Clontarf Regulatory News (CLON)

29 June 2011

Clontarf Energy PLC

Preliminary Results for the Year Ended 31 December 2010

Highlights:

·; Clontarf has active projects in Ghana, Peru and Bolivia.

·; In Ghana, Clontarf awaits parliamentary approval on the 60% owned Tano 2A oil exploration concession.

·; Clontarf has reprocessed and analysed over 760 kilometres of data on Tano 2A and has identified a number of areas of interest.

·; Clontarf was, in late 2010, awarded two prospective onshore blocks in Peru, blocks 183 and 188.

·; The official signing of the licences in Peru is expected prior to a change in government in late July 2011.

·; Clontarf holds a 10% interest in El Dorado, a producing gas field in eastern Bolivia. Two wells are scheduled to be drilled in H2 2011.

·; Clontarf holds a 30% interest in the Monteagudo gas field in central Bolivia. Negotiations are ongoing to increase this stake to 50% and operatorship.

·; The potential in Monteagudo lies at depth where large gas finds have been made in adjacent blocks.

·; The future of legacy projects in Iran and in the Gulf of Mexico are being evaluated. The investment has been written off in the current accounts.

·; The company has sufficient funds for its current work programme.

John Teeling, Chairman, commented:

"The reorganisation of Persian Gold into Clontarf Energy provided an opportunity to critically evaluate our projects. Difficulties with projects in Iran and in the Gulf of Mexico has led the board to write off their value. Both are likely to be disposed of in due course. Significant restructuring is going on in Bolivia which should lead to production revenue and exploration potential. Clontarf did exceptionally well to obtain two good blocks in the 2010 Peruvian licence round. We await the official signing of the licences expected by end July, before beginning an agreed work programme. In Ghana, where we hold a 60% interest in the Tano 2A concession we have undertaken significant analysis and data reprocessing while we await parliament approval. This analysis has identified a number of interesting areas."

Enquiries:

www.clontarfenergy.com

Statement Accompanying the Preliminary Results

Clontarf Energy is an emerging hydrocarbon exploration and production company focused on South America and Africa. Clontarf relisted on AIM in early 2011 following a reverse takeover of Persian Gold plc, by Hydrocarbon Exploration plc, an unlisted company. It is important to note that the accounts below cover the period to end December 2010 for Persian Gold and so do not cover the activities of the enlarged group. Of more relevance is the report below and the following review of operations which outline the activities of the company.

The logic in the merger lay in the fact that the companies shared significant interests in an exploration venture in Ghana as well as having some common directors and shareholders. This report outlines the combined interests and sets out the strategy of the enlarged group for the future.

Prior to discussing corporate activities let me comment on the global oil and gas industry. For the foreseeable future oil demand will be dominated by the growth of the so called "BRIC" countries particularly China. Latest estimates suggest that the world's daily oil consumption in 2011 is approximately 89 million barrels. Although the estimates for the world's future oil demand have been revised down by institutions such as the International Energy Agency, it is possible that the world will be using about 100 million barrels per day in the coming decades. Existing capacity simply does not exist to supply this demand. The constraints are not only the crude oil in the ground but also the vast financial resources necessary to develop oil fields and build refineries. Moreover, some oil-rich countries are not developing their reserves and their governments do not allow foreign investors to do so. This situation leads to an even greater need for the international oil industry to search for oil in any prospective area where the governments are open to foreign investors and to the application of modern technology for oil exploration and development operations. Oil prices will be volatile reflecting economic circumstances, but in the long run your board believes they will be strong. Three consequences flow from high oil prices: exploration and development in ever more expensive locations, growing interest in alternatives and thirdly substitutions. Peak oil is likely to become an historical myth. Offshore West Africa is emerging as a major new oil province. It is likely that the area from Angola through to Sierra Leone will be a multi million barrel daily producer within years. Ghana has a central role in this development. Clontarf is already at the table in Ghana.

