Hague and London Oil Regulatory News (HNL)

30 March 2015

Hague and London Oil PLC

("Company", "HALO")

Unaudited Interim Results for the Half Year ended 31 December 2014

Hague and London Oil PLC (AIM: HNL), the hydrocarbon exploration company, is pleased to announce unaudited interim results for the half year ended 31 December 2014. Formerly Wessex Exploration PLC, the Company was renamed during the period following the acquisition of Hague and London Oil B.V. ("HALO BV").

Highlights

Strategic

· Acquisition of HALO BV by Wessex Exploration PLC completed, new name:

o Hague and London Oil PLC

· Integration process launched with redefined strategic positioning and objectives

· New Directors joined the Board bringing regional, financial and industry experience

· New Nominated Adviser and Broker appointed, ticker symbol changed to HNL

Operational

· Philippines project, with oil discoveries, added to the portfolio

· Juan de Nova renewal application under consideration by authorities, results due by mid-2015

· Awarded three new Blocks, near Wytch Farm, offshore United Kingdom

· Initiated a Strategic Review of the French Guyana project

Financial

· Loss before taxation of £4.2 million (H1 2013: loss £6.2 million)

· Fully funded for existing commitments in 2015 with cash of £1.8 million

· Share of French Guyana joint venture fully impaired

· Share consolidation completed at ratio of 40:1 (now 24.1 million shares outstanding)

Andrew Cochran, Chairman and Interim CEO, commented:

"Hague and London Oil has built on the foundations of Wessex Exploration to create a nimble, ambitious independent exploration and production company with a global portfolio. We are now focused on rationalising and growing the portfolio of assets assembled by the previous management team as well as the assets, expertise and network the new team has brought to the Company. Whilst the current environment is challenging for exploration companies, it also creates considerable opportunities in the market. Hague and London Oil is well positioned to leverage these opportunities, with a focus on diversification and a lower risk profile while we currently sit atop a clean balance sheet and our portfolio is fully funded."

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Chairman's review

During the period, the Company completed the acquisition of HALO BV, with the aim of transforming Wessex Exploration into a sizeable, independent exploration and production player. The integration process is now well underway, with operational headquarters relocated to The Hague, a new website launched and a share consolidation completed. The new structure also has the advantage of being more cost-effective and therefore strengthens our financial resources.

The transaction has had a significant impact on the business, from its board composition, to its shareholders, capital structure, cash position and portfolio.

As a result of the combination, the Company now has a stronger board, with two experienced directors bringing knowledge of, and experience in, highly prospective markets. The acquisition of the Philippines asset also diversified the portfolio both geographically and from the perspective of risk exposure. This asset has multiple oil discoveries which have development potential when oil prices rise, costs are reduced or both. With the significant cash injection from the acquisition of HALO BV and low commitments, the Company is fully funded through 2015 for the current portfolio.

The focus of the Directors is now on implementing the new strategy of repositioning the Company for a step-change in growth and scale. As part of this strategy, the new team has started screening multiple opportunities for diversification. The Board is mindful of the market conditions and limited capital availability, and with this in mind will prioritise cost-efficient, low risk options in the short-term, whilst building a high potential long-term portfolio for future growth.

Whilst small independents and the broader oil and gas industry are currently under pressure in these market conditions, we believe Hague and London Oil is in a strong position to capitalize on the opportunities arising from this environment in the short term to secure growth in the long term. With a broadened institutional investor base, new advisers, lower risk profile and focus on growth, we are committed to deliver on our strategy and create value for our fellow shareholders.

Financial review

In the period under review, the loss before taxation was £4.2 million (H1 2013: loss £6.2 million) and loss per share stood at 0.52p (H1 2013: loss 0.86p). Administration costs were £694,223 (H1 2013: £921,908), of which £116,978 (H1 2013: £201,432) related to non-cash share option expenses.

The loss includes our share of the operating loss attributable to our interest in the Guyane Maritime Joint Venture of £3.5 million (H1 2013: loss £5.3 million), resulting from the decision to fully impair the capitalized exploration costs associated with the French Guyana licence.

As at 31 December 2014, the Company had a cash balance of £1.8 million (31 December 2013: £2.4 million).

Shareholder funds as at 31 December 2014 stood at £2.5 million (31 December 2013: £6.0 million).

