Significant oil discovery offshore Nigeria

RNS Number : 8572H

Lekoil Limited

26 June 2013

 



26 June 2013

Lekoil Limited

("Lekoil" or the "Company")

Significant oil discovery offshore Nigeria

Lekoil is pleased to announce  that the high impact Ogo-1 well located on the OPL 310 licence offshore Nigeria has discovered a significant light oil accumulation, based on the results of drilling and wireline logs.

The Ogo-1 well is being drilled by Afren Plc ("Afren"), as technical partner, under a farmout to Lekoil of OPL310, offshore Nigeria ("OPL310"), as announced on 14 May 2013.  The well has been drilled to a total measured depth of 10,518ft (10,402ft true vertical depth subsea ("TVDSS")), and has encountered a gross hydrocarbon section of 524ft, with 216ft of apparent stacked, net pay. 

Further wireline log evaluation is currently underway prior to extending the well to target deeper prospectivity above basement, to a total measured depth of 11,800ft (11,684ft TVDSS). The expected timetable for completion of this further drilling together with additional testing is four to six weeks (inclusive of drilling a planned Ogo-1 side-track well).

The Ogo-1 discovery, testing a four-way dip-closed structure in the Turonian, Cenomanian, and Albian sandstone reservoirs, confirms the extension of the same Cretaceous play that has yielded other significant discoveries along the West African Transform Margin.

The results also indicate a working hydrocarbon system that is weighted more towards liquids than gas. This has been confirmed by MDT samples; light oil samples in the Turonian and Cenomanian sands and condensate samples in the Albian sands.

Following the completion of drilling and testing operations at Ogo-1, the Partners in OPL310 (the "Partners") plan to drill a side-track well, Ogo-1 ST, which will test a stratigraphic pinch-out trap on the flanks of the basement high - a new potential play in the area.

Following completion of the farm out to Lekoil, as announced on 14 May 2013, the Partners' participating and economic interests on the block will be as follows:

	Participating Interest**	Economic Interest*
Optimum	60.00%	30%
Afren	22.86%	40%
Lekoil	17.14%	30%

* Post Lekoil and Optimum achieving cost recovery

** Subject to Government consent

Lekan Akinyanmi, CEO, said: "The discovery of oil in the Ogo-1 well opens up a new oil basin in an under-explored region and represents a possible extension of the Cretaceous play along the West African Transform Margin.  The discovery is a clear validation of Lekoil's technical analysis and of our extensive studies on the Dahomey Basin.

"Results to date indicate that the discovered resources could be significantly in excess of P50 estimates prior to drilling. While Lekoil notes these results are preliminary, we believe there exists substantial scope for upward revisions to the data announced today as drilling and interpretation continues. 

"We look forward to working with our Partners to realise the full potential of Ogo and the additional prospects on the license."

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 Revere Securities Corp. (US Placing Agent) Alan Kessler	[phone] [phone] [phone]
Tavistock Communications (Financial PR) Simon Hudson / Conrad Harrington / Ed Portman	[phone]

http://www.rns-pdf.londonstockexchange.com/rns/8572H_-2013-6-25.pdf

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.

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