Hague and London Oil Regulatory News (HNL)

WESSEX EXPLORATION PLC

(AIM: WSX)

Half Yearly Report for the Period ended 31 December 2011

Wessex Exploration PLC ("Wessex" or "the Company") is pleased to present this Half Yearly Report in respect of the six months ended 31 December 2011 highlighting continuing progress during the period being reported upon and to the present time.

Highlights

·; The success of the high profile Zaedyus exploration well drilled by Shell, Total, Tullow, Northern Petroleum and Wessex in Guyane waters

·; Successful placing of ordinary shares raising £12 million before expenses with several top tier European financial institutions

·; Successful provisional award in the United Kingdom 26th Seaward Licensing Round

·; Net assets increased by +400%

Chairman's Statement

Introduction

I am pleased to present this Half Yearly Report in respect of the six months ended 31 December 2011 to the shareholders of Wessex Exploration PLC. The key highlights during the period were a significant oil discovery offshore Guyane and a subsequent placing with several top tier European financial institutions, raising £12 million before expenses for future appraisal and development of this exciting new discovery.

Again, I re-iterate our strategic objective, which is to add value by proving up leads and plays in the licence and permit areas held by Wessex. In addition, the Company seeks to balance shareholder exposure to risk and capital outlay with appropriate reward by de-risking prospects, including the drilling of high impact wells by other parties.

There are several positive updates to be reported upon in respect of our project interests in Guyane, Southern England, Juan de Nova and Western Sahara respectively.

Guyane

As shareholders know, September 2011 was a "company changing" month for Wessex with news of the success of exploration well GM-ES-1 drilled on the Zaedyus prospect offshore Guyane with our partners Shell E&P France ("Shell") (45%), Tullow Oil plc ("Tullow") (27.5%), Total E&P Francaise SAS ("Total") (25%) and Northpet Investments Limited (2.5%), a joint venture between Northern Petroleum Plc and Wessex, each with a beneficial net holding of 1.25%.

Such is the prospectivity of the permit, the first exploration well drilled offshore Guyane by the Joint Venture has resulted in a successful discovery and has opened up the region as a new frontier oil play.

As a result of the Zaedyus discovery the joint venture partners anticipate the start of an exploration programme comprising the drilling of an appraisal/delineation and an exploration well expected to commence in mid-2012, simultaneously with the acquisition of 3-D seismic over selected areas of the Guyane Maritime Permit area.

The net proceeds of the placing will primarily be used to ensure the Company is able to maintain its percentage share in the upside potential of the project as further drilling and other work is undertaken.

To recap on already published information in respect of the Zaedyus discovery, 72 metres of net oil pay was encountered in two separate turbidite fans, consisting of good quality reservoir sands as predicted.

Extensive cores and wireline fluid samples were taken from the prospective pay zones and are now being analysed in considerable detail by specialist contractors.

Southern England

Late December 2011 brought the welcome and long awaited news that Wessex and its partner Australian based and listed Norwest Energy NL had been offered interests in five Promote blocks offshore Southern England by the Department of Energy and Climate Change.

The awards offered in the second tranche of the 26th Seaward Licensing Round comprise licence interests located within the English Channel namely, 98/6b, 98/7b, 98/8, 98/12 part and 98/13 split. These interests lie to the east and southeast of the Wytch Farm oilfield and encompass the area close to the historical 98/7-2 oil discovery.

Wessex will hold a 35% interest in the blocks and NWE Mirrabooka (UK) Pty Limited a subsidiary of Norwest Energy will hold the remaining 65% interest and be the operator. The acreage is believed to contain at least six different structural leads with a geological chance of success ranging from 15% to 32%.

Subject to the relevant documentation being completed the blocks will allow Wessex and its partner to explore the area for a two year period. Geological and geophysical studies will be conducted in conjunction with the acquisition and interpretation of new 2-D seismic data. The interests can convert from Promote to Traditional status with a drill or drop well commitment.

The provisional award of the offshore blocks complements Wessex's two existing onshore interests in the same area, Petroleum Exploration and Development Licences ("PEDL") 238 and 239 in which the Company holds 50% and 25% interests respectively.

