Erin Energy Announces Approval of Farm-Out Deal with FAR in The Gambia

HOUSTON–(BUSINESS WIRE)–Erin Energy Corporation (Erin Energy or the Company) (NYSE MKT:ERN)
(JSE:ERN) announced today that the Government of the Republic of The
Gambia has approved the farm-out agreement with FAR Ltd. (FAR), an
Australian Securities Exchange listed oil and gas company, whereby FAR
will acquire an 80% interest and operatorship of Erin Energy’s offshore
A2 and A5 blocks in The Gambia.

Highlights:

• Erin Energy will retain a 20% working interest in the
  highly-prospective offshore blocks A2 and A5 in The Gambia;
• FAR to fund Erin Energy through the first exploration well;
• Erin Energy’s blocks are adjacent and on-trend with FAR’s world-class
  SNE oil field offshore Senegal;
• Blocks A2 and A5 have potential to contain prospective resources in
  excess of one billion barrels of oil; (on an unrisked best estimated
  100%) according to FAR.

As previously disclosed, under the terms of the farm-out agreement
approved by the Government of the Republic of The Gambia, FAR will pay
Erin Energy a purchase price of US $5.18 million and will carry US $8.0
million of the Company’s share of costs in a planned exploration well to
be drilled in late 2018. In addition, if Erin Energy’s share of the
exploration well is less than US$8.0, the balance is to be paid in cash
to the Company.

Femi Ayoade, Erin Energy’s CEO, commented, “We are pleased to have
approval from the Government of The Republic of The Gambia for this
transaction and look forward to working with FAR as a partner in this
rapidly-emerging and prolific basin. This farm-out highlights our
strategy of maximizing our exploration breadth while minimizing
exploration risk.”

Blocks A2 and A5 are adjacent and on trend with FAR’s 2014 SNE-1 oil
field discovery, which was the industry’s largest offshore oil discovery
that year. Since the drilling of the SNE-1 well, FAR has drilled seven
successful appraisal wells on the SNE field and increased the field’s
best case 2C contingent recoverable oil resource to 641 million barrels
on a 100% basis according to FAR internal estimates.

In 2017, Erin Energy and FAR plan to undertake reprocessing and
interpretation of 3-D seismic data recently acquired by the Company to
further mature identified prospects on Blocks A2 and A5. The Company
acquired 1,504 km² of modern 3-D seismic data and has
identified prospects on the blocks, which are similar to the “shelf
edge” play FAR is targeting in its offshore Senegal blocks.

The A2 and A5 blocks cover an area of approximately 2,683 km² (663,000
acres) within the emerging and prolific Mauritania-Senegal-Guinea-Bissau
Basin, and lie approximately 30km offshore in water depths of 50 to
1,200 metres (164 to 3,900 feet).

Erin Energy Corporation is an independent oil and gas exploration
and production company focused on energy resources in sub-Saharan
Africa. Its asset portfolio consists of 9 licenses across 4 countries
covering an area of 19,000 square kilometres (~5 million acres),
including current production and other exploration projects offshore
Nigeria, as well as exploration licenses offshore Ghana and The Gambia,
and onshore Kenya. Erin Energy is headquartered in Houston, Texas, and
is listed on the New York and Johannesburg Stock Exchanges under the
ticker symbol ERN.

For more information about Erin Energy or to request a hard copy of the
Company’s most recent complete audited financial statements free of
charge, please call +1 713 797 2940 or visit www.erinenergy.com.

Forward-Looking Statements

This news release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. All statements, other than
statements of historical fact, concerning activities, events or
developments that the Company expects, believes or anticipates will or
may occur in the future are forward-looking statements. Although the
Company believes the expectations reflected in these forward-looking
statements are reasonable, they involve assumptions, risks and
uncertainties, and these expectations may prove to be incorrect.

The Company’s actual results could differ materially from those
anticipated or implied in these forward-looking statements due to a
variety of factors, including the Company’s ability to successfully
finance, drill, produce and/or develop the wells and prospects
identified in this release, and risks and other risk factors discussed
in the Company’s periodic reports filed with the Securities and Exchange
Commission. All forward-looking statements are expressly qualified in
their entirety by this cautionary statement. You should not place undue
reliance on forward-looking statements, which speak only as of their
respective dates. The Company undertakes no duty to update these
forward-looking statements.

Contacts

Erin Energy Corporation
Lionel McBee, +1 713-797-2960
Director,
Investor Relations and Corporate Communications
[email protected]