Otakikpo Seismic Update

RNS Number : 4105H

Lekoil Limited

15 November 2018

 

15 November 2018

LEKOIL Limited 

("LEKOIL" or the "Company")

Seismic Processing Completed at Otakikpo, Moving to Interpretation

LEKOIL (AIM: LEK), the oil and gas exploration, development and production company with a focus on Africa, announces that the 3D seismic acquisition and processing operations undertaken by Sinopec Changjiang Engineering Services Limited (Sinopec) at Otakikpo in which Lekoil has a 40 per cent interest have now been completed.  The Company has commenced the data interpretation stage, the results of which will form the basis of an updated Competent Person's Report to be published in Q1 2019.  The seismic data interpretation is expected to complete by year-end 2018.

The Joint Venture partners, LEKOIL as Financial and Technical Partner and Green Energy International Limited as Operator, remain focused on Phase Two of the Otakikpo Field Development Plan, which aims to increase steady state production from the field up to approximately 20,000 bopd.  The completion of this seismic survey, and planned development wells in the Phase Two programme, will assist the Joint Venture in optimising development and production.  The Company is in discussions with potential industry partners with a view to one or more parties agreeing to fund Phase Two development costs.

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").

For further information, please visit www.lekoil.com or contact:

LEKOIL Limited Alfred Castaneda, Investor Relations Lisa Mitchell, Chief Financial Officer	[phone]
Strand Hanson Limited (Financial & Nominated Adviser) James Harris / James Spinney / Ritchie Balmer	[phone]
Mirabaud Securities Limited (Joint Broker) Peter Krens / Edward Haig-Thomas	[phone] / [phone]
BMO Capital Markets (Joint Broker) Jeremy Low / Thomas Rider	[phone]
Numis Securities (Joint Broker) John Prior / Ben Stoop	[phone]
Tavistock (Financial PR) Simon Hudson / Nick Elwes / Barney Hayward	[phone]

Background to Otakikpo

Otakikpo is sited in a coastal swamp location in oil mining lease (OML) 11, adjacent to the shoreline in the south-eastern part of the Niger Delta. LEKOIL Nigeria exercises the rights and benefits of its 40% Participating and Economic interest in Otakikpo via the Farm-in Agreement and Joint Operating Agreement signed on 17 May 2014 with Green Energy International Limited, the Operator.

The Company holds 90% of the economic interests in LEKOIL Nigeria. LEKOIL Limited's economic interest in Otakikpo therefore equates to 36%.  The Otakikpo Joint Venture began operations in December 2014. Ministerial consent was granted by the Honourable Minister of Petroleum Resources of Nigeria in June 2015.

The Otakikpo Field Development Plan consists of two phases.  Phase One comprises the recompletions of two wells, Otakikpo-002 and Otakikpo-003, with the installation of an Early Production Facility and export via shuttle tanker. Phase Two covers the subsequent incremental development of the rest of the field with new wells. Otakikpo commenced commercial production in 2017.

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