Replacement: Update on OML113

RNS Number : 0878O

Lekoil Limited

16 September 2013

 



In the announcement released this morning at 08.03 BST (RNS number 0445O), it was incorrectly stated in the third paragraph that "In the event that the Consideration has not been paid by 31 October 2013, Panoro may elect to grant another extension or terminate the SPA, retaining the $3million bid bond and $3million paid into escrow." The sentence should have read, "In the event that the Consideration has not been paid by 31 October 2013, Panoro may elect to grant another extension or terminate the SPA, retaining the $3million bid bond and $3million down payment." 

All other details remain unchanged. The full amended text is shown below.

16 September 2013

Lekoil Limited

("Lekoil" or the "Company")

Update on the Proposed Acquisition of Interest in OML113, Offshore Nigeria

Further to the announcement on 18 June 2013 in which the Company set out its proposed acquisition from a subsidiary of Panoro Energy ASA ("Panoro") of a 6.502 per cent. participating interest  (corresponding to a 12.19 per cent. revenue interest and 16.26 per cent. cost interest) in OML113 offshore Nigeria for a consideration of US$30 million (the "Consideration"), Lekoil is today pleased to announce that it has made a payment of $3 million as part of the Consideration to Panoro.  Lekoil and Panoro have agreed that the Company will fund the escrow with the balance of the consideration on or before 31 of October 2013.

The Company is in advanced discussions with potential debt providers to fund the balance of the Consideration.

The Company has issued an addendum to the bid bond which will allow Panoro to draw an additional $3million if the escrow is not funded by October 31 2013. In the event that the Consideration has not been paid by 31 October 2013, Panoro may elect to grant another extension or terminate the SPA, retaining the $3million bid bond and $3million down payment. The closing date of the transaction is expected to be November 9th 2013.

The transfer of the participating interest is also conditional on the consent of the Minister of Petroleum Resources in Nigeria, the consent of each of the other parties to the Joint Operating Agreement in respect of OML113 and the execution by each of those parties of the deeds of novation for the Farm-in Agreement in respect of OML113 dated 21 September 2007 and the JOA and the Technical Support Services Agreement.

OML113

OML113 is located offshore Nigeria in the Benin Embayment along the West African Transform Margin adjacent to OPL310, in which a subsidiary of Lekoil Nigeria, has an ultimate 30 per cent. economic interest. The OML113 licence area contains the Aje oil and gas field, for which AGR TRACS International Ltd, in its recently updated Competent Persons Report, estimated Contingent Resources of 198.7 mmboe.

The net unrisked 2C Contingent Resources in OML113 attributable to Lekoil Nigeria will be approximately 25.3 mmboe. Around 50 per cent. of the 2C Contingent Resources in the Aje field are liquid hydrocarbons, comprising gas, gas liquids and condensate as well as a significant oil leg in one of the reservoirs.

Commenting on the announcement, Lekan Akinyanmi, Lekoil's CEO, commented:

"We remain excited by the prospects for our assets and the progress that we have made on financing OML113. We look forward to completing the transaction and building out a robust portfolio of assets that leverages our technical study of the Dahomey Basin and the discovery in the neighbouring OPL 310".

Enquiries

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 (Corporate Broker) Peter Krens Edward Haig-Thomas	[phone] [phone]
Tavistock Communications (Financial PR) Simon Hudson / Conrad Harrington / Ed Portman	[phone]

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