The intention of the partners is to bring at least one of the known leads to a drillable status as soon as possible. This process has commenced with Tesla Exploration currently executing a 2-D seismic survey over the Razorback prospect located within PEDL 239 on the Isle of Wight on behalf of Wessex and Norwest.

The principal reservoirs are the sands of the Triassic Sherwood Sandstone, also the main reservoir at Wytch Farm, along with the Lower Jurassic Bridport Sandstone. A regional study has confirmed that the oil source is likely to be in the deep Channel Basin, lying south of the Purbeck Fault Zone. The Wessex interests are ideally situated to entrap any hydrocarbons generated and migrated northwards and eastwards from the basin.

Juan de Nova

The island of Juan de Nova lies in the Mozambique Channel and is an overseas territory of France. The permit covers an area of some 9,100 square kilometres and is 70% held by Wessex with Global Petroleum holding the remaining 30%.

A thick stratigraphic section of sedimentary and volcanic rocks ranging in age from Permian to Tertiary underlies the permit area and the geology suggests the existence of at least two and possibly three different hydrocarbon systems in the region.

A farmout campaign is underway being led by specialists ENVOI, a company offering marketing and advisory services to the oil and gas industry.

Proposals in respect of a farm in have been received and negotiations with a third party continue. The Company is also considering the purchase of approximately 1,000 kilometres of existing recent 2-D seismic data. It is believed that this data will be a significant improvement on existing data quality following reprocessing and will result in the recognition of several large fault block leads to be more accurately defined with a view to new 2-D survey, possibly leading to an 3-D seismic acquisition programme in late 2012.

Western Sahara

Wessex holds a 50% equity interest and is the operator of the large offshore Guelta and Imlili blocks and the onshore Bojador block respectively. AIM listed Tower Resources PLC holds the remaining 50% equity.

In October 2011 Wessex announced that it had signed an Assurance Agreement for a Production Sharing Contract for the Imlili block. This offshore block, the latest addition to the Western Sahara portfolio covers an area of approximately 16,500 square kilometres and lies between the Guelta and onshore Bojador blocks.

The United Nations considers the Western Sahara to be a Non-Self Governing territory; jurisdiction over the territory is disputed between Morocco to the north and the Saharawi Arab Democratic Republic ("SADR") proclaimed in 1976 by the Polisario Front.

If and when political status of the SADR is resolved the potential of the area can be explored.

Corporate

During December 2011, Wessex successfully raised £12 million before expenses by the placing of new ordinary shares with several top tier European financial institutions. The funds raised are being used primarily to participate fully in the Guyane forward work programme planned for 2012 and beyond.

At time of writing the net cash balance of Wessex is in excess of £11,500,000.

The majority of monies raised in the placing have been invested in high interest rate deposit accounts with high street and institutional banks. In the current environment of low interest rates we are pleased to have secured a market leading return without placing the capital at risk.

The Company remains debt free.

Summary

Evaluation of the project and corporate reviews demonstrate that marked progress has been made by the Company both through the Half Yearly period as well as since its admission to AIM in March 2011, both operationally and corporately.

Moving forward, Shell and the partners in Guyane are planning the next stage of appraisal and exploration drilling and agreeing the parameters of an extensive seismic acquisition programme over the Guyane Maritime Permit - not just for 2012 but beyond.

Expectations are high for the success of this venture. The Zaedyus discovery has proven a petroleum system exists within the permit area. The potential for a new frontier oil basin has been unlocked as a consequence of the discovery. Wessex has the funding to continue to participate in the ongoing evaluation of the Guyane Maritime permit for the foreseeable future.

Other active projects within the Wessex portfolio include Southern England and Juan de Nova, located within the Mozambique Channel. Appraisal to bring some of the leads in Southern England to a drillable status is key to progress and discussions with potential partners in Juan de Nova continue.

On the basis of this period of noteworthy progress, as ever I remain confident that the exploration portfolio and strategy of Wessex augur well for the future.

