Replacement - Andes Interim Report

This announcement replaces the announcement at 7.01 a.m. today issued under RNS 1705S. The EBITDA in the "Period Highlights" has been corrected as negative US$0.4 million as opposed to positive US$2.4 million as previously stated. The full text of the correct announcement is set out below.

Phoenix Global Resources plc

("Phoenix" or the "Company" or with its subsidiaries the "Group")

UNAUDITED INTERIM RESULTS FOR "ANDES"

FOR THE PERIOD TO 30 JUNE 2017

Phoenix (AIM: PGR; BCBA: PGR), the independent Argentina-focused oil and gas exploration and production company, announces its unaudited interim results for Andes Energia plc ("Andes") for the six month period ending 30 June 2017 prior to the combination with Trefoil Holdings B.V..

Operational review

Period highlights

· Average oil production during the period of 2,369 bpd in Argentina; average net price of approximately US$51.95/bbl

· Average oil production during the period of 583 bpd in Colombia; average net price of approximately US$49.36/bbl

· Average gas production during the period of 383 boepd in Colombia; average net price of US$2.90/mbtu

· 41 development wells drilled on the Chachahuén licence in Argentina, in partnership with YPF, all successfully brought into production

· An oil discovery was made in the exploration well Vikingo-1 in LLA-47 in Colombia in the sandstone of the Carbonera C5 formation

· Commenced a workover campaign on the La Paloma and Cerro Alquitrán blocks to extend the working life of the assets

· Further to changes in the corporate structure through which the Company holds its 26.01% interest in Interoil Exploration & Production ASA ("Interoil") and changes in the composition of the board and senior management, with effect from 8 June 2017 Interoil has no longer been consolidated in the results of the Group

· Negative EBITDA* of US$ 0.4 million compared to positive US$7.7 million for the comparable period last year

· At the period end the net debt position was US$76.4 million

Post period highlights

· The Vega Grande exploitation licence has been extended for a further period of one year commencing on the 28 July 2017

· The workover performed in LP5 well on La Paloma license was successful with the well self-flowing at more than 120 bopd from Hutrin formation, while the Company continues to evaluate the main target in Grupo Neuquén

· A second exploratory period of one year has been awarded for the Laguna El Loro licence

· On 10 August the Company completed the combination with Trefoil Holdings B.V., the holding company that indirectly owns over 99.99% of Petrolera El Trébol S.A. ("PETSA"), the operating company for the oil and gas exploration and production business of Mercuria Energy Group Limited ("Mercuria EG") in Argentina and changed its name to Phoenix Global Resources plc

· On completion the Company drew down US$87 million of a new US$160 million bridging and working capital facility from Mecuria Energy Trading S.A. and has since repaid all Company loans outstanding at the date of completion

· Proposed demerger of Colombian interests held through the Company's holding in Interoil and the Board intends to convene another general meeting in due course to propose new resolutions to effect the demerger

· Pursuant to the acceptance by the Province of a new exploitation plan presented by the operator of the Chañares Herrados ("CH") and Puesto Pozo Cercado ("PPC") blocks in Mendoza in which the Group has a 78% interest, the joint venture partners will relinquish 100% of the PPC block

· The Company drew down US$45 million of the remaining US$73 million of the US$160 million bridging and working capital facility provided by Mercuria Energy Trading S.A.

*Before gain of US$13.6 million recognised on the deconsolidation of Interoil

Enquiries:

Qualified Person Review

In accordance with AIM guidance for mining, oil and gas companies, Mr. Javier Vallesi and Mr. Greg Easley have reviewed the information contained in this announcement. Mr. Vallesi, Chief Operating Officer of the Group, is a petroleum engineer with over 22 years of experience in the oil and gas industry and is a member of the Argentinian Institute of Oil and Gas. Mr. Easley, Senior Manager Reservoir and Engineering, is a petroleum engineer with over 10 years of experience in the oil and gas industry, is a licenced Professional Engineer in the State of Texas and is a member of the Society of Petroleum Engineers.

