Half Yearly Report

WESSEX EXPLORATION PLC

(AIM: WSX)

Unaudited Interim Results for the Half Year ended 31 December 2012

Wessex Exploration PLC ("Wessex" or "the Company"), the oil and gas exploration company, is pleased to announce its unaudited interim results for the half year ended 31 December 2012

Highlights

·; In Guyane, drilling activities continue on GM-ES-3 (Priodontes)

·; Extensive 3-D seismic programme to the southeast and northwest of the Cingulata fan system in Guyane is complete and processing/interpretation underway

·; Regional review of petroleum systems in Juan de Nova has commenced

·; Cash position at 31 December 2012 was £7.9m

·; Appointment of Iain Patrick as non-executive director in February 2013

Commenting on the results, Malcolm Butler (Chairman of Wessex) said…

"There has been substantial activity in Guyane over recent months with the spudding of Priodontes (GM-ES-3) and the completion of the 3-D seismic programme over the remainder of the potential turbidite fan complexes."

"…Over the coming year, we intend to focus our financial resources on the Guyane asset in order to participate fully in the calendar 2013 drilling campaign."

Chairman's Statement

Introduction

I am pleased to present this Half Yearly Report in respect of the six months ended 31 December 2012 to the shareholders of Wessex Exploration PLC. During the period the result of the GM-ES-2 (Zaedyus appraisal) well was announced and a number of important board changes were made.

Our strategic objective 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 seeking of third parties to share the cost of drilling high impact wells.

Financial Review

In the period under review, the loss before taxation was £824,051 (H1 2011: loss £601,573) and loss per share stood at 0.11p (H1 2011: loss 0.12p). Administration costs were £913,547 (H1 2011: £556,871), of which £259,923 were non cash items (including £156,454 of share option expense, £30,546 exchange rate variance and an impairment adjustment charge relating to historic expenditure of £72,557).

As at 31 December 2012, Wessex had a cash balance of £7.9 million (H1 2011: £11.9 million). The Company intends to use these funds primarily to participate fully in the ongoing exploration programme in Guyane during calendar 2013. A total of £2.45m was expended on the Guyane Project in the first half of the financial year, of which £0.59m was included in January billings.

Shareholder funds as at 31 December 2012 stood at £15.2 million (H1 2011: £15.7 million).

Projects

Guyane

Following the successful Zaedyus discovery well (GM-ES-1) in September 2011, an extensive follow-up appraisal and exploration programme commenced in 2012 with the Zaedyus appraisal well (GM-ES-2), the first of a four well drilling programme. The well, located 7 km from the discovery well, commenced drilling on 6 July 2012 and was aimed at appraising the Zaedyus discovery and testing the potential of a deeper turbidite fan.

In December 2012, it was announced that while the GM-ES-2 well encountered a total of 85 metres of reservoir quality sands with oil shows in several objectives, no commercial hydrocarbons were encountered at this location.

The partnership obtained valuable geological insights from these first two wells and has applied them in locating the second well in the current programme, Priodontes (GM-ES-3). This well was spudded in December 2012 in approximately 1,800 metres water depth and drilling activities continue.

An extensive 3-D seismic programme to the southeast and northwest of the Cingulata fan system commenced in July 2012. Over 750 square kilometres of 3-D seismic was acquired over the Cebus lead to the southeast and approximately 4,000 square kilometres of 3-D seismic was acquired to the northwest. This programme was completed in December 2012 and processing/interpretation of these data are underway.

Wessex holds a net 1.25% interest in the Guyane Maritime Exclusive Exploration Licence (EEL) covering an area of approximately 24,100 square kilometre offshore Guyane (a French prefecture previously known as French Guiana). The EEL interest is held via a 50/50 joint venture between Wessex and Northern Petroleum Plc, using Northpet Investments Limited as the holding company, with an aggregate interest of 2.5%. The other partners in the Guyane Maritime Permit are Shell (45% and operator), Tullow (27.5%) and Total (25%).

South of England

In the South of England, the Company continues to evaluate its three licences - the Company's two large traditional onshore licences PEDL's (Petroleum Exploration and Development Licences) 238 and 239 - and P1928 which is an offshore Promote licence granted in May 2012 as part of the second tranche of the 26th Offshore Bid Round. P1928 lies offshore the Hampshire and Isle of Wight coasts, between the Company's existing onshore licences and just east of the giant Wytch Farm oil field.

On PEDL 239, the 54 line kilometre 2-D seismic programme recorded in Q1 2012 over the Razorback lead on the Isle of Wight has now been processed and is being interpreted. Potential targets here are the conventional Triassic Sherwood Sandstone, productive in Wytch Farm, as well as unconventional shale oil or gas from the Jurassic.

The initial work commitment on P1928 consists of the purchase and reprocessing of some existing legacy seismic data and the acquisition of 70 kilometres of new 2-D seismic data. This seismic acquisition work, designed to de-risk the structural aspects of the Steelhead lead, is currently planned to take place later in 2013 once the relevant environmental studies have been done and appropriate official permissions have been obtained.

