23rd Sep 2014 09:55
LONDON (Alliance News) - Nigeria and West Africa-focused oil and gas explorer Lekoil Ltd Tuesday said the oil reserves estimate for the Otakikpo field in Nigeria has been significantly upgraded.
A survey carried out by AGR TRACS International Ltd found the gross unrisked 2C contingent resources for the Otakikpo site, based offshore Nigeria adjacent to the eastern part of the Niger Delta, are estimated to be 56.8 million barrels, compared to the 36 million barrels estimated in the most recent resource estimates available when the company acquired its interest in the field in May.
Lekoil's Lekoil Nigeria business, in which it holds a 90% stake, owns a 40% working interest in the field.
The economic evaluations of the site carried out by AGR TRACS also indicate the planned development of Otikikpo is robust under USD80, USD100 and USD120 oil price scenarios.
AGR also estimated Stock Tank Oil Initially In Place ranges for four exploration projects in the onshore portion of the project area, which are estimated to contain potential gross aggregate oil volumes of 162.8 million barrels. Lekoil also said it believes additional prospectivity exists in the southern part of the area and will carry out studies and appraisals in due course.
"This is a robust project that will provide us with near term production, cash flow and exploration upside as we continue to pursue our wider goal of becoming a much larger, Africa-focused E&P company," said Lekoil Chief Executive Officer Lekan Akinyanmi.
Lekoil shares were up 5.2% to 71.25 pence per share on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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