Company Update

Placing via Shares and Loan Notes to raise £3.0 million
Strategic focus on gas opportunities in the Gulf of Guinea region of West Africa
Appointment of new Directors and Appointment of Joint Broker

Gasol plc ('Gasol' or 'the Company')

Gasol plc (AIM: GAS), a company established to capitalise on acquisition and investment opportunities in the oil and gas sectors, is pleased to announce that it has placed 47,400,000 new Ordinary Shares raising £2.37 million (before expenses) and issued £630,000 convertible unsecured loan notes ("the Loan Notes"). The new shares ("the Placing Shares") were placed at a price of 5p per share raising, together with the Loan Notes, a total of £3.0 million (before expenses) for the Company ("the Placing"). Application has been made to AIM for the Placing Shares to be admitted to trading, which is expected to commence on 3 February 2006

Highlights

• Placing to raise a total of £3.0 million (before expenses) via shares placed at 5p per share and loan notes
• Strategic focus on gas opportunities in the Gulf of Guinea region of West Africa
• Several potential opportunities in the Gulf of Guinea currently under appraisal
• Board strengthened by appointment as Chairman of Michael Weston, an oil and gas industry executive with more than 30 years' experience, and of Angus Robertson as Non-Executive Director
• Jefferies International Limited appointed as Joint Broker

Michael Weston, Chairman of Gasol, commented: "I am delighted to join Gasol at this significant stage in the Company's development and to assist the Company in its strategy of exploiting liquefied natural gas (LNG) opportunities in West Africa for the European and US markets. In this Placing, we are pleased with the support of both new and existing shareholders. The additional funds will help drive Gasol's plans to capitalise on one of the fastest growing segments of the international energy market."

For further information:

Gasol plc
Haresh Kanabar, Chief Executive
+44 (0)20 7297 0010

Panmure Gordon & Co
Katherine Roe
+44 (0)20 7459 3600

Jefferies International Limited
Toby Hayward
+44 (0)20 7466 5000

Buchanan Communications
Mark Court
James Strong
+44 (0)20 7466 5000

Background

Gasol joined the AIM market of the London Stock Exchange in March 2005 with the strategy of seeking, evaluating and capitalising on investment and acquisition opportunities in the oil and gas sectors. Since flotation, when the Company raised gross proceeds of £1.45 million, Gasol has pursued its strategy by analysing both geographic regions and individual opportunities. During this process the Company has been careful to conserve its cash, reporting net cash of £1.36 million at 31 August 2005.

The Board is pleased to report that it has decided to focus on gas opportunities in the Gulf of Guinea region of West Africa, an important and growing source of natural gas and where reserves are estimated at more than 200 trillion cubic feet. The Company is investigating several potential opportunities in the Gulf of Guinea and looks forward to updating shareholders in due course.

As outlined in the announcement on 15 December 2005, the Company believes that, to gain access to larger transactions and to accelerate the delivery of its corporate objective of completing its first acquisition, there is a clear benefit in expanding the Company's capital base. Hence the Company has raised a total of £3.0 million in this Placing. The Company intends to use the funds to continue its evaluation of projects in the Gulf of Guinea, for due diligence and to contribute to the funding of the Company's first acquisition.

Gasol intends to monetise both flared and low-cost stranded natural gas reserves through the development of independent liquefied natural gas (LNG) solutions and corresponding international infrastructure in support of the LNG value chain. This strategic focus coincides with positive global developments for LNG which is predicted to be a key source of new supply to meet increasing gas demand in both Europe and the US.

Gasol intends to enter into a strategic alliance with Afren plc (AIM: AFR) with a view to identifying upstream supply opportunities. On the completion of this agreement Afren's option, which is detailed below, will become excercisable.

Given the progress in the implementation of the Company's strategy, it is intended to appoint additional Directors, as proposed at the time of the Company's flotation, with specific oil and gas and capital markets experience. Gasol is pleased to announce the appointment of Michael James Weston as Executive Chairman and Angus Robertson as Non-Executive Director with immediate effect.

Michael James Weston, aged 61, takes over as Chairman from John Vergopoulos, who remains on the Board as a Non-Executive Director. Mr Weston has more than 32 years' experience in the oil and gas industry, with the past 15 years specifically in LNG. During his 25-year career with the Royal Dutch Shell Group of Companies he was responsible for developing Shell's gas business in Nigeria and was a Director of Nigeria LNG Limited, one of the largest LNG projects in the world. He was also responsible for developing Texaco's global LNG strategy and developed specific LNG projects in Nigeria and Angola.

Angus Donald Winton Robertson, aged 55, has more than 30 years' capital markets experience. Most notably, he served on the main board of International City Holdings, an international money broker, before it was acquired by Babcock Prebon.

The Company has granted options to subscribe for shares in Gasol at the Placing price to Afren Plc (10 million options), Jefferies International Limited (8 million options), Ocean Venture Investments Ltd (2 million options) and at 10p per share to Synergy Gas Capital Partners (10 million options). The options are exercisable from 31 January 2006 to 31 January 2009.

Blue Star Capital plc (AIM: BLU) is subscribing for shares in the Company. Because of the fact that it is a substantial shareholder in the Company, it is deemed a related party under the AIM Rules for the purposes of the Placing. The Directors confirm that, having consulted with its nominated adviser, the terms of the transaction are fair and reasonable in so far as shareholders are concerned.

Gasol is also pleased to announce the appointment of Jefferies International Limited as Joint Broker, with immediate effect.

Additional information

Mr Weston holds or has held directorships in the five years preceding his appointment at Gasol as follows:

Mr Robertson holds or has held directorships in the five years preceding his appointment at Gasol as follows:

There are no other matters to be disclosed in relation to Schedule 2 paragraph (g) of the AIM Rules.

END