PRESS RELEASE

OIL DISCOVERY OFFSHORE SIERRA LEONE- LUKOIL COMPLETES DRILLING OF FIRST EXPLORATION WELL.

LUKOIL OVERSEAS, OPERATOR OF INTERNATIONAL UPSTREAM PROJECTS AND A 100% SUBSIDIARY OF LUKOIL, TODAY ANNOUNCED COMPLETION OF THEIR FIRST EXPLORATION WELL ON THE SAVANNAH STRUCTURE (SL 5-11). THE SAVANNAH-1X DISCOVERY WELL PENETRATED OIL SATURATED RESERVOIRS AND OIL SAMPLES WERE TAKEN FROM TURONIAN SANDS. THE SAVANNAH-1X WELL IS LOCATED IN OFFSHORE DEEPWATER BLOCK SL 5-11 OFFSHORE SIERRA LEONE. LUKOIL OVERSEAS OPERATES BLOCK SL 5-11 WITH A 49 PERCENT WORKING INTEREST.  CO-OWNERS IN THE BLOCK INCLUDE ORANTO PETROLEUM (30 PERCENT WORKING INTEREST) AND PANATLANTIC (21 PERCENT WORKING INTEREST). SAVANNAH-1X IS THE COMPANY’S FIRST DEEPWATER EXPLORATION WELL DRIILED AT A TOTAL DEPTH OF APPROXIMATELY 4,700 METERS IN WATER DEPTHS OF OVER 2,000 METERS.

LUKOIL OVERSEAS HAS CONFIRMED THAT THE SAVANNAH-1X DISCOVERY DEMONSTRATES A WORKING PETROLEUM SYSTEM GENERATING AND PRESERVING HIGH QUALITY OIL AND COMMITTED TO APPRAISING THE POTENTIAL HYDROCARBON FIND. THE RESULTS OF THE APPRAISAL, AS WELL AS OTHER DATA OBTAINED WHILE DRILLING WILL UNDERGO COMPREHENSIVE ANALYSIS AND CLASSIFICATION.  THIS WORK, SCHEDULED TO BE COMPLETED BY THE END OF THE YEAR IS AIMED TO EXPAND THE INFORMATION AVAILABLE ON THE GEOLOGICAL STRUCTURE AND PETROLEUM POTENTIAL OF THE SIERRA LEONE-LIBERIAN BASIN.

THE GOVERNMENT OF SIERRA LEONE CONGRATULATES LUKOIL OVERSEAS AND ITS PARTNERS INVOLVED IN THE SAVANNAH-1X DISCOVERY, AND LOOKS FORWARD TO THEIR CONTINUED COLLABORATION WITH THE SIERRA LEONE PETROLEUM DIRECTORATE TO ACCELERATE APPRAISAL ACTIVITY IN ORDER TO ASCERTAIN COMMERCIALITY FOR FUTURE PRODUCTION OF OIL AND GAS IN SIERRA LEONE.

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STATE HOUSE
FREETOWN    
21^ST OCTOBER, 2013