Interim results

MAPLE ENERGY PLC

("MAPLE" OR THE "COMPANY")

Interim results

for the six months ended 30 June 2012

Maple Energy plc (AIM:MPLE, LIMA:MPLE), an integrated independent energy company with assets and operations in Peru, today announces its preliminary financial results for the six months ended 30 June 2012. Capitalized terms used but not defined in this release have the meanings assigned to them in the Company's 2011 annual report, a copy of which may be found on Maple's website at www.maple-energy.com.

Key Financial Highlights for the six months ended 30 June 2012

·; Revenues increased by 25% to US$50.8 million compared with US$40.7 million for the same period in 2011.

·; Gross profit was US$13.0 million compared with US$12.9 million for the same period in 2011.

·; Adjusted EBITDA (defined below) decreased by 49% to US$3.7 million compared with US$7.2 million for the same period in 2011.

·; Excluding ethanol operations which commenced in the first half of 2012 with a "ramp up" period during the initial phase of operations, Adjusted EBITDA increased by 10% to US$7.9 million compared to US$7.2 million for the same period in 2011.

·; Depreciation and amortisation expense was US$4.4 million compared to US$3.1 million for the same period in 2011.

·; Net loss after tax was US$28.9 million (US$0.184 loss per share) compared to earnings of US$5.9 million (US$0.037 earnings per share) for the same period in 2011. U$22.0 million of such net loss after tax was the result of the "write-down" of the capitalised exploratory costs in Block 31-E, most of which costs were incurred in 2008 and 2009 in connection with the drilling of the Santa Rosa 1X well.

Ethanol Project Highlights (Maple Etanol S.R.L. and Maple Biocombustibles S.R.L.)

·; The Ethanol Plant is substantially complete and producing both ethanol and electricity. Maple commenced the production of ethanol in April 2012, and the Company's 37-megawatt power plant was substantially completed in July 2012 and placed into operation generating electricity.

·; Total Ethanol Project costs are currently estimated at approximately US$280 million, including interest paid during construction, a debt service reserve account, and certain value-added taxes, and excluding assets acquired under finance leases.

·; Planted 526 hectares of sugar cane on the main estate during the first half of 2012 to achieve a plantation of more than 6,500 hectares.

·; Penta Tanks Terminals S.A. completed the installation and commissioning of the ethanol storage, loading, and shipping facility near the port of Paita in July 2012. Maple began delivering ethanol product to the storage facility in June 2012, and the entire facility was placed into operation in August 2012.

·; Achieved the first sales of fuel-grade ethanol to the local Peruvian market in May 2012 and achieved the first sales of fuel-grade ethanol to the export market in August 2012.

·; Commenced the sale of electricity production in excess of Maple's internal requirements to the national power grid in July 2012.

·; As of today, approximately 280,000 tonnes of sugar cane have been harvested and processed at the Ethanol Plant since it began processing sugar cane at the end of March 2012.

·; Due to a slower than expected "ramp up" period for the processing of sugar cane at the Ethanol Plant during the initial phase of operations, Maple currently expects to harvest and process over 600,000 tonnes (versus approximately 900,000 tonnes of sugar cane previously forecast) from its plantation during 2012. The difference of approximately 300,000 tonnes of sugar cane as compared to the previous forecast is expected to be harvested and processed in the first quarter of 2013.

·; The Company continues to be engaged in a dispute with one of its third-party providers for the Ethanol Project, and in 2012 arbitration proceedings were initiated by such provider as a result of the dispute.

Hydrocarbon Production, Refining, and Marketing Highlights (Maple Gas Corporation del Peru S.R.L.)

·; Refinery feedstock averaged approximately 2,039 barrels per day ("bpd"), compared to 1,936 bpd during the same period in 2011, 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 2,010 bpd, compared to 1,804 bpd during the same period in 2011.

·; Average daily crude oil production was approximately 470 bpd, compared to approximately 445 bpd during the same period in 2011.

·; Performed 10 fracture stimulation works on existing wells in the Agua Caliente oilfield and two such works in the Maquia oilfield in June and July 2012. As a result of these works, oil production increased with additional production currently estimated at 26 bpd on average; however, the results of the stimulation works are still being evaluated, and the estimated production increase may change.

Other Financial Highlights for the six months ended 30 June 2012

·; Recorded an impairment provision of US$ 31.1 million for the capitalised exploratory costs incurred in Block 31-E in relation to the Company´s shale gas opportunity. The impairment provision of US$31.1 million, which was a non-cash charge, was offset by deferred tax effect of US$9.1 million resulting in a net loss after tax of US$22.0 million.

