Preliminary Results

 

 

PRELIMINARY RESULTS

 

 

Spitfire Oil was incorporated on 2 May 2007 and on 11 July 2007 acquired the entire issued capital of Spitfire Oil Pty Ltd (formerly Hurricane Fuels Pty Ltd) (together “the Group”) by way of a share swap. On 18 July 2007 Spitfire Oil’s shares were admitted to trading on the Alternative Investment Market ("AIM") of the London Stock Exchange. At the same time the Company placed 16,666,667 new Ordinary Shares at 60p per share to raise £10,000,000 (A$23,298,000).

 

 

 

 

·; Drilled 187 exploration holes totalling 6,618 metres and applied for two mining leases totalling 9,854 hectares.

 

·; Began a 2 year, A$4.4 million contract with Curtin University to prove its L2VTM low temperature pyrolysis technology. A new laboratory and a prototype reactor were constructed, specialist research personnel were recruited and technical work started.

 

·; The Environmental approval process was initiated and the project was assessed at the Environmental Review and Management Plan level.

 

·; A new Chief Executive was recruited with world class experience in the construction of large oil & gas processing plants and in environmentally sensitive projects based in Western Australia. All management functions have been transferred to Perth.

 

 

·; Complete an exploration drilling program to calculate an Indicated Resource under the JORC Code and apply for additional mining leases as applicable.

 

·; Complete the L2VTM Pyrolysis tests at Curtin University and complete conceptual mine and process engineering studies to deliver a definitive feasibility study and a design basis for a phase 1 commercial plant.

 

·; Progress the environmental approval process.

 

 

Chairman’s Statement

 

“For an entity only admitted to trading on the Alternative Investment Market of the London Stock Exchange in July 2007, its progress towards proof of concept and commercialization has been impressive.

 

Although the events of the past month have been particularly devastating for the world financial system which, to some extent has been or will be passed through to the world economy, the gratifying aspect for the Company of these calamitous events has been the continuing high price for crude oil and distillates. This, coupled with the ever decreasing size of the world’s recoverable oil reserves, gives real hope that the Company will reap significant financial rewards should the Salmon Gums project come into commercial operation.

 

It has been heartening to see the progress that has been made to move the Company ever closer to commercialization. Resource delineation, exploration and environmental approvals have all made sizeable move forwards. The focus this year shifts to the laboratory to ensure oil yields are extractable and by products of the Pyrolysis process do not cause any negative impacts to either the extraction process or the environment. We remain ever hopeful of that those results will be extremely positive.

 

Needless to say, the Company also has not been blinded to other means to grow shareholder value. In that respect, the Company has evaluated a number of other oil and gas projects. At this stage, most of these projects do not meet the risk profile or the financial returns required by the Company.”