Andalas Energy and Power Plc - Operations Update

Monday 16 July 2018

Andalas Energy and Power Plc provided an update following the completion of its acquisition of its interest in Eagle Gas Limited (“Eagle”), which is the owner of 66 2/3% of Southern North Sea Licence P2112 (see announcement of 30 April 2018). The update is based on information supplied by the Operator and follows completion of the first phase of the work programme outlined by Andalas on 30 April 2018.

Highlights:

Southern North Sea Licence P2112 contains the undrilled gas prospect known as Badger:

- The acreage is prospective for gas from multiple Carboniferous reservoirs.

- The prospect is geologically analogous to other producing fields in the Southern North Sea

Phase one of the work programme is now complete.Petroleum Geo-Services ASA (“PGS”) has completed the pre-stack depth migration (PSDM) reprocessing of the 3D seismic data:

- The 3D Seismic data is based on two PGS multi-client surveys that were merged and reprocessed by PGS in 2015.

Phase two of the work programme is now underway:

- Seismic interpretation has commenced that will estimate resource volumes and exploration well location.

- In parallel the operator has commenced the preparation of the farm-out material.