·; Made additional investment of approximately US$21.8 million in the Ethanol Project during the six months ended 30 June 2012; as of 30 June 2012, approximately US$271.3 million had been spent for the development and construction of the Ethanol Project.

·; During the first quarter of 2012, drew down the full amount of a stand-by letter of credit facility in the amount of US$12.5 million (the "Stand-by LC") to fund incremental Ethanol Project related costs. The Stand-by LC was fully repaid with a combination of available cash and US$8.5 million of borrowings under the Medium Term Facility described below.

·; Entered into a US$8.5 million, 23-month secured credit facility (the "Medium Term Facility") with Banco Internacional del Peru ("Interbank") in February 2012. The proceeds of the Medium Term Facility were used to repay the outstanding amounts drawn down under the Stand-by LC.

·; Entered into an amendment to extend the Standby Equity Distribution Agreement ("SEDA") with YA Global Master SPV Ltd, an affiliate of Yorkville Advisors LLC, in February 2012. Under the terms of the amendment, the parties agreed to extend the term of the SEDA for up to an additional twenty-four (24) months.

·; In March 2012, entered into two short-term credit facilities with two Peruvian commercial banks for an aggregate amount of US$9 million in availability (the "Working Capital Facilities") and drew down the full amount under the Working Capital Facilities during March and April 2012.

·; The fifth disbursement under the US$148.5 million senior secured debt financing for the Ethanol Project (the "Ethanol Project Debt Financing") of US$2.2 million occurred in May 2012. As of 30 June 2012, US$139.7 million of the Ethanol Project Debt Financing has been disbursed.

Board Changes

·; On 11 January 2012, Mr. Francisco Mesquita Neto was appointed as an independent, non-executive director on the Company's Board of Directors.

Nigel Christie, Chairman of Maple, commented today: "Apart from a slower than anticipated ramp up of ethanol production, we are pleased with the achievements in the first half of 2012. This has been one of the most important years in Maple's history with the commencement of the harvesting of sugar cane from Maple's plantation and the production of ethanol, followed by first sales of fuel-grade ethanol to the Peruvian market and then the first export sales of ethanol to the international market. These events marked key milestones for the Company in its initiative to become one of the lowest-cost producers of fuel-grade ethanol in the world."

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

Cenkos Securities Plc

Jon Fitzpatrick +44 20 7397 8900

Ken Fleming +44 131 220 6939

Mirabaud Securities Ltd (+44 20 7321 2508)

Peter Krens

Rory Scott

Buchanan Communications Limited(+44 20 7466 5000)

Mark Edwards

Ben Romney

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 2012 on Friday, 14 September 2012 at 2:30 pm BST (8:30 a.m. Peruvian time). The call can be accessed by dialling +44 (0)20 3059 5699 or 0800 368 5571 (within the UK), or +1 832 369 1690 or 1866 408 3591 (within the US and South America). Call participants will be asked for their full name, company details, and pass code. The pass code for this call is 979235. 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 2012

Consolidated revenues increased by 25% to US$50.8 million compared with US$40.7 million during the same period in 2011. Revenues from hydrocarbon operations increased by 15% to US$46.9 million compared with US$40.7 million during the same period in 2011, primarily due to higher refinery throughput and sales of refined products during the period compared to the same period in 2011. Revenues from ethanol operations, consisting of sales of ethanol to the local market in Peru, amounted to US$3.9 million during the six month period ended 30 June 2012.

Consolidated gross profit was US$13.0 million compared with US$12.9 million for the same period in 2011. Gross profit from hydrocarbon operations increased by 9% to US$14.1 million compared with US$12.9 million for the same period in 2011. Gross loss from ethanol operations was US$1.2 million during the six month period ended 30 June 2012.

Maple generated a net loss after tax of US$28.9 million (US$0.184 loss per share) compared with a net profit after tax of US$5.9 million for the same period in 2011 (US$0.037 earnings per share). Adjusted EBITDA, a key performance indicator for measuring Maple's underlying financial operating efficiency, was US$3.7 million compared to US$7.2 million during the same period in 2011.

The table below shows Maple's (i) summary consolidated financial data for the period, (ii) summary consolidated financial data for the same period in 2011, and (iii) other summary financial and operating data.