Project Review

Philippines

The Company (through its wholly owned subsidiary HALO BV) holds a 15% interest in Service Contract SC54A in the NW Palawan Basin, offshore Philippines. The partners are NIDO Petroleum Ltd (operator, 42.4%, recently acquired by Bangchak Petroleum), Kairiki Energy (30.1%) and TG World (BV) Corp. (12.5%).

SC54A, a c.880 sq.km licence block, is located over the shallower area of sector SC54, where water depths are generally less than 120 metres. The Company sees the potential to exploit the proven oil potential of the Nido Limestone pinnacle reef play by using low cost development concepts. The entire block is covered by 3D seismic data and contains a number of exploration prospects and leads as well as three oil discoveries.

On 5 September 2014, the operator announced that SC54A had been extended for a period of three years from 5 August 2014 to allow the partners to evaluate the results of the discoveries made and determine future plans. On the expiration of this period, the partners can decide to move into the next exploration phase, which would require one well to be drilled in 2018.

The Block contains multiple oil discoveries in mid-Miocene ("Nido") carbonates, most notably: Tindalo and Yakal. The operator has suggested that these potentially represent up to a gross (P10) 35.2 million barrels of oil in place. Tindalo had seen flow rates approaching 3,000 - 5,000 barrels of oil per day (bopd) during an extended well test performed by the operator in 2010. However, in the current oil price and service cost environment these are doubtfully economic until oil prices rise, service costs fall or both occur. The block also has substantial clastic turbidite ("Pagasa") exploration potential in the Miocene. The most notable example of this in the Philippines is the Galoc Field north of SC54A.

United Kingdom

HALO, as Licence Administrator (i.e. Operator) of Promote Blocks 98/7b, 98/8a and 98/12 (northern part), holds a 35% interest through its wholly-owned subsidiary Wessex Hydrocarbons Limited. Its partner, NWE Mirrabooka (UK) Pty. Ltd (a wholly-owned subsidiary of ASX-listed Norwest Energy NL) has a 65% interest.

Following the completion of licence documentation in late 2014, the award allows HALO and NWE to explore the licence for an initial period of two years commencing December 2014. At the end of this initial period, the partners must either commit to drill a well in the remaining two years of the licence or relinquish it in full.

These Blocks are on trend with the giant Wytch Farm field and Beacon discovery in the adjacent block to the west. There is a plunging anticline of almost due west-east orientation and there is potential down-dip of the Beacon oil discovery as well as in the forefront of the anticline to the south. The blocks are almost entirely covered by 3D seismic data already. The primary risk is trap and existing data under previous processing technology is not sufficient to de-risk this at present. The plans are to re-process and re-interpret this data in 2015 to assess trap integrity, deciding then within the next two years how best to proceed within these licences.

Western Sahara (Saharawi Arab Democratic Republic, "SADR")

Maghreb Exploration Limited (a wholly-owned subsidiary of HALO) and Comet Petroleum (SADR) Limited (a wholly-owned subsidiary of Tower Resources plc) each hold a 50% interest in three licence blocks under Assurance Agreements in the SADR - Bojador, Guelta and Imlili.

The Assurance Agreements are valid for periods of up to ten years and confer the right to convert to Production Sharing Agreements upon the meeting of certain external conditions, including the recognition of SADR sovereignty and formulation of comprehensive tax laws. Agreement was reached with the SADR authorities in October 2014 to renew the Imlili block for a period of three years. As the Bojador and Guelta blocks are also due to expire in October 2016, the Company approached the authorities with a proposal to align the end dates of all three Assurance Agreements to a uniform date in December 2020. The Company will update on the outcome of these discussions as appropriate.

Recent third party drilling activity in the area demonstrated the presence of the elements of a working petroleum system within the tertiary deltaic sediments. Whilst no commercial discovery was announced, the presence of gas and condensate in these clastic reservoirs over a sizeable interval is encouraging for the potential of hydrocarbons in the area with respect to reservoir and a thermally mature source rock.

Juan de Nova

The current Juan de Nova Permit expired on 30 December 2013 and is suspended pending determination by the French Authorities of the renewal application. HALO has the right to apply to take legal title to a 50% non-operated working interest in the event that a renewal is successful. The renewal acreage includes the northernmost and southernmost parts of the original permit, which are considered to be the most prospective. An update on this process is expected to be provided in 2015.

The Juan de Nova territory is on trend with the Davy/Walu Transform Margin which extends from Kenya all the way to Madagascar, forming a boundary on which some of the deep water reservoirs offshore Mozambique had been deposited. The geology here though is likely more akin to Northwest Madagascar where there are very large heavy oil deposits onshore. The initial technical work will focus on identifying potential pre-tertiary source kitchens and then possible traps within reasonable water depths but still at sufficient burial depths to perhaps preserve the quality of any oil deposits. The Company anticipates drilling offshore Northwest Madagascar by other companies in the next year or two; those results would be highly relevant to Juan de Nova.

French Guyana

The Company holds a 44.11% interest in Northpet Investments Limited ("Northpet"), giving it a 1.103% beneficial interest in the Guyane Maritime Permit. The remaining interest in Northpet is owned by Northern Petroleum plc. Northpet holds a 2.5% interest in this Permit in partnership with Shell (operator, 45%), Tullow (27.5%) and Total (25%).

Toward the end of the year the Company placed French Guyana under Strategic Review and has fully impaired the asset value. Management is currently evaluating what best to do with HALO's equity in the Northpet joint venture as it has been deemed "non-core" with respect to the new strategic directions the Company has adopted. The Company will provide details of what, if anything, results from this strategic review process after consultation with the joint venture partner.

Board changes

On completion of the acquisition of HALO BV, on 31 October 2014, Andrew Cochran and William Phelps joined the board of the Company. Mr Cochran was appointed Chairman and Interim Chief Executive Officer and Mr Phelps as a non-executive director.

At the Company's Annual General Meeting on 19 December 2014, Andy Yeo stepped down as Chief Financial Officer and Iain Patrick as non-executive director. Malcolm Butler, formerly Chairman, remains a non-executive director.

Change of Accounting Reference Date

As part of the restructuring process, the Company intends to change its Accounting Reference Date from 30 June to 31 December to align its financial calendar with the sector. There will therefore be a second interim reporting period for the six months ending 30 June 2015. Full audited results for the 18 month period ending 31 December 2015 will be published on or before 31 March 2016.

Resource information

The information relating to the Tindalo and Yakal discoveries, Philippines, was reviewed by independent consultants, ISIS Petroleum Consultants Pty Ltd in March 2009. The resources discovered by the Tindalo-1 and Yakal-1 wells are defined as Contingent Resources in the Development Pending sub-class under the Petroleum Resources Management System approved by the Society of Petroleum Engineers.

Unaudited Condensed Consolidated Income Statement

for the six months ended 31 December 2014

Unaudited Condensed Consolidated Statement of Comprehensive Income

for the six months ended 31 December 2014

Unaudited Condensed Consolidated Balance Sheet

as at 31 December 2014

Unaudited Condensed Consolidated Cash Flow Statement

for the six months ended 31 December 2014

Notes to the Unaudited Financial Information for the six months ended 31 December 2014

1 Accounting Policies

Basis of preparation

These condensed Half Yearly financial statements are for the six month period ended 31 December 2014

The financial information for the six months ended 31 December 2014 and 31 December 2013 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 2014 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 31 December 2015.

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 2014 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 is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.Given the Group's reported loss for the year share options are not taken into account when determining the weighted average number of ordinary shares in issue during the year and therefore the basic and diluted earnings per share are the same.

If the Company's share options were taken into consideration in respect of the Company's weighted average number of ordinary shares for the purposes of diluted earnings per share, it would be as follows:

3 Taxation

There was no tax charge for the half yearly period due to the loss incurred (2014: £ 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 Acquisition of Hague and London Oil B.V.

On 31 October 2014 the Company completed the acquisition of HALO BV. Consideration for the acquisition was satisfied by the issue of 241,000,000 ordinary shares, representing approximately 25% of the Company's enlarged share capital.

HALO BV holds a 15% interest in Offshore Service Contract SC54A, a prospective asset in the Philippines and held cash of £0.6 million at acquisition.

The acquisition of HALO BV was only completed two months before the balance sheet date of 31 December 2014. The initial accounting for the business combination is therefore incomplete and the amounts recognized in the financial statements are provisional. The fair values of the acquired intangible assets are provisional pending the final valuations of these assets.

5 Copies of the Half Yearly Report

A copy of this Half Yearly Report is available on the Company's website at: www.haloil.co.uk