Deepsea Metro I Bags Contract Extension for Drilling Work in East Africa

Ophir Energy plc announced that it has secured a drilling rig and executed a letter of agreement for Rig Share Assignment with BG Group for the continuation of its 2013-2014 East African offshore drilling programme. Odjfell Drilling is the contract counterpart and drilling service contractor.

The Deepsea Metro I (DSM-1) drillship is currently being used by the Ophir-BG Group Joint Venture in Tanzania. This contract was previously due to expire in June but has now been extended for a further period of at least 18 months. During this period the DSM-1 will be used to drill a combination of wells in Tanzania for the Ophir-BG Group Joint Venture in Blocks 1-3-4 and also to drill operated wells for Ophir in Tanzania and Kenya and for BG Group in Kenya.

The Ophir-BG Group Joint Venture is currently using the DSM-1 to drill the Ngisi-1 exploration well in Block 4. Ophir management estimates Ngisi-1 could increase the mean in-place resource of the Chewa-Pweza-Ngisi hub to 5.8 tcf (4.1 tcf mean recoverable) and would also provide critical scale for gas aggregation and development from Block 4. Gas aggregation from Block 4 will be tied into the Block 1-3-4 LNG development project in Southern Tanzania.

The Joint Venture is currently reviewing the immediate forward programme for Tanzania Blocks 1-3-4. The likely sequence is firstly a satellite exploration well close to the Jodari discovery in Block 1, secondly an appraisal well and DST in Block 4. Thereafter it is planned to spud an outboard exploration well in Block 1 to test basin floor prospectivity by early September. A series of outboard prospects are presently being evaluated for this well.

Once this next phase of the Joint Venture exploration and appraisal programme has been completed, Ophir will take over operatorship of the drillship for exploration in Ophir’s Tanzanian Block 7, which is expected to target the substantial Mlinzi feature.

Deepsea Metro I is an ultra deep water drillship of Gusto P-10000 Design delivered by Hyundai Heavy Industries in South Korea in June 2011.

The drillship incorporates state of the art technology for safe and efficient operations in ultra deep water and complies with international rules and regulations for operations worldwide.

The drillship is owned by Golden Close Maritime Corp. Ltd, a subsidiary of Deep Sea Metro Ltd, a joint owner venture between Metro Exploration (60%) and Odfjell Drilling (40%). Odfjell Drilling operates the drillship.

Ophir and BG Group have both utilised the DSM-1 drillship for their Tanzania exploration programme since December 26, 2011. By extending the DSM-1 contract, the parties save on the considerable cost of mobilising a drillship from another region, reducing the drilling effective day rate. This arrangement provides maximum flexibility to effectively explore Ophir’s operated acreage while continuing with exploration and appraisal in the Ophir-BG Group Joint Venture.

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Ophir Energy, May 9, 2013