PNG Petroleum Project Update

UMC Energy PLC

("UMC Energy" or the "Company")

PNG Petroleum Project Update

UMC Energy is pleased to update shareholders of the results of an independent technical and prospectivity review of the two onshore Petroleum Prospecting Licences (PPL) 378 and 405. Gini Energy Ltd ("Gini") has a 100% interest in these highly prospective permits. UMC Energy holds a 30% interest in Gini, with CNOOC Ltd holding a 70% interest. While CNOOC is the operator of the permits, UMC and its consultants continue to provide key technical support to the joint venture. Under the shareholders agreement between UMC Energy and CNOOC Ltd, CNOOC is required to fund all exploration and appraisal expenditure up to commercial development by way of an interest free non-recourse loan to Gini.

In relation to PPL 378, there are two separate parts of this permit, PPL378 (west) and PPL378 (east). The Company has previously announced Contingent Resource values for the Paua structure in PPL378 (west), noting that only the forelimb of the structure was penetrated by the Paua-1 well. The C1 and C2 Contingent Resource values announced on November 19, 2012 only include the likely recoverable resources intersected by the Paua-1 well

Figure 1: Gini PNG onshore permits

http://www.rns-pdf.londonstockexchange.com/rns/0901T_-2012-12-9.pdf

The prospectivity review of PPL378 (west) identified two untested structures, Paua back-limb and Poro. Probabilistic volumes of potential resources calculated by Monte Carlo simulations have provided the following values within the permit:

The prospectivity review of PPL378 (east) identified two untested structures, Lead A and Lead B. Probabilistic volumes of potential resources calculated by Monte Carlo simulations have provided the following values within the permit:

In relation to PPL 405, Prospective Resource values have previously been announced for the Wasuma structure, where a 5m gross oil column was intersected in the Iagifu B sands by the Wasuma-1 well, drilled in 2010. The prospectivity review of PPL405 has also identified three untested structures, Lead C, Warra Deep and Lead D. Probabilistic volumes of potential resources calculated by Monte Carlo simulations have provided the following values of these three untested leads within the permit:

Additional subsurface activities are presently being planned by the joint venture parties to further reduce uncertainties and develop the identified leads into drillable prospects. This includes selective reprocessing of existing 2D seismic data, new 2D seismic acquisition, detailed reviews of structural modelling and full reservoir engineering reviews for each lead.

Mr. Chris Hart, Technical Director of UMC Energy, stated the results of the ongoing technical studies are pleasing, and provide the Company with a number of prospective leads within the onshore permits. Each onshore permit is located immediately adjacent to existing oil and gas production infrastructure, so any discovery could be expected to be developed in an optimum timeframe and cost.

Dr Jeffrey Keetley, Director and Subsurface Specialist with 3D-GEO Pty Limited, managed a group of specialist geophysicists conducting the study to develop the prospectivity of the permits, and has, in conjunction with Mr Hart, reviewed and approved the technical information contained in this announcement in his capacity as a qualified person under the AIM Rules for Companies. Dr Keetley graduated with a Bachelor of Sciences with Honours (Geology) from the University of La Trobe, Australia, in 1996 and a Doctor of Philosophy (Ph.D, Geology) from the University of Melbourne, Australia in 2001.

Enquiries:

Chrisilios Kyriakou, Chairman

UMC Energy Plc

Telephone: +44(0) 20 7290 3102

Angela Hallett/ James Spinney

Strand Hanson Limited

Telephone: +44 (0) 20 7409 3494

Philip Haydn-Slater/Paul Dudley

HD Capital Partners LLP

Telephone: +44(0) 20 3551 4870