Afren PLC OPL 310 - farm out agreement
May 14 2013 - 02:01AM
RNS Non-Regulatory
TIDMAFR
Afren PLC
14 May 2013
Afren plc (AFR LN)
OPL 310 - farm out agreement secured and exploration drilling
commenced
London, 14 May 2013 - Afren plc ("Afren" or the "Company")
announces the completion of a farm out agreement with Lekoil
Limited ("Lekoil") on the OPL 310 licence, located offshore
Nigeria, and an update on the exploration drilling programme on the
block.
Afren is pleased to announce that it has completed a farm-out
agreement with Lekoil (subject to Nigerian Ministerial Consent), in
respect of a 17.14% participating interest in the OPL 310 licence
located offshore Nigeria. Under the terms of the farm out, Afren
will receive a total carry of up to US$50 million in respect of an
exploration well currently being drilled at the Ogo prospect and a
planned side-track well. The indigenous Nigerian company Optimum
Petroleum Development Ltd. ("Optimum"), the named Operator on the
block, will continue to hold a 60% participating interest, with
Afren providing technical assistance to Optimum in respect of
Optimum's obligations under a Technical Assistance Agreement. The
Partners' participating and economic interests are as follows, post
the farm out to Lekoil:
Participating Interest Economic Interest*
======== ====================== ==================
Optimum 60.00% 30%
Afren 22.86% 40%
Lekoil 17.14% 30%
======== ====================== ==================
*Post Afren and Optimum achieving cost recovery
OPL 310 is located in the Upper Cretaceous fairway that runs
along the West African Transform Margin and lies close to the Aje
field, which has been declared commercial. Extending from the
shallow water continental shelf to deep water, the block represents
an exploration opportunity in an under-explored basin with a proven
working hydrocarbon system in close proximity to the Tano Basin.
Detailed evaluation of the block has identified several prospects
lying in the same Turonian, Cenomanian and Albian sandstone
intervals that have yielded significant discoveries in Ghana and
Côte d'Ivoire. In its most recent independent assessment NSAI
evaluated gross P50 unrisked prospective resources on OPL 310 at
476 mmboe.
The first exploration well to be drilled by the Partners is on
the Ogo prospect, which is a four-way dip-closed structure in the
Turonian to Albian sandstone reservoirs, targeting 78 mmboe of
gross P50 prospective resources. Exploration drilling, using the
GSF Transocean Monitor rig, commenced on 23 April 2013 and is
currently drilling at a depth of 3,500 ft. The drilling programme
is expected to last 90 days and will include a planned side-track,
which will test a new play of stratigraphically trapped sediments
that pinch-out onto the basement high targeting 124 mmboe of gross
P50 prospective resources.
Osman Shahenshah, Chief Executive of Afren, commented:
"We are delighted to have successfully concluded a farm-out on
OPL 310, offshore Nigeria and welcome Lekoil as a Partner in
exploring the significant potential of this under-explored region
of the West African Transform Margin."
A map of the OPL 310 licence can be viewed via the below
link:
http://www.rns-pdf.londonstockexchange.com/rns/6147E_-2013-5-13.pdf
For further information contact:
Pelham Bell Pottinger (+44 20
7861 3232)
James Henderson
Mark Antelme
Notes to Editors
Afren plc
Afren is an independent upstream oil and gas exploration and
production company listed on the main market of the London Stock
Exchange and a constituent of the Financial Times Stock Exchange
Index of the leading 250 UK listed companies. Afren has a portfolio
of 28 assets across 12 countries spanning the full cycle E&P
value chain. Afren is currently producing from its assets in
Nigeria, Côte d'Ivoire and the Kurdistan region of Iraq and holds
further exploration interests in Ghana, Nigeria, Côte d'Ivoire, the
Kurdistan region of Iraq, Congo Brazzaville, the Joint Development
Zone of Nigeria - São Tomé & Príncipe, Kenya, Ethiopia,
Madagascar, Seychelles, Tanzania and South Africa. For more
information please refer to www.afren.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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