Lekoil Limited OPL 310 Update (4366P)
08 February 2019 - 6:00PM
UK Regulatory
TIDMLEK
RNS Number : 4366P
Lekoil Limited
08 February 2019
8 February 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 with reference to the Company's Application for a
Declaration regarding Ministerial Consent filed at the Federal High
Court, Lagos on March 26, 2018.
Further to LEKOIL's announcement on 25 January 2019, a Federal
High Court sitting in Ikoyi, Lagos State, Nigeria, on 7 February
2019 heard the matters presented before it. The Court is expected
to deliver its ruling on 28 March 2019.
Due to the impending expiration of the OPL 310 licence, LEKOIL
applied to the Court to hold in abeyance or suspend the unexpired
term of OPL 310 pending the delivery of the Court's ruling. The
Court granted LEKOIL's application which effectively means that the
license will not expire before the judgement of the Court is given
on 28 March 2019.
LEKOIL had previously requested that the Federal Ministry of
Petroleum Resources grant an extension of the license beyond
February 2019 in order to recover over three years lost due to
regulatory delays beyond the Company's control. The Company
understands that the Department for Petroleum Resources has made
its recommendation for an extension to the Honourable Minister of
Petroleum Resources and is currently awaiting a response to the
recommendation for a potential extension from the President.
LEKOIL continues to make progress with partner Optimum towards
resolving the remaining issues regarding this matter in the
interest of moving forward and beginning appraisal activities on
OPL310. The Company will provide further updates 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
Strand Hanson Limited (Financial &
Nominated Adviser)
James Harris / James Spinney / Ritchie +44 20 7920 3150
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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