LEKOIL Limited: Contract signed to acquire 3D seismic for Phase Two

LEKOIL, the oil and gas exploration, development and production company with a focus on West Africa, announces that its joint venture with Green Energy International Limited ("GEIL") has signed a contract with Sinopec Changjiang Engineering Services Limited to acquire 197 km² of 3D seismic data at the Otakikpo Marginal Field ("Otakikpo") in OML 11, onshore and offshore in the south-eastern part of the Niger Delta, to update the existing 2D coverage. The seismic acquisition over Otakikpo is expected to commence in Q1 2018 to kick-off phase two development of Otakikpo. All relevant permits are currently being pursued prior to commencing mobilisation.

Following the completion of this seismic acquisition, the Company will then process and interpret the new 3D seismic data, subsequently releasing an updated Competent Person's report. Otakikpo currently has an estimated 56.6 million bbls of gross unrisked 2C contingent resources and an additional 163.0 million bbls gross of Stock Tank Oil Initially In Place (STOIIP) upside on a P50, unrisked basis (AGR TRACS International, Competent Persons Report 2014).

As the Otakikpo field nears Phase One target production of 10 000 bpd, the Joint Venture is now focused on Phase Two of the Otakikpo Field Development Plan which aims to increase steady state production up to approximately 20 000 bpd.

Lekan Akinyanmi, LEKOIL's CEO, said, "With significant milestones already achieved in 2017 as the Otakikpo Technical and Financial Partner, today's announcement demonstrates LEKOIL's progress into the next phase of delivery and growth. The Company expects the Phase Two development to be fully funded by industry players, which the Company is already in discussions with."

Read the article online at: https://www.oilfieldtechnology.com/exploration/05012018/lekoil-limited-contract-signed-to-acquire-3d-seismic-for-phase-two/