LEKOIL LIMITED: OPL 310 - Application for a Declaration regarding Ministerial Consent
27 March 2018 - 5:02PM
UK Regulatory
Dow Jones received a payment from EQS/DGAP to publish this press
release.
LEKOIL LIMITED (LEK)
LEKOIL LIMITED: OPL 310 - Application for a Declaration regarding
Ministerial Consent
27-March-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.
27 March 2018
LEKOIL Limited
("LEKOIL" or the "Company")
OPL 310 - Application for a Declaration regarding Ministerial Consent
Background
On 1 February 2013, Mayfair Assets and Trust Limited, a subsidiary of
LEKOIL, 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, subject to Ministerial Consent from Nigeria's
Minister for Petroleum Resources. Ministerial Consent was granted for the
interest on 9 June 2017
On 31 July 2015, Afren plc ("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. On 1 December 2015, LEKOIL announced 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. This interest was also subject to Ministerial Consent
from the Minister for Petroleum Resources. The acquisition meant that LEKOIL
would hold a consolidated participating interest of 40 per cent and an
economic interest of 70 per cent in OPL310 and would become the technical
and financial partner of Optimum Petroleum Development Company ("Optimum"),
the operator and local partner in OPL310 which retains a 60 per cent
participating interest.
An application for the transfer of the 22.86 per cent interest was duly made
by Afren Nigeria in January 2016. As the transaction was not undertaken on
the basis of an Assigned Interest in the oil block, approval by Optimum was
not required under the JOA between Optimum and Afren. In March 2016, LEKOIL
was notified by the Ministry of Petroleum Resources that the necessary due
diligence exercise would be conducted that month. The due diligence exercise
did not take place and has not been rescheduled by the Department of
Petroleum Resources since then.
Application to the Court for a Declaration
Despite progressing exploration and appraisal activities on OPL 310 as
previously announced, LEKOIL has, to date, not received Ministerial Consent
for its acquisition of the additional 22.86 per cent interest in OPL 310 or
a satisfactory explanation of why such consent has not been forthcoming. As
a result, the Company has taken the decision to apply to the Federal High
Court for a declaration that is expected to expedite the consent process,
and preserve the unexpired tenure in the licence. The Company will provide
updates to the market as appropriate. The Company is represented by Fidelis
Oditah QC, SAN.
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").
Technical Background on OPL310
In 2013, 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 1 December 2015, the Company announced an agreement with the
administrator of Afren and Afren Nigeria Holding Limited to acquire the
shares of AIOGNL, which held a 22.86% participating interest in OPL 310 for
a total consideration of US$13 million. Post-acquisition, the Company holds
a 40% working interest and 70% economic interest in the block, with AIOGL's
22.86% working interest and 40% economic interest subject to Ministerial
Consent.
-ends-
ISIN: KYG5462G1073
Category Code: MSCH
TIDM: LEK
LEI Code: 213800T6JMZ84UEF5C40
Sequence No.: 5334
End of Announcement EQS News Service
669007 27-March-2018
1: http://public-cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=cf18eb9b0cff2bfecacebb0696619578&application_id=669007&site_id=vwd_london&application_name=news
(END) Dow Jones Newswires
March 27, 2018 02:02 ET (06:02 GMT)
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