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Otakikpo CPR
Otakikpo CPR.
About this update from Fenikso Ltd
[{"type":"text","content":"\n \nRNS Number : 3161S Lekoil Limited 23 September 2014 \n \n\n23 September 2014\n \nLekoil Limited\n(\"Lekoil\" or the \"Company\")\n \nCompetent Persons Report on Otakikpo Marginal Field\nSignificant upgrade to resources estimates\n \nLekoil (AIM: LEK), the oil and gas exploration and development company with a focus on Nigeria and West Africa, announces a significant upgrade to 2C oil reserves estimates for Lekoil Nigeria's 40 per cent. participating interest and economic interest in the Otakikpo Marginal Field (\"Otakikpo\") in oil mining lease (OML) 11, offshore Nigeria, adjacent to shoreline in the eastern part of the Niger Delta. The Company holds 90 per cent. of the economic interests in Lekoil Nigeria.\n \nAGR TRACS International Ltd (\"AGR TRACS\") carried out a comprehensive review of the surface and subsurface data provided by Lekoil. Following the review, AGR TRACS reported that the gross unrisked 2C Contingent Resources for Otakikpo were estimated to be 56.75 mmbbl. This compares to the 36 mmbbl of gross oil resources in the most recent 2C resource estimates available at the time of the Company's acquisition of the interest in Otakikpo in May 2014 through Lekoil Nigeria's wholly owned subsidiary Lekoil Oil and Gas Investments Limited. \n \nEconomic evaluations were also carried out by AGR TRACS, in respect of Lekoil's estimated net resources, under US$80, US$100 and US$120 oil price scenarios for the economic life of the field, which indicate that the planned development of Otakikpo is a robust project under all three oil price scenarios.\n \nIn addition, Stock Tank Oil Initially In Place (STOIIP) ranges have been estimated by AGR TRACS for four exploration prospects within the onshore part of the Otakikpo acreage and, in total, these are estimated (on a P50, unrisked basis) to contain potential gross aggregate Oil in Place volumes of 162.8 mmbbl. The Company also believes that additional prospectivity exists in the southern (shallow water) portion of the acreage which will be defined by further studies and appraisal in due course.\n \nThe consideration for the acquisition of Lekoil's interest in Otakikpo comprised a signature bonus of US$7 million and, contingent on production and ministerial consent, a production bonus of US$4 million. In add...