Tuesday 18 December 2018

Andalas Energy and Power plc provided the following update on its investment in Eagle Gas Limited.

- The OGA has agreed a 5 month extension of the initial term of licence P2112 to 19 May 2019.

- Under the terms of the extension, the licence holder must:

- By no later than 31 March 2019, advise the OGA that it either: (i) has elected to drill one well to 3800m or 100m into the Namurian (whichever is the shallower) and approved the necessary funding for the well commitment; or (ii) elected to terminate the licence;

- Provide the results of two G&G studies to the OGA by 1 March 2019 together with a conclusion as to whether the results of these studies support a drill decision; and

- Provide an update to the OGA by 1 March 2019 on all pre-drill decision work.

- Operator to undertake an additional technical assessment of the Ketch gas prospect after a third-party review concluded that there may be additional gas potential in the Ketch.

- Identification of additional gas potential in the Ketch may inform the licence holders’ decision on the optimal location of an exploration well on the licence.

- Eagle Gas Limited has the funds available to complete the additional work programme.

Andalas is the owner of a 25% interest in Eagle Gas Limited that is itself the 100% owner of Holywell Resources Limited, which owns a 66 2/3% interest in licence P2112. Atlantic Petroleum UK Limited owns a 33 1/3% interest in the licence. The licence contains the Badger prospect which contains a significant resource which was the subject of the Company’s announcement of 20 August 2018.