Business
Acquisition of Participating Interest in OPL276
Acquisition of Participating Interest in OPL276.
About this update from Fenikso Ltd
[{"type":"text","content":"\n \nRNS Number : 9983J Lekoil Limited 23 August 2019 \n\n23 August 2019\n \nLEKOIL Limited \n(\"LEKOIL\" or the \"Company\")\n \nAcquisition of Participating Interest in OPL276\n \nLEKOIL (AIM: LEK), the oil and gas exploration and development company with a focus on Nigeria and West Africa more generally, has agreed to acquire, subject to the receipt of the required consents, via Lekoil 276 Limited (\"Lekoil 276\" which is a 100 per cent. owned subsidiary of Lekoil Nigeria), a 45 per cent. participating interest in the Production Sharing Contract (\"PSC\") in relation to the Oil Prospecting Licence 276, covering a territory located onshore in the eastern Niger Delta basin (the \"Licence\"). The agreed acquisition, from Newcross Petroleum Limited (\"Newcross\"), is for a total staged consideration of US$5million (the \"Consideration\"), which is payable subject to the milestones listed in the highlights below (the \"Acquisition\"). Lekoil 276 will also enter into an Interim Governance Agreement with Newcross and Albright Waves Petroleum Development Limited (\"Albright\") setting out the terms on which Lekoil 276 will provide technical support to the PSC.\n \nThe Acquisition is consistent with the Company's continuing strategy to assemble a balanced portfolio of oil and gas interests, which already include production (Otakikpo), appraisal (OPL310) and high impact exploration assets in known basins (OPL325).\n \nThe Licence is covered by approximately 150 sq. km of 3D seismic, shot in 2008 by BGP Inc., a subsidiary of China National Petroleum Company (CNPC), as well as various 2D seismic surveys. It is in close proximity to three existing producing fields, all less than 20 kilometres away:\n· Effiat-Abana in OML114\n· Stubb Creek straddling OML13 and the Licence\n· Uquo in OML67\n \nNewcross has previously identified ten prospects and seven leads in the area covered by the Licence. Four wells have been drilled in the License area, resulting in four discoveries (two oil and two gas):\n· Uda; drilled in 1972 (oil & gas discovery)\n· Okposo-East; drilled in 1980 (oil & gas discovery)\n· Mbo; drilled in 1990 (gas discovery)\n· ...