PRESS RELEASE BLOCK S The Ministry of Mines, Industry and Energy is pleased to announce that a Production Sharing Contract (PSC) for Block S, offshore Rio Muni, has been signed between the Ministry of Mines, Industry and Energy, the National Oil Company of Equatorial Guinea (GEPetrol) and CNOOC Africa (UK) Limited, a subsidiary of CNOOC Ltd. which is the publicly-listed arm of the state-owned China National Offshore Oil Corporation The signing of the Block S PSC followed the successful conclusion of PSC negotiations, held in Beijing, between the Ministry of Mines Industry and Energy, GEPetrol and CNOOC. The Block S PSC remains subject to ratification by the Government of Equatorial Guinea. Block S covers a total area of approximately 2,287 sq km, offshore Rio Muni, immediately to the west of the Amerada Hess-operated Okume Complex, which is currently under development, and surrounding the Amerada Hess-operated Ceiba Field, which currently produces around 40,000 barrels of oil per day. Water depths in Block S range from 30 to 1500 meters.