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Aktiekurs 13.37

Madagascar, which is located on the East Coast of Africa has historically been under explored in terms of oil and gas. There are however existing discoveries in Madagascar in form of heavy oil, which prove that there is a working petroleum system in Madagascar.

In recent years, exploration activities have increased due to finds of both oil and gas elsewhere in East Africa, including Uganda, Kenya, Tanzania, and Mozambique.

The Manja block is located on the west side of Madagascar and covers an area of 7,180 square kilometres. Several structures were identified, of which the largest is located in the northwestern part of the licence area. This structure may contain up to 1,250 million barrels of oil, and it is situated at a depth of 3,500 metres. Gas was found in the southern part of the licence area in the 1950s, and in recent years, major gas finds have been located in an adjoining licence area to the south.

Crown Energy has agreed with OMNIS, the oil and gas authority in Madagascar, to extend the licence for four years, to 15 November 2019. The production commitment for the first two years includes a full tensor gravity (FTG) survey of the licence area followed by additional voluntary 2D seismic data. The plan is to perform exploration drilling on the licence no later than over the second two-year period. The agreement is subject to final approval from the ministry in Madagascar, which was received in March 2016.

The next step in the development of the licence area is to drill a well in Ambatolava located in the north-west part of the licence area. In accordance with its strategy, the Company will try to find other companies that can finance the drilling.

Block 3108 Manja – Madagascar

Stage

Gross contigent resources 2C (mmboe)

Gross prospective resources (mmboe)

Total resources mmboe

Net WI (mmboe)

Exploration

-

1,071

1,071

1,071

Crown Energy's working interest (WI) is 100%.

All resources in mmboe (Million Barrels of Oil Equivalents). Crown Energy calculates reserves and resources according to Society of Petroleum Engineers Petroleum Resources Management System of 2007.

License: Block 3108 "Manja", Madagascar

Operator: Amicoh Resources Ltd (subsidiary to Crown Energy Ventures Corporation)

Share (working interest): 100%

Other partners: -

Crown Energy AB (publ)

Norrlandsgatan 18, SE-111 43 Stockholm

Phone+46 8 400 207 20

Fax+46 8 400 207 25

Emailinfo@crownenergy.se

Organisationsnummer556804-8598