Azinam doubles South Africa exploration footprint via partnership with OK Energy. Secures an effective interest in Northern Cape Ultra-Deep block and East Algoa block offshore South Africa

Hamilton, Bermuda – Wednesday, February 26th, 2019:

Azinam Limited (“Azinam” or the “Company”), the Seacrest Capital-backed Southern Africa-focussed oil & gas exploration company, is pleased to announce it has reached agreement on terms with the principals of OK Energy Limited (“OK Energy”) whereby Azinam, subject to contract, will become a significant minority shareholder in OK Energy. OK Energy holds a 10% participating interest in two blocks offshore South Africa (Orange Basin and Algoa Basin). Upon completion, Azinam will hold an effective 4.9% interest in these licences. The principals of OK Energy will become minority shareholders in Azinam.

The Northern Cape Ultra-Deep block (ER 274) in the Orange Basin, in which OK Energy holds a 10% Participating Interest, is operated by Shell, with a 45% Participating Interest. Kosmos Energy owns the remaining 45% Participating Interest.

The East Algoa block (ER 257) in the Algoa Basin, in which OK Energy holds a 10% Participating Interest, is operated by Equinor with a 60% Participating Interest. TOTAL SA owns the remaining 30% Participating Interest.

OK Energy benefits from significant carries on the Northern Cape Ultra-Deep block and the East Algoa block, resulting from prior farmouts to the other licence participants. As a shareholder in OK Energy, Azinam will benefit from these arrangements.

Daniel McKeown, Managing Director of Azinam, commented:

Azinam is delighted to announce that it is entering into a partnership with OK Energy. The OK Energy principals have an international reputation for the early identification of high-potential exploration acreage. An indirect interest in OK Energy’s two South Africa licences gives Azinam further exposure to the Orange Basin and new exposure in the Algoa Basin. Both licence positions enjoy significant carries from the larger on-licence partners. These positions offer zero-capital exploration exposure for Azinam. The Northern Cape Ultra-Deep block, which is in the Orange Basin, is very close to TOTAL SA’s highly anticipated Venus well, which is expected to spud in Q3 2020. Azinam expects further third-party Orange Basin exploration drilling activity in late 2020 / early 2021 close to Northern Cape Ultra-Deep block and Azinam’s 3B/4B Block. Azinam’s agreement with OK Energy is part of our strategy for broad participation in the exciting and high-potential exploration activity offshore South Africa.

Azinam is the leading independent oil and gas company offshore Southwest Africa (South Africa and Namibia) with an extensive seismic database and one of the largest licence positions, giving it a strong regional understanding. Azinam is proud to be working at the forefront of oil & gas exploration in partnership with our host countries South Africa and Namibia. The discovery of commercial oil & gas deposits offshore Namibia and South Africa in the coming years would have a profound impact on our hosts’ economies, provide additional revenue, employment, secure energy sources to support industry and business and offer an alternative to coal as a primary energy source.”

Erika Syba, Director of OK Energy, commented:

We are pleased to broaden our exposure to a number of exciting plays with near-term exploration activity in Namibia and South Africa. The region is attracting much deserved attention with the discovery of Brulpadda and the near-term drilling of the Venus prospect, directly offsetting the enlarged group’s holdings in the Orange Basin. We look forward to working with Azinam on developing the portfolio further.”

Hamilton, Bermuda – Wednesday, February 26th, 2019:

Azinam Limited (“Azinam” or the “Company”), the Seacrest Capital-backed Southern Africa-focussed oil & gas exploration company, is pleased to announce an agreement with OK Energy that will lead to Azinam doubling its exploration footprint offshore South Africa.

Azinam announces today that it has reached agreement on terms with the principals of OK Energy Limited (“OK Energy”) whereby Azinam, subject to contract, will become a significant minority shareholder in OK Energy. OK Energy holds a 10% participating interest in two blocks offshore South Africa (Orange Basin and Algoa Basin). Upon completion, Azinam will hold an effective 4.9% interest in these licences. The principals of OK Energy will become minority shareholders in Azinam.

The Northern Cape Ultra-Deep block (ER 274) in the Orange Basin, in which OK Energy holds a 10% Participating Interest, is operated by Shell, with a 45% Participating Interest. Kosmos Energy owns the remaining 45% Participating Interest.

The East Algoa block (ER 257) in the Algoa Basin, in which OK Energy holds a 10% Participating Interest, is operated by Equinor with a 60% Participating Interest. TOTAL SA owns the remaining 30% Participating Interest.

OK Energy benefits from significant carries on the Northern Cape Ultra-Deep block and the East Algoa block, resulting from prior farmouts to the other licence participants. As a shareholder in OK Energy, Azinam will benefit from these arrangements.

Daniel McKeown, Managing Director of Azinam, commented:

Azinam is delighted to announce that it is entering into a partnership with OK Energy. The OK Energy principals have an international reputation for the early identification of high-potential exploration acreage. An indirect interest in OK Energy’s two South Africa licences gives Azinam further exposure to the Orange Basin and new exposure in the Algoa Basin. Both licence positions enjoy significant carries from the larger on-licence partners. These positions offer a doubling of exploration exposure for Azinam offshore South Africa. The Northern Cape Ultra-Deep block, which is in the Orange Basin, is very close to TOTAL SA’s highly anticipated Venus well, which is expected to spud in Q3 2020. Azinam expects further third-party Orange Basin exploration drilling activity in late 2020 / early 2021 close to Northern Cape Ultra-Deep block and Azinam’s 3B/4B Block. Azinam’s agreement with OK Energy is part of our strategy for broad participation in the exciting and high-potential exploration activity offshore South Africa.

Azinam is the leading independent oil and gas company offshore Southwest Africa (South Africa and Namibia) with an extensive seismic database and one of the largest licence positions, giving it a strong regional understanding. Azinam is proud to be working at the forefront of oil & gas exploration in partnership with our host countries South Africa and Namibia. The discovery of commercial oil & gas deposits offshore Namibia and South Africa in the coming years would have a profound impact on our hosts’ economies, provide additional revenue, employment, secure energy sources to support industry and business and offer an alternative to coal as a primary energy source.”

Erika Syba, Director of OK Energy, commented:

We are pleased to broaden our exposure to a number of exciting plays with near-term exploration activity in Namibia and South Africa. The region is attracting much deserved attention with the discovery of Brulpadda and the near-term drilling of the Venus prospect, directly offsetting the enlarged group’s holdings in the Orange Basin. We look forward to working with Azinam on developing the portfolio further.”

We are pleased to broaden our exposure to a number of exciting plays with near-term exploration activity in Namibia and South Africa. The region is attracting much deserved attention with the discovery of Brulpadda and the near-term drilling of the Venus prospect, directly offsetting the enlarged group’s holdings in the Orange Basin. We look forward to working with Azinam on developing the portfolio further.”