Lekoil Limited OPL 310 - Update Re: Application for a Declaration (1456J)
03 December 2018 - 6:01PM
UK Regulatory
TIDMLEK
RNS Number : 1456J
Lekoil Limited
03 December 2018
3 December 2018
LEKOIL Limited
("LEKOIL" or the "Company")
OPL 310 - Update Re: Application for a Declaration regarding
Ministerial Consent
LEKOIL (AIM: LEK), the oil and gas exploration, development and
production company with a focus on Africa, announces an update on
OPL310 (the "Block") with reference to the Company's Application
for a Declaration regarding Ministerial Consent filed at the
Federal High Court, Lagos on March 28, 2018.
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 as to why
such consent has not been forthcoming. As a result, the Company
took 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.
At the proceeding which took place on Thursday November 29,
2018, Hon. Justice B.O. Kuewumi granted Optimum Petroleum
Development Company ("Optimum"), LEKOIL's partner in OPL310,
application to be joined as the second defendant in the suit.
Furthermore, the court acknowledged the urgency of the matter and
ordered accelerated hearing of the case. With the court closing for
the holiday on Wednesday, December 12, the hearing is scheduled for
Wednesday, January 9, 2019 shortly after the Court resumes
session.
The parties remain in negotiations aimed at seeking a
satisfactory conclusion for all parties on the above matter. LEKOIL
and Optimum continue commercial discussions regarding the financial
and technical obligations of both parties in the block once
development work is underway. LEKOIL will provide further updates
to the market as appropriate. The Company is represented by Fidelis
Oditah QC, SAN.
For further information, please visit www.lekoil.com or
contact:
LEKOIL Limited
Alfred Castaneda, Investor Relations
Lisa Mitchell, Chief Financial Officer +44 20 7920 3150
Strand Hanson Limited (Financial &
Nominated Adviser)
James Harris / James Spinney / Ritchie
Balmer +44 20 7409 3494
Mirabaud Securities Limited (Joint
Broker) +44 20 7878 3362 / +44 20 7878
Peter Krens / Edward Haig-Thomas 3447
BMO Capital Markets (Joint Broker)
Jeremy Low / Thomas Rider
Numis Securities (Joint Broker) +44 20 7236 1010
John Prior / Ben Stoop +44 20 7260 1000
Tavistock (Financial PR)
Simon Hudson / Barney Hayward / Charles
Vivian +44 20 7920 3150
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 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% participating
interest in OPL 310 for a total consideration of US$13 million,
subject to Ministerial Consent. 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-
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END
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