free
to acquire any number of Ordinary Shares without incurring any obligation under
Rule 9 to make a general offer for the Company, so long as no individual member
of the Concert Party thereby becomes obligated to make a general offer by
increasing its/his individual shareholding to 30 per cent. or more. Further
details concerning the members of the Concert Party are set out in Part II of
this announcement.

SIGNIFICANT SHAREHOLDER

Cambrian and Action control voting rights in respect of 96.2 per cent. of
Zhibek's equity and following Admission will control 17.8 per cent. and 27 per
cent. respectively of the Enlarged Share Capital.

Cambrian has entered into a controlling shareholder agreement with the Company
and W.H. Ireland pursuant to the terms of which it has given certain
undertakings concerning the use of the shares controlled (directly or
indirectly) by them to the Company. Further details of this agreement are set
out in Part XI of the Admission Document.

LOCK-IN AGREEMENTS

All of the Directors (other than Messrs Kanabar and Berry who will step down
from the Board immediately prior to Admission), the Proposed Directors, Action
and Blue Mount Investments have entered into agreements not to dispose of any
interests in the securities of the Company within a 12 month period following
Admission, save in certain circumstances permitted by the AIM Rules, including
connection with a general or partial takeover offer. Cambrian has also agreed to
such restrictions in respect of the 19,230,769 Consideration Shares it will
receive pursuant to the Acquisition. Collectively, these lock-in arrangements
will relate to 40,538,462 Ordinary Shares, representing 37.5 per cent. of the
Enlarged Share Capital.

PRINCIPAL TERMS OF THE ACQUISITION

Under the terms of the Acquisition Agreement, the Company has conditionally
agreed to acquire the entire issued share capital of Zhibek and all outstanding
convertible securities in Zhibek in consideration for the issue to the Vendors
of the Consideration Shares and 13,333,333 Warrants. The Acquisition Agreement
is conditional, inter alia, on (i) the passing of Resolutions 1 and 2; (ii) the
Placing Agreement becoming unconditional in all respects (other than any
condition relating to completion of the Acquisition Agreement and Admission);
and (iii) Admission.

The Consideration Shares will represent 37 per cent. of the Enlarged Share
Capital of the Company and, upon their allotment, will rank pari passu in all
respects with the Existing Ordinary Shares and the Placing Shares. Upon
exercise of the Warrants to be issued as part of the Consideration, the members
of the Concert Party could control up to 53.8 per cent. of the Enlarged Share
Capital of the Company.

In addition, Cambrian has agreed that it will not acquire any further interests
in oil and gas exploration and development and will offer the Company the right
of first refusal for any such opportunities.

CHANGE OF NAME

The name of the Company will be changed to Cambrian Oil & Gas Plc, conditional
upon the passing of Resolution 3 by the Shareholders and completion of the
Acquisition.

DETAILS OF THE PLACING

The Company is seeking to raise 2.25 million by the issue of up to 45,000,000
Ordinary Shares at 5p per share pursuant to the Placing, to provide working
capital for the Enlarged Group. The Placing Shares will, following Admission,
rank pari passu in all respects with the Existing Ordinary Shares and the
Consideration Shares.

The Company, the Directors and the Proposed Directors have entered into the
Placing Agreement with W.H. Ireland. The Placing is not being underwritten. The
Placing Shares have been conditionally placed with institutional and other
investors. The Placing is conditional inter alia upon the Placing Agreement
becoming unconditional and not having been terminated in accordance with its
terms, and Admission becoming effective on 1 March 2005 (or such later time and
date as the Company and W.H. Ireland may agree). Cambrian, Silentpoint and
Eyeconomy have agreed to subscribe for 10,000,000, 2,000,000 and 2,000,000
Placing Shares respectively.

ISSUE OF WARRANTS

Pursuant to the terms of the Warrant Instrument, in addition to the 13,333,333
Warrants to be issued to the Vendors as part of the Consideration, a further
7,705,000 Warrants have been issued, conditional upon Admission, to those
Shareholders on the register as at the Record Date on the basis of 1 Warrant for
every 3 Ordinary Shares then held. There will be no entitlement to fractions of
Warrants, which will be aggregated and will be issued at the discretion of the
Board.

The Warrants are exercisable in whole or in part at any time up to 31 December
2006. The exercise price of the Warrants will be 7p, which represents a discount
of 6.6 per cent. to the closing price of the Ordinary Shares on 26 January 2005
(being the date on which the Ordinary Shares were suspended from trading on
AIM). The Warrants are transferable but will not be admitted to trading on AIM.

DIVIDEND POLICY

The Enlarged Group is initially seeking to achieve capital growth for its
Shareholders. It is not the present intention to pay a dividend.

EXTRAORDINARY GENERAL MEETING

A notice is set out at the end of the Admission Document convening an
Extraordinary General Meeting to be held at 10.00 a.m. on 28 February 2005 at
Lawrence Graham LLP, 190 Strand, London WC2R 1JN.

As the Acquisition constitutes a reverse takeover, Shareholder approval of the
Acquisition, as set out in Resolution 1, is required under the AIM Rules. In
accordance with the requirements of the Panel for granting a waiver of the
requirement for the Concert Party to make a general offer under Rule 9 of the
City Code, Resolution 2 is required to approve the Waiver and will be taken on a
poll. Pursuant to Resolution 3 it is proposed to change the name of the Company
to Cambrian Oil & Gas PLC.

Resolution 1 is conditional on Resolution 2, and Resolution 3 is conditional on
completion of the Acquisition.

Undertakings to vote in favour of the Resolutions have been given by each of the
Directors, Silentpoint and Eyeconomy in respect of all the Ordinary Shares held
by them amounting to 16,000,000 Ordinary Shares in aggregate (representing 69.2
per cent. of the existing Ordinary Shares).

FURTHER INFORMATION

Your attention is drawn to the Admission Document, which provides additional
information on the matters discussed above.

RECOMMENDATION OF THE DIRECTORS

The Directors, who have been so advised by W.H. Ireland, consider that the terms
of the Proposals and the Waiver are fair and reasonable and in the best
interests of the Company and Shareholders as a whole. In providing advice to the
Board, W.H. Ireland has taken into account the Directors' commercial
assessments. Accordingly, the Directors unanimously recommend Shareholders to
vote in favour of the Resolutions as they themselves have undertaken to do in
respect of their own beneficial holdings which amount, in aggregate, to
3,000,000 Ordinary Shares, representing approximately 13 per cent. of the
existing Ordinary Shares.


PART II
INFORMATION ON ZHIBEK

INTRODUCTION

Zhibek was formed as a joint venture between Action and Cambrian in February
2004, for the purpose of conducting oil exploration, development and production
activities in Central Asia and FSU countries.

Since its formation, Zhibek has acquired a number of oil production and
exploration interests in the Kyrgyz Republic from Action and Cambrian has
provided initial funding to Zhibek as seed capital for which it has been issued
ordinary shares and warrants in Zhibek.

Zhibek holds the following existing oil and gas assets in the Kyrgyz Republic:

Beshkent-Togap Water Injection Project - a 50 per cent. participating
interest in a water injection project being commissioned on the
Beshkent-Togap Oil Field in the south-western region of the Kyrgyz
Republic; and

Tash Kumyr Exploration Project - a 72 per cent. interest in CJSC KNG
Hydrocarbons, which holds the Tash Kumyr exploration licence NG-72-00 over
an area in close proximity to the major producing oil fields of the Kyrgyz
Republic. Previous work in the Licence Area has matured one prospect, at
South Karagundai, to near-drilling status. The Enlarged Group plans to
drill this prospect in late 2005 and to upgrade already identified
adjoining prospects and leads. TheDirectors and Proposed Directors
envisage, once a second well location has been identified, and assuming
sufficient funds are available that drilling will immediately follow
drilling of the initial well at South Karagundai.

In each case Zhibek's partner in these projects is KNG, the state controlled oil
and gas company and the Directors and Proposed Directors believe that the
successful conclusion of the above projects will enhance Zhibek's existing
relationship with KNG and lead to the introduction of the Enlarged Group to
other interesting projects within the Kyrgyz Republic.

The Kyrgyz Republic

The Kyrgyz Republic, formerly part of the USSR, is a landlocked mountainous
country in Central Asia covering approximately 198,500 square kilometres. It
borders Kazakhstan to the north, China to the east, Uzbekistan to the west and
Tajikistan to the south. Approximately 94 per cent. of the country has an
elevation over 1,000 metres above sea level, with approximately 40 per cent.
over 3,000 metres above sea level. Bishkek is the capital city and is situated
in the northern part of the country with Osh, the second largest city, located
in the south.

The population of the Kyrgyz Republic is estimated at approximately 5.1 million,
with Russian and Kyrgyz being the official languages.

The Kyrgyz Republic became independent in August 1991. The country is a republic
with a constitution that was adopted in May 1993. The head of state is the
President, elected through nationwide elections. The Government of the Kyrgyz
Republic ('the Kyrgyz Government') is the supreme body of executive power and
consists of a Prime Minister, Vice-Prime Ministers, Ministers and Chairman of
State Committees. The supreme legislative body is the Jogorku Kenesh
(Parliament), which consists of two chambers. The supreme body of judicial power
is the Supreme Court of the Kyrgyz Republic.

Beshkent-Togap Oil Field

The Beshkent-Togap Oil Field is located in the south-western region of the
Kyrgyz Republic. The field is approximately 14 kilometres long and 2 kilometres
wide and is situated approximately 300 kilometres west of the Kyrgyz oil
refinery at Jalal Abad and approximately 200 kilometres southwest of the
Uzbekistan oil refinery in the city of Fergana.

The Beshkent-Togap Oil Field was formed by a series of deepening fault blocks
created in Palaeogene sediments structured against a regional thrust fault and
uplifted against a localised high of older Palaeozoic rocks.

Drilling commenced on the Beshkent-Togap Oil Field in the late 1970s. Currently,
there are 43 and 28 producing wells in the Beshkent and Togap areas of the field
respectively. The Beshkent-Togap Oil Field is located amongst a number of
producing oil fields in the south-western region of the Kyrgyz Republic.
Kyrgyzneftegas has an operating workforce and operations have been conducted at
Beshkent since 1977. Numerous access roads and tracks provide access to existing
wells and facilities.

Electricity is supplied to all wells in the field by multiple grids controlled
and maintained by Kyrgyzneftegas. Crude oil production is collected by an
extensive field gathering system and pumped through a 15 kilometre pipeline to
Kyrgyzneftegas' treatment plant at Karakchikum in the Fergana Valley. It is then
trucked a distance of 10 kilometres to a rail siding in the town of Mahram and
transported by rail 250 kilometres to the Kyrgyz Petroleum Company's oil
refinery in the city of Jalal Abad.

A pilot water injection scheme was initiated in the Togap area in December 1988.
Although the pilot scheme produced an almost immediate response of increased oil
production, the planned water injection capacity was not maintained due to
injection well plugging and lack of funding. Major injection stopped in 1990-91
following the collapse of the FSU. No water is currently being injected.

Under the terms of the Beshkent-Togap Agreement, which is summarised in Part XI
of the Admission Document, Zhibek must design and fund a pilot project, to be
agreed with KNG, prior to committing to further expansion of the project across
the whole field. The parties have agreed to a pilot project design and to
establish initial oil production rates for each well in the pilot area in the
period immediately prior to the start of water injection. Forecasts will also be
agreed on the applicable rates of oil production decline. This data will be used
to determine incremental production from the project.

It is expected that increased oil production should be achieved within a few
months of the injection of material volumes of water into the reservoir. Once
improved recovery potential has been verified, the pilot project will be
reproduced in modular stages across the entire field.

Work on the agreed project has been initiated and Kyrgyzneftegas has drilled a
water source well for the project. Equipment has been purchased and is being
installed with water injection planned to start in Q1 2005.

The Directors and the Proposed Directors believe that a well designed and
sustained water injection project can raise the ultimate recovery from an
estimated 500,000 barrels to 2.3 million barrels with a possible upside of 7.1
million barrels. The current pilot program is designed to assess the response to
selective and sustained injection. Results from the pilot program will be used
to design an optimal expansion for water injection into the whole field.
Application of additional technologies such as stimulation techniques, including
acidisation, polymer injection and mini-fracturing, will also be considered.

Tash Kumyr Licence Area

The Tash Kumyr Licence Area is located adjacent to existing oil and gas
production operations mostly controlled and operated by KNG. These operations
date back over 50 years. During the Soviet era, substantial infrastructure was
built up around the southern and eastern margins of the Fergana Basin petroleum
province. KNG's operations include a major oil and gas gathering system and
storage facilities at the Mailisu 4 Oil Field, located approximately 40
kilometres from the South Karagundai prospect. The Mailisu 4 Oil Field system is
connected by pipeline to the Jalal Abad oil refinery further to the south. The
nearest production operations are currently conducted at the smaller Mailisai
Oil Field which is approximately seven kilometres from the South Karagundai
location.

The Bishkek-Osh Highway crosses the Licence Area and links this area to the
northern and southern regions of the Kyrgyz Republic. A series of unsealed roads
and tracks provide access to and within most of the Licence Area. There is
reasonable access to most of the South Karagundai site and a geochemical survey
has been successfully conducted over most of the Licence Area. A railway line
passes approximately ten kilometres from South Karagundai and may be used to
transport oil to the Jalal Abad oil refinery. Coal mining and petroleum industry
activities are conducted in close proximity.

The Tash Kumyr Licence Area extends over 840 square kilometres. It is located in
close proximity to the main producing fields in the Kyrgyz Republic, including
Mailisu, East Izbaskent and Izbaskent. Several small fields are also found in
immediately adjacent areas.

A number of prospects and leads have been identified in the Licence Area, the
largest being South Karagundai. The prospect is well positioned near existing
infrastructure including an electricity supply grid that crosses the prospect
area, a rail head approximately 10 kilometres away and an oil pipeline at the
Mailisu 4 Oil Field which is connected to the refinery at Jalal Abad.

A recent geochemical survey, using GORE-SORBERTM technology, has shown
hydrocarbon type anomalies that occur with the seismically mapped subsurface
structures at South Karangundai and Shink Sai.

The competent person's report set out in Part IV of the Admission Document,
estimates that there is a 1:2 to 1:3 chance of discovering at least 20 MB of
recoverable oil in the Tash Kumyr Licence Area at a relatively low testing cost.
The target area includes a number of sub-structures, all of which are capable of
trapping oil in up to three Pay Beds. Each Pay Bed has the potential for up to
20 MB recoverable oil.

Success in only one Pay Bed in the main South Karagundai sub-structure is
assumed for the Enlarged Group's business plan.

A substantial upside of up to 60 MB of recoverable oil exists for the main
substructure if oil is found in the three target Pay Beds as occurs in the
nearby Izbashkent field. If the oil is discovered in multiple Pay Beds in the
smaller adjoining sub structures then potential exists to further increase
recoverable oil volumes to above 60 MB of recoverable oil at the South
Karagundai prospect.