The gas industry has been transformed. Less than 10 years ago natural gas was proclaimed as the fuel of the future. Strong prices encouraged exploration. Canada, Bolivia and Russia were seen as world leaders. Indeed the oligopolistic position of Russia in supplying gas to Western Europe provoked uneasiness in numerous countries. But technology solved this problem. The development of shale gas through "fracking" has transformed the critical variables in the industry. As shale gas technology evolves costs are falling. In the US where commercial shale gas reserves are now estimated at 60 trillion cubic feet (tcf) natural gas prices have fallen reflecting this new competition. Many Gulf of Mexico producers, Clontarf included, have seen their profits eroded. LNG import projects are no longer viable. In fact the US might become an exporter of LNG. This revolution is just beginning. It will spread to Europe, Africa and South America. Problems continue to exist with shale gas technology, but as they are eliminated the industry will blossom.

Clontarf Projects

Clontarf has active projects in Peru, Bolivia and Ghana. The board intends to dispose of its legacy projects in Iran and in the US Gulf of Mexico in due course.

Peru

Clontarf was awarded two onshore exploration blocks in Peru in late 2010. The success of Clontarf is due in part to a predecessor company, Pan Andean, which had four blocks in Peru all of which were successfully joint-ventured / farmed out to multinationals. The two new blocks 183 and 188 are prospective. Block 183, which is almost 400,000 hectares in size, is located in the Marañon basin in central Peru. There is production and exploration activity in adjacent blocks and an oil pipeline runs close to it. We have acquired 1,700 kms of 2D seismic, which is being re-interpreted.

Block 188 covers 600,000 hectares in the Ucayali Basin in the south east of Peru. This area has numerous producing oil fields. Seismic data exists on the block while wells drilled on adjacent blocks have flowed oil and/or gas.

Perupetro have informed Clontarf that the official signing ceremony should take place prior to a change of Government on July 28th. A team is already working on environmental and community matters as well as re-interpreting seismic data and well logs. We will look at joint venturing the areas in due course.

Ghana

The Directors believe that Ghana is one of the best oil exploration areas in the world. Fiscal terms are competitive, title is good and the geology attractive. Successive discoveries by Kosmos and Tullow, when fully developed, will lift Ghana into a top division of world oil producers. Clontarf has been in discussion with the Ghanaian authorities for three years. To reach the necessary size to qualify as a licence applicant it was necessary to combine three companies' resources - all London listed, Pan Andean, Persian Gold and Petrel. When Pan Andean was acquired by Petrominerales the attraction, for Petrominerales, was the Peruvian ground. The Ghanaian licences with other exploration assets were left in an unlisted subsidiary which was spun off to shareholders. The creation of Clontarf means that the Ghanaian licence application is now held, Clontarf 60%, Petrel 30%, and local interests 10%.

A licence over the 1,532 sq km Tano 2A onshore/offshore block was signed with the Ghanaian National Petroleum Company in 2008 and revised in 2010. All licence approvals must be approved by the cabinet and parliament. These approvals are awaited. In the meantime the partners have been active in acquiring all available data on the block and concluding extensive and intensive analysis of the data. The grid spacing and data quality did not allow specific identification of drillable targets, but did outline areas of promise particularly in the offshore area of Tano 2A.

Boliva

The Clontarf assets in Bolivia are owned by its subsidiary Petrolex, a company acquired by a legacy company of Clontarf in 2000. They comprise a producing gas field in El Dorado close to the city of Santa Cruz and a small oil and gas producer in Monteagudo in central Bolivia. El Dorado is owned 10% Clontarf, 90% YPFB/Chaco the Bolivian State company, while Monteagudo is owned 30% Clontarf, 30% Repsol, 20% Petrobras and 20% Andina/YPFB.

In recent years there has been significant political uncertainty in Bolivia in relation to natural resources. The 2009 constitution claimed total State ownership. Despite this and onerous tax/royalty charges, the hydrocarbon industry continues to develop. The reason is simple: Bolivia has a central location in the cone of South America. There is rapidly growing demand in Brazil, Chile and Argentina - all bordering Bolivia and all being supplied by Bolivia.

The El Dorado field holds immediate and significant potential. Clontarf's involvement was complicated by disagreements with the previous majority partner. Following departure of that foreign company from Bolivia, the Bolivian State re-established its control of Chaco S.A., our operating partner. El Dorado was then drilled and brought into production. Accordingly the reason for our dispute was eliminated and an accommodation is being negotiated. Clontarf will pay its share in future expenditure and share pro rata in the profits. Output is now circa 19 million cubic feet of gas per day of which our share is 1.9mmcfd. Two additional wells are scheduled for 2011. Unlike in the USA, export gas prices are very strong in Bolivia. If all goes to plan Clontarf should enjoy profits and cash flow within 2 years.

Monteagudo is an old field operating since 1967. Production is declining but there is significant potential for gas in the deep Huamapampa formation. Significant gas discoveries in the Huamapampa have been made in adjacent block, the most recent being by Total in 2010. The Directors believe that there is a deep gas plug at Monteagudo which could contain 2 to 3 tcf of gas.

There have been difficulties relating to operating costs within the group that owns Monteagudo. A dispute has been ongoing since 2008. This has been exacerbated by uncertainty over title and tax rates. Clontarf has made a proposal to buy out the Repsol stake, thereby becoming operator. A low cost operation has been proposed which could produce positive cash flow from current production while preparing to drill the deeper target. Should the proposal be accepted it could be in place by the end of 2011.

Other Projects

Clontarf inherited two legacy projects, mineral prospects in Iran and gas production / royalties, primarily in the Gulf of Mexico.

Iran has highly prospective geology and is largely unexplored. Persian Gold Ltd, a wholly owned subsidiary of Clontarf, holds options on two mineral ventures, one copper/gold, Dalli; and one gold, Chah-e-Zard. From a corporate and legal view operating in Iran has become difficult. Despite fulfilling all requirements it proved impossible to get discovery certificate and development licences. There is growing opposition to investment in Iran and a growing threat of sanction. Banks refuse to move funds. The Board is reviewing its options in relation to its Iranian assets.

The loss of value in the US Gulf of Mexico was sudden and unexpected. A subsidiary of Clontarf, Endeavour Oil and Gas Inc, holds royalties on block 52 in the Gulf and a working 62% interest in block 30. Royalties are totally dependent on the price of natural gas. The current low price of less than $4.50 per million British Thermal Unit (or per 1,000 cubic feet) has two effects, significantly lower income and a reluctance to pump gas and/or explore. Block 30 has also had problems. A work-over did not produce the expected results. A partnership with Hunt Oil promised much but delivered little. Hunt sued Endeavour to recover costs from a well abandonment programme. The Directors expect that the case will be settled by ceding Endeavour Oil and Gas Inc to Hunt. This will end our participation in US oil and gas.

The full financial implications of both the Iranian and US decisions have been provided for in the accounts.

Outlook and Strategy

We have a top class team which has delivered value to shareholders. We have excellent early stage exploration projects in Peru and, when ratified, in Ghana and we have stakes in producing fields in Bolivia. We have the funds for our immediate needs. We operate in particularly uncertain areas in high risk early stage projects.

We use our skills, experience and contacts to reduce the risk. The potential return is substantial. We think that we can deliver.

Consolidated Statement Of Comprehensive Income

for the year ended 31 December 2010

Consolidated Balance Sheet

as at 31 December 2010

Consolidated Statement of Changes in Equity

for the year ended 31 December 2010

Share premium

The share premium reserve comprises of a premium arising on the issue of shares.

Share based payment reserve

The share based payment reserve arises on the grant of share options under the share option plan.

Retained deficit

Retained deficit comprises of losses incurred in 2010 and prior years.

Consolidated Cash Flow Statement

for the year ended 31 December 2010

Notes:

1. Accounting Policies

There were no changes in accounting policies from those set out in the Group's Annual Report for financial year ended 31 December 2009. The financial statements have been prepared in accordance with International Financial Reporting Standards and IFRSs as adopted by the European Union.

