(Alliance News) - Lekoil Ltd on Friday said Nigeria's federal government has now approved a three-year extension of the OPL 310 block exploration licence.
Shares in Lekoil were up 6.6% at at 6.61 pence in London in morning trade.
The licence is subject to a USD7.5 million extension fee which must be paid by the licence owners in the 90 days following August 2. Lekoil expects to fund the entire fee using its existing resources as well as those of a possible funding partner.
Optimum Petroleum Development Co and Lekoil Nigeria Ltd have both agreed to progress appraisal of OPL 310, located in offshore Nigeria and the bloc's conversion to an oil mining licence once exploration is complete.
When the appraisal is done, a field development programme will take place - over which advanced talks with a potential funding partner are ongoing.
Lekoil Chief Executive Lekan Akinyanmi said: "We are pleased to be working efficiently with Optimum and the Nigerian Department of Petroleum Resources to ensure timely approvals for our upcoming drilling and work programmes and we now look forward to unlocking significant value from the asset for all stakeholders, who we thank for their continued patience and support through this prolonged process."