Although the Shink Sai prospect is less well defined by seismic and
geochemistry, the indicated structure is on trend with and of the same
structural fabric as a series of structures tracking back to the nearby Mailisu
4 Oil Field. Shink Sai is in a similar setting to South Karagundai where the
Palaeogene target Pay Beds have been mildly structured by the over-thrusting of
a flat layer of Mesozoic and Palaeozoic rocks.

Similar opportunities, including the Pishkaran lead, are believed to be possible
in a number of additional areas within Zhibek's Tash Kumyr Licence Area.
Geochemistry has indicated several positive anomalies where no seismic control
currently exists. These areas will be targeted for seismic and geochemistry
follow-up.

Additional seismic and geochemical surveys are currently in progress. The
results will be combined to identify potential targets for initial drilling in
the second half of 2005.


RESOURCE SUMMARY

Total Bishkent Topgap field project, including 1.8 MB (upside to over six MB)
pilot:

Tash Kumyr Exploration Prospect: 20 MB (upside to 60 MB if multiple Pay Beds contain
oil in the main South Karagundai substructure with
follow-up potential in adjoining three smaller
substructures)


These statistics are only a summary of the detailed figures set out in the
competent person's report found in Part IV of the Admission Document and the
contents of the report should be read in full.

PLANNED BUSINESS DEVELOPMENT

The Enlarged Group plans to pursue new oil and gas exploration and developments
in the Kyrgyz Republic and other areas of the FSU; other areas and commodities
will also be considered. Cambrian Oil and Gas seeks to build a diversified
portfolio of oil and gas assets in a range of operating environments.

Zhibek is already holding discussions with a private Russian company for the
purpose of jointly funding a study team to identify and pursue oil and gas
exploration and development opportunities in the Russian Federation. The plan
envisages that recommended projects would be offered for joint participation by
both companies. Recommendation on a first project is planned for the end of the
first quarter of 2005.

MANAGEMENT

Biographical details of the Zhibek Directors, who will be joining the Enlarged
Group Board, are summarised in Part I of the Admission Document.

Kadyrkan Abdrakhmanov is the local general manager, and also acts as General
Director of CJSC KNG Hydrocarbons and CJSC Zhibek Hydrocarbons. Kadyrkan is a
Kyrgyz citizen with a technical and management background as a mining engineer.
The Enlarged Group intends to continue to retain the services of the existing
employees and may further expand staff numbers as the business develops.

FINANCIAL INFORMATION

Financial information on Zhibek and the two subsidiaries (CJSC KNG Hydrocarbons
and CJSC Zhibek Hydrocarbons) which it acquired from Action on 14 July 2004 is
set out in Part VI of the Admission Document. These reports show that at 30 June
2004, Zhibek had net assets of $381,159 and that CJSC KNG Hydrocarbons (in which
Zhibek has an 85 per cent. interest) and CJSC Zhibek Hydrocarbons had net
liabilities of $174,000 and $38,000 respectively.

CURRENT TRADING

In the six months to 30 October 2004 the Zhibek Group has incurred $180,000 of
expenditure on its projects.

SHAREHOLDERS

The shareholders of Zhibek, their current interests in Zhibek and their
potential interests in the share capital of the Company are set out below:

Current On Admission
Zhibek Shares Zhibek Ordinary Shares % of Warrants % of Company's
warrants Enlarged Share Capital
Share on exercise of
Capital Options and
Warrants

Action 5,000,000 2,000,000 19,230,769 17.8 4,711,425 17.7
Cambrian 5,000,000 3,500,000 29,230,769 27.0 8,244,994 27.7
Blue Mount 280,000 160,000 1,076,924 1.0 376,914 1.1
Investments
International 120,000 - 461,538 0.4 - 0.3
Petroleum
Consulting Pty
Ltd


The Cambrian holding includes 10,000,000 Placing Shares for which Cambrian will
be subscribing for under the Placing.

Cambrian is an investment company which acquires stakes in emerging resource
companies and projects and assists in their financing and development. It is a
public company quoted on AIM and at close of business on 2 February 2005, the
last practical date before publication of the Admission Document, it had a
market capitalisation of approximately 162.3 million. In the year ended 30 June
2004, the last reported results of Cambrian state that it made a loss of 89,000
from its income in investments and at the period end it had the following net
assets:
As at As at
30 June 2004 30 June 2003
'000 '000
Tangible fixed assets
Investments 7,960 3,084
Current assets
Investments 24 159
Debtors 1,611 383
Cash at bank and in hand 1,312 47
2,947 589
Creditors: amounts falling due within one year 815 306

Net current assets 2,132 283

Total assets less current liabilities 10,092 3,367

Creditors: amounts falling due after more than one year - 565
Net assets 10,092 2,802

Capital and reserves
Called up share capital 6,885 2,590
Share premium account 3,200 111
Profit and loss account 7 101
Shareholders' funds 10,092 2,802



Action is an unlisted Australian public company with more than 50 shareholders,
one of whom, Charles Hider, together with his associates, controls 37.85 per
cent. of the voting rights. Charles Hider is formerly Chairman of Partners of
Rigby Cooke Solicitors, Melbourne. He has been a Barrister and Solicitor of the
Supreme Court of Victoria since 1959 and has extensive international legal,
commercial and negotiating experience in respect of technology and resources. He
was a member of the Victorian Parliament for 10 years. Mr Hider is currently
practicing as a consultant lawyer with primary emphasis on developing innovative
technologies, resources and corporate strategy. In the year ended 30 June 2003,
Action had losses of AS$61,629 and at the period end it had net assets of AS$0.7
million comprising principally costs carried forward in respect of areas of
interest in exploration and evaluation phases AS$0.9 million, debtors AS$0.2
million and cash AS$0.01 million.

Jurgen Hendrich, who is beneficially interested in the entire issued share
capital of Blue Mount Investments, is one of the Proposed Directors, and details
of his CV are summarised in Part I above. Blue Mount Investments is a
non-trading investment holding company. International Petroleum Consulting Pty
Ltd is a consulting services business based in Australia. Its holding in Action
arose in connection with a fee for the introduction of Action to Cambrian.


PART III
REGULATORY ENVIRONMENT

The mining laws of the Kyrgyz Republic are contained in a document published in
Bishkek on 2 July 1997 (No.42) and amended on 21 July 1999 (No.82), and again on
4 February 2002 (No.23). It was approved by President A. Akaev and adopted by
the Legislative Assembly of Jogorku Kenesh of the Kyrgyz Republic on 24 June
1997. The document is entitled the 'Law of the Kyrgyz Republic on Subsoil' and
contains a total of 47 articles. A summary of pertinent information regarding
licensing, exploration, development, exploitation and environmental issues is
provided below.

The Law of the Kyrgyz Republic on Subsoil allows local and foreign companies to
explore, develop, and mine properties in the Kyrgyz Republic. There are some
restrictions on the use of subsoil in instances where there is a threat to the
lives and health of people, or which may cause damage to economic objects and
the environment. The Kyrgyz Government sets the upper and lower limits for
exploration/development expenditures per unit of licensed area.

The area licensed to CJSC KNG Hydrocarbons is licensed to it pursuant to an
exploration licence which is valid until 31 December 2005. The licence may be
renewed for an additional 10 years from the original date of grant (i.e 22 July
2013) provided that all necessary conditions have been met. Annual reports,
including the total expenditures incurred and development plans for the next
year, must be submitted to the authorised state body of the Kyrgyz Republic.

With respect to any mining operation, the licensee is granted a 20 year period
in which to undertake construction and exploitation, with subsequent extensions
granted if necessary. These regulations apply to petroleum operations as well as
mining operations.

A licensee may have its licence suspended for up to 3 months in the event that:
(i) the resource user uses subsoil resources for a purpose other than the
purpose for which such rights were granted, (ii) the resource user violates the
conditions set out in the relevant licence agreement or (iii) a force majeure
event occurs. The license may be terminated in the following situations: (i)
upon the completion of geological exploration or the exhaustion of reserves or
the liquidation of the enterprise conducting operations, (ii) upon the use of
technology in the course of project development that threatens the health or
safety of workers or of the population, and also causes harm to the environment
and the deposit, (iii) if the resources user fails to present its technical
programme for the conduct of work within the period set out in the licence
agreement, (iv) if the resource user in the course of more than one year from
the date of licence issuance fails to begin operations on the scale set out in
the licence or (v) if the resources user voluntarily refuses to conduct subsoil
use operations or upon the expiration of the validity of a licence.

Foreigners are guaranteed the right to repatriation of capital and the right to
export the profit, or a part of it, in the form of foreign currency or the
product received by recovery or processing of any raw minerals, including gold.
Foreigners may also recover groundwater for their own needs. A licensee must
protect the subsoil, comply with permissible norms of impact on the physical and
biological state of the environment and make timely and accurate payments for
the use of the subsoil.

Where any hydrocarbon product is sold or exported, the licensee must notify the
National Bank of the Kyrgyz Republic, or any other agency authorised by the
Kyrgyz Government, in advance and must grant these agencies the first right of
refusal to buy all or part of the hydrocarbon product regardless of whether it
has been refined within the Kyrgyz Republic.

Subsoil users must make agreements with the holder of the land rights for the
use of the land plots. If a holder of land rights intends to change his
irrigation or other systems for agricultural means, and such measures may affect
the geological surveying or mining works, then he must obtain permission from
the government agency for subsoil use. Where an agreement cannot be reached
between the subsoil user and the holder of the land rights, the court will make
the final decision on the dispute.

When a project is at a more advanced stage of final feasibility and
pre-production, the licensee must take measures to preserve the life, health and
safety of the employees and of the local population in the relevant area. The
subsoil users and the appropriate government agencies must ensure compliance
with legislation and safety standards according to normal practice and the rules
set out by the Kyrgyz Government. Subsoil users who have received the right to
develop the subsoil areas must present financial guarantees for the restoration
of the damaged environment, the terms of which are governed by regulations
approved by the Kyrgyz Government.

Exploration and development enterprises are subject to Section VI, Article 41 of
the tax legislation of the Kyrgyz Republic. This article also states that
payments for subsoil use include the following:

payment for subsoil use (bonus);

payment for subsoil use (royalty); and

other payments required by the legislation of the Kyrgyz Republic.

The Law of the Kyrgyz Republic 'On Oil and Gas' No 77 dated 8 June 1998 contains
substantially the same provisions in relation to oil and gas as the Law of the
Kyrgyz Republic 'On Subsoil', but the former is more detailed in terms of the
competences of the Government of the Kyrgyz Republic and local administrative
bodies to regulate, inter alia, the oil and gas industry, joint or separate oil
and gas ventures and protection of oil and gas consumers' rights. In relation
to the licensing procedure, the Law on Oil and Gas refers to the Law of the
Kyrgyz Republic 'On Licensing'.

The environmental laws in the Kyrgyz Republic are covered in the following
documents: The Law of the Kyrgyz Republic 'On Environment Protection', The Law
of the Kyrgyz Republic 'On Specially Protected Nature Territories', The Law of
the Kyrgyz Republic 'On Biosphere Territories' and The Law of Kyrgyz Republic
'On Atmospheric Air Protection'.

The Law of the Kyrgyz Republic 'On Environment Protection' became effective on
the date of its publication on 7 July 1999. In accordance with the Law on
Environment Protection both the land and its subsoil are subject to protection.
The Law on Environment Protection contains maximum levels of allowable
concentration of hazardous substances in the subsoil, as well as levels of
charges for natural resources use, pollutant emissions, hazardous effects and
placement of waste. The nature use charges consist of payments for the use of
natural resources and payments for environmental pollution and other negative
effects on nature. In addition a payment for the use of natural resources over
a fixed limit is established and, in respect of environmental pollution, a
charge of 1-2 soms for every ton of contaminant is imposed.

During their activities, business and other entities are obliged to observe
standard technical regimes, provide effective treatment facilities,
decontamination and recycling of waste, introduce environmentally safe
technologies and to provide protection and efficient subsoil use.

The Law of the Kyrgyz Republic 'On Specially Protected Nature Territories'
became effective on the date of its publication on 28 July 1994 and governs
procedures regarding the use of specially protected nature territories including
natural complexes having particular environmental, science, aesthetic and
sanitary meaning. Specially protected natural territories are given the status
of state reserves, state natural national parks, state sanctuaries, state nature
monuments, botanical gardens, dendrology parks, zoological gardens or natural
territories of sanitary meaning.

Geological exploration works and deposit development is prohibited on
territories of state reserves, state natural national parks and hydrogeological
sanctuaries. In relation to territories of state nature monuments, state
botanic gardens, dendrology and zoological parks, which are territories of
sanitary meaning, any activity threatening the safety of such land may be
prohibited.

The Law of the Kyrgyz Republic 'On Biosphere Territories' became effective on
the date of its publication on 25 June 1999. In accordance with the Law on
Biosphere Territories exploration works and deposit development on biosphere
territories is prohibited. Biosphere territories are established by the
Government of the Kyrgyz Republic for safety, ,reclamation and for the use of
natural territories with rich nature and/or cultural heritage.

The Law of Kyrgyz Republic 'On Atmospheric Air Protection' became effective on
the date of its publication on 25 June 1999. In accordance with the Law on
Atmospheric Air Protection extraction of the minerals and their processing must
be conducted in conjunction with the implementation of the measures in relation
to atmospheric air protection.

Business entities whose activities result in the emission of pollutants are
obliged to:

establish control areas;

take measures to decrease emissions;

observe rules regarding exploitation of construction and cleaning
equipment;

in accordance with established procedures, exercise control over observance
of the norms of maximum permissible emissions, keep records and submit
statistical reporting; and

carry out evaluation of hazardous effect on environment and health of
population in the zone of pollutant objects.

In addition, under the Law on Atmospheric Air Protection, legal and physical
persons who are owners of the polluting objects are obliged to develop and
maintain an ecological passport of the enterprise.

The words and expressions used in this announcement shall have the same meanings
as in the Admission Document, unless the context otherwise requires.


EXPECTED TIMETABLE OF PRINCIPAL EVENTS

Last time and date for receipt of Forms of Proxy 10.00 am on 26 February 2005
Extraordinary General Meeting 10.00 am on 28 February 2005
Completion date of the Acquisition 1 March 2005
Admission effective and dealings in Ordinary Shares (including New Ordinary 1 March 2005
Shares) expected to commence on AIM
Expected date for CREST accounts to be credited (in respect of the Placing 1 March 2005
Shares)
Expected date for posting of the share certificates for the Placing Shares 8 March 2005
(where applicable)



ACQUISITION AND PLACING STATISTICS

Placing Price 5p
Mid market price per Ordinary Share on 26 January 2005 (being the date on which the 7.5p
Ordinary Shares were suspended from trading on AIM)
Placing Price discount 33%
Number of existing Ordinary Shares in issue prior to the Acquisition 23,115,000
Number of Consideration Shares being issued under the Acquisition 40,000,000
Number of Placing Shares 45,000,000
Percentage of the enlarged issued share capital of the Company held by members of the 45.8%
Concert Party following completion of the Proposals*
Number of Ordinary Shares in issue on Admission 108,115,000
Gross Proceeds of the Placing 2.25 million
Estimated net proceeds of the Placing receivable by the Company 1.95 million



*Includes 10,000,000 Placing Shares to be subscribed by Cambrian pursuant to the
Placing.