Chief Executive Officer's Review

Introduction

At the end of the period, the Company had an interest in 30 licences in Argentina (including 11 licences which Andes is in the process of relinquishing); a direct interest in 9 licences in Colombia (including 2 licences currently suspended and 3 licences which Andes is in the process of relinquishing); and an indirect interest in a further 4 licences in Colombia through its 26.01% interest in Interoil.

Oil and Gas Interests

Argentina

Chachahuén

Development drilling

In Chacahuen Sur, the development programme continued at a good pace, with on average 3 rigs working in the field simultaneously during the period. 41 new producing wells were drilled and successfully completed during the period resulting in an increase in oil production of approximately 1,598 bpd (319 bpd net to Andes).

Enhanced Oil Recovery -Water Flood project

At the end of the period the project reached an average rate of injection of approximately 12,300 bpd through a total of 56 water injection wells.

Oil production

During the period, oil production increased by 21%, from 7,630 bpd (1,526 bpd net to Andes) to 9,228 bpd (1,845 bpd net to Andes). With 41 new producing wells coming on stream there were a total of 196 producing wells on stream at the end of the period.

A union strike at the end of April/beginning of May adversely impacted production resulting in a temporary reduction of approximately 12,800 bbls during the period.

Exploratory activity

The discovery well Cerro Redondo x-1 is situated approximately 4.3 km northeast of the discovery well Chus x-2 on the Chachahuén Sur evaluation block and is currently producing at a rate of 58 bpd.

The discovery well Cerro Morado Este x-1, located approximately 37.3 km southeast of the discovery well Chus x-2 on the Chachahuén Sur evaluation block, is currently producing from the Centenario formation at a rate of 32 bpd.

The discovery well Cerro Morado Este e-3, located approximately 34.9 km southeast of the discovery well Chus x-2 on the Chachahuén Sur evaluation block, is currently producing from the Centenario formation at a rate of 32 bpd.

A further 4 appraisal wells are planned to delineate the extent of the Cerro Morado.

Puesto Pozo Cercado and Chañares Herrados blocks - Mendoza

Oil production decreased by 11% during the period, from 1,208 bpd (603 bpd net to Andes) to 1,107 bpd (553 bpd net to Andes) awaiting workover activities, which are planned for the fourth quarter onwards.

Production from wells CH 1006, CH 1012, CH 1023 and CH 1002 wells is currently suspended awaiting workover operations to replace the electrical submersible pumps, with an adverse impact on production of approximately 250 bpd.

Vega Grande - Mendoza

In Vega Grande, the oil production increased by 14% during the period, from 45 bpd to 52 bpd. This increase was achieved through a well intervention on the VGa-3 well.

An overhaul of the existing facilities was also carried out during the period including: the installation of a storage tank in the battery; an upgrade of the electrical system; and the repair of the heat treater. In addition, wells AMx-1 and TEx-1 were abandoned.

La Brea (Puesto Muñoz) - Mendoza

In La Brea (Puesto Muñoz), oil production decreased by 32% during the period, from 58 bpd to 40 bpd due to temporary shut-in of the well PMu-7 during the period caused by mechanical failures.

El Manzano West (Agrio formation) - Mendoza

In El Manzano West, oil production decreased by 23% during the period, from 24 bpd to 18 bpd as the well EMa-2 is awaiting workover. Phoenix holds a 100% of the working interest in production from the Agrio formation.

La Paloma & Cerro Alquitran - Mendoza

Having completed road and well site preparations a workover programme has commenced in wells La Paloma 5 and Cerro Alquitran 101. The main target to be investigated is the horizons of the Grupo Neuquén.

The Neuquén Group from Upper Cretaceous is found above an erosional unconformity, which is productive in the neighboring oilfield of Loma de la Mina. A secondary target is Huitrín formation.

The Company has a 70% direct working interest in 9 licences in Colombia (including 2 licences currently suspended and 3 licences which Andes is in the process of relinquishing) and an indirect interest in a further 4 licences in Colombia through its 26.01% interest in Interoil.

Average production in the period from the licences held by Interoil fell by 17% to 966 boepd compared to 1,159 boepd in 2016.

Financial Review

* Before gain of US$13.6 million recognised in other income on the deconsolidation of the Company's interest in Interoil

Revenue has decreased by US$4.3 million to US$29.9 million for the first 6 months. This is primarily due to a fall in production and lower oil prices as the de-regulation of the Argentina domestic oil price brings closer parity to international benchmarks.

The Group recorded an operating profit of US$1.2 million compared to the H1 2016 operating profit of US$1.5 million. The 2017 operating profit includes a gain of US$13.6 million recognised on the deconsolidation of the Group's interest in Interoil. Administrative expenses have increased by US$5.6 million over the expenses for the comparable period last year.

Adjusted EBITDA, before the gain of US$13.6 million recognised on the deconsolidation of Interoil, was a negative US$0.4 million compared to US$7.7 million for H1 2016.

The Group recorded a net loss of US$3.3 million for the period compared to a net loss of US$9.2 million for H1 2016.

The Group's total assets have decreased by US$41 million from US$243 million at 30 June 2016 to US$202 million as at 30 June 2017 reflecting the impact of the deconsolidation of the Group's interest in Interoil and the devaluation of the Argentine Peso. The further devaluation of the Argentine Peso resulted in US$6 million of exchange losses (a non-cash item) being recognised in comprehensive loss for the period.

At the period end the Group had cash resources of US$10.5 million compared to US$19.1 million at 30 June 2016, of which US$5.4 million is restricted as security for stand by letters of credit to support guarantees in Colombia.

On 29 March 2017, the Company entered into two new credit facilities with Mercuria Energy Trading S.A.. The first, a US$20 million facility to primarily finance the drilling activities in Chachahuén (the Company´s producing field in partnership with YPF) and other working capital requirements. The second, a US$40 million facility to finance other drilling activities of the Company, including activity in the Vaca Muerta, where the Company has 250,000 net acres. At the end of the period the US$20 million facility had been fully drawn down.

Andes's borrowings fell by US$14.4 million, from US$95.9 million to US$81.5 million, primarily as a result of the deconsolidation of the Interoil operations offset by the impact of the draw downs by the Group of the first of the new loan facilities referenced above.

Events after the balance sheet date

On 28 July 2017 the Vega Grande exploitation licence was extended for a further period of one year commencing on 28 July 2017. The licence has been renewed subject to a work programme which includes reprocessing of 150 km of 2D seismic line, geochemical survey of 700 samples and a workover in the VGa-6 well. During the remainder of this year we expect to be able to reach agreement to extend the licence for a 10 year period include the extension of 1 year already granted.

The workover performed in the La Paloma 5 well on the La Paloma licence was successful with the well self-flowing at more than 120 boepd from the Huitrin formation. The Company continues to evaluate the main target, Grupo Neuquén and is in the process of installing production on a field that previously was not producing.

On 12 July 2017 a second exploratory period of one year was granted in Laguna El Loro with commitments to reprocess existing 3D and 2D seismic (553 km and 185 km respectively), conduct a geochemical survey of 4,500 samples and drill a well targeting unconventional horizons.

On 10 August 2017 the Company announced the completion of its combination with Trefoil Holdings, the holding company that indirectly owns over 99.99% of PETSA, the operating company for the oil and gas exploration and production business of Mercuria in Argentina. The combination was effected through the acquisition of the entire issued share capital of Trefoil Holdings in consideration for the issue of 1,899,106,385 consideration ordinary shares. The consideration shares issued to Upstream Capital represented 75.38% of the enlarged share capital on completion with existing Andes shareholders holding 24.62%. The resulting ownership of Mercuria EG in the enlarged group on completion was approximately 78%. A copy of the admission document can be found on the Company's website.

The Board believes that it is in the interests of the Company's shareholders for the Company to focus on oil and gas exploration and production in Argentina only. Outside of Argentina, the Company has interests in Colombia, through its interest in the Interoil shares and interests in certain licences in the Llanos Basin and the Valle Magdalena Medio Basin. In line with this strategy, the Board is in the process of demerging the Interoil shares, which are currently held by the Company's wholly-owned subsidiary, Andes Interoil Limited ("AIL"), to be effected by way of a transfer of shares to US shareholders and a distribution in specie to non US shareholders on record pre- completion. Further to the announcement of 5 September 2017, the Board intends to convene another general meeting in due course to propose new resolutions to effect the demerger.

