Aje field in offshore Nigerian waters to complete appraisal of its potential; nearby Ajapa field close to production

(London, 18 December 2007) -- Via PR Newswire: Energy Equity Resources (EER), the London-based upstream oil and gas company, announces imminent drilling of a further appraisal well on the growing Aje Field, in offshore Nigerian waters. Aje-4 well is located in Oil Mining Lease (OML) 113, 24 kms from the coast in western Nigeria, on the Benin border. This is 64 kms from Lagos and close to the West Africa Pipeline - only 12 kms away.

The Aje field was discovered in 1996 and revealed oil and gas reservoirs, of Cretaceous age, in water depths of 100 to over 1,500 metres. A second and third well were later drilled there, in 1997 and 2005 respectively. All three wells have intersected hydrocarbons.

The Aje-4 well is designed to give a full appraisal of the hydrocarbon-bearing potential; drilling is planned for Q1 in 2008 and further details are likely to be released early in 2008. Drilling operations will be supervised by Chevron, in its capacity as technical advisor to the operator.

The Aje partnership comprises: the operator, Yinka Folawiyo Petroleum Company; Chevron Nigeria Deepwater Ltd; Vitol Exploration Nigeria Ltd; Energy Equity Resources Aje; and Providence Resources Oil and Gas Nigeria.

EER Managing Director, Osamede Okhomina, expressed confidence that the Aje-4 drilling would finally allow a full appraisal of the entire Aje Field's potential. "Considering the results from the previous two wells drilled in the contact area, we all anticipate positive results from the Aje-4 drilling" he commented. "And that is why all the Aje partnership companies are keen to ensure that the appraisal programme is completed on schedule" he added, "so we can move to the next phase without further delay.

EER's neighbouring interest in Ajapa well, only 10 kms offshore, is also moving forward with active appraisal plans. Extended well tests are planned for Q1 of 2008; and first oil is expected in Q4 of the same year. Signing for a jack-up rig is in its final phase.

"Re-entering the Ajapa discovery well, which was drilled by Gulf Oil in 1987 and tested for 6000bpd of oil, is a critical step in our build-up towards first oil", Okhomina explained. "And we are confident of spudding this well in record time, as we aggressively move towards bringing it to production".

For more information contact: OSAMEDE OKHOMINA, Managing Director, EER, London, +44(0)20-7563-1845; ANNE AINA, Development Co-Ordinator, EER, London, +44(0)20-7563-1846; ANTHONY McCALL-JUDSON, Scribe Strategies & Advisors, London, +44(0)20-7969-2759