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

Some nice size trades going through, it will make people sit up and take notice, hopefully!.
Dexter

Dex...loving the concerted effort to keep people in touch. good on you sir!

thank you my good man!

is this the longest header in bb history???

maybe an idea to post a link to the full article, and condense a bit to the relevant bits???

just a suggestion...

aimtrader, just thought it was easier to have it all in one place.

or could be i did`nt think of it!!!

maybe the SLV chart would be a good idea at the very top???

just a suggestion

thanks proptrade,
that`s knackered me now, i`ll go for a break!!
Dexter

Anyone know when the warrants can be excercised ?

any sign of progress report as mentined 01 March 2005, or have they vanished.

Interesting Article today from Oilbarrel....

02.08.2006
Cambrian Oil & Gas Diversifies From Kyrgyzstan To Methanol Project In Australia
It might seem quite a leap from trying to pump heavy oil from shallow wells in the Central Asian Republic of Kyrgyzstan to investing in a gas-to-liquids (GTL) project and a LNG plant in the Timor Sea off Australia, but, as Cambrian Oil & Gas spokesman Alwyn Davey says: Cambrian was never meant to be a single project company.

Indeed not. The company has 5 per cent of private Canadian firm Elko Energy, which holds a 5,000 sq km exploration licence in the Danish North Sea. Elko also holds 30 per cent of private company Dragon Energy, which has signed a joint venture with a provincial subsidiary of CNPC to redevelop the 75 million Maling oilfield in the Gansu Province of China. The GTL project in question, moreover, through Methanol Australia, is not quite what it appears since there is a conventional gas play in front of a gas-to-liquids plant in development terms.

Through the purchase of shares from the trustee, a placing and the underwriting of 50 per cent of a new share issue, Cambrian will spend some A$8.6 million to acquire 12.6 per cent of Methanol Australia. In line with this, Cambrian will be raising new funds, one of the results of which will be that Cambrian Minings holding in Cambrian Oil & Gas will rise to 28 per cent from 27.4 per cent.

Methanol Australia is quoted on the Australian Stock Exchange (ASX). For the six months period to December 2005 the company made a loss of approximately A$653,000 and had net assets as of December 31 2005 of A$1.245 million. The result of this convoluted funding process is Methanol will now have some A$12 million. The question is what will it do with the money?

The idea is the cash will fund the acquisition and processing of 2D and 3D seismic surveys in the companys 100 per cent owned exploration permit NT/68. An agreement is being finalised with PGS Australia to acquire and process approximately 410 sq km of 3D seismic over the crest of the Epenarra structure in the NT/ P68 during September 2006 utilizing the M/V Orient Explorer.

The Epenarra structure is a broad flat anticline at the Darwin Formation level with a mapped closure exceeding 1,200 sq km. The estimated in place gas resource (P50) for Epenarra is 5.6 tcf. Heron-1, drilled by Arco in 1972, recorded several interpreted gas bearing zones, including a 50 metre fractured carbonate interval in the lower 50 metres of the Darwin Formation. Studies indicate that the gas quality at this level is likely to be low in carbon dioxide with the possibility for attractive levels of associated condensate. The company has previously announced the award of a 2D contract. The 3D seismic programme is designed to identify the density, distribution and orientation of faults and fracturing within the 50 metre gas bearing zone intersected by Heron-1 and determine the optimum location for an appraisal well to test the productivity of this interval. Drilling is planned for late 2007. Subject to confirmation by appraisal drilling, the potential gas resource could underpin the companys proposed LNG plant.

The company has obtained a 50 year Commonwealth environmental approval for both the Tassie Shoal Methanol gas-to-liquids project and the Timor Sea LNG project. The projects would represent significant developments for Australia if successful. The company proposes to install methanol production facilities on grounded concrete gravity structures to be located on Tassie Shoal in Australian waters of the Timor Sea. Tassie Shoal is an area of shallow water immediately adjacent to the Evans Shoal gas field and 25 km west of the companys exploration permit NT/P68. The shoal lies approximately 275 km north of Darwin. The proposed methanol project would be developed in two stages, each plant designed to produce 1.8 tonnes per annum.

The proposed LNG processing plant has been designed using Air Products DMR technology, and is capable of producing over 3 million tonnes of LNG per year. Gas supply for these projects could be supplied from a number of adjacent gas fields. Methanol production uniquely utilises the significant amounts of carbon dioxide associated with the natural gas supply. Hence, the companys keenness to develop the NT/P68 permit.

Both the gas-to-liquids and LNG projects are potentially exciting for Cambrian, but as we have seen with British concern GTLs scheme in Dampier in northwest Australia they are long term, expensive and can be difficult to fund. Meanwhile how is Cambrians business in Kyrgyzstan going?

This is the heavy oilfield in Beshkent-Togap in the Kyrgyz Republic. Beshkent-Topag lies in the southwest of the country in the Fergana Basin, which is an established petroleum province, complete with pipelines, two refineries and an extensive rail network. The crude is heavy and only 4.5 million barrels of the estimated 65 million barrel oil pool have been produced, giving a recovery factor of less than 10 per cent. There are 70 producing wells on the field and Cambrian has a 50 per cent equity interest in any production increases from the field after recovery of its capital outlay.

Last year the company spent US$350,000 on a pilot water injection plant to shift the heavy oil. This involves the injection of 200 cubic metres of water through two water injection wells to increase output from the nearby oil wells. The company worked over three old wells to convert them into water injectors. Initial results show the pilot injector well resulted in a four-fold increase in production from the Beshkent-25 well, the well closest to the water injectors, from 3 barrels a day to 13 barrels a day. The other wells further away did not do so well. However, this project started last March and there has been a lot of further work on other wells since then. The company hints it is satisfied by the results and will give an update soon. The project is never going to set the woods on fire but if Cambrian is getting the water wells injecting according to plan there could be good cash flow business to be had. The company also owns two exploration projects in the country.


Rodders

Progress at Tash Kumyr

RNS Number:7128H
Cambrian Oil & Gas PLC
16 August 2006

16 August 2006

Cambrian Oil & Gas Plc
("COIL" or "the Company")

New Tash Kumyr Seismic Interpretation Completed

Cambrian Oil and Gas Plc announces the following progress from its Tash Kumyr
exploration project in the Kyrgyz Republic.

Key Points:

* Processing and interpretation of new Tash Kumyr seismic data has been
completed

* The results increase confidence that the permit area contains a number
of prospective targets

* Revised maps of potential structures align with surface geochemical
results from the Company's 2005 Gore SurveyTM

* The attached map shows the improved structural definition and the alignment
of seismic and geochemical survey results

* COIL has successfully applied to expand its licence area to cover possible
extensions of prospects into adjoining areas

* COIL has started its 2006 summer exploration programme. This programme
includes:
- further seismic and geochemical surveys at Tash Kumyr, Pishkaran and a
new Kyzyl Djar license area; and
- a geochemical survey over the Toktogul structure on the Company's
exploration permit NP-142.

Tash Kumyr Exploration Programme

New and old seismic data has been interpreted to yield a new map, which has
increased COIL's confidence in possible drilling targets in the permit area; the
map of the target Palaeogene horizon is attached to this announcement.

The new interpretation shows improved definition of two potential anticlinal
structures and a number of other leads. The identified prospects and leads align
well with previously mapped geochemical anomalies that indicate potential
hydrocarbon entrapment in one or more of those prospects and leads.

The southern structure is on trend with the Mailisai producing field just to the
southwest and shows good correlation with a geochemical anomaly detected by our
2005 Gore Survey over this same area. This interpretation broadly aligns with
our previous interpretation in this area.

The northern structure has the potential to be larger than originally mapped and
it now appears to extend north of the survey area. A geochemical hydrocarbon
type anomaly wraps around the edges of what appears to be the crest on this
mapped structure.

While the previous interpretation postulated a central anticlinal structure
between the northern and southern anticlinal structures, the new interpretation
materially redefines this structure as a ridge joining the southern and northern
structures. However, this newly interpreted ridge aligns strongly with a
similarly shaped geochemical anomaly that runs between the remapped northern and
southern structures.

A separate fault block feature to the southeast remains as previously mapped and
ties with geochemical responses in this area.

Expanded licence area

COIL has successfully applied to extend the northern boundary of the Tash Kumyr
area of Licence NG-72-00. This will allow further seismic and other mapping to
define the northern limit of the northern prospect.

A new licence has been granted to cover an area to the west and southwest of the
Tash Kumyr survey area. This will cover possible extensions of the southern
prospect in these directions.

2006 Seismic programme

COIL has commenced its 2006 summer exploration and appraisal programme. This
programme includes:

1) further seismic (40 km) and geochemical surveys within the Tash Kumyr
and Kyzyl Djar areas, and

2) a geochemical surface survey to screen for the possible subsurface
presence of hydrocarbons at the Toktogul structure within the Company's Toktogul
Exploration Permit NP-142 located some 80km north west of the Tash Kymyr region.

Given the improved definition of the main prospects within the Tash Kumyr
licence area, COIL may seek a farm-inee to take up some of its participation
interest in this exploration licence.

Toktogul Exploration Programme

The geochemical Gore Survey in this area will screen for the possible subsurface
presence of hydrocarbons in the large Toktogul structure on the Company's
exploration permit NP-142.

Neale Taylor, Chief Executive Officer of Cambrian Oil and Gas Plc, said:

"The new seismic interpretation at our Tash Kumyr exploration licence builds
confidence in several of our South Karagundai prospects. We now need to define
the best way forward via more seismic or other surface work and we expect to
soon start planning the drilling our first exploration well."

Neale Taylor, B.Sc (Applied Geology, Hons), MS (Pet Eng), a Director of the
Company and a qualified person in the terms of the AIM Rules of London Stock
Exchange PLC, has compiled, read and approved the technical disclosure in this
regulatory announcement. The technical disclosure in this announcement complies
with the SPE Standard.

TM - a trademark of W.L. Gore & Associates Inc,

Ends

Update from Beshkent - Togap

RNS Number:7126H
Cambrian Oil & Gas PLC
16 August 2006

16 August 2006


Cambrian Oil & Gas Plc
("COIL" or "the Company")

Progress at the Beshkent-Togap Water Injection Project


Cambrian Oil and Gas Plc announces the following progress at its Beshkent-Togap
water injection project in the Kyrgyz Republic.

Key Points:

* The project has been producing positive operating cash flow since May

* Consistent incremental oil production from a number of Beshkent wells

* Additional injection being initiated at Togap

* Full scale expansion of the project under consideration


Beshkent-Togap Water Injection Project

Water injection commenced at 2 wells in October 2005 with the objective of
increasing oil production in the immediately adjoining production wells at the
Beshkent end of the field.

Regular well testing has been undertaken since October to detect and monitor
responses at the adjoining oil production wells. This testing guides the
Company's plans to expand the project across the whole field, which contains
about 60 producing oil wells. Operational performance is now improving and
incremental oil is being consistently recorded in ongoing well tests.


Incremental oil has now been recorded from a number of producing wells:

Well 25 has produced since February at about 3 times the agreed base level from
which incremental oil is calculated. Well 66 has now produced incremental oil at
50%-100% above the base rate for several months. Four other wells have recorded
incremental oil at lower rates.


Replacing pumps and packers to increase water injection volumes

COIL is taking steps to increase the level of water injection by installing new
pumps and high pressure packers on the injection wells to increase water
injection volumes. These actions are expected to improve performance.
Additional wells in the test area may be converted to injectors.


Project in positive operating cash flow mode

Gross incremental oil production for May, June and July (after deducting
accumulated oil debits for the converted injection wells) is now being finalised
with Kyrgyzneftegaz and the net cumulative incremental volume is expected to be
about 1,000 barrels. COIL's initial 70% share of this incremental oil is being
accumulated for sale in the near future. The Company will record its first
positive income from the sale of COIL's share of this incremental oil production
and after allowing for accumulated operating costs.

While this initial volume may be seen as relatively small, it needs to be
considered in the light of the equipment constraints described above and
operational downtime during the start-up period. Operational performance is now
improving and the results are building confidence that the project can be scaled
up commercially across all of the wells on the field.


Project expansion in the Togap area of the field

Based on the progress in the Beshkent test area and given increases in local
petroleum prices, COIL has agreed with Kyrgyzneftegaz to fund rehabilitation of
previously abandoned injection facilities in the Togap area of the field.
Kyrgyzneftegaz previously established injection in the Togap area of the field
in the late 1980's but this project fell into disrepair. This expansion is now
underway and will provide a low cost extension of the project.


Future project expansion

COIL and Kyrgyzneftegaz are considering possible plans to expand the project to
a full field basis. Further discussions are expected to map out forward
development options. The parties will keep further expansion commitments under
review in the context of ongoing well test results.


Neale Taylor, Chief Executive Officer of Cambrian Oil and Gas Plc, said:

"The Beshkent-Togap project is now showing progress. Latest results are
encouraging, it is pleasing that the project is now generating positive
operating cash flow, and we look forward to working with Kyrgyzneftegaz to
expand the project in the future."

Neale Taylor, B.Sc (Applied Geology, Hons), MS (Pet Eng), a Director of the
Company and a qualified person in the terms of the AIM Rules of London Stock
Exchange PLC, has compiled, read and approved the technical disclosure in this
regulatory announcement. The technical disclosure in this announcement complies
with the SPE Standard.


Ends

LONDON (AFX) - Cambrian Oil & Gas perked up 0.25 to 3.25 pence in the wake of an encouraging progress report from the Tash Kumyr exploration project in the Kyrgyz Republic.

Neale Taylor, chief executive officer, said: "The new seismic interpretation at our Tash Kumyr exploration licence builds confidence in several of our South Karagundai prospects. We now need to define the best way forward via more seismic or other surface work and we expect to soon start planning the drilling our first exploration well." newsdesk@afxnews.com fjb/vjt

Cambrian Oil sees several drilling targets in Kyrgyzstan's Tash Kumyr prospect

LONDON (AFX) - Cambrian Oil & Gas PLC said the outcome of the latest
exploration work in the Tash Kumyr prospect in Kyrgyzstan showed that the area
contains "a number of prospective targets".
In a drilling update, the group said it has applied for an extension of its
license area so it can define the limit of both the northern and southern
portions of the prospect.
"The new seismic interpretation at our Tash Kumyr exploration licence builds
confidence in several of our South Karagundai prospects. We now need to define
the best way forward via more seismic or other surface work and we expect to
soon start planning the drilling our first exploration well," said chief
executive Neale Taylor.
In a separate statement, Cambrian said it is considering plans for a
full-scale expansion of the Beshkent-Togap water injection project, also in
Kyrgyzstan.
Water injection commenced at two wells in October last year with the aim of
increasing oil production in the Beshkent field.
The project has been producing incremental output and "positive operating
cash flow" since May, Cambrian said, adding it plans to expand the project
across the whole field, which contains about 60 producing wells.
"Operational performance is now improving and the results are building
confidence that the project can be scaled up commercially across all of the
wells on the field," it said.
monicca.egoy@afxnews.com

RODSPOTTY

MANY THANKS FOR THE INFO. glad to be in before the mass got interested.
investors with eagle eyes know that COIL can go far. COIL is the conner stone
that the builders have rejected. we will see
best luck to all

just a spark

RNS Number:7908H Cambrian Oil & Gas PLC 17 August 2006

17 August 2006
AIM: COIL
CAMBRIAN OIL & GAS PLC
("COIL" or "the Company")
Extraordinary General Meeting


The board of COIL today announces that an extraordinary general meeting of the Company will be convened for 11.00am on 11 September 2006 at the offices of Trowers & Hamlins, Sceptre Court, 40 Tower Hill, London EC3N 4DX (the "EGM").

