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Farmout agreement with Petrobras

17 June, 2011

Ophir Energy plc (Ophir) is pleased to announce that it has entered into an agreement with a subsidiary of Petróleo Brasileiro S.A. (Petrobras) over Ophir's interests in Production Sharing Contracts (PSCs) covering the Mbeli and Ntsina Blocks offshore Gabon.

Subject to securing consent from the relevant Gabonese authorities, Petrobras will acquire 50% of Ophir's interest in each of the PSCs by making a promoted contribution towards the cost of an agreed work programme.

Under the agreement, Petrobras has committed to participate in an initial work programme which will include the acquisition of at least 2,000km2 of 3D seismic data. The acquisition and processing parameters will be specifically designed to image deep pre-salt potential that has not been the focus of previous exploration in the area.

After completion of the initial work programme, Petrobras may elect to continue and make a promoted contribution towards the first and second exploration wells to complete its earning obligations or withdraw from the PSCs.

Petrobras has the right to elect to assume Operatorship of both PSCs.

Ophir's Managing Director, Nick Cooper commented:

"We are very pleased to enter into partnership with Petrobras, one of the world's most experienced and successful deepwater pre-salt exploration companies, to explore the potential of our northern Gabon blocks. We shall be seeking approval to acquire new 3D seismic data focussed specifically on the pre-salt play at the earliest opportunity. We anticipate that the combination of Petrobras and Ophir will create a strong joint venture to work in partnership with the Government, on whose behalf we seek to develop the natural resources of Gabon."

In a separate statement Petrobras commented that:

"The acquisition of the blocks is aligned with Petrobras' 2020 Strategic Plan, which aims to contribute to the discovery and appropriation of reserves in Brazil and abroad, maintaining the reserve/production ratio above 15 years, and to intensify the assessment of the exploratory potential, particularly of the pre-salt section along the Atlantic basins.

"The Coastal Basin of Gabon is located in an operational focus area for Petrobras - the West Coast of Africa. The region has geological structures considered comparable to those discovered in Brazil and has great potential for the discovery of significant volumes of oil in fields located in deepwater."