Interim Results

Immediate Release

18 August 2011

MAPLE ENERGY PLC

("MAPLE" OR THE "COMPANY")

Interim results

for the six months ended 30 June 2011

Maple Energy plc (AIM:MPLE, LIMA:MPLE), an integrated independent energy company with subsidiary assets and operations in Peru, today announces its preliminary financial results for the six months ended 30 June 2011. Capitalized terms used but not defined in this release have the meanings assigned to them in the 2010 annual report.

Key Financial Highlights for the six months ended 30 June 2011:

·; Revenues increased by 16% to US$40.7 million (H1 2010: US$35.0 million).

·; Gross profit increased by 20% to US$12.9 million (H1 2010: US$10.8 million).

·; Adjusted EBITDA (defined below) increased by 35% to US$7.2 million (H1 2010: US$5.3 million).

·; Depreciation and amortisation expense fell to US$3.1 million (H1 2010: US$4.5 million).

·; Net profit after tax was US$5.9 million; equivalent to earnings of US 3.74 cents per share (H1 2010: net loss after tax of US$0.2 million, restated; equivalent to a loss of US 0.27 cents per share, restated).

Other Financial Highlights

·; Made additional investment of approximately US$50 million in the Ethanol Project during the six months ended 30 June 2011; as of 30 June 2011, approximately US$214 million had been spent for the development and construction of the Ethanol Project.

·; Second and third disbursements of funds under the senior secured debt financing for the Ethanol Project (the "Ethanol Project Debt Financing") of US$40 million and US$25 million occurred in January and July 2011, respectively.

·; Entered into a US$6 million, three-year credit facility with Banco Internacional del Peru ("Interbank") in July 2011 and drew down the full US$6 million to repay fully the outstanding indebtedness of an existing medium term facility with Banco de Credito del Peru.

·; Renewed in July 2011 a stand-by letter of credit from Interbank in the amount of US$12.5 million to guarantee the funding of any future cost over-runs or other necessary expenditures for the Ethanol Project in excess of budgeted amounts.

Ethanol Project Highlights for the six months ended 30 June 2011 (Maple Etanol S.R.L. and Maple Biocombustibles S.R.L.)

·; Planted approximately 2,560 hectares of commercial sugar cane on the main estate, using sugar cane from the 345-hectare seed cane farm; as of today, approximately 3,550 hectares of commercial sugar cane have been planted on the main estate.

·; Substantially completed the El Arenal pump station on the Chira River.

·; Installed approximately nine kilometres of pipelines for the main water delivery system; as of today, approximately 41 kilometres of the approximate 43-kilometre water pipeline system which forms part of the main water delivery system have been installed.

·; Completed the civil works on two additional drip pumping stations and placed three drip pumping stations into service; as of today, the civil works have been completed for 11 pumping stations, and six of these stations are available for operation with five of these currently in operation.

·; Installed over 2,800 hectares of drip irrigation tape; as of today, drip irrigation tape has been installed in approximately 4,600 hectares of the plantation.

·; Completed substantially all of the civil works for the major equipment packages for the ethanol plant.

·; Substantially all of the sugar cane handling, juice extraction, and juice treatment equipment has been manufactured and transported to the Ethanol Project site. As of 30 June 2011, approximately 55% of this equipment was erected and installed, and approximately 78% of this equipment has been erected and installed as of today.

·; Substantially all of the fermentation, distillation and dehydration equipment necessary to produce fuel-grade ethanol has been manufactured and transported to the Ethanol Project site. As of 30 June 2011, approximately 65% of this equipment was erected and installed, and approximately 80% of this equipment has been erected and installed as of today.

·; Substantially all of the boiler and complementary steam generation equipment has been manufactured and transported to the Ethanol Project site. Approximately 60% of this equipment was erected and installed as of 30 June 2011, and approximately 80% of this equipment has been erected and installed as of today.

·; The 37-megawatt turbogeneration unit has been manufactured and delivered to the Ethanol Project site, and all the major components of the steam turbine and generator for the power generation facilities have been installed.

·; Completed and placed into service the 36 kilometre, 60-kilovolt transmission line to interconnect with the national power grid.

·; Penta Tanks Terminals S.A. ("Penta") completed approximately 83% of the works for the ethanol storage, loading, and shipping facilities near the port of Paita as of 30 June 2011, and Penta has completed approximately 85% of such works as of today.

