LEKOIL LIMITED: Otakikpo Update Contract Signed to Acquire 3D Seismic for Phase Two

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 LEKOIL LIMITED (LEK) 
LEKOIL LIMITED: Otakikpo Update Contract Signed to Acquire 3D Seismic for 
Phase Two 
 
04-Jan-2018 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement that contains inside information 
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
4 January 2018 
 
       LEKOIL Limited 
 
       ("LEKOIL" or the "Company") 
 
       Otakikpo Update 
       Contract Signed to Acquire 3D Seismic for Phase Two 
 
  LEKOIL (AIM: LEK), the oil and gas exploration, development and production 
  company with a focus on West Africa, announces that its joint venture with 
      Green Energy International Limited ("GEIL") has signed a contract with 
  Sinopec Changjiang Engineering Services Limited to acquire 197 sq km of 3D 
 seismic data at the Otakikpo Marginal Field ("Otakikpo") in OML 11, onshore 
    and offshore in the south-eastern part of the Niger Delta, to update the 
  existing 2D coverage. The seismic acquisition over Otakikpo is expected to 
      commence in Q1 2018 to kick-off phase two development of Otakikpo. All 
            relevant permits are currently being pursued prior to commencing 
               mobilszation. 
 
 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. Otakikpo currently has an estimated 56.6 
     mmbls of gross unrisked 2C contingent resources and an additional 163.0 
  mmbls gross of Stock Tank Oil Initially In Place (STOIIP) upside on a P50, 
    unrisked basis (AGR TRACS International, Competent Persons Report 2014). 
 
As the Otakikpo field nears Phase One target production of 10,000 bopd, the 
Joint Venture is now focused on Phase Two of the Otakikpo Field Development 
Plan which aims to increase steady state production up to approximately 
20,000 bopd. 
 
   Lekan Akinyanmi, LEKOIL's CEO, said, "With significant milestones already 
   achieved in 2017 as the Otakikpo Technical and Financial Partner, today's 
 announcement demonstrates LEKOIL's progress into the next phase of delivery 
and growth. The Company expects the Phase Two development to be fully funded 
     by industry players, which the Company is already in discussions with." 
 
        For further information, please visit www.lekoil.com [1] or contact: 
 
             LEKOIL Limited 
 
 Alfred Castaneda, Investor         [phone] 
                  Relations 
 
                                    [phone] 
       Lisa Mitchell, Chief 
          Financial Officer 
 
                     Strand Hanson Limited 
                    (Financial & Nominated 
                                  Adviser) 
 
                                             [phone] 
 
              James Harris / James Spinney 
                          / Ritchie Balmer 
 
    Mirabaud Securities LLP 
             (Joint Broker) 
 
                              [phone] / +44 
       Peter Krens / Edward             20 7878 3447 
                Haig-Thomas 
 
 BMO Capital Markets (Joint 
                    Broker) 
 
                                    [phone] 
  Jeremy Low / Neil Haycock 
             / Thomas Rider 
 
   Tavistock (Financial PR) 
 
      Simon Hudson / Barney         [phone] 
   Hayward / Charles Vivian 
 
 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. 
 
       -ends- 
 
ISIN:          KYG5462G1073 
Category Code: ACQ 
TIDM:          LEK 
Sequence No.:  5072 
 
End of Announcement EQS News Service 
 
642881 04-Jan-2018 
 
 
1: http://public-cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=cf18eb9b0cff2bfecacebb0696619578&application_id=642881&site_id=vwd_london&application_name=news 
 

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January 04, 2018 02:03 ET (07:03 GMT)