RIFT OIL, Drilling for Oil in Papua New Guinea

Rift Oil PLC
21 December 2006


For Immediate Release 21 December 2006



Rift Oil PLC

('Rift' or the 'Company')

Interim Results for the six months ended 30 September 2006

Rift Oil PLC (AIM : RIFT), the oil and gas exploration company with assets in
Papua New Guinea, is pleased to announce its interim results for the six months
ended 30 September 2006.

Summary of key points:

• Successful application notified by Government of Papua New Guinea for
PPL261, 50/50 venture with Austral Pacific

• Strengthening of Board with appointment of Dr David Bennett as a
non-executive director

• Awaiting processing results from 54km of seismic data

• Also awaiting study defining commercialisation strategy for gas
discovery at Douglas 1 well (PPL 235)



Ian Gowrie-Smith, Chairman, commented:

'We have continued to make substantial progress since the publication of our
annual report in September. The awaited data will enable us to fully define and
establish the way forward for PPL 235 whilst also review the future involvement
and strategy for the Coral Sea Rig.'

For further information please contact:


Rift Oil PLC 020 73409970
David Lees, Finance Director

Buchanan Communications 020 7466 5000
Tim Anderson
Isabel Podda



Chairman's Statement



We have continued to make substantial progress during the brief period since I
wrote my last report to shareholders in the Annual Report on 26 September 2006.
Having completed significant new work in PPL 235 by drilling the Douglas well
and acquiring seismic data, we now will spend time analysing and using that
information to define our way forward in that Licence.



We have received notification from the Government of Papua New Guinea that our
application for PPL 261 (with Austral Pacific 50/50) was successful.



Prior to Christmas we expect the processing results of 54km of new seismic data.
This will be used to define appraisal well targets on the Douglas field and also
to more tightly define the Puk Puk target, which is a separate structure to
Douglas within PPL 235.



The study, targeted at defining the commercialisation strategy for the gas
discovered by the Douglas 1 well on PPL235, is also being completed prior to
Christmas; we are working closely with consultants to ensure that this study is
thorough and conclusive. Once this is available we will review the future
involvement and strategy for the Coral Sea Rig which we own with Austral (65%/
35%).



We recently announced that we have strengthened the Board of Directors by
recruiting Dr David Bennett. In addition to being the former CEO of Austral
Pacific, David has over 25 years experience in oil and gas, mostly in PNG and
New Zealand. His assistance in defining and activating the future of Rift has
already been felt and we look forward to working with him in the future.





IAN GOWRIE-SMITH

Chairman

21 December 2006


Consolidated Profit and Loss Account

For the six months ended 30 September 2006


Note Six months Six months 31 March
ended30 ended 30
September September
2006 2005 2006
(unaudited) (unaudited) (audited)
As restated As restated
£'000 £'000 £'000

Turnover - - -
Administrative expenses
Charge from employee Share option valuation (2) (2) (5)
Other administration expenses (72) (70) (261)
Total administration expenses (74) (72) (266)
Operating loss (74) (72) (266)
Bank interest receivable 26 36 59
Loss on ordinary activities before taxation (48) (36) (207)
Tax on loss on ordinary activities - - (83)
Loss after taxation for the period (48) (36) (290)
Loss per share 3 (0.013)p (0.100)p (0.097)p



There were no recognised gains or losses other than the loss for the financial
period.

Consolidated Balance Sheet

As at 30 September 2006


30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited) (audited)
As restatedAs restated
£'000 £'000 £'000
Fixed assets
Intangible assets 9,251 7,721 7,133
Tangible assets 1,313 - 1,318
10,564 7,721 8,451
Current assets
Debtors 4 22 4
Cash at bank and in hand 670 1,077 852
674 1,099 856

Creditors: amounts falling due within one year (102) (23) (188)
Net current assets 572 1,076 668
Net assets 11 ,136 8,797 9,119

Capital and reserves
Called up share capital 1,392 360 360
Shares to be issued 2 2 573
Share option reserve 9 2 5
Share premium account 10,186 8,582 8,582
Profit and loss account (451) (147) (401)
Shareholders' funds 11 ,136 8,797 9,119





Consolidated Cash Flow Statement

For the six months ended 30 September 2006


Note Six months Six months
ended ended
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited) (audited)
£'000 £'000 £'000

Net cash (outflow)/inflow from operating activities 4 (159) 1 (87)
Returns on investments and servicing of finance
Interest received 26 36 59
Taxation - - (3)
Capital expenditure
Purchase of intangible fixed assets (2,112 ) (17) (747)

Net cash (outflow)/inflow before financing (2,245) 20 (778)
Financing
Issue of ordinary share capital 2,063 - -
Received for share to be issued - - 573
Net cash inflow/(outflow) from financing 2,063 - 573
Increase in cash 5 (182) 20 (205)



Notes to the Interim Results

For the six months ended 30 September 2006



1 BASIS OF PREPARATION

The interim unaudited financial statements have been prepared in accordance with
applicable accounting standards and under the historical cost convention. The
principal accounting policies of the Group have remained unchanged from those
set out in the Group's 2006 Annual Report and financial statements, other than
adoption of FRS 20 'share based payments' which applied for the first in this
period. The impact of this was to increase administration expenses by £2,318 and
the comparatives have been restated.



The financial information herein does not constitute the statutory accounts as
defined in section 240(5) of the Companies Act 1985. The Report and Accounts for
the year ended 31 March 2006, on which the auditors' report was unqualified,
have been filed with the Registrar of Companies.



Copies of the Interim Report will be available to the public from the Company's
registered office at 17 Hanover Square, London, W1S 1HU.





2 DIVIDENDS

The Directors have not declared a dividend for the six months ended 30 September
2006.





3 LOSS PER SHARE

The calculation for the basic loss per share is based upon the loss attributable
to ordinary shareholders divided by the weighted average number of shares in
issue during the year.



Reconciliation of the loss and weighted average number of shares used in the
calculations are set out below:


Six months Six months
ended ended
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited) (audited)
As restated As restated
£'000 £'000 £'000
Basic loss per share
Loss on ordinary activities before tax (£'000) (48) (36) (290)
Weighted average number of shares ('000) 356,612 36,040 299,132
Amount of loss per share (pence) (0.013)p (0.100)p (0.097)p





4 NET CASH OUTFLOW FROM OPERATING ACTIVITIES


Six months Six months
ended ended
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited) (audited)
As restated As restated
£'000 £'000 £'000
Operating loss (74) (72) (266)
Increase in employee share option valuation 2 2 5
Decrease/(increase) in debtors - 89 107
(Decrease)/increase in creditors (87) (18) 67
Net cash inflow/(outflow) from operating activities (159) 1 (87)






5 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS


Six months Six months
ended ended
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited) (audited)
£'000 £'000 £'000

(Decrease)/increase in cash in the period (182) 20 (205)
Net funds at beginning of period 852 1,057 1,057
Net funds at end of period 670 1,077 85








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