Hydrocarbon Production, Refining and Marketing Highlights for the six months ended 30 June 2011 (Maple Gas Corporation del Peru S.R.L.)

·; Refinery feedstock averaged approximately 1,936 barrels per day ("bpd"), compared to 2,187 bpd during the same period in 2010, consisting of natural gasolines supplied by Aguaytia Energy del Peru S.R.L. ("Aguaytia Energy") and crude oil from Maple's oilfields.

·; Average daily sales of refined products were 1,804 bpd, compared to 1,993 bpd during the same period in 2010.

·; Average daily crude oil production was approximately 445 bpd, compared to approximately 498 bpd during the same period in 2010.

Board Changes

·; As announced on 7 June 2011, Mr. Antonio Villa Mardon resigned as Independent Non-Executive Director, and the Nomination Committee has commenced its search for a new independent non-executive director.

Nigel Christie, Chairman of Maple, commented today:

"I am very pleased with the results that Maple announced today which show higher revenues and a significant increase in profits compared to the same period last year. The successful implementation of Maple's 2009 and 2010 cost reduction programmes, as well as higher hydrocarbon prices, have contributed to this significant improvement in financial performance. The Company continues to make excellent progress towards completion of its Ethanol Project, and Maple remains on target to commence commercial ethanol production in the fourth quarter of this year. This achievement will represent a transformational event in the Company's development, with the goal of being a low-cost, globally competitive ethanol producer."

For further information, please contact

Maple Energy plc (+ 51 1 611 4000)

Nigel Christie, Chairman of the Board and Independent Non-Executive Director

Rex W. Canon, Chief Executive Officer, President, and Executive Director

Jefferies International Limited (+44 20 7029 8000)

Julian Smith

Thomas Rider

Mirabaud Securities Ltd (+44 20 7321 2508)

Peter Krens

Rory Scott

Citigate Dewe Rogerson (+44 20 7638 9571)

Martin Jackson

Kate Lehane

Earnings Call

Rex W. Canon, Chief Executive Officer, and James L. Pontiff, Chief Financial Officer, will host a conference call to present and discuss the Company's results for the six months ended 30 June 2011 on Monday 22 August 2011 at 4:00 pm BST (10:00 a.m. Peruvian time). The call can be accessed by dialing 0800 634 5205 (within the UK), +1 866 629 2704 (within the US) or +44 208 817 9301 (International including Peru). Call participants will be asked for their full name, company details, and pass code. The pass code for this call is 5456852. A recording of the conference call will be available shortly thereafter on Maple's website at www.maple-energy.com.

Operating Results for the six months ended 30 June 2011

Consolidated revenues increased by 16% to US$40.7 million compared with US$35.0 million during the same period in 2010, primarily due to higher crude oil prices during the period compared to the same period in 2010. Consolidated gross profit increased by 20% to US$12.9 million compared with US$10.8 million for the same period in 2010.

Maple generated net profit after tax of US$5.9 million (earnings of US 3.74 cents per share) compared to a net loss after tax of US$0.2 million for the same period in 2010 as restated (loss of US 0.27 cents per share as restated). Adjusted EBITDA, a key performance indicator for measuring Maple's underlying financial operating efficiency, was US$7.2 million compared to US$5.3 million during the same period in 2010.

The table below shows Maple's (i) summary consolidated financial data for the period, (ii) summary consolidated financial data for the same period in 2010, and (iii) other summary financial and operating data.

(1) Adjusted Earnings Before Interest Taxation Depreciation and Amortisation ("Adjusted EBITDA") is calculated as operating income before exploration expenses plus depreciation and amortisation.

(2) These figures were restated for a change in accounting policy outlined in Note 4 to the interim results.

Shown below is a reconciliation of operating income to Adjusted EBITDA:

(1) These figures were restated for a change in accounting policy outlined in Note 4 to the interim results.

Cash and cash equivalents were US$15.9 million at 30 June 2011 compared to US$7.7 million at 30 June 2010. The higher cash and cash equivalents balance was primarily due to the outstanding balance of the cash resulting from the second disbursement of the Ethanol Project Debt Financing.

