RNS Number:4107J
Black Rock Oil & Gas PLC
31 March 2003

CHAIRMAN'S STATEMENT

FOR THE SIX MONTHS ENDED 31 DECEMBER 2002

Black Rock continues to review new investments and opportunities for acquisition.
 
A summary of our current licences is set out below.  
 
During the period, and subsequent to 31 December 2002, Black Rock disposed of its entire shareholding and warrant
holding in Norwest Energy NL, which has strengthened the Company's cash position. Our holding in Norwest Energy NL
arose from the sale of an interest in an oil well drilled during October 2002, which was subsequently abandoned as
dry and so this asset trade for marketable securities has been a favourable outcome for the Company.

AUSTRALIA  
 
EP 373 Canning Basin  
 
The onshore Canning Basin of northern Western Australia is an extensive area of around 40,000 sq km. EP 373 is
located in the north central part of the basin and the Company is the operator and 100% permit holder. Efforts are
continuing to find a farm-in partner or partners for this block.  
 
PEL 425 Darling Basin  
 
PEL 425 is located in the Bancannia Trough, part of the Darling Basin of Western New South Wales, an area where minor
oil and gas shows have been reported both at surface and in wells. The licence is under-explored with only three
exploration wells drilled in the 1960's within the licence area of 10,425 square kilometres (approximately 2.57
million acres). A number of large structural leads have been mapped by Otto Oil Pty Ltd, from which this licence was
acquired in June 2001, using reprocessed seismic data.
 
EP 419, Perth Basin  
 
Black Rock has reached agreement with Norwest Energy NL to farm-out an 80% interest in Permit EP-419 in the Perth
Basin. Under the terms of the agreement, Norwest Energy NL will assume the role of Operator and will pay all the
costs of reprocessing existing seismic data recorded within EP-419. The sale is subject only to formal documentation
and relevant Government approvals.
 
EUROPE  
 
PEDL 113, PEDL 098 & PEDL 099 - Wessex Basin  
 
Black Rock has farmed out its interests during August 2002 in these three blocks in southern England, where the
second phase of exploration has commenced through which Black Rock has been free carried whilst retaining a 10%
interest in each block. Northern Petroleum Plc has taken over from Black Rock as operator.  
 
PEDL 042 & 026 - Weald Basin  

PEDL 042 is to be relinquished during March 2003.  

The administration problems caused by the insolvency of the previous operator, Independent Energy have not been fully
resolved on PEDL 026. However the Joint Venture partners have decided, based on technical work to date, to relinquish
the licence. No drillable prospects had been identified.  

DIVIDENDS

The directors do not recommend the payment of a dividend at this time.

David Steinepreis               
Chairman & Managing Director               

28 March 2003

CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE SIX MONTHS ENDED 31 DECEMBER 2002

                                                                                               
                                                                          (Unaudited)         (Unaudited)      (Audited)
                                                                     six months ended    six months ended     Year ended
                                                                     31 December 2002    31 December 2001   30 June 2002
                                                            Notes                  #                   #              #
                                                                                                                      
  Group turnover                                                                           -           -             -

  Cost of sales                                                                            -           -             -

  Gross profit                                                                             -           -             -

  Administrative expenses before impairment of exploration expenditure and         (138,180)   (158,527)     (365,524)
  goodwill                                                                                                            
                                                                                                                      
  Impairment of exploration expenditure and goodwill                                (54,258)    (10,851)   (2,406,091)

  Group operating loss - continuing                                                (192,438)   (169,378)   (2,771,615)

  Profit on disposal of interest in exploration licence - continuing                 174,062           -             -

  Loss on ordinary activities                                                       (18,376)   (169,378)   (2,771,615)
  before interest                                                                                                     

  Interest receivable                                                                    193       5,513         6,261

  Loss on ordinary activities                                                       (18,183)   (163,865)   (2,765,354)
  before taxation                                                                                                     

  Taxation                                                   3                            -           -             -

  Loss for the financial period                                                     (18,183)   (163,865)   (2,765,354)

  Loss per ordinary share                                                                                             
  Basic                                                      2                       (0.02p)     (0.20p)       (3.29p)
  Diluted                                                    2                       (0.02p)     (0.15p)       (2.47p)

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

FOR THE SIX MONTHS ENDED 31 DECEMBER 2002

                                                                                                                      
                                                        (Unaudited)                         (Unaudited)      (Audited)
                                                   six months ended   six months ended 31 December 2001     year ended
                                                   31 December 2002                                       30 June 2002
                                                                  #                                   #              #

  Retained loss for the period                             (18,183)                           (163,865)    (2,765,354)

  Exchange differences                                     (27,895)                            (21,581)          4,290
  Total gains and losses recognised for the                (46,078)                           (185,446)    (2,761,064)
  period                                                                                                              


CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2002
     

                                                                                         
                                                           (Unaudited)        (Unaudited)      (Audited)
                                                      31 December 2002   31 December 2001   30 June 2002
                                                   Notes             #                  #              #
                                                                                                     