On 21 August 2017 the Company announced that Chañares Herrados S.A. ("CHSA"), the concessioner and operator of the CH and PPC blocks, has been notified of the Province of Mendoza's acceptance of a plan pursuant to which, CHSA and the joint venture partners will relinquish 100% of the PPC block, which has production of approximately gross 423 bopd (net to Andes 331 bpd) and covers approximately 42,000 gross acres, and implement a work programme in the CH block with a gross investment commitment of approximately US$94 million over a 4 year period. Andes's level of participation in the new work programme for the CH block, if any, has not yet been agreed with the operator.

On 22 August 2017 the Company drew down US$45 million of the remaining US$73 million of the US$160 million bridging and working capital facility provided by Mercuria Energy Trading S.A..

Anuj Sharma

Chief Executive Officer

29 September 2017

Unaudited Group income statement for the period ended 30 June 2017

*After reclassification of exchange gains/losses

The accompanying notes are an integral part of these financial statements.

Unaudited consolidated statement of comprehensive income for the period ended 30 June 2017

The loss on exchange results primarily from the revaluation of intangible assets and property, plant and equipment that are carried in Argentine pesos. This resulted in a drop in the carrying value of these intangible assets and property, plant and equipment but is not indicative of an impairment in value.

The accompanying notes are an integral part of these financial statements.Unaudited consolidated statement of financial position as at 30 June 2017

Non current available for sale financial assets include time deposits of US$5.6 million that are charged as security for stand by letters of credit relating to licences held by the Company in Colombia.

The accompanying notes are an integral part of these financial statements.

Unaudited consolidated statement of changes in equity for the period ended 30 June 2017

* After restatement

The accompanying notes are an integral part of these financial statements.

Unaudited consolidated cash flow statement for the period ended 30 June 2017

The accompanying notes are an integral part of these financial statements.

Notes

1. Basis of preparation

The Group consolidates the financial statements of the Company and its subsidiary undertakings. The consolidated interim financial information for the 6 months ended 30 June 2017 has been prepared in accordance with IAS 34, "Interim financial reporting" as adopted by the European Union. The financial information has been prepared under the historical cost convention in accordance with International Financial Reporting Standards (IFRSs).

The financial information set out in this half-yearly report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The same accounting policies, presentation and methods of computation are followed in this unaudited interim condensed consolidated report as were applied in the Group's annual financial statements for the year ended 31 December 2016. The auditors' report on those financial statements was unqualified and did not contain any statements under section 498(2) or section 498(3) of the Companies Act 2006. The Group's annual financial statements for the year ended 31 December 2016 have been filed at Companies House.

2. Going concern

The directors consider that the Company and Group has sufficient resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis of accounting in preparing the financial statements.

3. Segment reporting

The income statement includes the results of Interoil for the period up to 8 June 2017.

4. Interoil

In May, the Company announced a restructure of its holding AIL, which holds a 51% interest in Interoil. The Company has a 51% interest in AIL and Canacol Energy Ltd "Canacol") the remaining 49%. Further to an agreement with Canacol, Canacol transferred all its shares in AIL to the Company in exchange for the Company transferring to Canacol 16,172,052 shares in Interoil currently held through AIL. Following these transactions, the Company's economic interest in Interoil will remain unchanged at 26.01% of the total share capital and votes of Interoil held through its wholly owned subsidiary AIL. Furthermore, on 8 June 2017 following changes to the composition of the board and senior management of Interoil, it has been determined that the Company will no longer be deemed to control Interoil. Therefore, with effect from 8 June 2017, Interoil is no longer fully consolidated and with effect from this date Andes's 26% share of the results and net assets of Interoil is equity accounted, in the consolidated results of the Group. The effect of this deconsolidation resulted in gain of US$13.6 million being recognised in the income statement of the period.

