14 May 2013 07:00
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.