Lekoil Limited Otakikpo Production Update (2598R)
December 08 2016 - 1:00AM
UK Regulatory
TIDMLEK
RNS Number : 2598R
Lekoil Limited
08 December 2016
8 December 2016
LEKOIL Limited
("LEKOIL" or the "Company")
Otakikpo - Production Update
Oil flows to storage tanks ahead of evacuation by shuttle
tanker
LEKOIL (AIM: LEK), the oil and gas exploration and development
company with a focus on West Africa, is pleased to announce that
oil is flowing at the Otakikpo Marginal Field to onshore storage
tanks, where it will be evacuated upon completion of the offshore
pipeline. All onshore facilities have been fully commissioned and
signed off by the regulators, and the offshore pipeline leading
from the storage tanks to the tanker offloading manifold is 80%
complete.
Upon completion of the pipeline, the joint venture partners
comprising of Green Energy International Ltd as Operator and LEKOIL
as Technical Partner, expects to start transporting to the export
terminal and subsequently, be able to gradually ramp up production
to 10,000 bopd.
Lekan Akinyanmi, LEKOIL's CEO, said: "We're delighted to
announce this key milestone from the Otakikpo field. I would like
to thank the entire team that has worked so hard on this project,
our partners Green Energy, investors, debt financiers, our host
communities and our government regulators for their continued
support."
For further information, please visit www.lekoil.com or
contact:
LEKOIL Limited
Alfred Castaneda, Investor
Relations +44 20 3434 5800
Hamilton Esi, Corporate Communications +44 20 7920 3150
Strand Hanson Limited (Financial
& Nominated Adviser)
James Harris / James Spinney
/ Ritchie Balmer +44 20 7409 3494
Mirabaud Securities LLP (Joint
Broker) +44 20 7878 3362 / +44
Peter Krens / Edward Haig-Thomas 20 7878 3447
BMO Capital Markets (Joint
Broker)
Vicary Gibbs / Neil Haycock
/ Thomas Rider +44 20 7236 1010
Tavistock (Financial PR)
Simon Hudson / Barney Hayward
/ Merlin Marr-Johnson +44 20 7920 3150
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 Company holds 90% of the economic interests in Lekoil
Nigeria. Lekoil Limited's economic interest in Otakikpo therefore
equates to 36%. The Otakikpo Joint Venture (Lekoil as Financial and
Technical Partner to GEIL) began operations in December 2014.
Ministerial consent was granted by the Honourable Minister of
Petroleum Resources of Nigeria in June 2015.
The Otakikpo Field Development Plan consists of two phases.
Phase 1 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 2
covers the subsequent incremental development of the rest of the
field with a new Central Processing Facility and new wells expected
to bring production to 20,000 bopd.
Review by qualified person:
Samuel Olotu, Chief Technical Officer and expert for the
Company, has reviewed and approved the technical information
contained within this announcement in his capacity as a qualified
person under the AIM Rules. Mr. Olotu holds a BSc degree in Geology
and an MSc in Geophysics from the University of Ibadan, and has
over 20 years' experience in the oil and gas industry (ranging from
asset management, field development, reservoir management and
seismic data processing and interpretation) in Nigeria, Europe,
Middle-East and Asia. He is a member of the Society of Petroleum
Engineers, Society of Exploration Geophysicists, the National
Association of Petroleum Explorationists and the Nigerian Mining
and Geosciences Society.
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
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