Appraisal and exploration block in the quickly developing new gas production hub at the southern distal extreme of the Niger Delta. Secondary deeper oil objective.

The PSC for JDZ Block 2 has been secured for Oranto (65% equity) as Operator and Partners through agreement with the JDA. The JOA and the PSC text are currently being finalised. The intention for the block is two fold. Results from Bomu-1X well were encouraging with one gas pay section of over 20m and a number of thin gas bearing sands encountered. Gas is predominantly biogenic C1 methane. More signicantly we recognise a play extension of the toe thrust tightly folded gas charged structures abundant and sizeable on our Operated acreage JDZ Block 5 adjacent and immediately to the south of Block 2.

The location of Blocks 2 and 5 in the JDZ are analogous with respect to their Niger Delta toe thrust structural setting to the proven biogenic gas reserves on Block R in Equatorial Guinea. The analogous gas fields include the mean recoverable gas in the Silenus area now estimated at c.1.2TCF by the Block Operator. JDZ Block 2 may have comparable reserves to the Silenus area within the toe thrust setting, which would offer considerable synergies with the 4.5 TCF thought to additionally exist on JDZ Block 5. Moreover within the same play is a deeper secondary oil objective which we shall explore across both Blocks 2 and 5.