Material Factors Affecting Operating Results

The Company's hydrocarbon operations are primarily conducted through its Peruvian subsidiary, Maple Gas Corporation del Peru S.R.L. ("Maple Gas"). Maple Gas' results of operations have historically been materially impacted by certain factors, including (i) the international price of oil, (ii) volumes of hydrocarbons produced by Maple Gas and Aguaytia Energy and delivered as feedstock to the Pucallpa refinery, and (iii) the level of total operating and administrative costs. These factors are operational or financial in nature, and certain of these factors are beyond the Company's ability to control them. Set forth below is a brief description of each of these factors and its impact on Maple's results for the six months ended 30 June 2011.

Commodity Prices

The international price of crude oil impacts the market prices in Peru and therefore the price for which Maple sells its refined products. As a result, increases or decreases in the international price of oil and other commodities can materially impact Maple's overall revenues. The international price of crude oil increased from US$78 per barrel during the first half of 2010 to US$98 per barrel during the first half of 2011 based on the average of spot prices for West Texas Intermediate crude oil. As a result of these higher crude oil prices, Maple was able to realise higher sales prices and gross profit from the sale of its refined products during the first six months of 2011 as compared to the same period in 2010. Specifically, Maple generated an average of US$39.65 of gross profit per barrel of refined product sold during the six months ended 30 June 2011 compared with an average of US$29.90 during the same period in 2010. This increase in gross profit per barrel of refined product sold materially and positively impacted Maple's first half 2011 financial results.

Refinery Feedstock

Maple's primary source of revenues is sales of hydrocarbons and refined products produced and sold from the Pucallpa refinery. The volume of refined products that the Pucallpa refinery is able to produce and sell to customers impacts the Company's cash flow and results of operations. The Pucallpa refinery's ability to produce refined products is directly impacted by the volume of feedstock that is delivered to the facility for refining. Since Maple and Aguaytia Energy currently provide all of the feedstock for the Pucallpa refinery, a decrease in the volumes of this feedstock due to declining production levels, or otherwise, can have a material adverse impact on the Company's results of operations.

Total refinery feedstock volumes delivered to the Pucallpa refinery decreased from an average of 2,187 bpd during the first half of 2010 to an average of 1,936 bpd during the first half of 2011. The reduction in feedstock was primarily a result of reductions in the volumes of natural gasolines received from Aguaytia Energy and lower production levels from the Maquia and Pacaya oilfields, offset by increased production from the Agua Caliente oilfield. The most significant reduction in feedstock volumes relates to natural gasolines produced by Aguaytia Energy which were affected by normal production decline as well as interruptions in natural gas liquids production due to weather conditions. The Company hopes that through future successful development activities, additional volumes of hydrocarbons may be produced to offset normal production declines or increase the total feedstock delivered to the Pucallpa refinery. If Maple is unable to increase the volume of feedstock from its own internal production activities, or if the refinery is unable to source additional feedstock from third parties, including Aguaytia Energy, the total volume of refined products produced and sold will continue to decline, which would materially impact future results of operations.

Cost of Sales

Cost of sales for the six months ended 30 June of 2011 was US$27.8 million compared to US$24.2 million for the same period in 2010. The most significant factor increasing Maple's cost of sales was the cost of the natural gasoline purchased from Aguaytia Energy, which increased due to higher commodity prices during the first half of 2011 as compared with the same period in 2010. During the first half of 2011, the average cost per barrel of natural gasoline purchased was US$71.52 compared to an average cost per barrel of US$51.38 during the first half of 2010.

Another significant factor affecting cost of sales was the royalty paid by Maple to the Peruvian government for its production from its producing fields. During the first half of 2011, Maple's total royalty payments increased to US$3.2 million compared to US$2.5 million during the same period in 2010.

Administrative Expenses

Administrative expenses decreased to US$5.3 million during the first half of 2011 compared to US$6.9 million during the first half of 2010 as restated. The decrease in administrative expenses can primarily be attributed to the implementation of the cost reduction programmes in 2009 and 2010.

The Company had 417 employees as of 30 June 2011 compared to 361 on 30 June 2010. Maple Gas reduced its employee headcount from 287 as of 30 June 2010 to 254 as of 30 June 2011, whereas Maple Etanol S.R.L. ("Maple Etanol"), the Peruvian subsidiary of the Company through which it primarily conducts the development and construction of the Ethanol Project, increased its employee headcount from 74 as of 30 June 2010 to 163 as of 30 June 2011. The reduction in employees in Maple Gas was primarily the result of the cost reduction programme implemented in 2010.

