GUINEA-BISSAU | CAP ENERGY PLC

THE REPUBLIC OF GUINEA-BISSAU

In February 2013, Cap acquired 85.7% of the shares of Sphere Petroleum Corporation (BVI), a company that holds 35% participation interests in two explorations licences in the Republic of Guinea-Bissau. Cap Energy’s interests in Block 1 and Block 5B were officially gazetted by the Government of Guinea-Bissau on 19th February 2013. Petroguin, the national oil company, is a carried partner during the exploration period.

Block 1 (Corvina) and Block 5B (Becuda) are located offshore Guinea-Bissau in the productive Mauritania-Senegal-Guinea-Bissau-Conakry Basin. Atlantic Petroleum Guinea-Bissau, a subsidiary of Trace Atlantic Oil Limited, is the operator with a 65% interest in the licences.

Cap Energy has, through Trace Atlantic, access to the Rex Technology Package, which comprises Virtual Drilling Analysis, a proprietary software-based technology which significantly increases the chances of exploration success by relying on acoustic resonance on already acquired seismic data to detect the presence of hydrocarbons and predict oil quality. Virtual Drilling Analysis is being run as part of the seismic programme on both Blocks.

A Competent Persons Report (CPR) on both Blocks by Gas Mediterraneo & Petrolio (a consultancy firm established by a group of specialists and managers with extensive experience in Eni S.p.A) is available dated 25 April 2013.

Location: Block 1 licence area covers 4,800 square kilometers offshore Guinea-Bissau in shallow waters ranging up to 100 metres and is located directly west of the billion barrel Dome Flore discovery in the Joint Administration Zone between Guinea-Bissau and Senegal, and north of Svenska Petroleum’s Sinapa discovery which has an estimated 240 mmbbls OIP. 23 known salt domes exist south of the Dome Flore discovery and historical well DRO-1 drilled in Block 1 identified structural traps formed by salt diapirs.

Licence: Awarded 11 Apr 2008 (effective date 15 Oct 2012)

Operational Phase: Exploration

Activity to Date:

• Historic well drilled by ELF identified structural traps formed by salt diapirs. Reinterpretation of legacy 2D seismic (1,150 km) identified 8 leads.

• Completed acquisition and interpretation of new 2D in 2011 (1,500 km) and 2D infill survey (1,530 km) in 2013.

Activity Status: Acquisition of 3D survey.

Notes: Block 1 is geologically analogous to the areas containing the Dome Flore and Sinapa discoveries and regional studies, including the correlations with 14 wells in the region, indicate the likelihood of an existing petroleum system.

Operator: Trace Atlantic Oil Limited

Project Partners: Trace Atlantic Oil Limited (65%); CAP Energy (30%); Sphere Petroleum (5% limited carried interest); Petroguin (in the case of a commercial discovery, shall acquire 10-20% through a pro-quota release of the current JV partners).

The Block 1 licence area covers 4,800 square kilometers offshore Guinea-Bissau in shallow waters ranging up to 100 metres and is located directly west of the billion barrel Dome Flore discovery in the Joint Administration Zone between Guinea-Bissau and Senegal, and north of Svenska Petroleum’s Sinapa discovery which has an estimated 240 mmbbls OIP. 23 known salt domes exist south of the Dome Flore discovery and historical well DRO-1 drilled in Block 1 identified structural traps formed by salt diapirs.

Block 1 is geologically analogous to the areas containing the Dome Flore and Sinapa discoveries and regional studies, including the correlations with 14 wells in the region, indicate the likelihood of an existing petroleum system.

The reinterpretation of historic 2D seismic (1,150 kilometers) has identified 9 leads in Block 1. The interpretation of the new 2D seismic data (1,500 km) acquired in 2011 and the 2D infill survey (1,530 km) acquired in 2013 is currently being processed with final interpretation results expected end Q1 2014.

Location: Block 5B licence area cover 5,500 square kilometres offshore Guinea-Bissau in water depths ranging between 200 and 4,000 metres.

Licence: Awarded 11 Apr 2008 (effective date 15 Oct 2012)

Operational Phase: Exploration

Activity to Date:

• 1,500 km new 2D seismic survey acquired in 2011 and 2013.

• Reinterpretation of legacy 2D (1,000 km) and of 2011 2D data indicates large leads in potential Cretaceous reservoirs.

• An additional 1,530 km new 2D survey was acquired in 2013. Interpretation of the Block on basis of all integrated data has been concluded.

• 3D survey (2,871km2) acquired in 2014 fully processed and interpreted - identified several play types, including SNE analogue, with two main drill-ready prospects containing 3.2 billion bbls (P50 prospective recoverable resources).

Activity Status: Drilling of 1 exploration well.

Operator: Trace Atlantic Oil Limited

Project Partners: Trace Atlantic Oil Limited (65%); CAP Energy (30%); Sphere Petroleum (5% limited carried interest); Petroguin (10-20% in the case of a commercial discovery).

An independent report based on the 2011 and 2013 2D seismic results in Block 5B has identified 15 structures and 6 stratigraphic leads in different formations from Albian/Aptian to Jurassic. Surface extensions of the leads range from 15 to 128 sq. km. The mean STOIIP volumes of the leads range between 28 and 2433 MMBO; the mean recoverable resources range between 5.5 and 608 MMBO. The aggregate mean STOIIP volume of the block has been evaluated at about 11 billion bbls and the mean recoverable resources at about 2.75 billion bbls. These figures compare with those in the April 2013 CPR, which estimated 5 structures and 2 stratigraphic leads, having surface extensions ranging from 4 to 60 sq. km and aggregate mean STOIIP of 2.5 billion bbls, with recoverable resources of 620 MMBO.