Temporary Suspension of trading in securities

    RNS Number : 3666E
  Sovereign Oilfield Group plc
  26 September 2008
   


 Immediate Release  Friday, 26 September 2008 


    SOVEREIGN OILFIELD GROUP Plc

    ("Sovereign" or "the Company" or "the Group")

    Temporary Suspension of trading in securities


    The Board of Sovereign announces that trading in its AIM securities has been suspended as the Group will be unable to publish its Annual
Report and Accounts for the year ended 31 March 2008 by 30 September 2008.  

    The Group is in advanced negotiations with a number of lenders, including its existing lenders, regarding a re-structuring of the
Group's debt facilities. As part of these discussions the Group is also seeking to secure additional working capital to support the
continued growth of the Fabrication division.

    Whilst the Board believes that this process will conclude successfully, the directors recognise, given the state of the banking sector,
that there is uncertainty as to the time it will take to conclude such negotiations.

    The trading performance of the Fabrication division in the year ended 31 March 2008 was broadly in line with the director's expectations
and the division continues to perform strongly in the current year with a number of new contract wins including in the Middle East. The
trading performance of the Drilling Division has been disappointing and in particular Diamant Drilling Services SA and Maxwell Downhole
Technology Limited.  

    The Board anticipates that the report and accounts for Sovereign for the year ended 31 March 2008 will be released following completion
of the re-negotiation of its banking arrangements.

    A further announcement will be made in due course.

    Further information:
    Sovereign Oilfield Group Plc                                                                   Tel: 01224 261900
    Graham Burgess, Chief Executive Officer
    Julie Cowie, Finance Director

    Buchanan Communications                                                                   Tel: 0207 466 5000
    Tim Thompson/Catherine Breen/Christian Goodbody

    Charles Stanley Securities - Nominated Advisor                                      Tel: 0207 149 6000
    Mark Taylor/Freddy Crossley


    About Sovereign Oilfield Group Plc

    Sovereign, which joined AIM in September 2005, was formed in October 2003, by Dr Peter Felter and Mr Graham Burgess, for the specific
purpose of developing an oilfield service company focused on:

    *     The provision of engineering, fabrication and drilling services and personnel to oil and gas companies and contractors in the UK
and internationally
    *     The promotion of new 'high tech' IP and technologies for enhancing oil and gas drilling and production.

This information is provided by RNS
The company news service from the London Stock Exchange
 
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