LEKOIL LIMITED: Otakikpo Update Contract Signed to Acquire 3D Seismic for Phase Two
04 January 2018 - 6:03PM
UK Regulatory
Dow Jones received a payment from EQS/DGAP to publish this press
release.
LEKOIL LIMITED (LEK)
LEKOIL LIMITED: Otakikpo Update Contract Signed to Acquire 3D Seismic for
Phase Two
04-Jan-2018 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
4 January 2018
LEKOIL Limited
("LEKOIL" or the "Company")
Otakikpo Update
Contract Signed to Acquire 3D Seismic for Phase Two
LEKOIL (AIM: LEK), the oil and gas exploration, development and production
company with a focus on West Africa, announces that its joint venture with
Green Energy International Limited ("GEIL") has signed a contract with
Sinopec Changjiang Engineering Services Limited to acquire 197 sq km of 3D
seismic data at the Otakikpo Marginal Field ("Otakikpo") in OML 11, onshore
and offshore in the south-eastern part of the Niger Delta, to update the
existing 2D coverage. The seismic acquisition over Otakikpo is expected to
commence in Q1 2018 to kick-off phase two development of Otakikpo. All
relevant permits are currently being pursued prior to commencing
mobilszation.
Following the completion of this seismic acquisition, the Company will then
process and interpret the new 3D seismic data, subsequently releasing an
updated Competent Person's report. Otakikpo currently has an estimated 56.6
mmbls of gross unrisked 2C contingent resources and an additional 163.0
mmbls gross of Stock Tank Oil Initially In Place (STOIIP) upside on a P50,
unrisked basis (AGR TRACS International, Competent Persons Report 2014).
As the Otakikpo field nears Phase One target production of 10,000 bopd, the
Joint Venture is now focused on Phase Two of the Otakikpo Field Development
Plan which aims to increase steady state production up to approximately
20,000 bopd.
Lekan Akinyanmi, LEKOIL's CEO, said, "With significant milestones already
achieved in 2017 as the Otakikpo Technical and Financial Partner, today's
announcement demonstrates LEKOIL's progress into the next phase of delivery
and growth. The Company expects the Phase Two development to be fully funded
by industry players, which the Company is already in discussions with."
For further information, please visit www.lekoil.com [1] or contact:
LEKOIL Limited
Alfred Castaneda, Investor +44 20 7920 3150
Relations
+44 20 7920 3150
Lisa Mitchell, Chief
Financial Officer
Strand Hanson Limited
(Financial & Nominated
Adviser)
+44 20 7409 3494
James Harris / James Spinney
/ Ritchie Balmer
Mirabaud Securities LLP
(Joint Broker)
+44 20 7878 3362 / +44
Peter Krens / Edward 20 7878 3447
Haig-Thomas
BMO Capital Markets (Joint
Broker)
+44 20 7236 1010
Jeremy Low / Neil Haycock
/ Thomas Rider
Tavistock (Financial PR)
Simon Hudson / Barney +44 20 7920 3150
Hayward / Charles Vivian
The information contained within this announcement is deemed by the Company
to constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014 ("MAR").
Background to Otakikpo
Otakikpo is sited in a coastal swamp location in oil mining lease (OML) 11,
adjacent to the shoreline in the south-eastern part of the Niger Delta.
LEKOIL Nigeria exercises the rights and benefits of its 40% Participating
and Economic interest in Otakikpo via the Farm-in Agreement and Joint
Operating Agreement signed on 17 May 2014 with Green Energy International
Limited ("GEIL"), the Operator.
The Otakikpo Joint Venture began operations in December 2014. Ministerial
consent was granted by the Honourable Minister of Petroleum Resources of
Nigeria in June 2015. LEKOIL funded the costs of development and is entitled
to recover this expenditure preferentially from 88% of production cash flow
from Otakikpo.
The Otakikpo Field Development Plan consists of two phases. Phase One
comprises the recompletions of two wells, Otakikpo-002 and Otakikpo-003,
with the installation of an Early Production Facility of 10,000 bopd
capacity and export via shuttle tanker. Phase Two covers the subsequent
incremental development of the rest of the field with new wells. Otakikpo
commenced commercial production in 2017.
-ends-
ISIN: KYG5462G1073
Category Code: ACQ
TIDM: LEK
Sequence No.: 5072
End of Announcement EQS News Service
642881 04-Jan-2018
1: http://public-cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=cf18eb9b0cff2bfecacebb0696619578&application_id=642881&site_id=vwd_london&application_name=news
(END) Dow Jones Newswires
January 04, 2018 02:03 ET (07:03 GMT)
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