OPL310 Drilling Update

RNS Number : 8380R

Lekoil Limited

31 October 2013

 



31 October 2013

Lekoil Limited

("Lekoil" or the "Company")

OPL310 Drilling Update

Lekoil (AIM: LEK), the oil and gas company with a focus on Nigeria and West Africa, is pleased to release the following update on the Ogo-1 well:

Following the discovery of a significant light oil accumulation (216 ft of net stacked pay) at the Ogo-1 well, as announced on 26 June 2013,Lekoil and partners, Afren Plc and Optimum Petroleum Development Ltd ("Optimum") (together the "Partners"), commenced drilling on the planned Ogo side-track (the "Ogo-1 ST") testing both the down-dip extension of the four-way dip close structure at the Ogo discovery and a new play of stratigraphically trapped syn-rift sediments that pinch-out onto the basement high.

The Ogo-1 ST reached a total measured depth ("TD") of 17,987 ft (12,050 ft true vertical depth) on 6 October 2013.  Based on Logging While Drilling ("LWD") and mudlogging data, the well encountered hydrocarbon intervals in the same Turonian, Cenomanian and Albian reservoirs that were successfully drilled and logged at the Ogo-1 well.  All of the reservoir intervals came in high to prognosis, potentially indicating a larger structure than estimated post the drilling of Ogo-1.  The LWD and mudlogging data also indicate that the syn-rift section encountered a 280 ft true vertical thickness gross hydrocarbon interval.

Whilst circulating bottoms up at TD, prior to the acquisition of wireline logs, the drill string parted at 3,390 ft. The Partners are in the process of recovering the drill string from the well bore.

Based on the positive results of drilling, the Partners believe that wireline data and testing of the side-track is necessary in order to define the extent of the hydrocarbon intervals.  The Partners are continuing with the evaluation of the existing logging data from the Ogo-1 well.

Further updates will be provided in due course.

Commenting on the OPL 310 drilling results to date, Lekan Akinyanmi, Lekoil's CEO, said, "I am delighted that the geological and technical work we put in to this well and associated sidetrack have been validated with what appears to be a second significant discovery.  It also substantiates our prior and extensive work on the Dahomey basin. We look forward to logging and testing the sidetrack before formulating an appraisal strategy."

For further information, please visit www.lekoil.com or 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	[phone] [phone]
Tavistock Communications (Financial PR) Simon Hudson / Conrad Harrington / Ed Portman	[phone]

Samuel Adegboyega, Non-Executive Chairman and technical expert for the Company, has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person under the AIM Rules. Mr. Adegboyega holds a BSc degree in Petroleum Engineering from the University of Ibadan, is a member of the Society of Petroleum Engineers and has over 30 years' experience in the oil and gas industry.

Certain statements in this Announcement are forward-looking statements which are based on the Company's expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

The content of websites referred to in this announcement does not form part of this announcement.

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