Outlook for the remainder of 2011

Maple expects 2011 to be one of the most important years in its history with the expected commencement of commercial operations of its Ethanol Project in the fourth quarter of this year. This event will mark a key milestone for the Company in its initiative to develop one of the first and most significant ethanol projects in Peru with the goal of being a low-cost, globally competitive ethanol producer.

The Company expects to strengthen its cash flow from operations through the continued optimisation of its hydrocarbon production, refining, and marketing activities and the savings generated by the cost reduction programme implemented in 2010. Based on the success of the fracture stimulation works performed on two oil wells in Agua Caliente in 2010, the Company has continued with additional well fracture stimulations in the Agua Caliente and Maquia oil fields in July and August of 2011 with the aim of increasing oil production. In addition, Maple continues to evaluate the shale gas opportunity in Block 31-E and seek to develop this asset with an industry partner.

Ethanol Project

The Ethanol Project is expected to commence commercial operations in the last quarter of 2011. In preparation for the start of commercial operations, the Company will be focused on the following activities during the remaining months of 2011: (i) achieving an additional disbursement pursuant to the Ethanol Project Debt Financing as required for the development and construction of the Ethanol Project, (ii) completion of the drip irrigation system for the initial 7,800 hectare plantation (the "Main Estate"), (iii) commercial planting of sugar cane on the Main Estate to achieve approximately 7,000 hectares of planted cane by year end 2011, (iv) completion of the ethanol plant including the power generation facilities, and (v) completion of the ethanol storage and loading facility by Penta.

Hydrocarbon Production, Refining, and Marketing Business Unit

At this time, the Company's primary source of operating cash flow is its hydrocarbon production, refining, and marketing business unit. As a result of the cost reduction programme implemented in 2010, the Company expects to continue to benefit from lower operating and administrative expenses during the remainder of 2011 which will contribute to Maple's objective to maximize the efficiency and profitability of this business unit. As of result of the eight well fracture stimulations performed in the Agua Caliente and Maquia oil fields in July and August of 2011, Maple expects to offset normal production declines and increase oil production to approximately 500 bpd from its three oil fields during the fourth quarter of 2011. Maple does not plan to drill any additional wells in its oilfields during 2011.

Devonian Shale Gas Opportunity in Block 31-E

After finding gas in the Devonian shale formation in Block 31-E, the Company obtained from Perupetro a retention period for the shale gas encountered in connection with the Santa 1X well, which period will provide time to advance this opportunity and potentially develop a market for the shale gas and declare a commercial discovery. Maple continues to evaluate geological information and other data that Maple has already acquired pursuant to the retention period chronogram of activities, and the investment required for these activities will not be significant this year. Maple will be seeking to identify a potential joint venture partner with relevant industry experience in the development of unconventional hydrocarbon resources such as shale gas. By eventually joint venturing with an industry partner, the Company plans to utilize such a partner's expertise in further evaluating the opportunity while also substantially reducing the Company's capital requirements by having the joint venture partner fund a substantial portion of the costs.

The execution of the 2011 operating plan by Maple's dedicated team of employees is expected to add significant value to the Company. By commencing commercial operations of the Ethanol Project, optimizing the hydrocarbon production and refining activities, and advancing the shale gas opportunity, Maple will further its mission of being a leading integrated energy company in Peru.

Forward-Looking Statements

Except for the historical information contained in this interim report, statements contained in this document, particularly those regarding possible, projected, or assumed future performance and results, including growth outlook, forecasted economics, operations, production, contracting, costs, prices, earnings, returns and potential growth, are or may include forward-looking statements. Such statements relate to future events and expectations and as such involve known and unknown risks and uncertainties. These risks and uncertainties include, among other things, market conditions, the price of hydrocarbons and ethanol, weather risks, economic and political risks, and other factors discussed in Maple Energy plc's Admission Document available on the Company's website (www.maple-energy.com). Forward-looking statements are not guarantees of future performance or an assurance that Maple's current assumptions and projections are valid. Actual results, actions, and developments may differ materially from those expressed or implied by those forward-looking statements depending on a variety of factors. Furthermore, any forward-looking statements presented are expressed in good faith and are believed to have a reasonable basis as of the date of this interim report for the six months ended 30 June 2011. These forward-looking statements speak only as at the date of this Interim Report, and Maple Energy plc does not assume any obligation to update any forward-looking statements contained herein, whether as a result of new information, future events, or otherwise.

In this Interim Report, "we," "us," "our," "the Group," "the Company," and "Maple" refer to Maple Energy plc and its subsidiaries, unless otherwise indicated or the context otherwise requires.

CONSOLIDATED INCOME STATEMENT

for the six months ended 30 June 2011

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the six months ended 30 June 2011

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 June 2011

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 30 June 2011

CONSOLIDATED STATEMENT OF CASH FLOWS

for the six months ended 30 June 2011

1. BASIS OF PREPARATION

The interim condensed consolidated financial statements for the six months ended 30 June 2011 have been prepared in accordance with IAS 34 Interim Financial Reporting ("IAS 34"). The interim condensed consolidated financial information is presented in US dollars, and all values are rounded to the nearest thousand (US$'000), except where otherwise indicated.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual consolidated financial statements as at 31 December 2010.

2. CORPORATE INFORMATION

The interim condensed consolidated financial statements for the six months ended 30 June 2011 were authorised for issue in accordance with a resolution of the directors on 17 August 2011.

Maple Energy plc ("Maple" or the "Company") was incorporated in the Republic of Ireland on 18 October 2006. On 12 February 2007, the Company re-registered as a public limited company. The Company is domiciled in the Republic of Ireland.

Prior to 30 November 2006, the group of companies (the "Maple Group"), which now form the consolidated financial statements of Maple Energy plc and its subsidiaries (collectively, "Maple" or the "Group"), was organized as two separate groups of companies under common control: The Maple Companies, Limited ("MCL") and The Maple Gas Corporation del Perú Ltd. ("Maple BVI"), both companies registered in the British Virgin Islands. Effective 30 November 2006, a series of transactions were undertaken whereby these entities were re-organised such that MCL acquired Maple BVI and its related entities. MCL also acquired various non-controlling interests. This business combination was accounted for using the purchase method of accounting.

On 7 February 2007, the Company entered into a share exchange agreement (the "Share Exchange Agreement") with the shareholders of MCL, whereby in return for the issuance of 48,581,113 Ordinary Shares of US$0.01 each, the Company acquired 1,619,371 shares of US$0.01 each of MCL, representing its entire issued shared capital at that time, and became the ultimate holding company of the Maple Group. This group re-organisation was accounted for using the pooling of interests method. The purpose of this re-organisation was to implement a more efficient group structure to facilitate the raising of capital on the Alternative Investment Market ("AIM") of the London Stock Exchange.

3. GOING CONCERN

The Group is currently in the process of executing the Ethanol Project in line with budget.

The Group has prepared forecasts and cash flow projections which take into account reasonably possible changes in the timing of starting operations of the Ethanol Project. These projections have been prepared in detail through to 30 September 2012 and support the conclusion of the Directors that the Group will be able to operate as going concern within the level of its current resources and those anticipated in the future.

The cash flow projections are dependent on the Group substantially achieving its forecast EBITDA. These projections are dependent upon a number of factors including the currently envisaged timing of first production from the Ethanol Project, the future price of ethanol, the capital expenditures of the Ethanol Project being in line with budget, and sugar cane yields. With respect to the Group's oil and gas activities, the projections are in part dependent on the price of oil over the period of the projections and the Group's continued management of costs.

After making enquiries and considering the uncertainties described above, the Directors are currently confident that the Group has and will continue to have adequate resources to continue in operation for the foreseeable future. For these reasons, the financial statements of the Group have been prepared on a going concern basis.

4. ACCOUNTING POLICIES

Workers profit sharing

Answering a clarification request regarding the classification of workers profit sharing, in November 2010 the Interpretations Committee of the International Accounting Standards Board (IASB)concluded that the workers profit sharing must be accounted for in accordance with IAS 19 "Employee benefits" instead of IAS 12 "Income taxes". The Committee observed that the objective of IAS 19 is to record compensation expenses only when the employee has provided the related service. Consequently, an entity should not recognise an asset or liability related to future expected reversals of differences between taxable profit and accounting profit in connection with an employee profit-sharing arrangement. Up to the date of this clarification, Maple had included the workers profit sharing in the determination of the deferred tax calculation in accordance with IAS 12.

