Hague and London Oil Regulatory News (HNL)

WESSEX EXPLORATION PLC

(AIM: WSX)

Trading Update

Acquisition target identified

Wessex Exploration PLC ("Wessex" or "the Company"), the hydrocarbon exploration company, today provides the following trading update.

Advanced Discussions

Wessex is pleased to inform shareholders that it is now in advanced discussions with the vendors of a company holding an interest in a prospective offshore asset in the Far East, which the Directors believe is capable of near-term production. The acquisition, to be paid for by way of shares, will hold sufficient cash to cover its contractual drilling obligation and will bring with it a highly experienced, well-known and successful board level management team.

Further details of the intended acquisition will be announced when Heads of Terms are signed.

However, completion of the transaction is conditional, inter alia, on shareholders voting against all seven resolutions in the forthcoming General Meeting.

General Meeting ("GM")

In connection with the requisitioned GM, the Company confirms it is today posting the notice convening a GM for the purposes of considering resolutions proposed by Milroy Capital Limited ("Milroy Capital") and Mr Frederik Dekker. According to the Company's records, Milroy Capital currently owns just 4.56 per cent. of Wessex and yet, with the assistance of Mr Dekker, proposes to take control of the Board. The unanimous recommendation of the Directors is that shareholders should vote against all the Resolutions.

The General Meeting will be held at the offices of Ashfords LLP, Tower Wharf, Cheese Lane, Bristol BS2 0JJ on Thursday 15 May 2014 at 2.00 p.m.

Cash Resources

Since the results of GM-ES-2, the first well in the Shell operated four-well programme, proved disappointing, the board has taken appropriate steps to reduce overheads to help provide the Company with sufficient funds to carry it through into 2015, affording the Directors the opportunity to formulate alternative strategies from a stronger position. As a result, and as reported in the Company's interim results on 27 March 2014, corporate overhead in the first half of the current financial year fell by 44 per cent. over H1 2013.

At the end of March 2014, cash on hand stood at £2.15 million and overall cash spend was £0.26 million in the quarter.

Malcolm Butler, Chairman said…

"Now that advanced discussions are underway, the Company expects to sign Heads of Terms shortly and thereafter move to a final acquisition agreement as soon as practicable, conditional on rejection of all seven resolutions at the forthcoming General Meeting."

"If this acquisition is concluded, your Company will have additional, highly experienced directors with successful track records and a rejuvenated asset base to allow it to grow and prosper."

For further information please contact:

Notes to Editors on WSX

Guyane

Wessex holds an effective net interest of 1.103% in the deep water Exclusive Exploration Licence (EEL) covering an approximate 24,100 sq.km offshore area of Guyane (French Guiana). The EEL interest is held via a 44.11% interest in a joint venture between Wessex and Northern Petroleum Plc, using Northpet Investments Limited as the holding company with a total interest of 2.5%. The other partners in Guyane are Shell (45% and operator), Tullow (27.5%) and Total (25%).

Juan de Nova

An application has been made for a five year renewal of the Juan de Nova Est Permit, lying on the edge of the continental shelf to the east of Juan de Nova island in the Mozambique Channel. If the application is successful, the licence area will be around 4,000 sq.km and Wessex will have the right to take a 50% interest in the Permit. Global Petroleum Limited (AIM: GBP, ASX: GBP) will retain a 50% interest through its wholly-owned subsidiary, Jupiter Petroleum Juan de Nova Limited.

South of England

Our existing licences - PEDL 238, PEDL 239 and Promote Licence P1928 - in the South of England were all due to expire in the first half of 2014. The group therefore adopted a strategy of early relinquishment, without which the areas would not have been available for bidding in the 2014 onshore and offshore licencing rounds. The joint venture group intends to participate in both of these licensing rounds and if we are successful, we will have time to carry out the additional work necessary to define drillable locations on our existing prospects and leads. The application group will be led by Wessex, with Partner NWE Mirrabooka UK Pty Ltd.

Western Sahara (Saharawi Arab Democratic Republic "SADR")

Wessex holds three blocks, Bojador (39,983 sq.km), Guelta (15,760 sq.km) and Imlili (16,955 sq.km), under Assurance Agreements which cause Production Sharing Contracts to come into effect once the SADR government is able to take control of the territory. Wessex is the designated operator and holds a 50% interest; Tower Resources (AIM: TRP) has the other 50% interest.