5. Finance costs

Only US$0.6 million of the finance costs were paid in cash during the period (2016: US$0.3 million). The other finance costs were not due to be paid and relate primarily to convertible loans.

6. Taxation

7. Loss per share

Basic earnings/(loss) per share is calculated by dividing the net loss for the period attributable to ordinary shareholders of the Group by the weighted average number of ordinary shares outstanding during the period. The basic and diluted earnings/(loss) per share are the same as there are no instruments that have a dilutive effect on earnings. Adjusted basic and diluted earnings/(loss) per share are presented after adjustment of exceptional items.

8. Intangible assets

9. Property, plant and equipment

As a result of the relinquishment of the Puesta Pozo Cercado licence area after the period end, management has recognised an impairment of US$ 2.6 million, which has been charged to the income statement

10. Financial liabilities

11. Deferred tax

12. EBITDA

13. Comprehensive income

The translation loss primarily arises as a result of the devaluation of the AR$ against the US$ during the period. The carrying value of intangibles assets, other assets and liabilities in Argentina are held in AR$ and on consolidation translated to US$, the presentation currency. The resulting exchange gains and losses are classified as equity and transferred to the Group's translation reserve. This is not indicative of an impairment in the carrying value of these assets.

14. Events after the balance sheet date

On 28 July 2017 the Vega Grande exploitation licence was extended for a further period of one year commencing on the 28 July 2017. The licence has been renewed subject to a work programme, which includes, reprocessing of 150 km of 2D seismic line, geochemical survey of 700 samples and a workover in the VGa-6 well. During the remainder of this year we expect to be able to reach agreement to extend the licence for a 10 year period include the extension of 1 year already granted.

The workover performed in the La Paloma 5 well on the La Paloma licence was successful with the well self-flowing at more than 120 boepd from the Huitrin formation. The Company continues to evaluate the main target, Grupo Neuquén and is in the process of installing production on a field that previously was not producing.

On 12 July 2017 a second exploratory period in Laguna El Loro of one year was granted with commitments to reprocess existing 3D and 2D seismic (553 km and 185 km respectively), conduct a geochemical survey of 4,500 samples and drill a well targeting unconventional horizons.

On 10 August 2017 the Company announced the completion of its combination with Trefoil Holdings, the holding company that indirectly owns over 99.99% of PETSA, the operating company for the oil and gas exploration and production business of Mercuria EG in Argentina. The combination was effected through the acquisition of the entire issued share capital of Trefoil Holdings in consideration for the issue of 1,899,106,385 consideration ordinary shares. The consideration shares issued to Upstream Capital represented 75.38% of the enlarged share capital on completion with existing Andes shareholders holding 24.62%. The resulting ownership of Mercuria EG in the enlarged group on completion was approximately 78%. A copy of the admission document can be found on the Company's website.

The Board believes that it is in the interests of the Company's shareholders for the Company to focus on oil and gas exploration and production in Argentina only. Outside of Argentina, the Company has interests in Colombia, through its interest in the Interoil shares and interests in certain licences in the Llanos Basin and the Valle Magdalena Medio Basin. In line with this strategy, the Board is in the process of demerging the Interoil shares, which are currently held by the Company's wholly-owned subsidiary, AIL, to be effected by way of a transfer of shares to US shareholders and a distribution in specie to non US shareholders on record pre- completion.

On 21 August 2017 the Company announced that subsequent to CHSA, the concessioner and operator of the CH and PPC blocks, presenting to the Director of Hydrocarbons a new exploitation plan for the areas, CHSA has been notified of the Province of Mendoza's acceptance of the plan. Pursuant to this plan CHSA and the joint venture partners will relinquish 100% of the PPC block, which has production of approximately gross 423 bopd (net to Andes 331 bpd) and covers approximately 42,000 gross acres, and implement a work programme in the CH block with a gross investment commitment of approximately US$94 million over a 4 year period. Andes's level of participation in the new work programme for the CH block, if any, has not yet been agreed with the operator.

On 22 August 2017 the Company drew down US$45 million of the remaining US$73 million of the US$160 million bridging and working capital facility provided by Mercuria Energy Trading S.A..

15. Cash generated from operations