STRATEGY & OBJECTIVES

STRATEGY & OBJECTIVES
THE OPL-236 PROJECT

CPS Energy Resources PLC (“CPS”) was established in Nov 2012 with the purpose of enabling value creation in the African oil and gas market at the early stage of exploration and appraisal through the acquisition of high potential exploration and near-development acreage in proven basins.

The first project CPS optioned is located in the OPL 236, has five survey wells and over 3,000 km of Seismic readings and is in the oil and gas rich Niger Delta in Nigeria (the “OPL-236-Project”).

CPS has formed a joint venture partnership with Oando Exploration and Production, a subsidiary of Oando PLC, one of Africa’s largest integrated energy solutions providers. Under the agreement Oando will act as operator of the CPS blocks.

Oando has extensive operational experience with a substantial portfolio of assets (interests in 15 licences) and a strategy of continuing investment in exploration. Oando has a strong senior management team with global experience of the industry. They are listed in Nigeria with secondary listings in Johannesburg and Toronto. They have an economic valuation of $2bn. In 2012, Oando had a turnover of £1.877bn.

In March 2014 the Nigerian Government announced that gas production in Nigeria needed to be tripled in order to double electricity production and announced that domestic gas prices would rise to international levels over a three year period.

In March 2014 the European Union announced it would reduce dependence on gas imports from Russia. Ten members import more than 60% of their gas from Russia and the EU average is a quarter.

CPS Energy Resources also have a highly successful senior management team with experience of growing a business in this sector and achieving a considerable ROI.

A report released to CPS by LR Senergy in in January 2015, reviewed the
petrophysical data and results suggest significant values. Under the Share
Purchase Agreement with Mineral Hill, this report will be updated to a NI 51-101
report in order to confirm the previous data.

A February 2014 report by Count Geo Physics reviewed existing seismic data and
concluded there are reservoir quality sandstones present in all of the wells on OPL
236.

If the to be commissioned NI 51-101 report confirms the independent valuation
prepared by Maurice Eaton, formerly a Director of Northern Petroleum, values the
P90 gas occurrences could be remarkble. Confirming the findings of the LR
Senergy and Count Geo Physics reports the valuation would be considerable.

The first field to be developed in OPL-236-Project will be Ukana South 1, which is
conveniently located circa 2km from an Oando’s major gas pipelines.