Publication of Competent Person's Report

5 August 2013

UMC Energy PLC

("UMC Energy" or the "Company")

Publication of Competent Person's Report

UMC Energy is pleased to update shareholders following recent technical reviews of geological data relating to the onshore and offshore Petroleum Prospecting Licences (PPL), PPL378 West, PPL378 East, PPL405, PPL374 and PPL375, all owned 100 per cent. by Gini Energy Ltd ("Gini"). UMC Energy owns a 30 per cent interest in Gini, with CNOOC owning a 70 per cent interest. The competent person's report ("CPR") is included in a circular to shareholders which is available for download today from the Company's website: www.umc-energy.com.

Paua Discovery

UMC Energy together with independent technical consultants 3D-GEO have recently completed a technical review (the "Technical Review") which has resulted in some changes to the contingent resource and prospective resource recoverable estimates of the Paua structure, based on the incorporation of further historical geological data and revised structural modelling, including revised 2D seismic interpretation and mapping over the Paua structure and incorporation of additional well and reservoir data.

The Paua-1X well was drilled in 1996 by BP and is a declared discovery with oil recovered to surface from sands in the Iagifu Formation. The Paua Anticline is part of a major NW-SE fold trend bound to the south-west by a major thrust fault. The structure extends some 12km along strike with up to 450m of vertical closure. It extends outside PPL378 West into adjacent acreage to the northwest and southeast. Independent expert assessment of the data has provided the following contingent resource combined values for potential oil and gas recoverable from the Iagifu sandstones within the PPL378 West portion of the Paua Anticline, prepared in accordance with the definitions and guidelines set out in the Petroleum Resources Management System ("PRMS"):

*Note: MMbbls = million barrels of recoverable oil, Bcf = billion standard cubic feet of recoverable gas

PPL 378 contains a single oil and gas discovery in the Paua-1X well, which proved the presence of hydrocarbons in the Iagifu Sandstone, in a relatively low structural position on the Paua anticline. 3D-GEO has assigned Contingent Resources to the oil and gas found in the Iagifu, although there is a large element of uncertainty as to the relative proportions of oil versus gas in the accumulation. 3D-GEO has assigned Low, Best and High Estimate resource estimates for the oil volumes, with corresponding gas volumes representing the balance of the accumulation updip from the well in each case - resulting in a high gas volume estimate associated with a Low Estimate oil contingent resource (see above).

Recoverable Prospective Resources were also calculated for Toro and Digimu reservoirs within the Paua structure. The Toro C horizon was intersected at a drillers depth of 2845mKB (-1250mSS). A gas only case was conducted for this reservoir using gross rock volumes above the well intersection. Probabilistic calculations were also conducted for the Digimu sandstone with oil-water contacts above the existing well penetration for alternative oil and gas cases. The following table summarises the Paua Anticline recoverable Prospective Resource estimates within PPL378 West, for the potential Toro and Digimu reservoirs over and above the Paua Contingent Resource estimates for the Iagifu reservoir.

*Note: MMbbls = million barrels of recoverable oil, Bcf = billion standard cubic feet of recoverable gas

Prospective Resources for Poro, PPL378 East and PPL405

The Technical Review of PPL378 West and PPL378 East identified four untested structures, Poro, Lead A, Lead A' and Lead B. In relation to PPL 405, prospective resource values have previously been announced for the Wasuma prospect, 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 recoverable prospective resources for alternative oil or gas cases for each of these leads within the permits, prepared in accordance with the definitions and guidelines set out in the PRMS:

*Note: MMbbls = million barrels of recoverable oil; assumes all oil with no gas fill in mapped closure

*Note: Bcf = billion standard cubic feet of recoverable gas; assumes all gas with no oil fill in mapped closure

Offshore Permits PPL374 and PPL375

The Technical Review of PPL374 and PPL375 identified eight untested structures. Probabilistic volumes of potential resources calculated by Monte Carlo simulations have provided the following recoverable prospective resources for alternative oil or gas cases for each of these leads within the offshore permits, prepared in accordance with the definitions and guidelines set out in the PRMS:

*Note: MMbbls = million barrels of recoverable oil; assumes all oil with no gas fill in mapped closure

*Note: Bcf = billion standard cubic feet of recoverable gas; assumes all gas with no oil fill in mapped closure

Chris Hart, Technical Director of UMC Energy, stated this recent independent confirmation of the Paua Contingent Resources in PPL378 West, and Prospective Resources in the onshore and offshore permits continues to confirm the Company's confidence in the prospectivity of its PNG exploration assets. CNOOC as the permit Operator is presently seeking permission from the PNG authorities to conduct an extensive data acquisition program over the two offshore permits. This program is planned to consist of acquisition of approximately 3,000 line kilometres of 2D seismic and magnetic data, and when fully interpreted is expected to develop a number of the identified leads into drillable prospects. Following approval and confirmation of the seismic contractor, it is expected acquisition will be completed during the fourth quarter of 2013.

An updated presentation relating to its Papua New Guinea Petroleum Project will shortly be made available for download from the Company's website at www.umc-energy.com.

Competent person

Dr Jeffrey Keetley, Director and Subsurface Specialist with 3D-Geo Pty Ltd, has reviewed and approved the technical information contained in this announcement in his capacity as a qualified person under the AIM rules. Dr Keetley graduated with a Bachelor of Sciences with Honours from the University of La Trobe, Australia and a Doctor of Philosophy (Ph.D) from the University of Melbourne, Australia.

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