                   Fixed assets                                                                      
                   Intangible assets                   4     1,003,707        3,630,028     1,297,865
                   Tangible assets                                 229              503           382
                                                             1,003,936        3,630,531     1,298,247
                   Current assets                                                                    
                   Debtors                                      51,700           22,570        31,569
                   Cash at bank and in hand                    121,825          146,945        36,674
                   Listed investments                          112,692                -             -
                                                               286,217          169,515        68,243

                   Creditors: amounts falling due             (69,181)         (98,629)      (99,440)
                   within one year                                                                   

                   Net current assets/(liabilities)            217,036           70,866      (31,197)

                   Total assets less current                 1,220,972        3,701,417     1,267,050
                   Liabilities                                                                       

                   Net assets                                1,220,972        3,701,417     1,267,050

                   Capital and reserves                                                              
                   Called up share capital             5       488,126          409,376       488,126
                   Shares to be issued                 5             -          200,000             -
                   Share premium account               6     3,842,240        3,579,739     3,842,240
                   Profit and loss account             6   (3,109,394)        (487,698)   (3,063,316)

                   Shareholders' funds                 7     1,220,972        3,701,417     1,267,050


CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 31 DECEMBER 2002

     

                                                                                                                      
                                                         (Unaudited)                        (Unaudited)      (Audited)
                                                    six months ended  six months ended 31 December 2001     year ended
                                                    31 December 2002                                      30 June 2002
                                            Notes                  #                                  #              #

  Net cash outflow from operating               8          (130,796)                          (207,046)      (388,838)
  activities                                                                                                          

  Returns on investments and servicing                                                                                
  of finance                                                                                                          
  Investment income                                              193                              5,513          6,261
                                                           (130,603)                          (201,533)      (382,577)
  Acquisitions and disposals                                                                                          
  Net funds used for investing in                           (11,076)                           (95,973)      (159,199)
  exploration                                                                                                         

  Net cash outflow from acquisitions and                    (11,076)                           (95,973)      (159,199)
  disposals                                                                                                           

  Net cash inflow/(outflow) before                         (141,679)                          (297,506)      (541,776)
  financing                                                                                                           

  Financing                                                                                                           
  Proceeds from sale of listed                               226,830                                  -              -
  investments                                                                                                         
  Proceeds from issue of shares                                    -                                  -        122,500
  Cost of raising capital                                          -                           (11,499)              -

  Net cash inflow/(outflow) from                             226,830                           (11,499)        122,500
  financing                                                                                                           

  Increase/(decrease) in cash                   9             85,151                          (309,005)      (419,276)
                    

NOTES TO THE FINANCIAL INFORMATION

FOR THE SIX MONTHS ENDED 31 DECEMBER 2002

1.     Basis of preparation

1.1 The financial information is prepared in accordance with the historical cost convention and in accordance with
applicable accounting standards and the Statement of Recommended Practice "Accounting for Oil and Gas Exploration,
Development, Production and Decommissioning Activities".

1.2 The results for the six month periods ended 31 December 2002 and 31 December 2001 are unaudited and do not
constitute statutory accounts as defined in section 240 of the Companies Act 1985. They have been prepared using
accounting bases and policies consistent with those used in the preparation of the financial statements of Black Rock
Oil & Gas PLC for the year ended 30 June 2002.

1.3 The comparative figures for the year ended 30 June 2002 are extracted from the statutory financial statements
which have been filed with the Registrar of Companies and which contained an unqualified audit report and did not
include a statement under section 237(2) or (3) of the Companies Act 1985.

2.     Loss per ordinary share

The basic loss per ordinary share has been calculated using the loss for the financial period of #18,183 (six months
to 31 December 2001 - loss of #163,865; year ended 30 June 2002 - loss of #2,765,354) and the average number of
ordinary shares in issue of 97,625,200 (six months to 31 December 2001 - 81,851,559; year ended 30 June 2002 -
84,052,323).

The diluted loss per ordinary share has been calculated using the loss for the financial period of #18,183 (six
months to 31 December 2001 - loss of #163,865; year ended 30 June 2002 - loss of #2,765,354) and the average number
of ordinary shares in issue and those expected to be issued in respect of outstanding warrants and options of
106,745,240 (six months to 31 December 2001 - 111,922,987; year ended 30 June 2002 - 111,836,223).

3.     Taxation

No liability to UK or overseas taxation has arisen during the period and no provision for deferred tax was considered
necessary.

