An oil and gas exploration and development company listed on the AIM arm of the London Stock Exhange, Lekoil, has concluded plans to acquire stake in OML 113 for a consideration of $30m.
The company, in a statement on Wednesday, said the acquisition was from Pan Petroleum Aje Limited, a subsidiary of Panoro Energy ASA.
The acquisition, the company said, represented a 6.502 per cent participating interest (representing 16.3 per cent cost interest and 12.2 per cent revenue interest) in OML113 offshore Nigeria for a consideration.
The oil field is located in the Benin Embayment along the West African Transform Margin adjacent to OPL310, in which Lekoil Nigeria, has an ultimate 30 per cent economic interest. The field also contains the Aje oil and gas field.
The statement said AGR TRACS International Ltd, in its recently updated CPR, had estimated the field reserve to be 198.7 mmboe, comprising gas, gas liquids and condensate, as well as a significant oil leg in one of the reservoirs.
Based on discussions to date, the Chief Executive Officer, Lekoil, Mr. Lekan Akinyanmi, said he was confident the company would access capital to fund the acquisition and associated capital expenditure.
Commenting further on the announcement, 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.
“This acquisition sees us well on our way to realising our vision for Lekoil and its shareholders, following our admission to AIM last month.”
On June 17, 2013, Akinyanmi said Lekoil 113 entered into a binding conditional Sale and Purchase Agreement with Pan-Petroleum Nigeria Holding BV and Pan-Petroleum (Holding) Cyprus Limited to acquire a 6.502 per cent participating interest in OML113 representing cost bearing participation and revenue participation that range from 16.255 per cent to 12.1913 per cent for activities in the Aje Field depending on the extent of cost recovery; 6.502 per cent to 8.6693 per cent for activities in the deep water area; and 6.502 per cent for certain activities in the shallow water area.
The other OML113 licence interest holders, according to him, include Yinka Folawiyo Petroleum (Operator), Vitol Exploration Nigeria, Chevron and P.R Oil and Gas.
He said Lekoil expected significant partner optimisation benefits to arise from the new ownership structure of OML113, while welcoming the renewed oil-focused development of the Aje field.
