Lekoil Share Discussion Threads

[craig t2] 23/11/2016 17:30

That's the problem JB. FEW weeks. However I'm confident it should be within my timescale or they will have people squealing at them.

[alamaison] 23/11/2016 13:54

Taken from the last RNS:
A strategic farm-in process is expected to commence in 2017 as an option for full field development financing in parallel with appraisal and exploration drilling.

Do they know something? Indeed they do.

[seguna43] 23/11/2016 13:37

Here's an interesting interview about what's next for the oil price - this analyst is basically predicting a $40 to $50 price for the foreseeable future

[jailbird] 23/11/2016 12:41

sorry chaps..filtering you both...too much conceited trivial noise..
Good luck trading..you will good and bad days..just hope for more good

[jailbird] 23/11/2016 12:39

alamaison5

He believed yesterday

"LEK for instance is about to announce some major news.
First production (re-rate), AFR assets (bought on the cheap) authorisation to exploit by Nigerian Gov, spud of new well etc..."

[ghhghh] 23/11/2016 08:55

So no one thinks risk that Optimum trying to leg over LEK?

My concern is that LEK out manoeuvred Optimum to get the Afren stake. They now have 40% but have to pay 70% of all costs (which can be claimed back from oil sales).

Optimum are saying 'We want to drill 4 wells H1 2007. We want you LEK to agree.'

My guess is that LEK want to wait for oil price to improve so that can farm out/fund.

The $m question is what does the Government want? Will they wait.

In this context, what does this mean:

'LEKOIL is working with the regulatory agencies to clarify and amend the conditions stated in the consent letter to be in line with Nigerian law and further announcements will be made as and when appropriate.'

Conditions? Drill commitments?

[craig t2] 22/11/2016 13:56

Assuming a few means 2 ish weeks. I had an email in Friday from IR

[craig t2] 22/11/2016 13:45

First oil update will be within 9 days.

[jailbird] 22/11/2016 10:23

Pat on the back is due I think.

WSG another placing...I know my stuff...Ala..trading is for fools

[jailbird] 22/11/2016 10:03

it seems the government want Ogo in production ASAP now?...dragged on too long

[flirker] 22/11/2016 10:00

Its the original 2013 farmout. It sounds like the ministry want a cool $750k to approve and are siding with Optimum. Trying to get LEK over a barrel by the sounds of it.

Pursuant to the assignment, consent shall be effective upon Mayfair's payment of 2.5 per cent of the transaction purse to the Federal government and the signing of an agreement with the Operator

[gray1107] 22/11/2016 09:59

Well this just got really interesting really fast, approval for the first 17.14% granted.

In resolution of these issues and with the support of the Ministry of Petroleum Resources, the Operator has agreed to the entry of Mayfair and a conditional consent has been granted to Mayfair by the Federal Republic of Nigeria's Honorable Minister of State for Petroleum Resources (HMSPR) on 24 October 2016 for a 17.14 per cent economic interest in OPL 310.

[ngms27] 22/11/2016 09:44

The plot thickens, LEK RNS from 1st December 2015:
Lekoil (AIM: LEK), the oil and gas exploration and production company with a focus on Nigeria and West Africa, has agreed to acquire Afren plc's ("Afren") entire 22.86% participating interest in OPL 310, which contains the Ogo discovery, for a total cash consideration of US$13 million (the "Consideration") (the "OPL 310 Acquisition").

Lekoil Nigeria Limited ("Lekoil Nigeria") via its wholly owned subsidiary, Mayfair Assets and Trust Limited (Nigeria) ("Mayfair"), holds a 17.14% participating interest and a 30% economic interest in OPL 310 obtained through a farm-in agreement signed in 2013 with Afren. The OPL 310 Acquisition will be undertaken by a wholly owned subsidiary of the Company, Lekoil 310 Limited.

Following the OPL 310 Acquisition, and prior to the drafting and formalisation of the detailed documentation that follows the signing of the term-sheet with Optimum Petroleum Development Company ("Optimum"), the operator and local partner in OPL 310 which retains a 60% participating interest, Lekoil will hold a consolidated1 participating interest of 40% (pending Nigerian Ministerial Consent ("Ministerial Consent")) and an economic interest of 70% in OPL 310 and will become the technical and financial partner.

Following the significant oil discovery at Ogo in June 2013, the Company acquired 3D seismic over the remaining 80% of the OPL 310 licence and interpretation of the seismic is ongoing. Following the completion of the deal, the partners will commission and announce a detailed work programme for 2016.

So the Optimum update today seems to refer to the 2013 farmout AND NOT the additional equity purchased from Afren. I was under the impression that the 2013 farmout was still awaiting Ministerial Consent, perhaps that's what it's about?

[jailbird] 22/11/2016 09:39

Lekoil has agreed to acquire Afren's entire 22.86% participating interest in OPL 310, which contains the Ogo discovery, for $13m in cash. Lekoil Nigeria Limited via its wholly owned subsidiary, Mayfair Assets and Trust Limited (Nigeria), holds a 17.14% participating interest and a 30% economic interest in OPL 310 obtained through a farm-in agreement signed in 2013 with Afren. The OPL 310 acquisition will be undertaken by a wholly owned subsidiary of the company, Lekoil 310 Limited

[jailbird] 22/11/2016 09:35

not sure what to make of this new

[jailbird] 22/11/2016 09:35

bit confused with the alias'

who is Ala...looks like two of them...a numpty trader and not sure about the other one..lol

[flirker] 22/11/2016 09:31

Non listed Nigerian company issuing an RNS, why?

[flirker] 22/11/2016 09:24

Just mentions 17%, should be 40% with the Afren acquisition. Why is Optimum releasing this?

[ghhghh] 22/11/2016 09:22

You follow me on twitter? @paulcurtis123.

Message me and I'll send screen shot