As a result of this clarification, the Group has excluded workers profit sharing from its deferred tax calculation and has changed its income tax accounting policy. The application of this change was retrospectively made in accordance with IAS 8, "Accounting policies, changes in accounting estimates and errors".

Where adjustments have been made to comparative information in respect of the six months ended 30 June 2010 the relevant financial statement or note is headed up "As Restated". The principal adjustments made are summarised below:

New standards, interpretations and amendments thereof, adopted by the Group

IAS 24 Related Party Transactions (Amendment) 

The IASB has issued an amendment to IAS 24 that clarifies the definitions of a related party. The new definitions emphasise a symmetrical view of related party relationships as well as clarifying in which circumstances persons and key management personnel affect related party relationships of an entity.

Secondly, the amendment introduces an exemption from the general related party disclosure requirements for transactions with a government and entities that are controlled, jointly controlled or significantly influenced by the same government as the reporting entity. The adoption of the amendment did not have any impact on the financial position or performance of the Group.

IAS 32 Financial Instruments: Presentation (Amendment)

The amendment alters the definition of a financial liability in IAS 32 to enable entities to classify right issues and certain options or warrants as equity instruments. The amendment is applicable if the rights are given pro rata to all of the existing owners of the same class of an entity's non-derivative equity instruments, to acquire a fixed number of the entity's own equity instruments for a fixed amount in any currency. The amendment has had no effect on the financial position or performance of the Group.

IFRIC 14 Prepayments of a Minimum Funding Requirement (Amendment)

The amendment removes an unintended consequence when an entity is subject to minimum funding requirements (MFR) and makes an early payment of contributions to cover such requirements. The amendment permits a prepayment of future service cost by the entity to be recognised as pension asset.

The Group is not subject to minimum funding requirements in Ireland. The amendment to the interpretation therefore had no effect on the financial position or performance of the Group.

5. SEASONALITY

The Group operates continuously without fluctuations due to seasonality.

6. SEGMENT INFORMATION

Operating segments

For management purposes, the Group is organised into business units for which it may earn revenues and incur expenses and has three operating segments as follows:

- Exploration, production and marketing

- Ethanol

- Other and corporate

The Chief Operating Decision Maker (hereinafter "CODM") of Maple reviews the information of these segments on an individual basis. Ethanol mainly refers to Maple Etanol S.R.L. and Maple Biocombutibles S.R.L. which are separate entities that manage the Ethanol Project. Exploration, production and marketing are managed through Maple Gas Corporation del Peru S.R.L. and Acer Comercial S.R.L., both separate entities, information for which is reviewed by the CODM together. The other segment includes investment holding companies.

Reportable segments

The Company considers that the operating segments and the reportable segments in the financial statements are the same. For the operating segments mentioned above, Maple will present the following information in accordance with IFRS 8:

·; Segment Revenue: The Company only includes revenues that are directly attributed to a specific segment together with the relevant portion of revenue that can be allocated to it on a reasonable basis.

·; Segment Result: The Company includes operating income/(loss) resulting from the operating activities of the specific segments. Finance revenue, finance costs and income tax expenses are also included in the specific operating segment.

·; Segment Assets: Management includes all assets used in the operating activities of the specific segment, property, plant & equipment, assets held for sale, and intangible assets. Goodwill is presented in a separate line of the corresponding segment.

·; Segment Liabilities: Management includes all liabilities incurred in the operating activities of the specific segment.

1. Inter-segment revenues are eliminated on consolidation.

2. Inter-segment loans are eliminated on consolidation.

1. Inter-segment revenues are eliminated on consolidation.

2. Inter-segment interest is eliminated on consolidation.

Non-current assets

Non-current assets are allocated based on where the assets are located:

Non-current assets for this purpose consist of property, plant and equipment, other intangible assets and exploration and evaluation assets.

7. IMPAIRMENT

Goodwill

Goodwill is tested for impairment annually (as at 31 December) and when circumstances indicate the carrying value may be impaired. The Group's impairment test for goodwill and intangible assets with indefinite lives is based on value in use calculations that use a discounted cash flow model. The key assumptions used to determine the recoverable amount for the Production and Marketing cash generating unit was discussed in the annual financial statements for the year ended 31 December 2010.

As of 30 June 2011, goodwill arising on business combinations of US$9,957,000 (Restated) has been allocated to the Production and Marketing cash generating unit.

