Hassan Sheikh Mohamud, President of Somalia, explained: "This agreement serves to show that Somalia is open for business and international investment after the conflict that has plagued the country for so many years. I would like to thank Coastline for their commitment to Somalia as they have kept their promise to invest here unlike so many other companies. Coastline clearly sees a great opportunity in Somalia and we share their vision. The Federal Government will do everything possible to support this project and we want the first exploration well to start as soon as possible. Today marks an important step forward for Somalia as we seek to develop our energy industry, which should bring material benefits to all Somalis. Energy independence, new tax revenues and new foreign investment in Somalia is in the offing".

HOUSTON, Oct. 21, 2022 /PRNewswire/ -- Coastline Exploration Limited ("Coastline"), an oil and gas exploration company focused on East Africa, announces that, following its February 19 statement on the signing of seven agreements The Production Sharing Agreement ("PSA") covering blocks in deep waters of the Federal Republic of Somalia, confirms that it has received final authorization to carry out its exploration program by the competent authorities of the Federal Government of Somalia ( "FGS"). As a result, in accordance with the terms of the PSAs, Coastline has paid the agreed signing premium of $7 million to the Central Bank of Somalia.

The authorization was granted following the conclusion of an in-depth review by the FGS of the process followed by Coastline and the relevant Somali ministries and advisory groups related to the signing of the seven PSAs in February this year.

Coastline estimates that approximately 100,000 barrels of oil per day will flow from each discovered field, and if successful, Coastline expects to discover multiple offshore oil fields.

Yesterday Coastline met with the following Somali government officials:

- S.E. Hassan Sheikh Mohamud (President of Somalia)

- S.E. Salah Ahmed Jama (ayudante del primary ministro de Somalia)

- I KNOW. Abdirizak Mohamed (Minister of Petroleum and Mineral Resources)

- I KNOW. Mohamoud Ahmed Mohamoud (state oil minister)

- I KNOW. Abshir Omar Jama (minister of foreign affairs and international cooperation)

- Abdulkadir Aden Mohamud (CEO and Chairman of the Somali Petroleum Authority)

- Osman Elmi Guled (fiscal general)

- Khadar Abdirahman Mohamed (Special Envoy for International Trade and Investment)

- Sackag Omar Mohamed (Member of Parliament)

Coastline has made an investment of over $50 million in Somalia and is committed to the long term and has engaged with multiple stakeholders in Somalia since 2018 regarding its PES and plans for the development of the offshore energy industry of the country. Coastline's PSAs will enable the company to proceed with oil and gas exploration plans at the many prospects and leads identified in the waters off the coast of Somalia.

Coastline is proud of the work it has done in Somalia to contribute to the development of the energy industry and the future prosperity of the Somali people. Likewise, she is proud of the solid relationships that she has established with the Federal Government during the long period of time that she has been working in the country.

His Excellency Abdirizak Mohamed, Minister of Petroleum and Mineral Resources, explained: "Having seen how transformative new domestic energy sources have been for other countries in Africa, we are very excited about the potential of these offshore oil fields. Today's announcement kick-starts the energy industry in Somalia and marks a turning point for the development of a critical revenue-generating area for the country."

W. Richard Anderson, CEO of Coastline, commented: "Receiving clearance means we can now start our exploration program. The revenue from discovering commercial quantities of oil will be transformative for Somalia, with which the government will be able to fund investments in education, infrastructure, health and other vital services, which will benefit all the people of Somalia, providing continued economic growth and improving living standards.

Jacob Ulrich, Non-Executive Chairman of Coastline, said: "We are delighted to be given the green light with the PES and are confident that we will discover significant energy reserves that will have a materially positive impact for all Somalis. With the right partners and a supportive government, Somalia's fledgling energy industry can look to the future with confidence now that there is a clear roadmap to potentially secure a sustained domestic supply of oil and gas.

About Coastline Exploration

Coastline Exploration, an American oil and gas exploration company focused on East Africa, was created to help develop the hydrocarbons industry. The company believes there is huge potential for major new oil and gas discoveries off the coast of East Africa, including off Somalia.

www.coastlineexploration.com

queries

J

James Henderson / George Hudson

logo - link

View original content: enlace