PR98404

HOUSTON, Oct. 21, 2022, /PRNewswire=KYODO JBN/--

Federal Government of Somalia approves Coastline's Production Sharing Agreements

President of Somalia supports Coastline's Production Sharing Agreements with

the Federal Government and declares the country open for business with

international companies;

Coastline received full Government support for its agreements at high-level

meetings in Mogadishu with the President, Deputy Prime Minister, Minister of

Energy & Minerals, Chairman of the Somali Petroleum Authority and Attorney

General of Somalia;

Coastline pays US$7 million signature bonus to the Somali Central Bank for its

7 Production Sharing Agreements; and

Coastline will now move forward with its exploration programme.

Hassan Sheikh Mohamud, President of Somalia, said: "This agreement highlights

that Somalia is open for business and international investment after the

conflict that has blighted the country for so many years. I would like to thank

Coastline for its commitment to Somalia, as it has fulfilled its promise of

investing here, unlike so many other companies. Coastline clearly sees

significant opportunity in Somalia and we share its vision. The Federal

Government will do all it can to support this project and we want the first

exploration well to start as soon as possible. Today marks a major step forward

for Somalia as we look to develop our energy industry which should deliver

material benefits for all Somalis. Energy independence, new tax revenues and

further foreign investment in Somalia now beckons."

Coastline Exploration Limited ("Coastline"), an upstream oil and gas company

focused on East Africa, announces that further to its statement on February

19th regarding the signing of seven Production Sharing Agreements ("PSAs")

covering offshore, deep-water blocks of the Fedral Republic of Somalia, it

confirms it has received final authorisation for it to proceed with its

exploration programme from the competent authorities within the Federal

Government of Somalia ("FGS").  As a result, in line with the terms of the

PSAs, Coastline has paid the agreed US$7 million signature bonus to the Somali

Central Bank.

Authorisation was granted following conclusion of an in-depth review conducted

by the FGS into the process followed by Coastline and by the relevant Somali

Ministries and related advisory groups with respect to the signing of the seven

PSAs in February of this year.

Coastline estimates that approximately 100,000 barrels of oil a day will flow

from each discovered field, and in the success case Coastline hopes to discover

multiple offshore oil fields.

Yesterday Coastline held meetings with the following Somali government

officials:

-  H.E Hassan Sheikh Mohamud (President of Somalia)

-  H.E Salah Ahmed Jama (Deputy Prime Minister of Somalia)

-  H.E. Abdirizak Mohamed (Minister of Petroleum and Mineral Resources)

-  H.E. Mohamoud Ahmed Mohamoud (State Minister of Petroleum)

-  H.E. Abshir Omar Jama (Minister of Foreign Affairs and International

Cooperation)

-  Mr. Abdulkadir Aden Mohamud (CEO and Chairman of the Somali Petroleum

Authority)

-  Mr. Osman Elmi Guled (Attorney General)

-  Mr. Khadar Abdirahman Mohamed (Special Envoy for International Trade and

Investment)

-  Mr. Sackag Omar Mohamed (Member of Parliament)

Coastline has invested over US$50 million in Somalia and is committed for the

long-term and has been engaged with multiple stakeholders in Somalia since 2018

in respect of its PSAs and plans for the development of the country's offshore

energy industry. Coastline's PSAs will enable the Company to proceed with plans

to explore for oil and gas on the many prospects and leads identified in the

waters offshore Somalia.

Coastline is proud of the work it has done in Somalia to help develop the

energy industry and to enhance the future prosperity of the Somali people.

Likewise, it is proud of the strong relationships it has built with the Federal

Government during the long period of time it has been active in the country.

His Excellency Abdirizak Mohamed, the Minister of Petroleum and Mineral

Resources, said: "Having seen how transformational new domestic energy sources

have been for other countries in Africa, we are very excited by the potential

of these offshore oil fields. Today's announcement really kick starts the

energy industry in Somalia and is a turning point for the development of what

is a critical revenue-generating area for the country."

W. Richard Anderson, Chief Executive of Coastline, commented: "Receiving the

clearance authorisation means that we are now able to start our exploration

programme. Revenues from the discovery of commercial quantities of oil will be

transformative for Somalia from which the government could finance investments

in education, infrastructure, healthcare and other vital services, which will

benefit all of the people of Somalia, delivering continued economic growth and

improving the standard of living."

Jacob Ulrich, non-Executive Chairman of Coastline, said: "We are delighted to

have been given the go-ahead with the PSAs and we feel confident that we will

discover major energy reserves which will have a materially positive impact on

all Somalis. With the right partners in place and a supportive government,

Somalia's nascent energy industry can look to the future with confidence now

that there is a clear road map to potentially securing a sustained domestic oil

and gas supply."

About Coastline Exploration

Coastline Exploration, the US based upstream oil and gas company focused on

East Africa, was established to help develop the hydrocarbon industry. The

Company believes there is huge potential for further significant oil and gas

discoveries across offshore East Africa including offshore Somalia.

www.coastlineexploration.com　

Enquiries

J&H Communications                                    

Tel. +44 (0)20 39507822  

enquiries@coastlineexploration.com

James Henderson / George Hudson

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SOURCE: Coasline Exploration Ltd