The intention of the partners - NWE Mirrabooka and Wessex - is to bring at least one of the known leads to drillable status in 2014 with a view to making a commitment to drill within the following two year period. This commitment is likely to be conditional on attracting a farm out Partner.

Wessex holds three licences in the South of England - PEDL 238: 50% interest; PEDL 239: 25% interest; and P1928: 35% interest - alongside its partner and operator, NWE Mirrabooka (UK) Pty. Ltd (a fully owned subsidiary of ASX listed Norwest Energy NL).

Juan de Nova Est Permit

During 2012, the partnership completed the reprocessing and interpretation of the purchased 1,000 kilometres of TGS-Nopec (2001) shallow water seismic data. The partners in the Permit have recently decided to combine the interpretation of this data set into a regional review of petroleum systems in the area, with the aim of identifying leads in both deep and shallow water areas that would benefit from the acquisition of new 2-D seismic data. Farm out discussions have been put on hold until this review has been completed.

It is planned to apply for a renewal of the Permit later in the year - the current Permit expires at the end of December 2013. In the meantime, Wessex is applying to the French authorities for formal assignment to it of the beneficial 70% interest acquired from Nighthawk Energy and Osceola Hydrocarbons (now Bluebird Energy) in 2009.

Wessex holds a 70% beneficial interest in the Juan de Nova Est Permit comprising 9,100 square kilometres in the Northern Morondava Basin in the Mozambique Channel, north-west of Madagascar. Wessex has been designated as operator, subject to the approval of the French authorities; Global Petroleum Limited (AIM: GBP, ASX: GBP) has a 30% interest.

SADR

Wessex holds three blocks in the Sahawari Arab Democratic Republic (SADR), Bojador (39,983 square kilometres), Guelta (15,760 square kilometres) and Imlili (16,955 square kilometres), 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.

The three licence blocks together give Wessex rights over an area of some 72,000 square kilometres, extending from the outcrops on the eastern side of the Aaiun Basin all the way into the deep water west of the Guelta block. All the ingredients for a working petroleum system are present in the area, with extensive sandstone formations having excellent reservoir potential; deltaic and near-shore fine grained rocks with hydrocarbon source and trap sealing characteristics, and even small scale salt basin structures in the most recently awarded Imlili block.

Activity in SADR continues to be delayed by a lack of resolution of the political status of the country. However, Wessex is determined to maintain its position in these blocks, which fit into the company's strategic objectives of gaining access to prospective acreage that is currently out of favour for reasons unrelated to its petroleum potential.

Board Changes

On 13 July 2012, Andy Yeo moved from the role of a non-executive director to that of Chief Financial Officer, a full time executive position. Mr Yeo was instrumental in the AIM flotation of Wessex and the subsequent fundraising.

On 23 November 2012, it was announced that Frederik Dekker, Managing Director, left the Company as a board director and employee with immediate effect. Dr Malcolm Butler assumed responsibility for technical and project input on the Company's assets.

The board was also pleased to have announced the appointment of Iain Patrick as a non-executive director on 6 February 2013. Mr Patrick has 30 years' experience in the international oil and gas industry including the post of Commercial Director at Monument Oil and Gas plc. He is a non-executive director of Madagascar Oil Limited (AIM: MOIL).

Outlook

Over the course of 2013, the main focus of our activities, both in terms of management and financial commitment is on Guyane. The drilling of Priodontes (GM-ES-3) is ongoing and will be followed later in the calendar year by the third well in the four well programme (GM-ES-4). We expect that the interpretation of the 3-D seismic programme which, was acquired last year, will lead to the identification of additional prospects beyond those currently planned for drilling.

Elsewhere, we continue to evaluate leads in our South of England assets and hope to acquire 70 kilometres of 2-D seismic on P1928 in the second half of calendar 2013. In Juan de Nova, we intend to complete the regional review of petroleum systems before deciding on the next steps. In both cases, we are likely to seek farm in partners before committing to the drilling of a well.

We anticipate that Guyane will account for some 90% of project spend this year and that Wessex has sufficient financial resources to participate fully in the calendar 2013 drilling campaign.

Unaudited Condensed Consolidated Income Statement

for the six months ended 31 December 2012

Unaudited Condensed Consolidated Statement of Comprehensive Income

for the six months ended 31 December 2012

Unaudited Condensed Consolidated Balance Sheet

as at 31 December 2012

Unaudited Condensed Consolidated Cash Flow Statement

for the six months ended 31 December 2012

Notes to the Unaudited Financial Information for the six months ended 31 December 2012

1 Accounting Policies

Basis of preparation

These condensed Half Yearly financial statements are for the six month period ended 31 December 2012.

The financial information for the 6 months ended 31 December 2012 and 31 December 2011 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 2012, 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 2013, 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 2012 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 (2011: £ 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

On 13 July 2012, 10,000,000 share options were issued for new Ordinary Shares of 0.1p each, exercisable at 10p each over a 10 year period.

5 Copies of the Half Yearly Report

A copy of this Half Yearly Report is available on the Company's website at www.wessexexploration.com.