OML 122

Background:

• In April 2005, Equator Exploration Limited signed a Finance and Service Agreement with Peak Petroleum Industries Nigeria Limited (‘Peak’), the lease holder of OML 122, an offshore indigenous block.
• In return for providing funds and supplying technical services, Equator became entitled to a share of any oil and gas production from the Bilabri and Owanare discoveries and from any discovery made by a selected exploration well.
• OER holds 81.5% interest in Equator Exploration Limited (Equator).
• OML 122 is located in the offshore Niger Delta region 40km from the coastline of Southern Nigeria, at a water depth of between 40 and 300 meters, and covers an area of 1,599 km² (395,122 acres)
• OML 122 includes three discoveres (Bilabri, Orebiri and Owanere). There has been no production from OML 122 to date.