2. Loss Per Share

Basic loss per share is computed by dividing the loss after taxation for the year available to ordinary shareholders by the weighted average number of ordinary shares in issue and ranking for dividend during the year. Diluted earnings per share is computed by dividing the loss after taxation for the year by the weighted average number of ordinary shares in issue, adjusted for the effect of all dilutive potential ordinary shares that were outstanding during the year.

The following table sets out the computation for basic and diluted earnings per share (EPS):

Basic and diluted loss per share is the same as the effect of the outstanding share options is anti-dilutive and is therefore excluded.

3. Intangible Assets

Exploration and evaluation assets relates to expenditure incurred in prospecting and exploration for gold and oil in Iran, Ghana and Bolivia. The directors are aware that by its nature there is an inherent uncertainty in such development expenditure as to the value of the asset. In relation to the Iranian operations, discovery certificates were applied for in 2008 in respect of both the Chah-e-zard project and the Dalli project, neither of which have been received. As there is no guarantee that a discovery certificate and development licence will be issued in respect of either project in Iran, the Directors have decided to provide in full against the carrying value of the Iranian assets. Accordingly an impairment provision of £1,934,807 has been recorded by the group in the current period (company: £1,597,198).

4. Investments

The company purchased 1,425 new ordinary shares in Hydrocarbon Exploration plc, a UK company, in June 2010. On 6 April 2011 the company acquired all of the remaining issued share capital of Hydrocarbon Exploration Plc, on the basis of 2,800 Clontarf Energy Plc shares for every one Hydrocarbon Exploration Plc share. Following the acquisition admission to trading of the existing ordinary shares of Clontarf Energy Plc was cancelled and the shares of the new enlarged group were admitted to trading.

5. Post Balance Sheet Events

On 14 January 2011, the Board of Persian Gold Plc announced that it had received notices of exercise from a number of individual holders of warrants over new ordinary shares of the company at an exercise price of 4p per new ordinary share. Accordingly, the board resolved to issue and allot 2,455,000 new ordinary shares at a nominal value of 0.25p per new ordinary share at a price of 4p each. The Company has received £98,200 from the holders of such warrants after the year end.

On 23 March 2011 the company changed its name to Clontarf Energy plc. On 6 April 2011 the company acquired the total issued share capital of Hydrocarbon Exploration plc ("HyEx"), a UK company, on the basis of 2,800 Clontarf Energy plc shares for every one HyEx share for £4.56m in an all-share deal. Following the acquisition admission to trading of the existing ordinary shares of Clontarf Energy plc was cancelled and the shares of the new enlarged group were admitted to trading.

This acquisition represents an opportunity to acquire a diversified portfolio of exploration and production assets which have the potential to generate value for shareholders in the future.

The Company placed 41,688,171 Placing Shares at a price of 6p per share with investors to raise £2.5million before expenses on 6 April 2011. In addition, the Company has received subscriptions for 3,775,500 Subscription Shares at 6p per share, raising approximately £225,000.

On 6 April 2011 directors and senior management exercised 2,659,363 warrants and 5,400,000 options as detailed in the Scheme of Arrangement.

On 6 April 2011, following the completion of documentation and the subsequent raising of finance the suspension of AIM was lifted and the company announced its re-admission to the AIM market of the London Stock Exchange and the first day of its dealings in its ordinary shares.

On 28 April 2011 two former consultants to the company exercised options resulting in the issue of 1,400,000 new ordinary shares of 0.25p each.

6. General Information

The financial information set out above does not constitute the Company's financial statements for the year ended 31 December 2010. The financial information for 2009 is derived from the financial statements for 2009 which have been delivered to the Registrar of Companies. The auditors have reported on 2009 statements; their report was unqualified with an emphasis of matter in respect of considering the adequacy of the disclosures made in the financial statements concerning the valuation of intangible assets, and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006. The financial statements for 2010 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.

A copy of the Company's Annual Report and Accounts for 2010 will be mailed to all shareholders shortly and will also be available for collection from the Company's registered office, 20-22 Bedford Row, London WC1R 4JS. The Annual Report and Accounts may also be viewed on Clontarf Energy plc's website at www.clontarfenergy.com.