Update on OPL 310 Licence

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.

14 May 2019

LEKOIL Limited

("Lekoil" or the "Company")

Update on OPL 310 Licence

Lekoil (AIM: LEK), the oil and gas exploration and development company with a focus on Nigeria and West Africa more generally, announces that further to the announcement, of 28 March 2019, the Company advises that it has received correspondence by letter (the "Letter") from the Ministry of Petroleum Resources relating to an application for an extension (re-award) to the OPL 310 licence. Further background detail on OPL 310 can be found in the 28 March 2019 announcement and on the Company's website.

The Letter notes that the OPL 310 licence expired on 10 February 2019 and ownership of OPL 310 has accordingly reverted to the Government in line with Petroleum Act. The Letter further sets out that the re-award will not be considered by the Honourable Minister of Petroleum Resources ("HMPR") until such point as the suit filed by Lekoil against the HMPR is withdrawn by Lekoil and other parties to the action. Failure by Lekoil and others to withdraw the suit within thirty (30) days of the Letter, which was dated 8 May 2019, but received by Lekoil on 13 May 2019, forecloses any consideration of re-award to Optimum Petroleum Development Limited, Lekoil and their affiliates or subsidiaries.

The Company has decided to withdraw legal action. The Company will also continue engagements with the regulator and Optimum Petroleum Development Company Limited, the operator of OPL 310, to conclude agreements and resolve all outstanding issues. Further updates will be provided as and when necessary.

For further information, please visit www.lekoil.com or contact: