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Operational Update - Egypt

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04 Apr 2018

EFORA ENERGY LIMITED

(Formerly SacOil Holdings Limited)

(Incorporated in the Republic of South Africa)

(Registration number 1993/000460/06)

Share Code: EEL

ISIN:  ZAE000248258

(“Efora” or “the Company”)

OPERATIONAL UPDATE – LAGIA

Pilot well Lagia #14 successfully comes on stream with reduced water production

Further to the announcement on 20 December regarding the Lagia#14 pilot well on its wholly owned and operated Lagia field in Egypt, Efora Energy provides the following operations update.

The steaming operations of the well progressed in line with expectation, with a total of 7 000 bbls of steam injected and the soaking period concluded at the end of January.  During efforts to bring the well on stream, after an initial flow of around 300bbls of steam related water, the well produced little to no fluids and the well was subsequently shut-in for technical studies.  Following a period of consultation and analysis with independent consultant Calgary-based Bouhry Global Energy Consultants, it was concluded that the well encountered tight reservoir which has restricted the flow of oil and would therefore require hydraulic stimulation.  After a few weeks of logistics preparation for the Sinai area, the Company successfully carried through the hydraulic fracking operations of the well with Halliburton, the contractor, on the 26th March 2018 and then shut-in. The well clean up occurred between the 27th and 30th March, and oil production was observed from the 31st March 2018.  The well production peaked at an estimated 75 bbls /day of heavy crude (11 API consistent with the wider field) and is now stabilized at around 40 bbls/day of crude. Early production from this well indicates that the water cut is estimated at 20%, which compares favourably with the average water cut of around 60% throughout the Lagia field. The observed rates are within the range of the modelled estimates. The well is still under technical evaluation and will remain under observation for the coming month.

Commenting on the update, CEO Dr Thabo Kgogo said:

“The principal objective of this well was to execute a completion strategy that minimises water production, thereby resulting in lower operating costs and improved production efficiencies. As such, we designed this pilot well to reduce water production by carefully selecting the perforation interval of the reservoir, and increasing the steam volume from previous levels to ensure sustained production. Current production volumes from the well should be seen within the context of a reduced perforated interval and we are pleased with the early indications of a successful outcome with regards to reduced water production. These results, together with observations for the coming days, will provide a solid basis for the Lagia field re-development.  We will provide a further update in due course once the well has produced for an extended period of time.”

Sponsor

PSG Capital Proprietary Limited

4 April 2018

For further information please contact:

Efora Energy Limited

Damain Matroos

+27 (0)10 591 2260

Buchanan (Financial PR adviser)

Ben Romney / Chris Judd

+44 (0)20 7466 5000

About Efora

Efora Energy Limited is a South African based independent African oil and gas company, listed on the JSE. The Company has a diverse portfolio of assets spanning production in Egypt; exploration and appraisal in the Democratic Republic of Congo; midstream project relating to crude trading in Nigeria and material downstream distribution operations throughout Southern Africa. Our focus as a Group is on delivering energy for the African continent by using Africa’s own resources to meet the significant growth in demand expected over the next decade.