(1) Adjusted Earnings Before Interest, Taxation, Depreciation, and Amortisation ("Adjusted EBITDA") is calculated as operating income/(loss) plus depreciation, amortisation, and the impairment provision of Block 31-E less the change in fair value of biological assets , Shown below is a reconciliation of operating income to Adjusted EBITDA:

Outlook for the remainder of 2012

2012 has been one of the most important years in Maple's history with the commencement of the harvesting of sugar cane from Maple's plantation and the start-up of the Ethanol Plant in March 2012 followed by the production of ethanol in April 2012, first sales of fuel-grade ethanol to the local market in May 2012, and the first export sales of ethanol to the international market in August 2012. These events marked key milestones for the Company in its initiative to develop the largest ethanol business in Peru with the goal of being a low-cost, globally competitive ethanol producer.

The timing and completion of the Company's operating and investing activities for the remainder of 2012 are subject to a number of factors including availability of services and equipment as well as the receipt of certain governmental approvals. As a result of these and other factors, Maple may increase or decrease planned activities or prioritise certain projects over others. The Company's operating activities and capital programme for the remainder of 2012, which includes the execution of the key initiatives outlined below, is currently expected to be primarily funded through the Company's available cash from operations, existing financing facilities, and issuances of debt or equity to support the operations of the Company.

Ethanol Business

Agricultural Development and Operations

As of today, Maple has installed drip irrigation tape in approximately 7,427 hectares and planted over 6,500 hectares of the main estate. The Company currently expects to plant additional sugar cane during the next several months to achieve a plantation size of approximately 7,000 hectares near the end of this year. Due to a slower than expected "ramp up" period for the processing of sugar cane at the Ethanol Plant during the initial phase of operations, approximately 300,000 tonnes of the sugar cane previously forecasted to be harvested and processed in the current year are now expected to be harvested and processed in the first quarter of 2013. Maple currently expects to harvest and process a total of over 600,000 tonnes (versus approximately 900,000 tonnes of sugar cane previously forecast) from its plantation during 2012. The Company continues to expect an average yield of approximately 150 tonnes of sugar cane per hectare on an annual basis.

Subject to the receipt of certain government approvals, the Company currently plans to begin the development of the second phase of the plantation in the first half of next year with a goal of further expanding the plantation. The second phase of the development of the Company's plantation includes land clearing and preparation works, the installation of additional main water delivery and drip irrigation systems, the planting of additional sugar cane, and the purchase of more rolling stock. Maple will continue evaluating new and promising sugar cane varieties suitable for ethanol production, mechanized harvesting, and the specific climate of the area near the Ethanol Project with the aim of increasing the yields of sugar cane production and ethanol on a per hectare basis.

A key part of the Company's strategy for 2012 and 2013 is to secure additional sugar cane in order to maximise the utilisation of the installed processing capacity of the Ethanol Plant. In addition, Maple will continue evaluating other opportunities for ethanol projects in Peru in order to expand its ethanol business unit.

Industrial Development and Operations

Now that the Ethanol Plant is operational and producing both ethanol and electricity, one of the Company's key objectives is to continue improving the operating efficiency of the Ethanol Plant in order to maximise the production of ethanol and minimise plant downtime related to unplanned maintenance activities. The amounts of sugar cane harvested and processed as well as ethanol produced are expected to continue to increase during the remainder of this first year of operation. It is currently expected that on average approximately 20 gallons of ethanol will be recovered from each tonne of sugar cane delivered to and processed at the Ethanol Plant.

The power generation facilities of the Ethanol Plant are currently supplying substantially all of the electrical energy required for Maple's agricultural and industrial operations, and "excess" electricity is being sold to the national power grid. Currently, Maple is producing approximately 21 megawatts of electric power, and approximately 10 megawatts of this power are available for sale to the grid. The Company plans to install separation equipment at the Ethanol Plant to extract sugar cane leaves for use as fuel for the steam generation facilities in addition to bagasse, resulting in additional steam available for power generation. Maple expects to complete the installation and commissioning of the separation equipment in the first half of 2013. Once this separation equipment is placed into operation and the plantation is expanded, Maple expects to have approximately 17 megawatts of electricity available for sale to the national grid.

Sales and Marketing

A substantial portion of the ethanol produced during the rest of this year is expected to be sold into the export market under the existing ethanol sales and distribution agreement with Mitsui. The Company currently expects that such export sales will be destined primarily to markets in the European Union.

Hydrocarbon Production, Refining, and Marketing Business

The Company expects to maintain its cash flow from hydrocarbon operations through the continued optimisation of its hydrocarbon production, refining, and marketing activities and the continued close management of operating costs. Maple does not plan to perform any additional fracture stimulation works or drill any additional wells in its oilfields during the remainder of 2012.

The execution of the 2012 operating plan by Maple's dedicated team of employees is expected to add significant value to the Company. By optimising both the ethanol operations and the hydrocarbon production and refining activities, Maple will further its mission of being a leading integrated energy company in Peru.

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.

The Company's ethanol operations are primarily conducted through its Peruvian subsidiaries, Maple Etanol S.R.L. ("Maple Etanol") and Maple Biocombustibles S.R.L. ("Maple Biocombustibles", and together with Maple Etanol, "Maple Ethanol"). Maple Ethanol results of operations are materially impacted by certain factors, including (i) the international and local price of ethanol, (ii) volumes and quality of sugar cane produced by Maple Etanol and delivered as feedstock to the Ethanol Plant, (iii) the prices of fertilizer and fuel for harvesting operations, (iv) the level of total operating and administrative costs, and (v) the operating efficiency of the Ethanol Plant which is affected by a number of factors including the level of unplanned maintenance.

The results of operations and prospects of the Company depend on numerous factors beyond its control. As a result, if any of these factors become worse than expected or projected, such change may materially and adversely affect the Company's future business, financial condition, results of operations, liquidity, or ability to finance planned capital expenditures.

Set forth below is a brief description of these factors and their impact on Maple's results for the six months ended 30 June 2012.

Commodity Prices

The international price of crude oil impacts the market prices in Peru and therefore the price for which Maple Gas sells its refined hydrocarbon 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 was US$97.88 per barrel during the first half of 2011 compared to US$98.10 per barrel for the same period this year based on the average of spot prices for West Texas Intermediate crude oil. Since the crude oil prices were substantially the same for the two periods, there was not a material difference in the gross profit per barrel on the sale of hydrocarbons when comparing the two periods (US$38.64 per barrel for the six months ended 30 June 2012 versus US$39.65 per barrel for the same period in 2011).

The international price of ethanol impacts the market prices in Peru and therefore impacts the price Maple sells its ethanol both locally and internationally. As a result, increases or decreases in the international price of ethanol can materially impact Maple's overall revenues. The international price of ethanol averaged US$2.88 per gallon during the six months ended 30 June 2012 based on the average spot prices for fuel-grade ethanol T2 FOB Rotterdam.

Refinery Feedstock

During the first six months of 2012, Maple Gas's primary source of revenues was derived from its 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 increased from an average of 1,936 bpd for the six months ended 30 June 2011 to an average of 2,039 bpd for the six months ended 30 June 2012. The increase in feedstock was largely a result of production increases in the volumes of natural gasolines produced by Aguaytia Energy and higher production levels from the Maquia and Pacaya oilfields. 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 decline, which could materially impact future results of operations of its hydrocarbon production, refining, and marketing business.

Ethanol Plant Feedstock and Operating Efficiency

Maple Ethanol's primary source of revenues during the six months ended 30 June 2012 was derived from its sales of ethanol produced from the Ethanol Plant. The volume of ethanol that Maple Ethanol is able to produce from the Ethanol Plant and sell to customers impacts its cash flow and results of operations. The Ethanol Plant's ability to produce ethanol is directly impacted by the volume and sugar content of the harvested cane that is delivered to the facility as well as the efficiency of the Ethanol Plant. Maple currently provides all of the feedstock for the Ethanol Plant from its sugar cane plantation, and a decrease in the volumes or sugar content of this feedstock can have a material adverse impact on the Company's results of operations. The efficiency of the Ethanol Plant is affected by the capacity utilization of the plant, which utilization is primarily determined by both the delivery of sugar cane as well as the availability of the plant to process sugar cane and produce ethanol. Plant availability is impacted by various factors including planned and unplanned maintenance activities. In the first half of 2012, during the "ramp up" period of the initial phase of operations of the Ethanol Plant, plant availability was lower than the expected availability over the long term primarily due to higher levels of unplanned maintenance. Such lower plant availability is not unusual during the start-up and initial operations of a new plant facility of this type.

Cost of Sales

Cost of sales for Maple Gas for the six months ended 30 June of 2012 was US$32.8 million compared to US$27.8 million for the same period in 2011. The most significant factor increasing Maple Gas's cost of sales was the inventory fluctuation that was an income of US$2.6 million for the six months ended 30 June 2011 as compared to an expense of US$0.8 million for the six months ended 30 June 2012 due to higher sales and lower level of stocks. Additionally, for the six months ended 30 June 2011, 268,313 barrels of natural gasoline were purchased and refined compared with 290,733 barrels for the six months ended 30 June 2012.

