Rig Secured To Drill Prospect S In PEL 71, Offshore Namibia

Azinam Limited (“Azinam”), the Seacrest Capital Group backed explorer focused on offshore Namibia, is pleased to announce that the Ocean Rig Poseidon sixth generation deep water drillship has been contracted by the licence partnership to drill one firm and one optional well, with the first well targeting Prospect S, located in Petroleum Exploration Licence (“PEL”) 71, offshore Namibia.

The well has been strategically designed to test multiple zones including Aptian, Albian and Cenomanian-Turonian targets and is expected to spud in Q4 2018.

Prospect S has a gross mean prospective resource of 459mmbls and is one of five dip-closed structural traps in close proximity to each other in an Upper Cretaceous turbidite clastic fairway, with a combined total of 1,758mmbls of gross mean prospective resources. In addition, there are a further two higher risk stratigraphic traps in PEL 71 with a combined total of 885mmbls of gross mean prospective resources, which would be de-risked through the improved calibration of 6,100 km² of 3D seismic data using the results from the Prospect S well.

As previously announced, Azinam intends to drill multiple exploration wells offshore Namibia in the next 24 months. The company holds one of the largest acreage positions offshore Namibia, second only to NAMCOR the national oil company. Azinam is ideally placed to capitalise on success within the Walvis basin as its working interests range from 20-42.5% in six licences across the majority of the basin. These licences hold over 9 billion barrels of prospective resources and are strategically positioned to allow access to the multiple play types within the basin. Furthermore, Azinam holds an extensive proprietary seismic database comprising nine individual surveys, three 2D surveys and six 3D modern broadband seismic data surveys which cover more than 13,000km¹.

Azinam Managing Director, David Sturt, commented:

“We are very excited by this well, the first in our drilling program. Prospect S is located in PEL 71 which extends over 16,000km² and if successful it will unlock significant value as we have a considerable stable of analogous drill ready prospects within this Licence and across our licence portfolio (62,000km²).

The primary objective of the well is to test Cenomanian-Turonian age clastics within a structural trap with this same reservoir already proven by the Murombe well drilled to the north by HRT in 2013. Additionally, it will test deeper secondary objectives within the Albian and Aptian formations.

Our modern broadband 3D seismic database has been crucial in enabling us to map these basin floor fan complexes, which historically have been hard to identify from poorer quality datasets. We look forward to unlocking the potential of this basin with our partners, Chariot Oil & Gas, NAMCOR and Ignitus Oil & Gas.”

Azinam Chairman, Erik Tiller, commented:

“Contracting the Ocean Rig Poseidon to drill Prospect S in October is a major step forward in our next phase of exploration offshore Namibia. As recently announced, we are in the advanced stages of planning multiple exploration wells in the coming 24 months and this well marks the first in the campaign.

I look forward to providing further updates on our progress in Namibia, as we anticipate being very active during this phase of exploration in the region, with our extensive licence holding coupled with a unique seismic dataset position ensuring Azinam will benefit from any exploration success across the Walvis Basin.

NAMCOR and the Ministry of Mines and Energy (MME) continue to be highly supportive of the efforts of oil companies to open up this new petroleum province and I hope that we can repay this support with exploration success in the coming months.”

About Azinam

Azinam, part of the Azimuth Group, holds working interests in a total of 6 licences across 62,000km2 of the Walvis basin in offshore Namibia. Azinam is partnered with Tullow Oil, Maurel et Prom, ONGC, NAMCOR, Eco Atlantic Oil and Gas and Chariot Oil and Gas.

Namibia is an under-explored continental margin with significant hydrocarbon potential which is gaining increasing industry attention from a number of major oil companies. Recent new entrants include Exxon Mobil, Total, Lundin (through Africa Energy & Pancontinental) and ONGC. Backed by Seacrest Capital Group, Azinam is leveraging its technical strengths to unlock the significant potential of 10 billion barrels of net unrisked prospective resources in the Walvis Basin.

A combination of heightened industry interest in the country and wells planned in 2018, coupled with recent licensing and exploration success in geologically analogous regions within the South Atlantic margins, including the Falkland Islands, Brazil, South Africa and Angola, has made the region one of the most attractive potential hydrocarbon provinces in the global arena.

For more information, visit www.azinam.com

About The Azimuth Group

The Azimuth Group is an oil and gas offshore Upstream portfolio management company formed by Seacrest Capital Group, an upstream-focused private equity firm.

The Azimuth Group has secured significant exploration acreage positions in selected basins. Azimuth Group of companies currently operate licences in UK, Ireland, Namibia, Indonesia, and Honduras and is the holder of non-operated licence positions in Norway and Brazil.

Azimuth Group’s approach focuses on data and people; a full suite of highly experienced exploration and production expertise is complimented by the company’s unique access to the most extensive global library of broadband seismic data, allowing for rapid assessment of opportunities to be undertaken. While Azimuth retains the size, and feel of a small company, its access to data gives it the global reach and technical insights of a major player.

About Seacrest Capital Group

Seacrest Capital Group is a leading independent energy investor specialising in offshore oil and gas investments, leveraging its proprietary assets, relationships and operational and technical capabilities to build a diversified, global portfolio of regionally focussed oil and gas companies. Since 2010, Seacrest has invested in a number of successful upstream oil and gas companies in the United Kingdom, Norway, West Africa, Ireland, South East Asia and South America.

¹GeoStreamer technology provides subsurface images of greater clarity, accuracy and reliability.