OPL 310 Operations Update

RNS Number : 2993D

Lekoil Limited

27 March 2014

 



27 March 2014

Lekoil Limited

("Lekoil" or the "Company")

OPL 310, Offshore Nigeria, Operations Update - 3D Seismic Acquisition

Lekoil (AIM: LEK), the oil and gas exploration and development company with a focus on Nigeria and West Africa, provides an update on activities in OPL 310 offshore Nigeria. OPL 310 contains the Ogo discovery announced last year.

The Polarcus vessel MV POLARCUS NADIA has commenced the 3D seismic programme, designed by the partners in OPL 310 - Lekoil, Afren plc and Optimum Petroleum Development Ltd (together "the Partners") ‐ located adjacent to the Lagos shoreline.  The 3D programme will cover an area of approximately 1,505 square kilometers, representing approximately 80 per cent. of the acreage within OPL 310.  Current 3D data cover about 20 per cent. of OPL 310 and were used, along with 2D and electromagnetic data to define prospectivity ahead of the drilling of the Ogo‐1 and Ogo‐1 sidetrack well in the second half of 2013. It is anticipated by the Partners that the new acquisition will be completed in Q2 2014.

Following completion of the 3D acquisition, processing and evaluation, the Partners will use the data to high grade and de‐risk opportunities in the OPL 310 acreage surrounding the Ogo discovery. The Partners intend to drill an appraisal well on Ogo in the second half of 2014, ahead of development planning.

Commenting, Lekan Akinyanmi, Lekoil's CEO, said, "The survey will cover almost the whole of OPL 310, including the provision of better resolution on the area covered by the original 3D over 15 years ago.  The survey will provide key data that will enable us to refine and de-risk the other prospects in the block that were identified by dated regional 2D.  It will also provide valuable reservoir characterisation and definition information.  This is the first phase of an active programme in 2014 that will culminate in an appraisal well later in the year.  We are excited about the potential of the licence and look forward to the results of the data acquisition."

For further information, please visit www.lekoil.comor contact:

Lekoil Limited Dave Robinson, Chief Financial Officer	[phone]
Strand Hanson Limited  (Financial and Nominated Adviser) James Harris / James Spinney / Ritchie Balmer	[phone]
Mirabaud Securities LLP (Broker) Peter Krens Edward Haig-Thomas Ladenburg Thalmann & Co. Inc. (US Placing Agent) Jim Hansen Barry Steiner	[phone] [phone] [phone] [phone]
Tavistock Communications (Financial PR) Simon Hudson / Conrad Harrington / Ed Portman	[phone]

Ogo-1 Discovery

The results of the Ogo-1 well were first announced at the end of June when the Company stated that it had encountered a gross hydrocarbon section of 524ft, with 216ft of apparent stacked, net pay. 

Ogo-1 Side Track

Following logging, the well was deviated to drill the Ogo-1 side track well (Ogo-1 ST), targeting a stratigraphic pinch-out trap on the flanks of the basement high - a new play in the area.  Drilling continued over the summer and on 13 November the Company announced that operations on the well had been suspended due to hydrocarbon kicks but that the well had come in significantly above prognosis.  This allowed the partners in OPL 310 to upgrade resource estimates for the Ogo prospect to 774 mmboe on a P50 basis - giving net recoverable reserves to Lekoil of 232 mmboe (P50) or 354 mmboe (P10).

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