Maple Ethanol's cost of sales for the six months ended 30 June of 2012 was US$5.1 million, and it was mainly related to the value of the sugar cane harvested, sugar cane harvesting and transportation costs, power purchases, certain operation and maintenance costs for the Ethanol Plant, depreciation and amortisation, and changes in the fair value of biological assets.

Administrative Expenses

Administrative expenses increased to US$7.8 million during the first half of 2012 compared to US$5.3 million during the first half of 2011. This increase in expenses can primarily be attributed to the administrative expenses of Maple Ethanol as a result of the commencement of commercial operations of the Ethanol Project in 2012.

The Company employed through its subsidiaries 614 employees as of 30 June 2012 compared to 417 on 30 June 2011. The increase in headcount can primarily be attributed to the operations of the Ethanol Project.

Non-Operating Results

Finance costs increased from US$1.0 million in revenue for the six months ended 30 June 2011 to an expense of US$3.6 million for the six months ended 30 June 2012. This increase was primarily a result of the change in the fair value of the preferred shares derivative of US$1.8 million due to the change in valuation of Maple Energy plc shares and interest expense related to the Ethanol Project financings of US$2.5 million.

Forward-Looking Statements

Except for the historical information contained in this annual 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 2012 (the "Interim Report"). 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 2012

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the six months ended 30 June 2012

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 June 2012

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 30 June 2012

CONSOLIDATED STATEMENT OF CASH FLOWS

for the six months ended 30 June 2012

1. BASIS OF PREPARATION

The interim condensed consolidated financial statements for the six months ended 30 June 2012 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 2011.

2. CORPORATE INFORMATION

The interim condensed consolidated financial statements for the six months ended 30 June 2012 were authorised for issue in accordance with a resolution of the directors on 12 September 2012.

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

During the first six months of 2012, the Group substantially completed the Ethanol Project and began producing and selling ethanol.

The Group has prepared forecasts and cash flow projections which have been prepared in detail through to 31 December 2013 and support the conclusion of the Directors that the Group will be able to operate as a 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 Adjusted EBITDA. With respect to the Group's ethanol operations, these projections are dependent on the future price of ethanol, planned and unplanned maintenance of the Ethanol Plant, sugar cane yields, management of costs, and other factors. Regarding the Group's oil and gas activities, the assumptions are dependent on the price of oil, continued management of costs, and other factors.

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

4. ACCOUNTING POLICIES

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

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2011, except for the adoption of new standards and interpretations as of 1 January 2012, noted below:

IAS 12 - Deferred Tax: Recovery of Underlying Assets (Amendment)

This amendment to IAS 12 includes a rebuttable presumption that the carrying amount of investment property measured using the fair value model in IAS 40 will be recovered through sale and, accordingly, that any related deferred tax should be measured on a sale basis. The presumption is rebutted if the investment property is depreciable and it is held within a business model whose objective is to consume substantially all of the economic benefits in the investment property over time, rather than through sale. Specifically, IAS 12 will require that deferred tax arising from a non-depreciable asset measured using the revaluation model in IAS 16 should always reflect the tax consequences of recovering the carrying amount of the underlying asset through sale. Effective implementation date is for annual periods beginning on or after 1 January 2012.

While the amendment is applicable, it has no impact on the financial statement 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 and Maple Biocombustibles which are separate entities that manage the Ethanol Project. Exploration, production, and marketing are managed through Maple Gas 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, exploration and evaluation assets, and biological asset.

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 hydrocarbon production and marketing cash generating unit were discussed in the annual financial statements for the year ended 31 December 2011.

As of 30 June 2012, goodwill arising on business combinations of US$9,957,000 has been allocated to the hydrocarbon production and marketing cash generating unit.

With regard to the impairment test, the main change to the sensitivity information disclosed at 31 December 2011 was related to oil prices. The oil price is a key assumption in the Company's subsidiary cash flow projection and for the first five years is based on West Texas Intermediate ("WTI") forward price curves at year-end. The Group's oil price assumption is an average of US$93.06 per barrel in 2012, US$90.03 per barrel in 2013, US$88.68 per barrel in 2014, US$87.22 per barrel in 2015, US$86.26 per barrel in 2016, and US$85.00 per barrel in 2017 and beyond.

Management performed an impairment calculation as at 30 June 2012 by updating the oil price assumption, among other variables. As a result, management did not identify an impairment for this cash generating unit to which a goodwill of US$9,957,000 is allocated.

