Second Well Unsuccessful Offshore Mozambique

Zarara Oil and Gas Limited announced, that after review of the wireline electric well logs, the Sengala #1 well drilled on the Sofala-Bay Prospect offshore Mozambique by the jackup Noble George McLeod will be plugged and abandoned.

Following the plugging of Sofala #2 last month, Sengala #1 is the second well to be drilled and then plugged on the Sofala Bay Prospect.

The Sofala Bay Prospect is located within the confines of the Sofala-Sengo Marine Block that encompasses 4,460 square miles. Sasol Petroleum is the operator with a 90 percent working interest and Zarara holds the remaining 10 percent interest.

Data obtained from this recent drilling activity will be analyzed before any future exploration activity on the Sofala-Sengo Marine Block is continued.