Lekoil Hits Oil Offshore Nigeria

Lekoil Limited has announced the discovery of a significant light oil accumulation at the high impact Ogo-1 well located on the OPL 310 licence offshore Nigeria, based on the results of drilling and wireline logs.

The Ogo-1 well is being drilled by Afren Plc (“Afren”), as technical partner, under a farmout to Lekoil of OPL310, offshore Nigeria (“OPL310”), as announced on 14 May 2013. The well has been drilled to a total measured depth of 10,518ft (10,402ft true vertical depth subsea (“TVDSS”)), and has encountered a gross hydrocarbon

section of 524ft, with 216ft of apparent stacked, net pay.

Further wireline log evaluation is currently underway prior to extending the well to target deeper prospectivity above basement, to a total measured depth of 11,800ft (11,684ft TVDSS). The expected timetable for completion of this further drilling together with additional testing is four to six weeks (inclusive of drilling a planned Ogo-1 side-track well).

Speaking on the development, Lekan Akinyanmi, CEO of Lekoil, said: “The discovery of oil in the Ogo-1 well opens up a new oil basin in an underexplored region and represents a possible extension of the Cretaceous play along the West African Transform Margin. The discovery is a clear validation of Lekoil’s technical analysis and of our extensive studies on the Dahomey Basin.

According to Lekan, “Results to date indicate that the discovered resources could be significantly in excess of P50 estimates prior to drilling. While Lekoil notes these results are preliminary, we believe there exists substantial scope for upward revisions to the data announced today as drilling and interpretation continues.

“We look forward to working with our Partners to realise the full potential of Ogo and the additional prospects on the license”, he added.

The Ogo-1 discovery, testing a four-way dip-closed structure in the Turonian, Cenomanian, and Albian sandstone reservoirs, confirms the extension of the same Cretaceous play that has yielded other significant discoveries along the West African Transform Margin.

Lekoil Limited Proposed Acquisition of Interest in OML113

Lekoil, the AIM listed oil and gas exploration and development company focused on West Africa, is pleased to announce that Lekoil Nigeria Limited, a wholly owned subsidiary of Lekoil (Nigeria) Limited has agreed to acquire a 6.502 per cent participating interest in Oil Mining Lease 113 ("OML113") offshore Nigeria from Pan Petroleum Aje Limited ("PPAL"), a wholly owned subsidiary of Panoro Energy ASA ("Panoro"), for a consideration of US$30 million.

The proposed acquisition is for a 6.502% participating interest (representing c. 16.3% cost interest and c. 12.2% revenue interest) from a subsidiary of Panoro Energy.
Chief executive Lekan Akinyanmi said: "The acquisition of an interest in the Aje field, adjacent to our existing interest in OPL310, is exactly in line with our strategy to focus on assets in corridors of interest identified in our detailed evaluation programme when we established Lekoil.

"It also brings us potential near term production in line with our ambition to create a producing business with higher upside appraisal and exploration assets. In addition, we continue to assess further opportunities. "This acquisition sees us well on our way to realising our vision for Lekoil and its shareholders, following our Admission to AIM last month."

OML113 is located offshore Nigeria in the Benin Embayment along the West African Transform Margin adjacent to Oil Prospecting Lease 310 ("OPL310"), in which Mayfair Assets & Trusts Limited, a subsidiary of Lekoil Nigeria, has an ultimate 30 per cent economic interest. The OML113 licence area contains the Aje oil and gas field ("Aje"), for which AGR TRACS International Ltd, in its recently updated Competent Persons Report ("CPR"), estimated Contingent Resources of 198.7 mmboe