With regard to the assessment of value in use of the Production and Marketing cash generating unit, there are not significant changes to the sensitivity information disclosed at 31 December 2010, except for the oil prices. Product prices for the first five years are based on West Texas Intermediate ("WTI") forward price curves at year-end. The Group's oil price assumption is an average of US$93.5 per barrel in 2011, US$93.9 per barrel in 2012, US$92.9 per barrel in 2013, US$92.4 per barrel in 2014, US$92.6 per barrel in 2015, US$95 per barrel in 2016 and beyond. For the six months through 30 June 2011, the oil prices averaged US$98 per barrel.

The oil price is a key assumption in the Company's subsidiary's cash flow projections; therefore, management performed an impairment calculation as at 30 June 2011 updating only the oil price assumption. As a result of the updated analysis, management did not identify an impairment for this cash generating unit to which a goodwill of US$9,957,000 is allocated.

8. INCOME TAX

(a) Income tax regulations

The Company is subject to Irish tax regulations. Subsidiaries incorporated in the British Virgin Islands are not subject to income tax. Peruvian subsidiaries of the Company are subject to the Peruvian tax system.

Corporation tax in Ireland is 12.5% on trading activities and 25% on non-trading activities. Exploitation activities of hydrocarbons in Blocks 31-B and 31-D are subject to the common Peruvian tax regulations in force as of 30 March 1994 (30%). Exploration activities in Block 31-E are subject to the common Peruvian tax regulations in force as at 6 March 2001 (22%). Refining and commercial activities of hydrocarbons are subject to the current Peruvian tax regime (30%).

(b) Income tax expense

The tax effect of the temporary differences associated with exploration costs and tax loss carry forward for which deferred tax assets have not been recognised aggregate to US$702,000 and US$3,760,000, respectively, and expire four years from the first period in which taxable profits arise. The deferred tax asset is not recognised due to uncertainty surrounding the existence of sufficient deductible profits, from 2012 and beyond.

9. EARNINGS PER SHARE

Basic earnings per share amounts are calculated by dividing the net profit for the first half of 2011 attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during that period. Diluted earnings per share amounts are calculated by dividing the net profit for the first half of 2011 attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during that period plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.

The following reflects the profit/(loss) and share data used in the basic and diluted earnings/(loss) per share computations:

The Company has the following instruments in issue that could potentially dilute basic earnings per share in the future:

(i) Ordinary Shares: Stock Option Agreement with Fondo de Inversión en Infraestructura, Servicios Publicos y Recursos Naturales ("ACC") - the Company granted ACC options to receive 7,786,560 (2010: 7,786,560) ordinary shares of US$0.01 each in exchange for the 259,552 (2010: 259,552) shares ACC holds in the equity of MCL, a subsidiary of the Company. These potential ordinary shares were dilutive at 30 June 2011;

The Company has instruments in issue that could potentially dilute basic earnings per share in the future, but are not included in the calculation for the reasons outlined below:

(i) Ordinary Shares: Investment Agreement with ACC - if a subsidiary of the Company has to make tax payments in connection with certain potential tax claims for the tax years 2001, 2002 and 2003, the Company shall compensate ACC by one of the following, as selected by the Company, after consultation with ACC: (i) make a payment equal to 10.989% of the amount of the payment ("Pro Rata Tax Claim Amount"); or (ii) an amount in shares of MCL that is equivalent to the number of shares of the Company having a then market value equal to the Pro Rata Tax Claim Amount. As the status of the contingency remained unsatisfied at 30 June 2011, the contingently issuable ordinary shares are not included in the calculation of diluted loss per share at 30 June 2011; and

(ii) Employee Stock Options: These potential ordinary shares were anti-dilutive at 30 June 2011.

(iii) Preferred Shares: Investment Agreement with ACC on Preferred Shares - The Company entered into an investment agreement with ACC to issue new Class B convertible preferred shares of MCL for gross proceeds of US$12.5 million. Under the terms of the investment agreement, ACC purchased 456,871 non-voting Class B convertible preferred shares (the "Class B Shares") of MCL. The Class B Shares hold certain rights to cash flow and dividends of MCL and are convertible into ordinary shares of Maple Energy plc at a conversion rate of 30 to 1 at ACC´s discretion (or 20.7 to 1, at ACC's discretion once ACC has achieved a certain internal rate of return). At 30 June 2011, this potential issue of Ordinary Shares is not included in the calculation of diluted earnings per share as the effect would be anti-dilutive at 30 June 2011.

