BOUHAJLA NORTH FACT SHEET

The Bouhajla North prospect (BHN-1) is located on the Bouhajla Permit in onshore Central Tunisia. The prospect is a geological analogue of the Sidi el Kilani (SLK ) oil field 25km to the East. Evidence gathered so far by DualEx Energy (DXE.v) and Africa Hydrocarbons (NFK.v) from drilling and log data overwhelmingly points to a positive outcome after completion and testing operations. Have a look:

While the non-fractured Abiod section on BHN-1 has low permeability, several zones of enhanced permeability due to apparent natural fractures were interpreted from the logs and confirmed expectations based on 3D seismic interpretation of the Bouhajla North structure.

After shooting and studying seismic data, the companies had estimated 210m of highly fractured Abiod. Upon drilling, they encountered 245m of the reservoir with elevated hydrocarbon saturations throughout the Abiod. Elevated C1-C4 gas chromatograph readings coincided with fracture intervals and drill cuttings provided evidence of micro-fractures.

The Abiod is a fractured chalk, locally dolomitized in association with wrench tectonics. These types of reservoirs are associated with very high individual productivity rates. SLK-3, which encountered 130m of prospective Abiod formation, tested at 7,000 bopd. SLK-4 tested at 8,600 stb/d on a 1½"choke and has gone on to produce half of the entire production from Sidi el Kilani. With management keen to employ a similar completion protocol as was successfully practiced at Sidi el Kilani, the omens are looking good.

As has been previously demonstrated by the Sidi el Kilani oil field, trucking is a very viable option in getting the oil to market. Prior to 1999 when the dedicated pipeline to La Skhirra was commissioned, trucking was the means of transportation used. The oil trucked during that period represents 60% of the entire production to date from Sidi el Kilani. At the field, road tankers were used to haul oil to the pipeline terminal and tank farms at Sidi el Itayem.

Direct trucking to the export terminal at La Skhirra, over 100km away, was also practiced. The distances involved were much greater than the 25km oil would need to be trucked from Bouhajla North to the Sidi el Kilani pipeline. The short distance ensures that not only can more barrels be trucked, but more importantly, a significant reduction in cost.

If BHN-1 is a success, the reservoir will be penetrated more times in order to optimise the draining of the structure. Capacity should not be a problem as the pipeline at Sidi el Kilani is currently underutilized and has ample capacity available in the region of 20,000 barrels.

However, though not an immediate requirement, a pipeline will still be on the cards at a later stage. A pipeline will significantly increase the value of any new developments in the area and increase the lifespan of discoveries by easily accommodating any additional oil from any future discoveries. A tie in to the Sidi el Kilani pipeline is expected to cost $20 Million. Production Dollars will go a long way towards this with debt also an option. Dilution, if any, should be minimal.

And with much larger Abiod prospects - Bouhajla South East (359 Million Barrels Best Estimate) and Bouhajla Northeast (591 Million Barrels Best Estimate) – still on the cards, a pipeline would certainly come in handy.

ALL THE BEST.

Bouhajla North Fact Sheet

·         BHN-1 is located in the Pelagian Basin which is a proven basin with multiple discoveries.

·         Source rock is not a risk in the Pelagian Basin as it possesses multiple proven source rocks.

·         The naturally fractured Abiod is well a known reservoir in the region. Over 245m of highly fractured Upper Abiod section was penetrated in the recent drilling.

·         The El Haria shale located above the Abiod is regionally present and provides an excellent seal. It was confirmed by drilling.

·         The defined structure is well constrained by 2D and 3D seismic with good E-W closure with apparent N-W closure as well.

·         3D confirmed previous 2D structural interpretation of Bouhajla’s status as an analogue of Sidi el Kilani. The Bouhajla structure proved to be similar in size and shape to the 50 Million barrel oil field located 25km to the East.

·         Production at Sidi el Kilani comes almost exclusively from micro-fractures.

·         Several interpreted fracture intervals were observed over a 245 metre thick Abiod section at BHN-1.

·         Elevated C1-C4 gas chromatograph readings along with evidence of micro- fractures observed in drill cuttings coincide with the potential fracture intervals.

·         Pulse Neutron Log data suggests the Abiod is hydrocarbon saturated throughout the section with no water contact and has intersected a number of fracture intervals. RST log interpretation indicative of light hydrocarbons.

·         Management is targeting up to 10,000 barrels of oil per day of light sweet 42° API crude on the first well (BHN-1) with only 4 wells needed to drain the entire structure.

·         There is ample capacity for discoveries at the Sidi el Kilani pipeline 25km away.

·         Monetisation of the asset expected to be quick and cost effective with trucking of the oil initially, followed by a tie in to the pipeline at Sidi el Kilani.