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FOR IMMEDIATE RELEASE

6 March 2009

SOVEREIGN OILFIELD GROUP Plc

('Sovereign' or 'the Company' or 'the Group')

Sale of Subsidiary

Sovereign Oilfield Group Plc ('Sovereign' or the 'Company') is pleased to announce that Diamant Drilling Services SA ('DDS'), its Belgian PDC drill bit design and manufacturing subsidiary, acquired by Sovereign in 2005, which was consistently loss making (loss of the year to 31 March 2008 of €1.37m), was sold yesterday to Logan Oil Tools Inc (www.loganoiltools.com). 

The consideration of up to approximately €527,000 will be used to pay down existing Sovereign loan facilities. The first tranche of €250,000 cash will be paid in 3 months and a further contribution of up to €277,000, dependent on certain performance criteria, will become due within 6 months following completion. DDS had net fixed and current  assets totalling approximately €4.8m at the time of sale. 

The Company continues to focus on the remaining subsidiaries providing fabrication and drilling services to oil and gas companies and contractors in the UK and internationally.

The Company is still negotiating to refinance its existing debt and the Directors, still optimistic of achieving this and the subsequent release of the report and accounts to 31 March 2008, hope to update shareholders of further progress shortly.

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

Charles Stanley Securities - Nominated Advisor            Tel: 0207 149 6000

Mark Taylor/Freddy Crossley

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