Mr. Michael Wood reports

OYSTER OIL PROVIDES AN UPDATE ON BLOCK 1101 ONSHORE MADAGASCAR, WITH NEWS OF AN EXTENSION TO THE CURRENT EXPLORATION PERIOD AND RESTRUCTURING OF PSC

Oyster Oil and Gas Ltd. confirms that, following negotiations with the Office des Mines Nationales et des Industries Strategiques (OMNIS), an agreement has been reached to provide a two-year extension to the current exploration phase of the production-sharing contract (PSC) to July, 2019. Furthermore, a refinement of the terms and work program has also been agreed so as to focus the program more tightly on achieving the drilling scheduled for late 2018/early 2019.

Oyster has opened an office in Antananarivo. The various financial guarantees have also been restructured to enable a greater focus to be on technical work and investment in block 1101. The technical work program for 2017 has also been defined, which will include fieldwork and detailed surveys to improve the structural definition and drilling locations on the prospects.

Michael Wood, president and chief executive officer, commented: "Oyster and OMNIS have worked closely together to ensure the continuing investment and future success in block 1101, and I'd like to acknowledge the contribution and professionalism of the OMNIS team during this process. Oyster has mapped a number of multibillion-barrel structures in block 1101; these are mapped as conventional light oil plays based on the evidence from the 2014 drilling and coring program, which confirmed a mature light oil source being present in the basin. Oyster looks forward to engaging with the various agencies of the government of Madagascar and the local communities as we work together to develop the potential in block 1101."

Oyster Oil and Gas Ltd.

Oyster is an international oil and gas exploration company with a focus on Eastern Africa. Oyster holds production-sharing contracts interests with the government of Djibouti and the government of Madagascar. Oyster holds 100 per cent of four blocks comprising approximately 3.5 million acres onshore and offshore in Djibouti; Oyster also holds a 100-per-cent working interest in block 1101, onshore Madagascar, which covers approximately 2.8 million acres.