Block 31-E

The Company capitalised costs with respect to exploratory activities in Block 31-E as exploration and evaluation assets under IFRS 6 on the basis that the shale gas discovery made in Block 31-E was still being evaluated and there were no impairment indicators.

One of the key stages in the evaluation process was the receipt of feedback and reports from third party experts to assess the interest of potential joint venture partners with relevant industry experience in the development of the Company´s shale gas opportunity in Block 31-E as well as to assess the market for the shale gas and the potential economics of various development scenarios. Upon receipt and review of these third party reports, the Company concluded that, due to a variety of factors, there would likely be no interest from third party joint venture partners in further developing the shale gas discovery at this time and that the various potential development scenarios may not have attractive economics at this time under current market conditions. This is an impairment indicator that under IFRS 6 necessitates a full impairment review as at 30 June 2012 under IAS 36. Upon completion of the impairment review, the Company concluded the asset was impaired and recorded an impairment provision for the exploration costs amounting to US$31,068,000.

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 Peruvian tax regulations in force as of 30 March 1994 (30%). Exploration activities in Block 31-E are subject to the 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%). Agricultural and Industrial activities of ethanol operations are subject to the current Peruvian tax regime (15% and 30%, respectively).

(b) Income tax expense

9. EARNINGS PER SHARE

Basic earnings per share amounts are calculated by dividing the net profit for the first half of 2012 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 2012 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 instruments in issue that could potentially dilute basic earnings per share in the future, and these are included or excluded in the calculation for the reasons outlined below:

  Ordinary Shares

(i) 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 Ordinary Shares of US$0.01 each in exchange for the 259,552 shares ACC holds in the equity of MCL, a subsidiary of the Company. These potential Ordinary Shares were anti-dilutive at 30 June 2012;

(ii) 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 2012 and 31 December 2011, the contingently issuable Ordinary Shares are not included in the calculation of diluted loss per share at 30 June 2012; and

(iii) Employee Stock Options - Total number of shares related to the outstanding options that could potentially dilute basic earnings per share in the future. These potential Ordinary Shares were anti-dilutive at 30 June 2012.

Preferred Shares

(iv) 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). The 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 2012.

10. PROPERTY, PLANT AND EQUIPMENT

Acquisitions and disposals

During the six months ended 30 June 2012, the Group acquired assets with a cost of US$5,682,000. The additions are primarily related to the Ethanol Project.

11. BIOLOGICAL ASSET

The Company measures the plantation of sugar cane at its fair value. The fair value is calculated using the estimated expected net cash flows and the cost related to these activities, according to IAS 41-Biological Assets. As of 30 June 2012, the fair value of the Company's biological assets was estimated at US$23,023,000 resulting in an upward adjustment of US$2,154,000.

12. CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

(a) Cash and cash equivalents

At 30 June 2012 and 31 December 2011, the Company maintains time deposits which earn interest at an annual average rate between 2.7% and 0.91% and mature in periods not exceeding 30 days.

(b) Restricted cash

In September 2010, the Group signed an indirect credit agreement with Banco Internacional del Peru S.A.A. ("Interbank") for the provision of a stand-by letter of credit (the "Stand-by LC") in the amount of US$12,500,000. The Group was required to keep US$4,000,000 in cash available as collateral for the Stand-by LC. The cash collateral required was increased to US$6,900,000 at 31 December 2011 to comply with the terms and conditions of the Stand-by LC and a US$6 million loan issued by Interbank in July 2011. These amounts were included in restricted cash as of 31 December 2011. As of 30 June 2012, the Stand-by LC has been fully drawn down and repaid; therefore, the related restricted cash has been released.

At 30 June 2012, an amount of US$642,000 (30 June 2011: 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 above because it is available for this purpose.

13. SHARED BASED PAYMENT

The expense recognised for employee services during the first half of 2012 is US$118,000 (US$25,000 during the first half of 2011).

14. COMMITMENTS AND CONTINGENCIES

Refer to Note 27 of the annual consolidated financial statements as at 31 December 2011 for details of the Group's commitments and contingencies.

The Company continues to be engaged in a dispute with one of its third-party providers for the Ethanol Project (the "Provider"), and in 2012 arbitration proceedings were initiated by the Provider as a result of the dispute. In addition, the Provider is seeking to implement certain interim remedies through the Peruvian court system. Although no assurance can be given, Maple believes it has meritorious defenses to the claims brought by the Provider, and the Company intends to defend its position vigorously.

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 2011 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 2012 on 12 September 2012.