10. PROPERTY, PLANT AND EQUIPMENT

Acquisitions and disposals

During the six months ended 30 June 2011, the Group acquired assets with a cost of US$38,985,000. The additions are primarily related to the Ethanol Project.

11. OTHER FINANCIAL ASSETS (INCLUDING DERIVATIVES)

a) Cross-currency swap

In January 2009, the Group entered into a cross-currency swap to hedge its exposure to foreign exchange risk from a loan denominated in Peruvian currency (Nuevos Soles). The swap is highly effective, although any ineffectiveness will be recorded in the consolidated income statement. The loan amounted to S/31,560,000, equivalent to US$10,000,000 at the date of the credit facility agreement, with a fixed interest rate of 11.75%. The swap has the same contractual terms of the loan (interest and maturities, among others), and the Group must pay US$10,000,000 plus fixed interest at 8.56% and receive S/31,560,000 plus fixed interest at 11.75%. At 30 June 2011, the Group recognised an unrealised loss related to the fair value of the swap of US$77,000 in other comprehensive income. Additionally, an amount of US$11,000 was recycled to the income statement, within finance cost, to offset the foreign exchange difference on the loan.

On 25 July 2011, in connection with the payoff of the loan discussed immediately above, the Group unwound the cross-currency swap. The fair value of the cross-currency swap as of the settlement date amounted to US$796,000, which was the amount paid by the Banco de Credito del Peru as of such date. As a result of this transaction, the Group recognises a gain of US$32,000 corresponding to the net effect of the fair value and the foreign exchange rate difference.

b) Contingent consideration

As part of the disposal of its associate interest in Aguaytia Energy, LLC, Maple retained certain rights to a contingent consideration of up to an additional US$7.0 million, related to the negotiation with Perupetro S.A. to obtain royalty rate amendments for Aguaytia Energy. As an available-for-sale financial asset, the contingent consideration was carried at fair value. As of the date of disposal, Maple's pro- rata share of the fair value of the financial instrument based on probability weighted contingent consideration amounted US$2,041,000. During 2010, the Company received US$731,000 in respect of its pro-rata share related to this contingent consideration. As of 30 June 2011 and 31 December 2010, the fair value is nil as the Company estimates that no further reduction on the royalty rate can be achieved.

12. CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

(a) Cash and cash equivalents

At 30 June 2011 and 31 December 2010, the Company maintains time deposits which earn interest at an annual average rate between 0.91% and 1.00% and mature in periods not exceeding 30 days.

(b) Restricted cash

In September 2010, the Group signed an indirect credit agreement with Interbank for the provision of a stand-by letter of credit (the "Stand-by LC") in the amount of US$12,500,000. Refer to Note 23 to the annual consolidated financial statements as at 31 December 2010. The Group was required to keep US$4,000,000 in cash available as collateral for the Stand-by LC. Subsequent to 30 June 2011, the Group renewed the indirect credit agreement with Interbank and the related Stand-by LC and is required to keep US$6,000,000 in cash available as collateral for the Stand-by LC.

At 30 June 2011, an amount of US$6,878,000 is not available to the Group for general use, but exclusively for the purpose of the Ethanol Project. This amount has been presented in the trust fund account as cash and cash equivalents in Note 12 above because it is available for this purpose.

13. SHARED BASED PAYMENT

The expense recognised for employee services during the first half of 2011 is US$25,000 (US$83,000 during the first half of 2010). As of 30 June 2011, 2,573,693 stock options are exercisable.

14. COMMITMENTS AND CONTINGENCIES

Refer to Note 28 of the annual consolidated financial statements as at 31 December 2010 for details of the Group's commitments and contingencies. The following significant events impact the results for the period:

(a) Capital commitments

At 30 June 2011, the Group had capital commitments of US$25,108,000 (31 December 2010: US$42,118,000) related to the Ethanol Project.

15. STATUTORY ACCOUNTS

This half year report does not constitute statutory accounts, copies of which are required to be annexed to the annual return. A copy of the statutory accounts for the year ended 31 December 2010 has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified.

16. BOARD APPROVAL

The Board of Directors approved and authorised for issue the unaudited interim condensed consolidated financial statements in respect of the six months ended 30 June 2011 on 17 August 2011.