4.     Intangible assets
     
     

                                                                                      
                                  The intangible assets can be summarised as follows: 
                                                                                               
                                                          Exploration                          
                                                        and appraisal                          
                                                          expenditure    Goodwill         Total
                                                                    #           #             #
                         Cost                                                                  
                         At 1 July 2002                     3,721,227     217,031     3,938,258
                         Exploration expenditure               11,076           -        11,076
                         Disposals                          (222,095)           -     (222,095)
                         Exchange loss                       (28,881)           -      (28,881)
                                                             ________    ________      ________
                         At 31 December 2002                3,481,327     217,031     3,698,358
                                                             ________    ________      ________
                         Amortisation and Impairment                                           
                         At 1 July 2002                   (2,495,520)   (144,873)   (2,640,393)
                         Charge for the period                      -    (54,258)      (54,258)
                                                             ________    ________      ________
                         At 31 December 2002              (2,495,520)   (199,131)   (2,694,651)
                                                             ________    ________      ________
                         Net book value                                                        
                         At 31 December 2002                  985,807      17,900     1,003,707
                                                              =======     =======       =======
                         At 30 June 2002                    1,225,707      72,158     1,297,865
                                                              =======     =======       =======
5.     Share capital

                                                                                                 
                                                                  31 December 2002   30 June 2002
                                                                                 #              #
                      Authorised                                                                 
                      200,000,000 ordinary shares of 0.5p each           1,000,000      1,000,000
                                                                           =======        =======
                      Allotted, called up and fully paid                                         
                      97,625,200 ordinary shares of 0.5p                   488,126        488,126
                                                                           =======        =======

The Company also has in issue warrants 45,600,200 exercisable at 1 penny each up to 1 May 2004 and 4,885,012 options
exercisable at 5 pence each up to 8 April 2004.

The movements in the share capital and the warrants are summarised below:

                                                                                                 
                                                               Number of    Number of   Number of
                                                                  shares     warrants     options

                       At 1 July 2002 and 31 December 2002    97,625,200   45,600,200   4,885,012
                                                               =========    =========   =========

6.     Reserves

Movements in the share premium and profit and loss account during the period were as follows:

                                                                                       
                                                                    Share        Profit
                                                                  Premium      and loss
                                                                        #             #
                                At 1 July 2002                  3,842,240   (3,063,316)
                                Retained loss for the period            -      (18,183)
                                Exchange differences                    -      (27,895)
                                                                 ________      ________
                                At 31 December 2002             3,842,240   (3,109,394)
                                                                  =======       =======

7.     Reconciliation of movements in shareholders' funds - equity only
     

                                                                                                        
                                                           (Unaudited)        (Unaudited)      (Audited)
                                                         Six months to      Six months to     Year ended
                                                      31 December 2002   31 December 2001   30 June 2002
                                                                     #                  #              #

                Loss for the period                           (18,183)          (163,865)    (2,765,354)

                Net proceeds from issues of shares                   -           (11,499)        329,752
                Shares to be issued                                  -            200,000              -
                Exchange differences                          (27,895)           (21,581)          4,290
                                                              ________           ________       ________
                                                              (46,078)              3,055    (2,431,312)
                Opening shareholders' funds                  1,267,050          3,698,362      3,698,362
                                                              ________           ________       ________
                Closing shareholders' funds                  1,220,972          3,701,417      1,267,050
                                                               =======            =======        =======

8.     Reconciliation of operating loss to net cash inflow from operating activities
               

                                                                                                         
                                                            (Unaudited)        (Unaudited)      (Audited)
                                                          Six months to      Six months to     Year ended
                                                       31 December 2002   31 December 2001   30 June 2002
                                                                      #                  #              #
              Group operating loss                             (18,376)          (169,378)    (2,771,615)
              Impairment of exploration expenditure                   -                  -      2,261,218
              Decrease in debtors                                23,198             10,027          1,029
              Decrease in creditors/provisions                 (30,259)           (37,119)       (29,055)
              Foreign exchange differences                        2,131           (21,581)          4,429
              Amortisation of goodwill                           54,258             10,851        144,873
              Depreciation                                          153                154            283
              Profit on disposal of interest in                                                          
              exploration licence                             (174,062)                  -              -
              Loss on sale of listed investments                 12,161                  -              -
                                                               ________           ________       ________
              Net cash outflow from                                                                      
              operating activities                            (130,796)          (207,046)      (388,838)
                                                                =======            =======        =======

9.     Analysis of changes in net funds

                                                                                                
                                                                  (Unaudited)        (Unaudited)
                                                    1 July 2002     Cash flow   31 December 2002
                                                              #             #                  #

                        Cash at bank and in hand         36,674        85,151            121,825

                                                        =======       =======            =======

     INDEPENDENT REVIEW REPORT TO BLACK ROCK OIL & GAS PLC

Introduction
We have been instructed by the Company to review the financial information for the six months ended 31 December 2002,
which comprises the Consolidated Profit and Loss Account, the Statement of Total Recognised Gains and Losses, the
Consolidated Balance Sheet, the Consolidated Cash Flow Statement and the related notes.

We have read the other information contained in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.

Directors' responsibilities
The interim report, including the financial information contained therein, is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the interim report on the basis that the
accounting policies and presentation applied to the interim figures should be consistent with those applied in
preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed.

Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices
Board for use in the United Kingdom. A review consists principally of making enquiries of group management and
applying analytical procedures to the financial information and underlying financial data and based thereon,
assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed.
A review excludes audit procedures such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in accordance with United Kingdom Auditing
Standards and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit
opinion on the financial information.

Review conclusion
On the basis of our review we are not aware of any material modifications that should be made to the financial
information as presented for the six months ended 31 December 2002.

     Hacker Young
Chartered Accountants
London

28 March 2003
 
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