The directors of the Company are seeking shareholder approval to increase the authorised capital of the Company and to grant the board of COIL sufficient authority to allot ordinary shares in the Company and to do so for cash on a non pre-emptive basis.

Further information on the proposed resolutions is set out in a circular containing the notice of EGM (the "Circular") which was posted to shareholders of the Company today. Copies of the Circular will be available during normal business hours on weekdays (excluding public holidays) for one month from today's date at the offices of Trowers & Hamlins, Sceptre Court, 40 Tower Hill, London, EC3N 4DX.

If you are in any doubt as to the action you should take, you are recommended to seek your own personal financial advice from your stockbroker, solicitor, accountant or independent financial adviser authorised pursuant to the Financial Services and Markets Act 2000.

The City Code on Takeovers and Mergers ("the Takeover Code")

Although the Company is incorporated in England, the place of central management of the Company is currently located outside the UK, the Channel Islands or the Isle of Man since the main place of business of the Company is in Australia. The majority of Board meetings are held outside the UK, the Channel Islands and the Isle of Man and the majority of the Board are resident outside the UK, the Channel Islands and the Isle of Man. Accordingly, as the Company is one to which paragraph 3 (a) (ii) of the Introduction to the Takeover Code applies, the Panel on Takeovers and Mergers ("the Panel") has confirmed that the Company is not subject to the Takeover Code and Shareholders will not be afforded any protections under the Takeover Code.

If circumstances change, including if changes to the Board are made, the Company will consult with the Panel to ascertain whether this will affect the central management of the Company. If the Panel determines that, as a result of such changes, the place of central management of the Company is located in the UK, the Channel Islands or the Isle of Man such that the Takeover Code then becomes applicable to the Company, an announcement will be made.

Ends

Rodders

SOURCE: SHARES MAG dated 02-08 March 2006 Pages 20/21
High risk high reward 10 tiddlers to strike black gold
MRP; EDR; GED; EEL; CHP; JKX; VOG; MXP; AEX and COIL
What did shares mag say about COIL
CAMBRIAN OIL&GAS: should be a big year for Kyrgyzstan-concentrated Cambrian. The firm recently hammered home its enthusiasm for prospects, having bought the Toktogul exploration licence, started recovery improvements at the Beshkent-Togap oil field and began seismic work at the Tash Kumyr licence. Beshkent-Togap includes a series of wells known to contain oil and Cambrian's plan is to simply update the Soviet-era equipment to extract it more efficiently. It has 1.3million of cash and is hoping to see modest revenues begin flowing through at some point this year.

Some volume today, for a change, on the day of the EGM and a decent rise.

Rodders

From Oil Barrel today....

Cambrian Oil & Gas Provides More Detail On Its Promising Diversification Plans

When we last wrote about Cambrian Oil & Gas, we said it seemed like quite a leap to go from pumping heavy oil from shallow wells in the Central Asian Republic of Kyrgyzstan to investing in a gas-to liquids (GTL) and LNG plant in the Timor Sea off Australia. Chris Hart, managing director of Methanol Australia, the company COIL has invested in and which will build the plants, was recently in London and found time to flesh out these plans for oilbarrel.com.

First, an update from the Kyrgyz Republic. Cambrians heavy oil lies in the Beshkent-Togap field in the southwest of this land-locked country, which is sandwiched between China, Kazakhstan, Uzbekistan and Tajikistan. The Fergana Basin, which straddles the border with Uzbekistan, is a known hydrocarbon province, complete with pipelines, two refineries and an extensive rail network. Heavy oil is not universally popular because it can be difficult to extract. Only about 4.5 million barrels of the estimated 65 million barrels in Beshkent-Togap have been produced, giving a recovery factor of less than 10 per cent. There are 70 producing wells on the field and Cambrian has a 50 per cent equity interest in any production increases from the field after the recovery of its capital outlay.

Last year the company spent US$350,000 on a water injection project, which involved pumping water into two wells with the objective of increasing oil production in the immediately adjoining production wells. Since February the Bishkent-25 well has produced at three times the agreed base level, which means it has produced some 13 barrels a day, up from 4 bpd.

We now learn that in May, June and July Well 66 has produced incremental oil at 50 per cent to 100 per cent while four other wells have recorded incremental oil at lower rates. In all, the net incremental oil is expected to be about 1,000 barrels. This is still modest and a long way from the target of 1,000 barrels of oil a day but it is significant progress and the project is now cash flow positive.

Cambrian also has two exploration projects in the country. The processing and interpretation of new seismic data on the Tash Kumyr has now been completed. The results have increased confidence that the permit area contains a number of prospective targets.

As for the methanol and LNG projects, Chris Hart explains that Cambrian has become involved through Cambrian Mining, which owns 28 per cent of COIL and is something of an energy conglomerate. These are promising projects, not least because Australia has many undeveloped gas discoveries that have been stranded by the tyranny of distance, which makes pipelines very expensive. LNG and GTL projects are, therefore, an obvious way to shift these stranded reserves to market.

Other companies have been stymied not so much by the capital costs of LNG and methanol plans but because of associated planning and native title issues, the transportation costs if pipelines are involved and the high labour costs of assembling plant. Mr Hart reckons Methanol Australia has cracked these problems.
Environmental approvals were granted for two 1.8 million tonnes per annum (tpa) methanol plants in December 2002 and one 3 million tpa LNG plant in May 2004. The plants would be on Tassie Shoal in the Timor Sea, which lies 275 km north of Darwin. In these shallow waters it would possible to build an artificial island with its own port, which obviates the need for a pipeline and would mean methanol or gas could be shipped to markets in the Asia. The plant would be prefabricated in Thailand where labour costs are low and towed to the island.

Methanol Australia has come up with some robust economics for the plants. A 3 million tpa LNG plant could be built for US$988 million and a 1.8 million tpa methanol plant for US$835 million. Dollar for dollar the LNG would be more profitable partly because prices are so high (spot prices are projected at US$385 to US$620 a tonne). The question of which plant gets priority may come down to the gas that will be used for feedstock.

Tassie Shoal happens to be near a number of established but undeveloped gas fields. In particular, it is almost adjacent to the 6.6 trillion cubic feet Evans Shoal field. The gas has a high CO2 content, up to 27 per cent, but because methanol benefits from a high CO2 content this would seem to militate in favour of building the methanol plant first.

However, and this is where Cambrian comes in, Methanol Australia has its own gas field in the shape of the NT/68 exploration permit, which lies 25 km from Tassie Shoal and could have gas in place of 14 tcf.

Through the purchase of shares from the trustee, a placing and the underwriting of 50 per cent of a new share issue, Cambrian plans to spend A$8.6 million to acquire 12.6 per cent of Methanol Australia. The cash will largely be spent on acquiring and processing approximately 410 sq km of 3D seismic over the crest of the 1,200 sq km Epenarra structure in the NT/P68 permit.

The estimated in place gas resource (P50) for Epenarra is 5.6 tcf. A well, Heron-1, was drilled by Arco in 1972, recording several interpreted gas-bearing zones, including a 50 metre fractured carbonate interval in the lower levels of the Darwin Formation. Studies indicate the gas quality at this level is likely to be low in carbon dioxide with the possibility for attractive levels of associated condensate. Drilling is planned for late 2007. If Methanol finds its own gas, then the LNG plant will probably receive priority.

Rodders

RODSPOTTY
THANKS FOR THE POST
i am positive about COIL and will give them time to deliver. Best luck to coil

Directors were upbeat at the EGM, expect a couple of interesting announcements between now and the AGM, sometime in November. DYOR

Rodders

Rodspotty
That's for sure, the way is up in my view, many investors thought, it is risky but it does not need to be risky, just because there is a risk but the control of the risk is important. I like the parent company CAMBRIA mining which provides excellent cover for Coil. i am happy to be in at this very early stage. Got in at 3p then at 5p. should have bought more at 3p but Coil will grow, and there is no questions about it.

Rodspotty if you were at the EGM can you say how much (or percentge of the market cap) and when the capital is to be increased since this will have dilution effect on the shares, which could then be a good time to buy or increase.

rpaco - I was not able to go to the AGM, but a friend was there. Naturally the directors were not able to say when the share capital will be increased, but it is obvious that it will be in the near future. Where this investment will be is anybodies guess, however here are 3 interesting scenarios to ponder, now that the COIL management have another 400m shares to place, though I very much doubt all will be used in the near future.

1. Methanol Australia.

From the recent ''A'' in which COIL said it had taken a 12.6% stake in Methanol Australia, the last para says...

''Methanol Australia also announced that it is planning a further fundraising
in which its shareholders will be entitled to purchase new ordinary shares on
the basis of one new shares for every four held at 22.5 cents each to raise
proceeds of 8.7 mln aud. COIL said it intends to underwrite 50 pct of this
fundraising.''

Assuming that the MEO shareholders do not take up more than 50% of the offer, the market price being below the placing price, then I deduce COIL having underwritten 50% of the MEO placing, will by way of another placing of its own, end up with approx another 12.4% of MEO taking their stake to 25%.

2. ELKO Energy

If ELKO were to float then COIL may up its stake by taking a slice of the placing, or if ELKO decided not to float, COIL could up its stake anyway.

3. Kyrgyzneftegaz

How about COIL taking a stake in the countries main oil refining firm.

...........................................................

One thing is for certain there are going to be a lot of shares in issue soon.

Rodders

There are 159m approx shares in issue, obviously the placing of another 400m would seriously dilute the SP. Thus I will hang on until the price has gone down very much further before investing.

Worth a read - Investor Presentation - Methanol Australia - 15th September 2006 - link below:

http://www.asx.com.au/asxpdf/20060915/pdf/3yhtp6gsn8828.pdf

Rodders

Activities
Previously Silvermines plc. The share capital of Silvermines was admitted to trading on AIM on 15 July 2004. At this time the Directors stated that the Directors intended to seek acquisition and investment opportunities in the media, advertising and marketing sectors. However, whilst the Directors believed that there were a number of opportunities for such investment, the strengthening in the advertising sector has, in the opinion of the Directors, caused an increase in price expectations such that the Directors have been unable to find investments of the appropriate quality at a price which the Board was prepared to sanction. Accordingly, the Directors have looked at other business sectors for opportunities which they consider capable of providing an appropriate return on investment. Under the Proposals the Company will enter the field of investment in oil and gas exploration and development, through the acquisition of Zhibek Resources plc, the existing business of which will be continued and developed. This will bring with it not only the oil and gas exploration and production interests from Zhibek but also a continuing relationship with Cambrian Mining plc, which on implementation of the Proposals, will have an interest in 27 per cent. of the Enlarged Share Capital and which has agreed to offer all of its potential future opportunities in oil and gas interests to the Company in the first instance. Zhibek was formed as a joint venture between Action and Cambrian in February 2004, for the purpose of conducting oil exploration, development and production activities in Central Asia and FSU countries. Since its formation, Zhibek has acquired a number of oil production and exploration interests in the Kyrgyz Republic from Action and Cambrian has provided initial funding to Zhibek as seed capital for which it has been issued ordinary shares and warrants in Zhibek

MEO on the up, COIL have a 25% stake @22.5 cents and 40m April/07 options @25 cents.

Code Last % Chg Bid Offer Open High Low Vol
MEO 0.270 8% 0.275 0.290 0.265 0.275 0.260 1,491,776

Rodders

Methanol Australia 9 ( COIL 25% ), closing price today.

Code Last % Chg Bid Offer Open High Low Vol
MEO 0.270 -3.57% 0.270 0.280 0.280 0.285 0.270 646,142

3D Seismic Acquisition over Epenarra Prospect, progressing well and ahead of schedule, data being processed onboard.

http://www.asx.com.au/asxpdf/20061011/pdf/3yxvvl1zbjkgf.pdf

Rig secured to drill up to three wells in NT/P68, in August 2007, new jack up rig being built in Singapore.

http://www.asx.com.au/asxpdf/20061011/pdf/3yy106kkb9x9r.pdf

DYOR

Rodders

rodspo
thanks for the post

COIL ups stake in Elko Energy to 29%....

http://moneyam.uk-wire.com/cgi-bin/articles/200610120700283425K.html

Rodders

Cambrian Oil buys Elko warrants from Cambrian Mining; to raise 4.55 mln stg

LONDON (AFX) - Cambrian Oil & Gas PLC said it has bought 15 mln special
warrants of exploration company Elko Energy INC from Cambrian Mining PLC for 1.5
mln stg, taking its stake in Elko to 29 pct.
Each warrant converts into 1 common Elko share.
Cambrian Oil also said it plans to raise 4.55 mln stg from the placing of up
to 151.8 mln new shares at 3 pence each.
As part of the placing, Cambrian Mining plans to subscribe for 53 mln new
shares to take its stake in Cambrian Oil to 17.20 pct.
Xtract Energy PLC, in which Cambrian Mining has a 54 pct stake, plans to
subscribe for 65 mln shares to raise its stake in Cambrian Oil to 35.37 pct from
the current 28.21 pct.
newsdesk@afxnews.com
tfn-ban-faj/lam


Rodders

Building a very nice rounded portfolio....

www.oilbarrel.com

16.10.2006
Cambrian Oil & Gas Ups Its Holding In Elko Energy, Increasing Its Exposure To Projects In Denmark, Tunisia And China
AIM-quoted Cambrian Oil and Gas plc has upped its holding in Elko Energy, a private Canadian company which is on the fundraising trail to develop its portfolio of international assets. Cambrian has bought 15 million special warrants of Elko from Cambrian Mining for 1.5 million. This takes its holding in Elko to 29 per cent.

Its an interesting addition to Cambrians increasingly diverse portfolio. The company holds exploration and production properties in the Kyrgyz Republic and also a 25 per cent interest in ASX-listed Methanol Australia Ltd, which hopes to build large scale methanol and LNG plans in the gas-rich Tassie Shoal area to the northwest of Darwin.

Elko, a private Canadian company that came into being 18 months ago and is now gearing up for an IPO, adds further diversity to the Cambrian asset base. The company has cash in hand of C$4 million but is looking to raise C$20 million (9.5 million) to fund projects in Denmark, Holland, Tunisia and, through its 39.1 per cent interest in Dragon Energy, in China and Ukraine.

