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FOR IMMEDIATE RELEASE 0926

1 December 2009

SOVEREIGN OILFIELD GROUP Plc

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

Board Changes and Update on Renegotiations with the Lending Consortium

The Board of Sovereign announces the immediate resignation of Graham burgess as Chairman and Chief Executive and Julie Cowie as Group Finance Director. The Board thanks them for their contribution over the last few years. Chris McGeehan, currently Chief Operating Officer, has assumed the role of Interim Chief Executive. 

As reported on 23 November 2009, the Board are continuing further discussions with its lending consortium to re-negotiate the terms of its existing loans and seek additional finance.

The Board is encouraged by the progress on funding discussions which are progressing satisfactorily. One of the options being considered by the Board, is a debt for equity swap, which would be dilutive to current shareholders but would reduce debt and increase the capital base of the Group. Whilst the final funding negotiations are not complete, the lending syndicate has already provided additional funding on 27 November 2009. 

A further announcement will be made as appropriate.

Further information:

Sovereign Oilfield Group Plc                                                         Tel: 01224 261900

Christopher McGeehan, Interim Chief Executive 

Stuart Pearson, Non-executive Director

Charles Stanley Securities - Nominated Adviser                             Tel: 0207 149 6000

Mark Taylor/Freddy Crossley

Buchanan Communications                    Tel: 020 7466 5000

Tim Thompson, Catherine Breen

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