RNS Number : 0495G Lochard Energy Group PLC
31 May 2013

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

31 May 2013

Lochard Energy Group PLC

("Lochard" or the "Company")
Operational and trading update and offer by The Parkmead Group plc ("Parkmead")
On 23 May 2013, Parkmead announced a recommended all-share offer for Lochard with the support of shareholders who in aggregate hold approximately 40.1 per cent. of the issued ordinary share capital of the Company, expressed by way of irrevocable undertakings or letters of intent. The support has now increased to approximately 41.4 per cent. as at 30 May 2013.
The Lochard Directors (the "Directors") note the announcement dated 30 May 2013 from a consortium of investors, represented by Cornhill Capital Limited, (the "Cornhill Consortium").
This announcement provides an operational and trading update on Lochard as well as further detail on the Directors' rationale for recommending Parkmead's offer. The Directors encourage Lochard shareholders to read this announcement to get an accurate understanding of the Company's current operational and financial position.

Exploration assets

The Company lost its status as a North Sea operator in February 2013 because it no longer had the financial resources to meet its licence commitments. This involved Lochard having to relinquish its interest in the Thunderball licence, its only appraisal and development prospect, because of a lack of funding availability to meet a firm drilling commitment. Accordingly, the Company is no longer able to operate its remaining three North Sea exploration interests.
The Company's subsidiary, Zeus Petroleum Limited ("Zeus"), has interests in three exploration licences: