Commencement of Site Survey on OPL 310

10 January 2020

Lekoil Limited

("LEKOIL" or the "Company")

Commencement of Site Survey on OPL 310

LEKOIL (AIM: LEK), the oil and gas exploration and production company with a focus on Nigeria and West Africa, announces today on behalf of Optimum Petroleum Development Company ("Optimum"), the Operator of the OPL 310 License, and LEKOIL Nigeria Limited, a member of the LEKOIL Limited group, that the site survey on OPL 310 has commenced.

Following on from the drilling of Ogo-1 and Ogo-1 ST in 2013 which encountered hydrocarbons within the SynRift and PostRift, Optimum and LEKOIL are envisaging a two-well programme with the objective of obtaining dynamic flow data from well testing while preserving the drilled wells as producers. In conjunction with this appraisal drilling plan, the site survey is required for the assessment of top-hole drilling, jack-up rig and potential platform foundation hazards and any seabed obstructions.

Approval for the site survey on OPL 310 was granted by the Department of Petroleum Resources ("DPR"), in accordance with provision of the Petroleum (Drilling and Production) Regulations. The marine vessel, conducting the site survey, arrived at site location yesterday and has commenced its operation which is expected to be completed before the expiration of the approval received from DPR which occurs on 24 March 2020.

Optimum and LEKOIL envisage that first well spud could occur in the second half of this year and as previously announced on 2 January 2020, LEKOIL has secured US$184 million (gross) of funding for the appraisal drilling and initial development programme activities on the Ogo field.

Lekan Akinyanmi, LEKOIL's CEO, commented, "With the commencement of the site survey, we are delighted to begin in earnest the two well appraisal drilling work programme of activities which is expected to lead to the spudding of the first well in the second half of this year. We celebrate this milestone with our partner and the Operator of the OPL 310 License, Optimum Petroleum, as together we pursue value for all stakeholders."

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Technical Background on OPL310

In 2013, the first exploration well (Ogo-1) drilled by the OPL 310 partners - then consisting of Optimum, LEKOIL and Afren - was the Ogo prospect, a four-way dip-closed structure in the Turonian to Albian sandstone reservoirs. The drilling programme included a planned side-track well (Ogo-1 ST) which aimed to test a new play of stratigraphically trapped sediments at the basement of the Ogo prospect. The Ogo-1 well encountered a gross hydrocarbon section of 524ft, with 216ft of net stacked pay whilst the Ogo-1 ST well encountered the same reservoirs as Ogo-1 in addition to the syn-rift section which encountered a 280 ft vertical section gross hydrocarbon interval. Owing to well data collected from the two wells, the partners estimated P50 gross recoverable resources to be at 774 mmboe across the Ogo prospect four-way dip-closed and syn-rift structure.

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.