Business
Acquisition of Afren's Interest in OPL 310
Acquisition of Afren's Interest in OPL 310.
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[{"type":"text","content":"\n \nRNS Number : 4749H Lekoil Limited 01 December 2015 \n\n \n1 December 2015\n \nLekoil Limited\n(\"Lekoil\" or the \"Company\")\n \nAcquisition of Afren's Participating Interest in OPL 310 \n \nLekoil (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\"). \n \nLekoil 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.\n \nFollowing 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. \n \nFollowing 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. \n \nHighlights \n· Lekoil to acquire Afren's 22.86% participating interest (40% economic interest) in OPL 310, increasing Lekoil's consolidated1 participating interest from 17.14% to 40% (and its economic interest from 30% to 70%), subject to Ministerial Consent, and will become the technical and financial partner. \n· Of the Consideration, US$12 million is due immediately and US$1 million is due upon the earlier of receiving Ministerial Consent or two years following the signing of the OPL 310 Acquisition agre...