The start-up is targeting a mix of exploration, production and near-term development projects. On the exploration front, Elko is the largest licence holder in the Danish North Sea with an 80 per cent interest in a 5,370 sq km licence, which lies to the east of the prolific Central Graben and appears to hold five large structures. It is partnered here by the Danish state, with a 20 per cent working interest.

Having conducted preliminary technical studies, Elko is now seeking farm-in partners to help share the costs of seismic and drilling work. Of its hoped-for C$20 million fundraising, it plans to spend around C$2 million on a seismic shoot over the Danish licence.

Almost half of that C$20 million will target the development of two oilfields offshore Tunisia. Elko has signed a letter of intent with Cadax Petroleum to buy the Yasmin and Cosmos fields for C$5 million in a deal that will bring proven reserves, near-term production potential and exploration upside.

Eight wells were drilled on Cosmos between 1980 and 1985, resulting in proven reserves of 40 million barrels. Elko estimates a recovery rate of 20-30 per cent with the use of water injection and pumping. Four wells were drilled on Yasmin between 1975 and 1982, finding 25 million barrels of oil. The potential upside adds up to 140 million barrels in Cosmos and 50 million in Yasmin and the fields could be onstream in 2008.

But theres a closer source of production in the portfolio. Elko has spent C$2.3 million buying a 42.5 per cent interest in Dragon Energy Inc, a private company with owns 60 per cent of the Maling oilfield redevelopment project in Chinas Gansu Province.

Maling covers 800 sq km and in 2001 was producing around 18,000 barrels per day. The field was then shut in but is reckoned to hold remaining recoverable reserves of 75 million barrels of remaining recoverable oil. Maling is home to 600 shut-in wells, with ten to twelve sands per well of which only one zone has been produced. Dragon, which is also on the IPO trail, plans to start re-entering the existing wells later this year, with each well expected to deliver around 150 bpd. The company expects to get output back up to 10,000 bpd within three years with the potential to get to 20,000 bpd within five years.

Dragon is also eying the purchase of an 18 per cent interest in five producing gas fields and one oilfield in Ukraine. The deal, if successfully concluded, would give Dragon access to net reserves of between 12 and 20 million barrels of oil equivalent and net production of 350 barrels of oil equivalent per day.

Elko is also hoping to add to its project pipeline on its own account. It is pursuing a possible new venture in Holland and expects to spend around C$5 million on farm-in opportunities to build its portfolio. These include opportunities in the Baltic region, north-west Europe, North Africa and the Middle East.

Rodders

MEO share price holding up well above 30 cents, COIL's stake is 25% bought at 22.5 cents, COIL has a further 20m+ options at 25 cents.

Prices are delayed by at least 20 minutes. Retrieving any price indicates your acceptance of the Conditions.

Code Last % Chg Bid Offer Open High Low Vol
MEO 0.335 -1.47% 0.335 0.340 0.340 0.340 0.330 697,500


Rodders

RNS Number:8137K
Cambrian Oil & Gas PLC
20 October 2006

Cambrian Oil and Gas plc

Placing of new Ordinary Shares

20 October 2006




The Directors of Cambrian Oil and Gas plc ("COIL" or the "Company") are pleased
to announce that, further to the announcement of 12 October 2006, it has placed
151,766,662 new ordinary shares of 1 pence each (the "Placing Shares") at 3
pence per ordinary share through its broker W.H. Ireland Limited, raising #4.55
million gross of expenses (the "Placing"). Application has been made to London
Stock Exchange plc for the Placing Shares to admit to trading on AIM on 23
October 2006.



The Placing Shares are to be issued together with one warrant for each Placing
Share subscribed, each warrant entitling the holder to subscribe for one
ordinary share in the Company at 3 pence per ordinary share (the "Warrants").
Each Warrant granted shall be exercisable in whole or in part at any time up to
12 months from the date of admission of the Placing Shares to trading on AIM
becoming effective in accordance with the AIM Rules. The Warrants will not be
admitted to trading on AIM. Following the completion of the Placing there will
be 309,993,821 Ordinary Shares in the Company in issue and trading on AIM.



As was announced on 12 October 2006, Xtract Energy PLC ("Xtract") is a related
party under the AIM Rules. As part of the Placing, Xtract subscribed for
65,000,000 new ordinary shares, giving it an aggregate holding of 35.37 per
cent. of the Company on completion of the Placing. This subscription by Xtract
represents, under the AIM Rules, a related party transaction. The Directors of
the Company consider, having consulted with its nominated adviser, that the
terms of the subscription are fair and reasonable insofar as its shareholders
are concerned.



As was announced on 12 October 2006, the subscription by Cambrian Mining PLC ("
Cambrian") for 53,333,333 new ordinary shares in the Placing, resulting in a
total interest in the Company of 17.20 per cent on completion of the Placing
represents, under the AIM Rules, a related party transaction. The Directors of
the Company, other than John Byrne (who is a director of Cambrian), consider,
having consulted with its nominated adviser, that the terms of the subscription
are fair and reasonable insofar as its shareholders are concerned.



Enquiries:


Cambrian Oil and Gas plc Neale Taylor, CEO +44 (0) 20 7409 0890
Paul McGroary, Director +44 (0) 79 3056 8160

W.H Ireland Limited Paul Dudley/Peter Jackson +44 (0) 20 7220 1666




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

The link below is a reply to a query by the ASX to the recent their recent share price rise...

http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00663758

not surprisingly the share price has shot up another 20% on this announcement, which is one of the most bullish I have seen in recent years.

The share price of MEO as I write is 50 cents AU, which values COIL's stake at approximately 14m, given that COIL's market cap is only 10m, their share price is well undervalued, just on this stake alone. DYOR

Rodders

Tipped over here in the Investers Chronicle las Friday....

27 October 2006

CAMBRIAN OIL & GAS (COIL)


Cambrian Oil and Gas (COIL) has just raised around 4m via a placing at 3p. And although the company is increasing staff numbers in the Kyrgyz Republic to 14 and has just appointed a new ex-pat production engineer there, the Kyrgyz oil interests may soon be dwarfed by new ventures. COIL says its objective was always to diversify, but it took time to find the right deals.

One deal that will use 1.5m of the new money is the acquisition of a 29 per cent stake in a private Canadian company, Elko. It has an 80 per cent stake in a 5,400 sq km exploration and production licence in the Danish North Sea sector as well as other interests, notably in Tunisia. COIL has also acquired an 18 per cent stake in Australia-listed Methanol Australia (MA) and that's where the rest of the money went. MA has secured government environmental approval to build and run two offshore liquid natural gas plants, which convert natural gas to methanol for use in producing fuel additives. The plants will be in shallow water in the Timor Sea, nearly 300km north-west of Darwin.

Crucially, MA may have its own 100-per-cent-owned gas supply on exploration acreage there. A well drilled in 1972 encountered a 50m gas-bearing fractured carbonate interval and MA will drill two test wells in about a year's time. COIL secured its stake in MA to give it a funding alternative to offers of farm-in deals from oil and gas majors.

Ironically, the new investments come at a time when COIL is starting to obtain cash flow from the sale of Kyrgyz oil. Water-injection techniques are increasing oil flow to 70 barrels a day from one well at Beshkent-Togap in the south-west of the country. The target is production of 2,000 barrels a day from 40 wells in 12 months' time.



--------------------------------------------------------------------------------
Ord price: 3.375p Market value: 5.34m
Touch: 3-3.75p 12-month High: 6.25p Low: 2.75p
Dividend yield: nil PE ratio: na
Net asset value: 2.3p Net cash: 961,000

3 very +ve 'A''s today on MEO (COIL 25% + 42m Apr.07 options@25 centsAU)
Closing price today on MEO 48 centsAU bid.

http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00664372

http://www.asx.com.au/asxpdf/20061102/pdf/3zd7lhvy6p39b.pdf

http://www.asx.com.au/asxpdf/20061102/pdf/3zd7mxmmr3stp.pdf

Rodders

Here is a very interesting reference to the majors knocking on the door, taken from this link...

http://www.asx.com.au/asxpdf/20061101/pdf/3zc8zwjcrvbvz.pdf

'' The company is presently conducting confidential discussions with a number of substantial international corporations in regard to the possible participation in various aspects of the companies projects.This interest is unsolicited and at this stage, the company remains committed to evaluating the potential of NT/P68 at its 100% interest.''

Note the word unsolicited, they are eager for a slice of the action in NT/P68. I think they will keep their 100% interest in the possible 6tcf of Gas, but will negotiate with the highest bidder for the possible 650m barrels of condensate (light sweet crude).Its just a question of how much that is worth in the ground???? IMO an interesting couple of months coming up. DYOR

Rodders

On the move now 3.5/4.5, best bid 100K @3.7p v offer 100K @4.1p. DYOR

Rodders

Cambrian Oil & Gas PLC
10 November 2006

10th November 2006 AIM: COIL


Cambrian Oil & Gas Plc
('COIL' or 'the Company')

Update re Methanol Australia Limited

Cambrian Oil and Gas Plc (AIM : COIL) wishes to inform shareholders of the
following highlights extracted from recent announcements made by Methanol
Australia Limited ('MEO') on the ASX, of which COIL owns approximately 25% of
the issued capital.

MEO's key objective is to become a leading producer of liquefied natural gas
(LNG) and methanol from its proposed gas-to-liquid projects on the Tassie Shoal,
located in Australian waters some 275km north west of Darwin.

Acquisition of 3D seismic data over Epenarra structure within MEO
wholly owned Exploration Permit NT/P68 in the Timor Sea to determine optimum
location for appraisal well

74% of 2D seismic data acquired over the Blackwood structure within
Exploration Permit NT/P68 to assist in confirming location of Blackwood-1
exploration well

MEO intends to drill up to three wells in 2007 with newly acquired
jack-up rig

MEO announced on 31 October 2006 the successful completion of the acquisition of
new 3D seismic data over Epenarra, located in MEO's 100% owned Exploration
Permit NT/P68 in the Timor Sea. The Epenarra structure is a broad, low relief
anticline at the Darwin formation level with mapped closure of approximately
1,200 square kilometers, located entirely within Australian waters. The 3D
seismic data has been acquired to confirm distribution and orientation of faults
and fracturing within the 50m gas bearing fractured carbonate zone of the
Epenarra structure intersected by the Heron-1 well, drilled by ARO in 1972. This
data will be used to determine the optimum location for the Heron-2 appraisal
well.

MEO recently announced that approximately 74% of the data for the 600 line km 2D
seismic survey over the Blackwood structure in Exploration Permit NT/P68, had
been acquired and remained on schedule. The new 2D infill data will be combined
with the extensive 1996 and 1997 2D grid already over the permit and will
improve the structural mapping of Blackwood. MEO expects the new data to confirm
the final location of the Blackwood-1 exploration well.

MEO intends drilling up to three wells (Heron-2, Blackwood-1 and potentially
Heron-3) in the Permit area next year and has secured a new jack-up rig to
undertake the drilling. The rig is expected to arrive on location in August
2007.

Chris Hart, the Managing Director of MEO, stated that a just released study on
the Epenarra prospect revealed a strong possibility of high levels of associated
gas liquids (LPG and condensate) within the gas bearing structure. This means
potential for significant commercial quantities of liquids.

For full details of the announcements of MEO, please see the Australian Stock
Exchange website:
www.asx.com.au
(ASX: MEO) or MEO's website:

www.methanol.com.au



For further information, please contact:

Neale Taylor Victoria Thomas
Cambrian Oil & Gas plc Parkgreen Communications
Tel: +44 (0)20 7409 0890 Tel: +44 (0)20 7493 3713

Peter Jackson/ Paul Dudley
W.H. Ireland Limited
Tel: +44 (0) 20 7220 1666

Reckon this ones a steamer!!!! Fill ya boots!

yes, its looking good all round on this one.


Cambrian affiliate MEO likely to hit 'high levels' of gas liquids at Epenarra
AFX
LONDON (AFX) - Cambrian Oil & Gas PLC said a just-released study on the Epenarra structure, which lies within affiliate company Methanol Australia Ltd's wholly-owned permit NT/P68 in the Timor Sea, revealed a strong possibility of high levels of associated gas liquids within the gas bearing structure, which holds potential for significant commercial quantities of liquids.

all a bit odd he 3.87 /3.88 sells are infact buys i know this because two are mine ?

Just back from the AGM, stayed down south overnight, nice to see I have some company on the thread, not on my tod anymore...lol, looks like we still have an overhang from a seller, but that should be cleared soon, the boys from MEO will be over in the UK, sometime in the next couple of weeks, accompanied by Cambrian mining guys, in order to spread the word to the istitutions etc. DYOR

Rodders

still ticking up nicely day on day

Well the overhang seems to have been cleared and the mms are on the bid and want to play. Presently bidding for 500K @3.5p v offer 25K @3.56/100K @3.85p. DYOR

Rodders

2 large trades gone thru, looks like matched buyer to seller, but with one mm bidding in 500K, looks like the buyer may want more???? DYOR

Rodders

hope so did ok on blr yesterday could do with the same here

40,000,000 just gone through????

x-trade of 40,000,000 represents 23% of the company. Is a bidder coming in for the company?

There are at present 309m shares in issue, so 40m shares represents 12.94% of the company. Normally X trades mean nothing but this is significant, I await the RNS, in the meantime regarding the possibility of a takeover forget it, there are over 200m warrants out there and the parent company CBM, would not play ball. DYOR

Rodders

Thx - shattered dreams

sirles - well if you call 25% of a company (MEO), which has possibly 650m barrels of light crude and 6 trillion cu,ft of gas on its 100% owned patch in the Timor Sea in Aussie waters ''shattered dreams'' well think again....wait for the RNS re:the 40m transaction, you maybe surprised. DYOR

Rodders

Coil's investment in MEO as of today is valued at 12m, COIL' present market cap is 10m, based on the 3.25p bid price, so at the moment their 29% investment in Elko Energy and their own ops in the Kyrgyz Republic are in for free. DYOR

Rodders

Placing & Further Investments

RNS Number:2155M
Xtract Energy plc
16 November 2006

16 November 2006 AIM: XTR

XTRACT ENERGY PLC
("Xtract" or "the Company")

Placing of new ordinary shares
Further investments in Cambrian Oil & Gas Plc ("COIL")
and Wasabi Energy Limited ("Wasabi")

Placing

Xtract has placed 109,795,800 million new ordinary shares of 0.1 pence each (the
"Placing Shares") at 5.5 pence per ordinary share through its broker W.H.
Ireland Limited, raising #6,038,769 before expenses (the "Placing"). Application
has been made to London Stock Exchange plc for the Placing Shares to be admitted
to trading on AIM on 22 November 2006.

Following the completion of the Placing there will be 467,105,600 ordinary
shares in the Company in issue.

