1st Dec 2015 08:47
LONDON (Alliance News) - Nigeria and West Africa-focused oil and gas company Lekoil Ltd on Tuesday said it has bought the stake of collapsed oil and gas firm Afren PLC in the OPL 310 licence in Nigeria.
The licence includes the Ogo oil discovery, and Lekoil will pay USD13.0 million in cash to acquire the licence interest from Afren, which is in administration.
Following the deal, Lekoil will hold a 40% participating interest in the licence, with the balance held by Optimum Petroleum Development Co, the operator and local partner for the licence.
"We believe that today's acquisition is a great result for our shareholders. It further demonstrates our ability to build a strong portfolio, and marks the culmination of a busy period in the development of the company. Lekoil now has a suite of assets at different stages of development, with different teams working on them," said Lekoil Chief Executive Lekan Akinyanmi.
Shares in Lekoil were up 6.5% to 24.50 pence on Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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