Successful well tests of C5 and C6 zones at rates of 6,404 bopd and 5,684 bopd

GREEN ENERGY INTERNATIONAL(GEIL) Operator of the Otakikpo Marginal Field (“Otakikpo”) in OML 11, hereby announces the result of the Well Test being undertaken by the joint venture (JV) partners — Green Energy International Ltd (GEIL) as the Operator and LEKOIL Oil & Gas Investment Ltd (LEKOIL) as Technical & Financial Partner.

The Otakikpo-002 well flowed oil from two upper zones during two production tests concluded on 10 April 2016. The C5 zone flowed at a peak rate of 6,404 bopd at a 36/64 choke while the C6 zone successfully flowed oil at a peak rate of 5,684 bopd at a 36/64 inch choke, for over 24 hours. Production testing at the well was curtailed due to storage capacity limits on well-testing equipment. The JV expects to start commercial production by the end of Q2 2016.

Earlier in September 2015, the lower E1 zone produced from the first of four planned production tests, flowing oil at various choke sizes for over 24 hours at a peak rate of 5,703 bopd at a 36/64 inch choke.However, during completion operations the well encountered cementing issues resulting in the temporary suspension of the E1 zone to allow remedial work to take place. To keep Phase 1 of the Field Development Plan (“FDP”) on track and under budget, the JV prioritised production from the second and third planned production zones, in the C5 and C6 reservoirs, and will pursue development options for the E1 zone in the future. The encouraging flow tests of upper zones, C5 and C6, reconfirm the sizeable potential of the oil field.

Following the completion of Otakikpo-002, well re-entry operations on Otakikpo-003 are expected to begin later in Q2 and will target the E1 and C5 zones. The Joint venture expects to commence commercial production from Otakikpo-003 in Q3 2016 and expects to be producing 10,000 bopd by year-end 2016. The facilities construction and permits are at an advanced stage to meet the timeline for commercial production.

The Otakikpo Joint Venture with Green Energy as the Operator began operations in December 2014.