OPL 310

*Afren has a 40% legal interest with a 70% economic interest

Background

OPL 310 was awarded to indigenous company Optimum Petroleum in 1992. It is located in the Benin Basin, offshore western Nigeria. Located adjacent to the highly prospective Aje field (recently declared commercial), and Seme fields, OPL 310 represents a high impact shallow to deep water exploration opportunity in an under-explored basin. Previous 2D (500 km) and 3D (400 sq km) seismic acquired on the block has revealed a number of prospects with potential for oil and gas accumulations. OPL 310  covers 500,000 acres and extends from the shallow water continental shelf to deepwater. There have been no wells drilled on the block to date.

Terms
Afren has signed a Production and Revenue Sharing Agreement, under the terms of the agreement, Afren will be the technical operator and will hold a 40 per cent. legal interest and a 70 per cent. effective working interest.

Forward Plan
Technical and commercial studies are ongoing on the block with the possibility of acquiring 2D and 3D Seismic data prior to exploration drilling in 2011.