Cambrian Mining plc ("Cambrian") through its wholly owned subsidiary Cambrian
Investment Holdings Ltd ("CIH") holds 192,942,500 ordinary shares in the
Company, representing approximately 54.0 per cent. of the current issued share
capital, and is therefore defined as a related party under the AIM Rules. As
part of the Placing, Cambrian subscribed for 9,795,800 new ordinary shares. In
addition, CIH converted its loan notes of #3,361,231 into ordinary shares of
Xtract at the Placing price. Following the Placing and the conversion of the
loan notes, Cambrian together with CIH will hold in aggregate 263,851,591
ordinary shares in the Company (representing approximately 50.0 per cent. of the
Company's enlarged issued share capital).

This subscription by Cambrian represents, under the AIM Rules, a related party
transaction. The directors of Xtract consider, having consulted with its
nominated adviser, that the terms of the subscription are fair and reasonable
insofar as its shareholders are concerned.

The proceeds of the Placing will be used in the implementation of Xtract's
investment strategy including the development of its oil shale extraction
technology and also to provide working capital for the Company.

Further investment in COIL

Xtract has agreed to purchase from Cambrian 53,333,333 ordinary shares (together
with the same number of warrants exercisable at a price of 3p per share) in
COIL, the consideration for which will be the issue to Cambrian of 29,090,909
new Xtract ordinary shares.

Following completion of this transaction the Company will hold 202,964,102
ordinary shares in COIL representing approximately 65.47per cent. of the issued
share capital of COIL and Cambrian and CIH together will hold 292,942,500 Xtract
ordinary shares representing approximately 52.6 per cent. of the Company's
enlarged issued share capital.

As Cambrian, through CIH, holds approximately 54.0 per cent. of Xtract's issued
ordinary shares, the acquisition of the COIL shares and warrants represents a
related party transaction under the AIM Rules. The directors of Xtract 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 investment in Wasabi

Xtract has agreed to sell its holding of 61.5 million ordinary shares in Aviva
Corporation Limited, together with an interest in a steel-making technology, to
Wasabi in exchange for the issue to Xtract by Wasabi of 175 million new Wasabi
ordinary shares together with 25 million warrants exercisable at a price of
A$0.03 per Wasabi share.

Following this transaction (which is conditional on the approval of Wasabi's
shareholders at an extraordinary general meeting) and a proposed fundraising by
Wasabi, Xtract will hold 256,511,422 Wasabi ordinary shares (representing
approximately 41.6 per cent. of Wasabi's proposed enlarged issued share
capital).

Still getting all the pieces of the jigsaw into place,much more to come in this vain, the outcome of which will end up with CBM/COIL/XTR/MEO having IMO btn them raised the cash to fully fund the drilling of the 3 wells in the Timor Sea, amongst other things and cutting out the majors, we will see.....no probs with raising the dosh!!!!! DYOR

Rodders

This one wont go anywhere fast - 3 years maybe if and thats a big if !
Time to cut and run better returns else where this will sink like a stone short term.

Are you mystic meg?

Rodspotty - What are your thoughts on COIL's near future share price?

Hi sirles, there are to many imponderables eg: future price of oil/gas, dry wells, high cost of rigs etc for cautious me to predict future share prices for COIL, along with many others its a high risk/reward share, though having said that there is less risk now having diversified its portfolio over the last 6 months. I think the management made a very astute move into MEO and told them so at the recent AGM, they were very enthusiastic about it at the meeting and this week the boys from COIL/CBM/XTR and MEO are in the city, giving presentations. They are also looking to float Elko Energy in London early next year and if successful would make COIL's 29% stake look very good. I would also not rule out an MEO listing on the LSE in 6 months time. DYOR

Rodders

Thanks

COULD SOMEONE EXPLAIN TO ME WHY COIL ARE RELEASING ANOTHER 4 MILLION PLUS WARRANTS AT 3P EACH ON THE 29 NOV WHEN THERE ARE STILL SOME 200 MILLION WARRANTS OUTSTANDING AT 7P EACH FROM WHEN SILVERMINES MEDIA BECAME CAMBRIAN OIL AND GAS. IF ITS TO RAISE CASHFLOW THEN IT WOULD HAVE MADE MORE SENSE TO REDUCE THE 30 TO 40% SPREAD THAT HAS EFFECTIVLY STOPPED TRADING SINCE THESE WARRANTS WERE ISSUED, SO THAT PEOPLE WOULD HAVE EXERCISED THEM.

As I understand it the 4m warrants have been bought in @3p by a party who took part in the recent placing at 3p, there are circa another 196m to go. As far as the 7p warrants go, due in Dec.06, unless the share price of COIL was to go above 7p, which is unlikely in the short term, then these will not be taken up. I was at the AGMThe share price of COIL in is in fact trading at a discount to asset value of their MEO stake, valuing their other assets at zero, there is no doubt that the outstanding warrants @3p is puting PI's of at the present. DYOR

Rodders

Rodders have you looked at the prospects of MEO.AX yet. Coil could be onto a winner with their 25% stake. 14 trillion cubic feet of gas at least is the estimate in their annual report. Just how much is that worth, does anyone know the calculations for working out the true value of a gas find. I'm convinced that all this inter company floatations are to raise enough cash to keep the big boys at bay, any thoughts anyone.

oilyyrag, looks like you are quickly grasping the picture and that to understand COIL you have to look at the other members of the group....CBM/XTR and MEO and Elko Energy (COIL own 29% and due to be foated on AIM early next year). Below is the latest info on where the MEO shares are held. The 42m Apr.07 options 25 cents, could be more pivotal to COIL than their 25%, IF??? the share price of MEO currently 53 cents!!! continues to rise.

Methanol Methanol Australia Limited

ASX Code MEO Shareholders 1,850
Ordinary shares 197.3m
Cambrian Oil & Gas Plc 24.6%
Geoff Albers Group 13.29%
Santos Limited 10.5%
Directors 7.7%
Options 30-Apr-07 expiry, $0.25 ex pr 52.7m
Fully Diluted 250m

..............................................

As one can see from the above COIL have ended up with most of the options circa 42m, if these were to be taken up, then COIL would own 42+48.5=90.5m shares, which is 36.2% of the fully diluted share capital of MEO. If they take the maximum allowed under ASX rules 20m, then COIL would end up with 27.4%. It was intimated at the AGM that, there was the outside chance, the balance of 22m options could be bought in by the CBM group, after negotiation with the ASX.DYOR

The current valuation to COIL of their MEO stake is circa 15m, whereas the Market Cap of COIL is 11, there other investments are thrown for free.

The boys from MEO, COIL,CBM and XTR were in London last week giving presentations to the city and I would not rule out some kind of floatation on the UK market in the middle of next year, which is one way of raising the cash themselves and as you have pointed out....cut out the big boys.

Rodders

green line = 200 dma
red line = 50 dma

As far as i can see, sp is trading in a very narrow band, with probably some support at the 50 dma level, and with mirrored resistance at the 200.


For some strange reason, oilyrag has asked me for some comment, though my non-analyatical mind wonders why .....

For me, the company's cap makes this far too small to interest me ..... indeed, its minute size in today's very difficult climate for E&P companies in general, makes me wonder why any investment is warranted at all .... having had the briefest of scans of this thread, the company seems typical of many its ilk ..... lots of maybes, perhapses, and in the event thats etc etc ..... all (imo) a load of "blue sky", if that good ...... IMO, there are many many more companies with much better prospects - GOO, CHP and VOG if you want to press me

Thanks for your view cynic, it helps one to keep a fair balance. No one has answered the real question yet. HOW MUCH IS 1 TRILLION CUBIC FEET OF GAS WORTH? HOW DO WE CALCULATE THE POTENTIAL VALUE OF MEO.AX?

Very difficult to put a value on something that is still in the ground and btw, there is estimated to be 800 million barrels of condensate (light sweet crude) and 6 TCF of gas, in MEO's 100% concession in the Timor Sea. When I asked the question at the AGM as to the possibility of a major coming onboard MEO at the AGM, the spokeperson said ''why give away the possibility of 200m to 300m in revenue, when we could fund the drilling program inhouse'' hope that kind of gives you an idea. The cost of the drilling program is estimated at 20m. DYOR

Rodders

oily .... i am afraid i would not know where to start to answer your question .... but as a comparison, have a look at VOG's performance who are also allegedly sitting on similar huge reserves ...... ain't worth a bean until it starts coming out of the ground

cynic - Agree with you about oil/gas in the ground. A plus for COIL over VOG is that their investment in MEO is sitting in friendly waters, Australian territorial. DYOR

Rodders

Rodders how long do you think we have left at these prices. Obviously there's a lot of water to go under the bridge, forgive the pun, before true value is added to this epic. Given that COIL own 24.6% of MEO.AX, their share of 20million drilling program would be 4,920,000., divided by 107,000,000 million shares, which is 4.6 pence per share. The potential profits of say 250,000,000 would be by the same calculations, worth 57.5 pence per share. Assuming no further dilution of Coil shares. Based on the current sp of MEO, COIL should be worth at least 11.5 pence. Drilling due to start in August 2007? HOW LONG DO WE HAVE LEFT TO GET IN?

Hi Rodders, me again. I may have found the answer to my question on PELE news release today. $2.5 to $3 per thousand cubic feet.This equals $3000 per million cubic feet, or $3000,000,000 per trillion cubic feet. which is approx 1,579,000,000 or 1.5 Billion. Therefore 14 Trillion cubic feet could be worth 22 Billion. I hope I havn't used too many noughts. Could someone confirm ball park figures, ta.

oily .... i see that the quoted spread is currently 3.25/4.00 - i.e. if true, it makes the stock virtually untradable, especially as there are intrinsically so few shares, let alone ones floating about.

Yes I know I've been locked in for about 18 months on this one, but at last there is a chinck of light at the end of the tunnel. Another year or so could be a nice little earner.

oilyrag

see my post on TCF values on EME . Yours too high

14TCF if found but not near production and 270m off Darwin, I think you said, is $700m tops once found.

Mind you if you want the middle of nowhere, 270m off Darwin is just about as nowhere as you can get --- could be uneconomic even at this size

The real online spread is 3.288/3.7p, the price is rather weak today, so a limit buy of 3.5p, might be accepted. DYOR

Rodders

Hi Confidant, if you take a look at MEO's website....

http://www.methanol.com.au/_home.asp

you will see that MEO are well ahead with plans to construct a Methanol and LNG plants close to already proven gas finds off Darwin and will be viable using 3rd party gas production. Whatever they find on their own 100% concession close by, will be the icing on the cake. DYOR

Rodders

My father had PMO shares a few years back @ 17pence. He got out at 21pence (unluckily for him). Does anyone see same potential for COIL as PMO? Im new to this game but would have thought that if this area off Austrailia that MEO have is what they say it is, surely it would have a major impact on COIL's share price?

Also don't forget COIL's 29% stake in Elko Energy, which is due to float on AIM early next year and by default 11.6% of Dragon Energy, which also hopes to float on AIM in the near future......

Elko, an oil and gas exploration company, has been awarded a 5,400 square
kilometre exploration and production licence in the Danish North Sea Sector,
which it holds with an 80% interest. The remaining 20% is held by the Danish
State, which has a direct interest with a full working interest. Elko is an
approved offshore operator and has set up a Danish subsidiary to carry out the
required work programme. Phase I of the technical studies has been completed,
confirming the substantial reserves potential of the licence area. Following
further ongoing technical work it is planned to farm down Elko's interest during
2007 in exchange for future seismic and drilling obligations being paid for by a
new partner.

In December 2005, Elko made a strategic investment of $2.3 million Canadian, and
currently owns approximately 40% of Dragon Energy Inc., a private Canadian
company with a significant development project in Gansu Province, China
("Dragon"). Dragon has signed a Joint Venture Agreement with a provincial
subsidiary of CNPC of China, the 10th largest oil company worldwide, providing
for the re-development of the Maling Oilfield in Gansu Province, China.

In the future Elko will focus on regions where its management has excellent
technical and commercial knowledge based on previous work experience, as well as
having relevant business contacts. These regions comprise the Baltic region,
north-west Europe, north Africa and the Middle East. Specific licensing
activities are presently underway throughout the core area with the exception of
the Middle East. With 32 blocks under evaluation, Elko is the largest licence
holder and operator of oil and gas licences in Denmark.

Rodders

rodspotty

Done no research on COIL -- will take a look. CBM a big holder are management you have to respect -- look at their exit of AEN absolute company maker So I will look, my numbers are v cautious but help me get an upside on a finds. Oilywag valuations are to high IMHO

Confidant - CBM/COIL/XTR all connected, CBM being the parent/banker.

Rodders

Trading suspended in MEO shares on the ASX pending an announcement by the company...

http://www.asx.com.au/asxpdf/20061130/pdf/3zw15zf3pkqdw.pdf

Remember COIL owns 25% of this company, however if you include their options its is 37.5%!!!!

Rodders

Rodders,

Just checked the news and no announcement has been made yet. Shares finished up 8% though. Any ideas what the news could possibly be?

Hi Rodders, do you think its good news.

Morning folks, interesting turn of events.??? the share price rise on Wenesday was probably due to Santos's substantial gas find close by to MEO's 100% concession in the Timor Sea, this can be proccessed in MEO's Methanol plant close by, when it is constructed, the viability of which can only be enhanced by this further find in the area.

http://www.santos.com/Archive/NewsDetail.aspx?p=121&np=78&id=988

As to the MEO's share price being put in suspenders, here is my take...

1. 70% - some kind of fundraising 20m !!!! for the drilling program. Remember I told you MEO/COIL/CBM/XTR boys were in London last week.
2. 20% - a major coming onboard to finance the drilling program.
3. 5% - an unsolicited approach by a major.
4. 5% - other factors.

DYOR IMO

Rodders

Just topped up the 50K @3.6p is my buy. DYOR

Rodders

Santos have a good relationship with MEO and already own 10.5%, they have just had great results from drilling nearby, so maybe they have offered to fund the drilling for a bigger stake in the company????? DYOR

Rodders

Their showing your buy as a sale Rodders.

oilyrag, computer always posts a trade as a sell if its below the mid price, human input still the best...LOL

Rodders

oilyrag, you were asking about fair value for COIL at the present time, this is a what I call a very fair value, worked out by another...

Well I reckon the NAV of COIL is 5.8p per share. The MEO stake is worth 17 mil on its own.

Just to qualify the above statement:

Investment in Methanol (MEO)inc wts = GBP 17mil
Investment in ELKO based on a conservative float price of 50 cents (minimum expected from reliable source) = GBP 3.5 MIL
Kyrgyz assets (conservative value) = 2 mil
Cash = 1 mil
Exercise of warrants at 3p = 6mil
Total 29.5 mil

Fully diluted shares in issue = 510000000

NAV = 5.79P

The interesting thing is MEO has been rising steadily in AUS for some time. They were suspended yesterday pending an announcement (shares had rised intra day before suspension). Therefore I would suspect good news could be on the way.
Recent conversations with bosses during their recent visit to London mentioned that the initial target was to stick a 1 in front of the share price. Could be bravado or could be a whole lot more.

Even where things stand at the moment COIL are trading at a big discount to NAV. These shouldn't be dismissed lightly.

Rodders

Rodders,

I was looking forward to coming in this morning and seeing that good news in MEO had lifted the share price of COIL. Oh well another weekend of drinking Carlsberg rather than Veurve.

Surprised that I am the only punter to have a pop on the outcome of the suspension, you can pick them up at sub 3.6p. DYOR

Rodders

Thanks Rodders, only thing now is the time for MEO to request end of suspension, I believe its 48 hours in oz, and announce whatever it is.

The 100K @3.45p is a buy, not mine though. DYOR

Rodders

oilyrag - by the time we wake up on Monday then, we should know whats what and the reaction to MEO's share price. DYOR

Rodders

Having slept on it, my 70% on a placing for the drilling is out of the window, to early after the London visit, these things take time to set up. I think it more likely that it is something to do with this find in close proximity to their acreage and early pre-market interest in MEO shares as a result......

http://www.santos.com/Archive/NewsDetail.aspx?p=121&np=78&id=988

to much of a coincidence. DYOR

Rodders

Rodders, what are the chances do you think of a possitive announcement from MEO, followed by a substancial rise in their sp, followed by no change in COIL's sp. Even though COIL have a substancial holding in MEO I have a sneaky feeling that the AIM market won't recognise their investment until MEO start to produce. What do you think.

It is quite possible, if MEO just re-iterates the ''A'' in responce to the Santos find that it did for the NXS ''A'', however if a major like Santos was interested in a stake, then this would put a value on MEO's assetts, which punters can understand, then we would get a spike in COIL. DYOR

Rodders

Hi cynic, knew you couldn't resist, just kidding, MEO.AX currently suspended for up to 48 hours pending an announcement. Looking at the subject matter within this thread, Monday /Tuesday could be big gains for COIL depending on the outcome of awaited announcement. It may be time to re-evaluate the high risk rewards one can get from a smaller company that may be about to take off. Trading on Friday was within a very narrow spread.

We have an ''A'' to say still suspended, prior to..... ?????

http://www.asx.com.au/asx/research/CompanyInfoSearchResults.jsp?searchBy=asxCode&allinfo=on&asxCode=MEO

Rodders

The trades at 3.5p early today were buys (I bought some!) which means most of the trades today could be buys ,and perhaps the price will now tick up in response!

Buyers now paying 3.75p, should have beenn a tick up by now, perhaps the 500K @3.5p was a sell????

Rodders

The 90K and 10K @3.62p are mine.

Rodders

So my initial reaction to the suspension was correct, a placing.....

http://www.asx.com.au/asxpdf/20061205/pdf/3zyr40jj5nz75.pdf

http://www.asx.com.au/asxpdf/20061205/pdf/3zyr9q779qb93.pdf

http://www.asx.com.au/asxpdf/20061205/pdf/3zyr9q779qb93.pdf

Well hey, these guys have got this one away at very little discount to the prevailing price, double the price COIL paid 4 months ago and with no sweetners as far as I can see.....underlines the astute move that COIL's management made supporting MEO in the first place, think about it. DYOR


Rodders

What do we make of this?

Cambrian Oil & Gas PLC
05 December 2006



Cambrian Oil & Gas plc ('the Company')
Notification of significant holding


5 December 2006


Under sections 198 to 202 of the Companies Act 1985 the following information
falls to be disclosed:

The Company has been notified that Cambrian Mining Plc no longer holds an
interest in the Company following the completion of a disposal of 53,333,333
Ordinary Shares.

The Company was also notified that Xtract Energy Plc has completed the purchase
of 53,333,333 Ordinary Shares in the Company. Xtract Energy therefore now holds
a total of 65.5% of the current issued capital of the Company.




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

Xtract Energy plc
05 December 2006


5 December 2006 AIM: XTR

XTRACT ENERGY PLC
('Xtract' or 'the Company')

Completion of further investment in Cambrian Oil & Gas Plc ('COIL')

Further to the announcement made on 16 November 2006, Xtract is pleased to
announce that it has now completed the purchase of 53,333,333 ordinary shares in
COIL from Cambrian Mining Plc ('Cambrian').

Having completed this purchase, the Company now holds 202,964,102 COIL ordinary
shares representing approximately 65.47per cent. of the issued share capital of
COIL.

Cambrian has received 29,090,909 new Xtract ordinary shares in consideration for
the sale of the COIL shares to the Company and, together with its wholly owned
subsidiary Cambrian Investment Holdings Limited, now holds 292,942,500 Xtract
ordinary shares. This represents approximately 52.6 per cent. of the Company's
enlarged issued share capital. Application has been made for the new Xtract
ordinary shares to be admitted to trading on AIM and this is expected to become
effective on 8 December 2006.

Enquiries:

Xtract
John Newton 020 7409 0890
Director

Smith & Williamson
Azhic Basirov 020 7131 4000
David Jones 020 7131 4000


About Xtract Energy Plc

Xtract's prime assets are its interest in shale oil deposits at Julia Creek in
Queensland, Australia and a joint venture with the Australian research group,
CSIRO, to develop a process for extracting oil from shale deposits. The
initial validation tests, comprising small scale batch extractions of oil from
the shale, have demonstrated that recovery from Xtract's Julia Creek shales in
Queensland, Australia, would be in the order of 150 litres of light crude
oil per tonne of shale. Earlier conventional retorting experiments indicated
that the conversion of kerogen to oil yielded about 74 litres of oil per ton
of shale.

Applying this rate of yield increase to the yields of 50 - 65 litres per tonne
used earlier this year in Xtract's AIM admission document in relation to
certain of Xtract's Julia Creek leases results in estimated in-situ shale oil
resources of over 1.6 billion barrels of oil.

Other energy assets held by Xtract are:

Cambrian Oil and Gas Plc ('COIL') which is developing oil and gas assets
in the Kyrgyz Republic.

COIL has acquired 25% of the issued share capital of ASX listed Methanol
Australia Ltd ('MEO'). MEO is focused on developing a gas-to-liquids project in
the Timor Sea, approximately 275 km northwest of Darwin, Australia, in an area
known as Tassie Shoal. It has secured Australian Commonwealth Government
environmental approvals for two large scale (1.8 mtpa) methanol plants (50%
interest) and a 3 mtpa LNG plant (100%), which is the only new Australia LNG
project to receive its Commonwealth Government environmental approvals.

approximately 19.1% of Wasabi Energy Limited which has rights to the
Kallina power technology, uranium exploration interests in the Northern
Territory, Australia, interests in the newly-formed Evolution Energy joint
venture to produce bio-diesel fuel in Australia and in a coal deposit in
Canada;

approximately 18.2% of Aviva Corporation Limited with promising thermal
coal deposits in the mid-west of Western Australia.

COIL 25% (37.5% incl options)

From The Australian today

Gas junior's shares rise
Nigel Wilson, Energy writer
December 06, 2006
SHARES in Methanol Australia continued their upward march yesterday when trading resumed after the company announced a $12 million placement.
They closed at 51c each compared with a peak of 56.5c on November 23 and a low of 17c at the end of August. They were trading at 48c last Thursday.

Methanol Australia shares were put into trading halt last week and were then suspended on Monday at the company's request. The company told the exchange the placement had been made to "a number of significant Australian and international institutional investors".

Methanol Australia, in which Santos has a 16.9 per cent stake, owns the carbon dioxide-rich Tassie Shoals reservoir in the eastern Timor Sea, 12km from the large Evans Shoal reservoir.

The company has approval for a methanol plant on Tassie Shoal, but its most recent activity has been exploring its 100 per cent owned Northern Territory permit NT/P68 with the aim of defining enough gas reserves to support an export LNG project.

It was reported earlier this year that Methanol Australia wanted to explore two prospects in Epenarra, immediately west of Evans Shoal, as well as drilling the Heron-2 appraisal well.

Epenarra-1 , to be drilled in the second half of next year, is a follow-up to the Heron-1 gas discovery made by Arco in 1972, while Blackwood, also to be drilled late next year, is a target further north.

Methanol Australia said yesterday it had secured the Seadrill West Atlas jack-up rig to drill the three wells.

Hi rodders, just a quickie, you may want to look at CPNR if your not already in.

oilyrag - thanks, unfortunately completely out of funds, so stuck with COIL at least until the meo drill bit bites into the seabed of Aussie in September next year.

Rodders

Sorry to hear your tied in for the long haul, at least you got in a lot chearer than me. Unfortunately I got in when they were called Silver Mines Media and paid 10.5p each, hence the warrants. I decided to let it run and see what happens as they were talking of 100 million company then, which would have realised 1 or so per share. I think the likelyhood of that price senario has been greatly increased with their present portfolio. It would appear that my sneaky feeling was right about the SP. Still its a few years before retirement yet so nothing lost nothing gained. Good luck oily.

Morning oilyrag, I don't expect any fireworks in the short term, unless their is a bid for MEO, which is not out of the question, if things go well you could get your 10.5p back with interest sometime next year. DYOR

Rodders

Rodders,

Its all gone quiet on the western front. Anything pending or coming up soon do you think?

Jan/Feb 2007....

Update on operations in Outer Mongolia...LOL

Looking to float Elko Energy if market improves. If this was to get away COIL's 29% stake would be double in value.

3D Seismic results on MEO.

Rodders

Hi rodders, odd purchase just gone through of 1 share, obviously a code for someone, any ideas.

Well researched article out on COIL today, link below....

Quote - "From a share price perspective, COIL has under-whelmed the market over the past 12 months - but this could all change in a flash if MEO hits the jackpot in Australia."



http://www.proactiveinvestors.co.uk/articles/article.asp?COIL
http://www.proactiveinvestors.co.uk/


Rodders

Rodders,

Do you reckon that Elko will be floated soon????

sirles - would like to be proved wrong, but the market appetite for AIM placings at the moment is against an early floatation of Elko.

On the +ve side MEO is still strong, COIL's stake is valued at 10m+ and their options another 5m, whereas COIL's market cap is only 10m.

Rodders

Rodders,

Re: MEO Australia to Get Faster Approvals Process for Gas Projects

Why do you think that the share price of coil hasnt really changed with this news?

Have no idea, but here is another interesting tit bit...

Here is a recent excellent analyst report on MEO courtesy of a poster on another bb...

We value MEO at $1.64 on a fully risked basis!!!!!

http://www.methanol.com.au/!upload_files/attachment/MEO%2030%20Jan%2007.pdf

Looks like the issue of this caused the rise last week???

Rodders

Hi rodders, 463 traded at 3.09p this would raise less than dealing charges. Any idea who is signalling who, what?..........Also are COIL,s holdings in MEO still in the form of warrants or are they full shares. Its just that if they were warrants, this may be why no value seems to have been attached to COIL on their holding.

MEO

Coil owns 48.5m shares, which at yesterday's closing bid of 68 centsAU = 13.2m.
Coil has 42m 25 cent options, value = 7.2m Total value 20m. COIL Mkt Cap 10m.

Rodders

MEO has broken through the 70 centsAU resistance level overnight. Would not rule out a UK floatation of the exploration side of the business.

Code Last % Chg Bid Offer Open High Low Vol
MEO 0.730 6.57% 0.715 0.730 0.680 0.730 0.670 1,237,920

Rodders

12th February 2007

LONDON (AFX) - Cambrian Oil & Gas (COIL) increased in early trade, up 0.63 at 4.25, after it said it has agreed to merge with subsidiary Xtract Energy.

The exploration firm said a scheme whereby COIL shareholders will receive 9 new Xtract shares for every 10 COIL shares, resulting in COIL becoming a wholly owned unit of Xtract.

The closing mid market prices per share of Xtract and COIL on Feb 9 were 5.25 pence and 3.625 pence respectively.

This values COIL at about 14.85 mln stg (on an undiluted basis) and represents a premium to COIL shareholders of about 30.3 pct, COIL said, adding that it would recommend this scheme to its shareholders.

The scheme requires approval by COIL shareholders (other than Xtract) and the sanction of the court, they added in a statement.

12 February 2007

CAMBRIAN OIL & GAS PLC

('COIL')

Scheme of Arrangement

The boards of Xtract and COIL are pleased to announce that they have reached
agreement on the terms of a recommended proposal for COIL shareholders (other
than Xtract) to acquire shares in Xtract for shares in COIL by way of scheme of
arrangement under section 425 of the Companies Act 1985 (the 'Scheme'). The
Scheme requires approval by COlL shareholders (other than Xtract) and the
sanction of the Court. Xtract currently holds approximately 64% of the current
issued share capital of COIL.

Highlights

Under the proposed terms of the Scheme, COIL shareholders will receive
9 new Xtract shares for every 10 COIL shares. The closing mid market prices
per share of Xtract and COIL on 9 February 2007 were 5.25 pence and 3.625
pence respectively.

Based on these closing mid prices, the Scheme:

Values each COIL share at 4.725 pence; and

Values COIL at approximately 14.85 million (on an undiluted basis); and

Represents a premium to COIL shareholders of approximately 30.3%.

The directors of COIL unanimously recommend COIL shareholders to vote
in favour of the Scheme.

The COIL board believes that COIL shareholders will benefit from:

Exposure to a more diversified asset portfolio;

Additional management expertise;

Removal of the multiple holding company discount on COIL's associated
investments, especially its major investment in MEO Australia Limited (MEO);

A broader institutional shareholders base;

Improved access to funding, particularly in regard to COIL
participating in any future major funding for MEO's planned drilling program,
which starts later this year; and

Potential for increased liquidity through the exchange of their COIL
shares for Xtract shares.

The Xtract board believes Xtract shareholders will benefit from:

Entry into the Australian Oil and Gas industry through COIL's holding in MEO;

COIL becoming a wholly-owned subsidiary which will allow it to
consolidate 100% of the future cash flows from the operations of COIL;

The potential unlocking of value through the removal of the double
holding company discount on COIL's associated investments; and

Overhead and management synergies.

Commenting on the Scheme Neale Taylor, Chief Executive Officer of COIL, said:

'The Scheme presents shareholders with the opportunity to receive an immediate
30% premium to the current share price and to hold stock in a larger company
with a broad asset base and diversified portfolio of assets while still
participating in the existing COIL story.'

Also commenting on the proposed acquisition, John Newton, Chief Executive
Officer of Xtract, said:

'This is a significant step for Xtract to build a direct stake in the Australian
Oil & Gas industry and participate in the MEO gas to liquids project, the Tassie
Shoal Methanol Project and the Timor Sea LNG project.

The Scheme has the support of the COIL board who have recommended that COIL
shareholders vote in favour of it. We believe that both Xtract and COIL
shareholders will benefit from the consolidation which should create a stronger
combined company'.

The Scheme

The Scheme extends to:

1. all the existing issued ordinary shares of 1p each in the capital of
COIL;

2. any further COIL shares which are issued after the date of the Scheme
document to be posted to COIL Shareholders and before 6.00pm on the date of the
meeting of the COIL shareholders convened by order of the Court pursuant to
section 425 of the Companies Act 1985 and the Extraordinary General Meeting of
COIL convened to approve and implement the Scheme (the 'Voting Record Time')
including shares issued arising from the exercise of options and warrants; and

3. any further COIL shares issued at or after the Voting Record Time and
before the making of the relevant Court order either on the terms that the
original or any subsequent holder thereof shall be bound by the Scheme or in
respect of which the holder shall have agreed in writing to be bound by the
Scheme.

