Lekoil Limited OPL 310 - Update Re: Application for a Declaration (0711O)
25 January 2019 - 6:00PM
UK Regulatory
TIDMLEK
RNS Number : 0711O
Lekoil Limited
25 January 2019
25 January 2019
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, provides 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.
Further to the Company's announcement on 23 January 2019, the
matter came up for mention at the Federal High Court in Lagos on 24
January 2019. A summary briefing was given and a subsequent
adjourned court date of 7 February 2019 was assigned for the
hearing.
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
Peter Krens / Edward Haig-Thomas 7878 3447
BMO Capital Markets (Joint Broker)
Jeremy Low / Thomas Rider +44 20 7236 1010
Numis Securities (Joint Broker)
John Prior / Ben Stoop +44 20 7260 1000
Tavistock (Financial PR)
Simon Hudson / Nick Elwes / Barney
Hayward +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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