Lekoil Limited Continuous Production at Otakikpo (2474X)
February 20 2017 - 1:00AM
UK Regulatory
TIDMLEK
RNS Number : 2474X
Lekoil Limited
20 February 2017
20 February 2017
LEKOIL Limited
("LEKOIL" or the "Company")
LEKOIL starts continuous production at Otakikpo
Production ramping up to 10,000 bopd
LEKOIL (AIM: LEK), the oil and gas exploration, development and
production company with a focus on Africa, is pleased to announce
that further to the announcement on 8 December 2016, the six
kilometre offshore pipeline leading from the storage tanks to the
tanker offloading manifold has been completed and commissioned. All
onshore facilities and the offshore pipeline have been fully
commissioned and signed off by the regulators. Continuous
production has now commenced from the Otakikpo Marginal Field
("Otakikpo") in OML 11, jointly developed by Green Energy
International Ltd as the Operator and LEKOIL as technical and
financial partner.
Initial production (from the four production strings across both
wells Otakikpo-002 and -003) is in line with company expectations.
Initial production rates are 5,000 bopd, per current regulatory
approvals for production commencement. As is customary for a new
field, the Company will now focus on gathering production data and
optimizing well performance. With regular exports underway, the
Company is focused on ramping up to production of 10,000 bopd by
end of Q2 2017.
Lekan Akinyanmi, LEKOIL's CEO, said: "LEKOIL is now a producing
company. I would again like to thank the entire team that has
worked so hard on this project, our partner Green Energy, our
investors and debt financiers, our host communities and our
government regulators for their continuing support. The Otakikpo
project began in a swamp location with no infrastructure and our
team delivered production in under two years with, importantly,
nearly 915,000 hours without any lost time injuries. I am extremely
proud of our people's achievements."
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. LEKOIL funded the
costs of development and is entitled to recover this expenditure
preferentially from 88 per cent. of production cash flow from
Otakikpo.
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.
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
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