01 February 2018
LEKOIL Limited
("LEKOIL" or the "Company")
Commencement of 3D Seismic Acquisition at Otakikpo
LEKOIL (AIM: LEK), the oil and gas exploration, development and production company with a focus on Africa, has commenced the shooting of a 3D seismic survey at the Otakikpo Marginal Field ("Otakikpo") in OML 11, onshore and offshore in the south-eastern part of the Niger Delta. Sinopec Changjiang Engineering Services Limited (Sinopec) has been previously contracted by the Company to carry out the survey. Permits have been secured and mobilisation completed. Line cutting has commenced and is currently in progress. Preparations for seismic recording operations are at an advanced stage. The survey is expected to complete around June 2018.
Following the completion of this seismic acquisition, the Company will then process and interpret the new 3D seismic data, subsequently releasing an updated Competent Person's report.
Lekan Akinyanmi, LEKOIL's CEO, said, "The acquisition of 3D seismic data will provide valuable information to unlock further value at Otakikpo. Sinopec has a reputation for high-quality data acquisition and we are pleased to be working with them."
For further information, please visit www.lekoil.com or contact:
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LEKOIL Limited
Alfred Castaneda, Investor Relations
Lisa Mitchell, Chief Financial Officer
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+44 20 7920 3150
+44 20 7920 3150
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Strand Hanson Limited (Financial & Nominated Adviser)
James Harris / James Spinney / Ritchie Balmer
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+44 20 7409 3494
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Mirabaud Securities LLP (Joint Broker)
Peter Krens / Edward Haig-Thomas
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+44 20 7878 3362 / +44 20 7878 3447
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BMO Capital Markets (Joint Broker)
Jeremy Low / Neil Haycock / Thomas Rider
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+44 20 7236 1010
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Tavistock (Financial PR)
Simon Hudson / Barney Hayward / Charles Vivian
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+44 20 7920 3150
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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").
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 ("GEIL"), the Operator.
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. LEKOIL funded the costs of development and is entitled to recover this expenditure preferentially from 88% of production cash flow from Otakikpo.
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 of 10,000 bopd capacity 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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