NOVEMBER 12, 2014 PRESS RELEASE

4 Gen Energy UK Limited, a private independent oil and gas exploration and appraisal company focused on the UK Continental Shelf region of the North Sea ("UKCS"), is pleased to announce that it has been provisionally awarded five whole blocks and one part block under the UK 28th Licensing Round, the results of which were announced on the 6th of November, 2014 by the Department of Energy and Climate Change ("DECC"). 4 Gen has partnered in this highly successful application with the independent private UK company GTO on 50/50 basis.

 

The award comprises:

 

Blocks 30/22 & 30/23(part): The blocks are located along the southern margin of the highly prolific oil-producing area of the Central North Sea. Quadrant 30 has multiple producing horizons ranging in age through the Permian, Jurassic and Tertiary. Blocks 30/22 and 30/23 are directly adjacent to the 30+ million barrel Alma Field which is scheduled to commence production in 2015.

 

4 Gen Energy UK Limited has a 50% working interest in the blocks. A number of leads and prospects with multiple objectives in the Tertiary, Jurassic and Permian have been identified. For many of these objectives there are local analogues. The target horizons are conventional with drilling depths of approximately 9,000 feet in water depths of 250 feet.

 

Blocks 44/7, 44/8, 44/9, 44/10: These four contiguous blocks are situated along the northern margin of the highly prolific Southern North Sea Gas Basin. Quadrant 44 encompasses emerging prospectivity from Carboniferous aged rocks, which provide both the source, and reservoir rocks locally. The blocks are directly adjacent to the Cygnus Gas Discovery (potential of up to 1 TCF of gas), scheduled to go on-stream in 2015.

 

4 Gen Energy UK Limited (50%) and GTO Limited (50%) preliminary mapping has identified a number of potentially commercial leads on the blocks. The target horizons are at both the Permian and Carboniferous levels and lie at an average depth of 13,500 feet in water depths of approximately 75 feet, the targets can be reached with conventional drilling techniques.