Armour Energy Limited provides the following update in relation to the Company’s interest in the oil exploration project in Uganda.

Background

The Uganda oil exploration project is located within the Albertine Graben which has recorded discoveries of 6.5 billion bbl of oil in place.  Armour was awarded the Kanywataba exploration licence by the Government of the Republic of Uganda on 13 September 2017 (EL 1/2017). Armour holds the legal title to EL 1/2017, while DGR Global Ltd has an 83.18% beneficial interest (with Armour holding the remaining 16.82% beneficial interest).

Within EL 1/2017, the Company has identified multiple untested structural stratigraphic traps that are on trend with the Kingfisher oil field.  The Kingfisher oil discovery (40km NE of EL 1/2017 and owned by a JV of CNOOC, Total and Tullow) has produced up to 12,000 bbl/d from commingled oil reservoirs from a single well.  The Kingfisher oil field is expected to come online at 40,000 bbl/d once in production. Oil seeps on EL 1/2017 confirm a local working petroleum system. Armour’s internal assessment of the Kanywataba block is a Best Estimate Risked Resource of 808 mmbbl Recoverable.