Lekoil Limited Receipt of Ministerial Consent for OPL310 Farm-in (7060H)
09 June 2017 - 10:24PM
UK Regulatory
TIDMLEK
RNS Number : 7060H
Lekoil Limited
09 June 2017
09 June 2017
LEKOIL Limited
("LEKOIL" or the "Company")
Receipt of Ministerial Consent for OPL310 Farm-in
LEKOIL (AIM: LEK), the oil and gas exploration, development and
production company with a focus on West Africa, is pleased to
announce that the Honourable Minister of Petroleum Resources of
Nigeria has granted consent to complete the transfer of the
original 17.14% participating interest that LEKOIL acquired in OPL
310 in February 2013 to Mayfair Assets and Trust Limited, a
subsidiary of LEKOIL.
LEKOIL's acquisition of Afren plc's ("Afren") remaining 22.86%
participating interest in OPL 310 (through LEKOIL 310 Limited, a
wholly owned subsidiary of LEKOIL) as announced on 1 December 2015
remains conditional upon receiving Ministerial Consent.
Lekan Akinyanmi, LEKOIL's CEO, said, "We are delighted to have
received ministerial consent on our original 17.14% participating
interest in OPL 310. This is an asset with tremendous potential and
I am delighted that we have achieved this significant milestone. We
thank the Department of Petroleum Resources for their diligence and
fostering an environment that encourages the attraction of
investment in the Nigerian Oil and Gas sector."
For further information, please visit www.lekoil.com or
contact:
LEKOIL Limited
Alfred Castaneda, Investor Relations
Hamilton Esi, Corporate Communications
+44 20 3434 5800
+44 20 7920 3150
Strand Hanson Limited (Financial & Nominated Adviser)
James Harris / James Spinney / Ritchie Balmer
+44 20 7409 3494
Mirabaud Securities LLP (Joint Broker)
Peter Krens / Edward Haig-Thomas
+44 20 7878 3362 / +44 20 7878 3447
BMO Capital Markets (Joint Broker)
Jeremy Low / Neil Haycock / Thomas Rider
+44 20 7236 1010
Tavistock (Financial PR)
Simon Hudson / Barney Hayward
+44 20 7920 3150
Background on OPL310
On 1 February 2013, Mayfair Assets and Trust Limited farmed into
Afren Investments Oil and Gas (Nigeria) Limited's (AIOGNL) interest
in OPL 310 for a 17.14 per cent participating interest and 30 per
cent economic interest.
Later that year, the first exploration well (Ogo-1) drilled by
the OPL 310 partners - then consisting of Optimum, LEKOIL and Afren
- was the Ogo prospect, a four-way dip-closed structure in the
Turonian to Albian sandstone reservoirs. The drilling programme
included a planned side-track well (Ogo-1 ST) which aimed to test a
new play of stratigraphically trapped sediments at the basement of
the Ogo prospect. The Ogo-1 well encountered a gross hydrocarbon
section of 524ft, with 216ft of net stacked pay whilst the Ogo-1 ST
well encountered the same reservoirs as Ogo-1 in addition to the
syn-rift section which encountered a 280 ft vertical section gross
hydrocarbon interval. Owing to well data collected from the two
wells, the partners estimated P50 gross recoverable resources to be
at 774 mmboe across the Ogo prospect four-way dip-closed and
syn-rift structure.
On 31 July 2015, Afren, the parent company of Afren Oil &
Gas that held interests in the OPL 310 licence, was put into
administration and its assets put up for sale. LEKOIL moved quickly
to protect its interests in OPL 310 by taking legal action to apply
for an injunction that meant Afren Oil & Gas could not dispose
of its interest in OPL 310. The Company then began discussions with
the administrator of Afren for the potential acquisition of its
subsidiary interests in OPL 310. On 25 November 2015, the Company
entered into an agreement with the administrator of Afren and Afren
Nigeria Holding Limited to acquire the shares of AIOGNL, which held
a 22.86 per cent participating interest in OPL 310 for a total
consideration of US$13 million.
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCSSDFEUFWSEEM
(END) Dow Jones Newswires
June 09, 2017 08:24 ET (12:24 GMT)
Lekoil (LSE:LEK)
Historical Stock Chart
From Apr 2024 to May 2024
Lekoil (LSE:LEK)
Historical Stock Chart
From May 2023 to May 2024