Based on the closing mid price of a COIL share of 3.625 pence on 9 February
2007, the Scheme values COIL (on an undiluted basis) at approximately 14.85
million and each COIL share at approximately 4.725 pence. This represents a
premium for COIL shareholders of approximately 30.3% based on the closing mid
price of 5.25 pence per Xtract share on 9 February 2007, being the last business
day immediately preceding this announcement. Implementation of the Scheme would involve the issue by Xtract of up to approximately 100.17 million new Xtract
shares for the existing issued COIL shares (representing approximately 15.2% of
Xtract's issued share capital as enlarged by this issue).'

The Scheme, which will be subject to the conditions and further terms set out
below and to be set out in Scheme Documentation to be despatched to COIL
shareholders in due course (as required by the Companies Act), will be effected
on the following basis:

1. COIL shareholders will receive 9 Xtract Ordinary Shares for every
10 COIL Shares they hold. This represents an approximate premium of 30.3% based
on prevailing market prices.

2. Any 3p COIL warrants which are not exercised prior to the Voting
Record Time shall cease and determine in accordance with their terms.

3. For those COIL options and 3p warrants which are not exercised prior to
the Voting Record Time and which under their terms do not cease and determine if
they are not so exercised, following the completion of the Scheme, Xtract will
procure an amendment to COIL's Articles of Association which will entitle such
COIL option and warrant holders to receive Xtract shares upon exercise of such
options and warrants at the same ratio as in paragraph 1 above.

Conditions of the Scheme

Xtract and COIL agree that the sanction of the Court in respect of the Scheme
will only be sought if:

1. No Material Adverse Change

since 30 June 2006, save as otherwise disclosed, no event, change or condition
has occurred or become known to Xtract where that would have or could be
reasonably expected to have a material adverse effect on the business, assets,
liabilities, trading or financial position, profitability or prospects of COIL
('Material Adverse Change').

2. No Material Acquisitions, Disposals or New Commitments

since 30 June 2006 (other than in relation to the purchases of
interests in Elko Energy Inc and MEO):

COIL has not disposed of or acquired any assets or businesses,
or offered or agreed to announce any acquisitions or disposals, for an amount in
aggregate of 0.5 million (or in the case of disposals, where the book value was
in aggregate greater than 0.5 million);

COIL has not entered into or offered or agreed to enter into, or
announced any arrangement which required expenditure, or the foregoing of
revenue, by COIL of an amount in aggregate of 0.5 million;

the business of COIL has otherwise carried on in the usual and
ordinary course.

3. Consequences of the Scheme

save as otherwise disclosed, no provision of any agreement to which
COIL is a party or by which COIL or any part of its assets may be bound would,
as a consequence of the Scheme, result in a Material Adverse Change.

4. Issue of Equity

from the date of this announcement there is no further issue of equity
by COIL save for the issue as a result of the exercise of existing warrants or
options.

5. Xtract Consents

any consents required by Xtract under any existing contractual
arrangements or otherwise are granted.

The above represents the principal conditions but is not intended to be
exhaustive. Detailed documentation will need to be drafted by way of a scheme of
arrangement to be approved by the COIL board and its advisors prior to
submission to the Court and posting to COIL Shareholders.

The City Code on Takeovers and Mergers ('the Takeover Code')

As has been previously announced on 17 August 2006, although COIL is
incorporated in England, the place of central management of COIL is currently
located outside the UK, the Channel Islands or the Isle of Man since the main
place of business of COIL is in Australia. The majority of Board meetings are
held outside the UK, the Channel Islands and the Isle of Man and the majority of
the Board are resident outside the UK, the Channel Islands and the Isle of Man.
Accordingly, as COIL is a company to which paragraph 3 (a) (ii) of the
Introduction to the Takeover Code does not apply, the Panel on Takeovers and
Mergers has confirmed that COIL is not subject to the Takeover Code and
Shareholders will not be afforded any protections under the Takeover Code.

Recommendation

The directors of COIL have reached agreement with Xtract on the terms of the
Scheme. The directors of COIL unanimously recommend that COIL shareholders vote
in favour of the Scheme.

General Procedure of the Scheme of Arrangement

The basic steps required to implement a scheme of arrangement are as follows:

1. COIL shall apply to Court for an order that a meeting of COIL
shareholders excluding Xtract be called.

2. if the Court agrees, it will order that the appropriate COIL
shareholder meeting is held. If a majority in number and 75% in value of the
COIL shareholders (other than Xtract) present and voting at the meeting agree to
the arrangement and it is also approved by the Court, then it is binding on all
the COIL shareholders whether or not they voted in favour or voted at all and on
COIL.

3. for the Scheme to have effect, a copy of the Court order shall
be delivered to Companies House.

Enquiries in relation to Xtract please contact:

Xtract Energy plc John Newton, CEO +44 (0) 20 7409 0890

Smith & Williamson Corporation David Jones +44 (0) 20 7131 4000
Finance Ltd Azhic Basirov

Enquiries in relation to COIL please contact:

Cambrian Oil and Gas plc Neale Taylor, CEO +44 (0) 20 7409 0890
Paul McGroary, Director + 44 (0) 79 3056 8160

W.H Ireland Limited Paul Dudley +44 (0) 20 7220 1666

About Xtract Energy Plc

Xtract's prime assets are its interest in shale oil deposits at Julia Creek in
Queensland, Australia and a joint venture with the Australian research group,
CSIRO, to develop a process for extracting oil from shale deposits. The initial
validation tests, comprising small scale batch extractions of oil from the
shale, have demonstrated that recovery from Xtract's Julia Creek shales in
Queensland, Australia, would be in the order of 150 litres of light crude oil
per tonne of shale. Earlier conventional retorting experiments indicated that
the conversion of kerogen to oil yielded about 74 litres of oil per ton of
shale.

Applying this rate of yield increase to the yields of 50 - 65 litres per tonne
used in Xtract's AIM admission document in relation to certain of Xtract's Julia
Creek leases results in estimated in-situ shale oil resources of over 1.6
billion barrels of oil.

Other energy assets held by Xtract are:

Approximately 64% of Cambrian Oil and Gas Plc ('COIL') which is
developing oil and gas assets in the Kyrgyz Republic. COIL also owns
approximately 22% of the issued share capital of ASX listed MEO. MEO is focused
on developing a gas-to-liquids project in the Timor Sea, approximately 275 km
northwest of Darwin, Australia, in an area known as Tassie Shoal. It has
secured Australian Commonwealth Government environmental approvals for two large
scale (1.8 mtpa) methanol plants (50% interest) and a 3 mtpa LNG plant (100%),
which is the only new Australia LNG project to receive its Commonwealth
Government environmental approvals.

Approximately 15% of Wasabi Energy Limited which has rights to the
Kallina power technology, uranium exploration interests in the Northern
Territory, Australia, interests in the newly-formed Evolution Energy joint
venture to produce bio-diesel fuel in Australia and in a coal deposit in Canada.

Approximately 18.6% of Aviva Corporation Limited with promising
thermal coal deposits in the mid-west of Western Australia.

About Cambrian Oil & Gas Plc

COIL has a portfolio of interests in Central Asia, China, the North Sea and
Australia.

The Kyrgyz interests held through the Company's wholly owned subsidiary Zhibek
Resources Plc include a production sharing agreement with Kyrgyzneftegaz to
instigate a water injection project on the Beshkent-Togap oil field, a 72%
interest in JSC KNG Hyrdocarbons, which holds several exploration licences in
the Tash Kumyr area and 100% interest in the Toktogul exploration licence.

COIL also holds approximately 22% of MEO. MEO has successfully completed the
acquisition of new 2D and 3D seismic data over Epenarra, located in MEO's 100%
owned Exploration Permit NT/P68 in the Timor Sea. The Epenarra structure is a
broad, low relief anticline with mapped closure of approximately 1,200 square
kilometres, located entirely within Australian waters. The data has been
acquired to confirm optimal well locations for the Heron-2 appraisal well and
production test on the Epenarra structure and the Blackwood-1 exploration well.

MEO intends drilling up to three wells (Heron-2, Blackwood-1 and potentially
Heron-3) in the Permit area and has secured a new jack-up rig to undertake the
drilling. The rig is expected to arrive on location in August 2007.

COIL also holds approximately 33.5% of the issued capital of Elko.

Elko, an oil and gas exploration company, has been awarded a 5,400 square
kilometre exploration and production licence in the Danish North Sea Sector,
which it holds with an 80% interest. The remaining 20% is held by the Danish
State, which has a direct and full working interest. Phase I of the technical
studies has been completed. Following further ongoing technical work it is
planned to farm down Elko's interest during 2007 in exchange for future seismic
and drilling obligations being paid for by a new partner.

Elko also owns approximately 40% of Dragon Energy Inc., a private Canadian
company with a significant development project in Gansu Province, China
('Dragon'). Dragon has signed a Joint Venture Agreement with a provincial
subsidiary of CNPC of China, the 10th largest oil company worldwide, providing
for the re-development of the Maling Oilfield in Gansu Province, China.

In the year ended 30 June 2006 COIL made a loss of 0.4 million and net assets
at that date were 3.6 million.

Article in Oilbarrel this morning.....

http://www.oilbarrel.com/home.html

Quote ''All of this, of course, needs confirming by the drillbit - and thats due in August when MEO plans to spud the first of up to three wells on the structure. Those wells are Heron-2, Blackwood-1 and, possibly, Heron-3. The results of these wells will be eagerly awaited by investors as the sheer scale of the resource, if confirmed, could catapult Cambrian - and now Xtract - into a different league. ''

Rodders

COIL owns 22% of this project, drilling starts, late August early September this year......

MEO Australia Limited has announced that initial interpretation of the new 3D seismic has further increased the estimates of potential gas resources in its wholly owned permit, NT/P68.

This increase relates to better definition of the conventional Elang/Plover Formation plays -Heron North and Heron South.

The Managing Director of MEO Australia Limited, Chris Hart said this was an extremely positive finding as the combined Heron North and South prospects potential mean (P50) gas in place resource had increased by approximately 65% from 3.3 Tcf to 5.5 Tcf.

Mr. Hart said MEO now regards that the Heron 1 well was not only a discovery of hydrocarbonsm in the Darwin Formation (Epenarra), but also the deeper Elang/Plover Formation prospects (Heron North and Heron South).

Given the advanced stage of planning with our secured Commonwealth environmental approvals for the companys gas conversion projects, the Timor Sea LNG and the Tassie Shoal Methanol projects, the company has extraordinary versatility to commercialise gas from different reservoirs with a range of gas qualities, including varying carbon dioxide levels in the gas.

MEO appraisal drilling will commence in September 2007. Mr. Hart said it was now likely that the first well would target both Epenarra and Heron North. The second well would target the Plover Formation in the Blackwood prospect.

MEO has contracted the West Atlas jack-up rig to drill up to three wells in NT/P68.

Rodders

MEO - Following the the update on the 3D Seismic and subsequent upgrade in P50 reserves, COIL's share is now circa 3Tcf!!!! Roll on the drilling planned for late August this year, jack-up rig already booked.

Rodders

Rodders,

Ive returned from travelling. being a holder of 200,000 shares what shall i expect to receive from the Xtract deal? Do I get additional shares in Xtract and keep my current holding in COIL?

No mate. You have 180k XTR now as long as the deal goes through. Letters of proposal to shareholders in 10 days and deal ratified early April.
After that COIL will cease to exist.
Roll on 14tcf of methanol in Timor Sea without any more dilution.
Still not sure I like the deal. But unless you hold enough shares to contest the proposition it will undoubtedly go through!

2 large broker deals just gone through for 700,000 shares. Prehaps this is the last chance to cash in on price difference between COIL and XTR.

mms were phoning brokers looking for sellers today, I was offered 3.755p for my entire holding, I let them have 100K as I needed some short term liquidity, ready to top up with some more IPL post special dividend and 5 for 1 consolidation. DYOR

Rodders

what am i missing?[its bound to be obvious but i cant for the life of me see what]. If/when COIL get taken over the new comapany, XTR,will give you a new share on the given ratio. fair enough i am with it so far. the RNS states that the 9 for 10 offer at the SP listed in the RNS on 16 mar gives a 30% premium. therefore if i was ,theoretically to lump in, then it would suggest a 30% instant profit[providing XTR dont dive on 1st day of trading.
using current bid SPs and an arbitary figure to keep maths easy
90 COIL shares @3.75p=3.15
81 XTR shares @4.75p=3.85
this still leaves you in profit by approx 19%
is it as easy as this?if so why isn't everyone jumping on the bandwagon[this is why i think i am missing something]
any takers
Alex

For a start Alex, the buying price of COIL is 4.25p, not 3.75p, this is currently the mid price, although trades are availiable within this range. That would now make in your example 90 Coil shares @4.25p=3.825. The 30% rise was the difference in SP's on the 16th March. COIL's price has slowly caught up with XTR over the last month. All said and done, I would expect XTR's sp to rise after the merger because their market cap should grow by the ammount of coil's investments. That is not a gaurantee but merely the way I see it. If there is a sudden drop in either companies sp before the merger then it should be seen as a buying opportunity in my book. Hope this helps.

DOH!!
thanks oilyrag, i knew i was missing something blatantly obvious.
Alex

Looks like something is cooking at WAS (XTR 14%), large volume turned over last night and at one stage was up 13% but closed flat....

Code Last % Chg Bid Offer Open High Low Vol
WAS 0.039 0% 0.039 0.040 0.041 0.044 0.038 7,715,984

Rumours that the Northern Territories gov. is backing Uranium developement in the region and that Rum Jungle, which is in the thick of it, is close to an IPO, with WAS holders getting some freebie shares, doing the rounds in Aus.

Rodders

This is the buzz which is giving WAS (XTR 14%) a kick up the arse....

http://www.theage.com.au/news/Business/Southern-Uranium-targets-rapid-expansion/2007/04/03/1175366209988.html

Would not be surprised to see XTR up its exposure in some form or another.

Rodders

This is interesting, only COIL owns that amount of options, 42m in total, we also know that COIL cannot take up all their options in MEO, 10m looks suspiciously like the balance. If it is indeed COIL then who is the 3rd party that has gratefully received them, cannot be a related party, maybe a major????

MEO - 03-04-2007 09:35 AM $0.450 10000000 $4,500,000.000 Overseas Trade,Crossed

Rodders

COIL has now ceased to be, merged with XTR on a 9 for 10 basis, perhaps some kind technical soul can set up a thread, as there may be some interesting times ahead for this company.

Rodders

Rodders, if you list all the assets and values here I will do the thread for you. To see if you like the style of my headers have a look at TOM Tomco, HAWK Nighthawk Energy. You can always have a go yourself like I did on those two. After all you were the most frequent poster on this thread lately, and have more than enough knowledge about COIL, and XTR to start the ball rolling. Good luck, and let me know what you want to do.

oilyrag - thanks will have a think over the next couple of days.

Rodders