LEK.L Share News (LEK)

(Sharecast News) - Nigeria and West Africa-focussed oil and gas exploration and production company Lekoil announced on Friday that the site survey on OPL 310 had started, on behalf of Optimum Petroleum Development Company, the operator of the licence, and Lekoil Nigeria, a member of the group.
The AIM-traded firm said that, following the drilling of Ogo-1 and Ogo-1 ST in 2013 which encountered hydrocarbons within the SynRift and PostRift, Optimum and Lekoil were envisaging a two-well programme, with the objective of obtaining dynamic flow data from well testing while preserving the drilled wells as producers.

In conjunction with that appraisal drilling plan, the site survey was required for the assessment of top-hole drilling, jack-up rig and potential platform foundation hazards and any seabed obstructions.

Approval for the site survey on OPL 310 was granted by the Department of Petroleum Resources (DPR) in accordance with provision of the Petroleum Drilling and Production Regulations.

The company said the marine vessel conducting the site survey arrived at the location on 9 January, and had started its operation which was expected to be completed before the expiration of the approval received from DPR, which would occur on 24 March.

Optimum and Lekoil envisaged that the first well spud could occur in the second half of the year, and as it had announced on 2 January, it had secured $184m of gross funding for the appraisal drilling and initial development programme activities on the Ogo field.

"With the commencement of the site survey, we are delighted to begin in earnest the two well appraisal drilling work programme of activities which is expected to lead to the spudding of the first well in the second half of this year," said chief executive officer Lekan Akinyanmi.

"We celebrate this milestone with our partner and the Operator of the OPL 310 License, Optimum Petroleum, as together we pursue value for all stakeholders."

At 1549 GMT, shares in Lekoil were down 0.97% at 9.18p.