Platform Petroleum Limited has teamed up with fellow indigenous Company, Shebah Petroleum Development Company and French Independent Morell et Prom to establish a new indigenous operating company, Seplat Petroleum Development Company Limited.

Seplat Petroleum, on January 29th 2010 executed a Sales and Purchase Agreement (SPA) with Shell, Total and Eni for the acquisition of their combined 45% Interest in OML’s 04, 38 and 41, three blocks in the onshore Western Niger Delta covering about 2,650sq.km, with 30 Wells and a production capacity of approximately 50,000bbls of Oil equivalent per day. The acquisition is subject to NNPC’s approval and Ministerial consent. Upon closing, the working interests in the blocks will be NNPC 55%, Seplat 45% with Seplat as Operator.

Platform considers this transaction a major step in the implementation of our growth strategy. Our existing asset (the Asuokpu/Umutu Field) is at the Eastern end of OML 38 where we already have a flowstation, a pipeline link to Agip in Kwale/Okpai and a 30mmscfd NGL/LPG Plant that is nearing commissioning. We anticipate substantial synergies between our direct operations and those of Seplat.

Platform has a 22% Equity Interest in Seplat, with Shebah having 33% and Maurel and Prom 45%. The transaction, however, gives Platform a 9% working interest in OML’s 4 & 41 and 15.75% working interest in OML 38 at closing.