David Bramhill

Chairman

5 March 2012

Unaudited Condensed Consolidated Income Statement

for the six months ended 31 December 2011

Continuing operations:

Revenue - - -

Operating loss (556,871) (253,253) (1,343,085)

Finance income 5,402 606 5,975

Loss before taxation (601,573) (244,299) (1,336,845)

Attributable to:

Loss per share from continuing operations attributable to the equity shareholders of the Company

Unaudited Condensed Consolidated Statement of Comprehensive Income

for the six months ended 31 December 2011

Loss for the financial period (601,573) (244,299) (1,336,845)

Other comprehensive income

Other comprehensive income for the financial period, net of tax - - -

Attributable to:

Unaudited Condensed Consolidated Balance Sheet

as at 31 December 2011

Assets

Non-current assets

Intangibles 818,654 901,441 738,963

Property, plant and equipment 1,827 2,557 2,192

Current assets

Trade and other receivables 59,661 42,240 52,311

Equity and liabilities

Capital and reserves attributable to the Company's equity shareholders:

Share capital 4 719,365 379,365 479,365

Share premium account 16,662,941 2,759,935 5,509,935

Retained earnings (1,967,425) (273,308) (1,365,852)

Total equity 15,685,811 2,868,993 4,770,904

Current liabilities

Unaudited Condensed Consolidated Cash Flow Statement

for the six months ended 31 December 2011

Cash outflow from operating activities (473,575) (292,275) (1,157,250)

Cash flow from investing activities:

Purchase of intangible assets (79,691) (176,590) (152,487)

Investments in joint ventures (1,398,140) - (1,110,294)

Net cash used in investing activities (1,471,856) (175,984) (1,256,806)

Cash flow from financing activities:

Proceeds on issue of new shares 12,000,000 1,875,000 4,875,000

Net cash generated from financing activities 11,393,006 1,762,428 4,612,428

Net increase in cash and cash equivalents 9,447,575 1,294,169 2,198,372

1 Accounting Policies

Basis of Preparation

These condensed Half Yearly financial statements are for the six month period ended 31 December 2011.

The financial information for the six months ended 31 December 2011 and 31 December 2010 is unaudited.

The interim financial information in this report has been prepared on the basis of the accounting policies set out in the audited financial statements for the year ended 30 June 2011, which complied with International Financial Reporting Standards as adopted for use in the European Union ("IFRS").

IFRS is subject to amendment and interpretation by the International Accounting Standards Board ("IASB") and the IFRS Interpretations Committee and there is an ongoing process of review and endorsement by the European Commission.

The financial information has been prepared on the basis of IFRS that the Directors expect to be applicable as at 30 June 2012, with the exception of IAS 34 Interim Financial Reporting.

Financial information contained in this document does not comprise the Group's statutory financial statements as defined in section 434 of the Companies Act 2006.

The statutory financial statements for the year ended 30 June 2011 have been delivered to the Registrar of Companies. The auditors reported on these financial statements: their report was unqualified, did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis.

2 Loss per Share Attributable to the Equity Shareholders of the Company

Basic loss per share

The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:

2 Loss per Share Attributable to the Equity Shareholders of the Company (continued)

Number of shares

As at 31 December 2011, 30 June 2011 and 31 December 2010 the options in issue are not dilutive under IAS 33, Earnings per Share, because they would have the effect of decreasing the loss per share. As such there is no difference between the basic and dilutive loss per share at these dates.

Number of shares

3 Taxation

There was no tax charge for the Half Yearly period due to the loss incurred (2010: £nil). A deferred tax asset in respect of trading losses and share based payments has not been recognised due to the uncertainty over timing of future profits. The trading tax losses are recoverable against suitable future trading profits.

4 Share Capital

During the period to 31 December 2011, 240,000,000 shares were issued at 5p raising £12 million before expenses.

Following the Placing, there are 719,364,824 ordinary shares of 0.1p each in issue.

On 1 December 2011, 15,000,000 share options were issued for new ordinary shares of 0.1p each, exercisable at 6p each over a 10 year period.

5 Copies of the Half Yearly Report

A copy of this Half Yearly Report will be posted to shareholders on, or around, 12 March 2012 and is now available on the Company's website at www.wessexexploration.com.

This release has been approved by Frederik Dekker, BSc. (Geology), MA (Geology) FGS, who is a registered professional geologist with the American Association of Petroleum Geologists (AAPG). Mr Dekker is the Managing Director of Wessex Exploration PLC and has over 40 years of experience in the oil industry.