Page 10 - AfrOil Week 34 2019

AfrOil
NEWS IN BRIEF
AfrOil
UPSTREAM
LEKOIL reports on
Acquisition of Participating
Interest in OPL276
LEKOIL, the oil and gas exploration and devel- opment company with a focus on Nigeria and West Africa more generally, has agreed to acquire, subject to the receipt of the required consents, via Lekoil 276 Limited (a fully-owned subsidiary of Lekoil Nigeria), a 45% participat- ing interest in the production-sharing contract (PSC) in relation to Oil Prospecting Licence 276, covering a territory located onshore in the east- ern Niger Delta basin. e agreed acquisition, from Newcross Petroleum, is for a total staged consideration of $5mn, which is payable subject to the milestones listed in the highlights below. Lekoil 276 will also enter into an interim gov- ernance agreement with Newcross and Albright Waves Petroleum Development setting out the terms on which Lekoil 276 will provide technical support to the PSC.
e acquisition is consistent with the com- pany’s continuing strategy of assembling a balanced portfolio of oil and gas interests, which already include production (Otakikpo), appraisal (OPL310) and high impact exploration assets in known basins (OPL325).
e Licence is covered by approximately 150 square km of 3-D seismic data, shot in 2008 by BGP Inc., a subsidiary of China National Petro- leum Company (CNPC), as well as various 2-D seismic surveys. It is in close proximity to three existing producing elds, all less than 20 kilo- metres away: E at-Abana in OML 114; Stubb Creek, straddling OML 13 and the licence, and Uquo in OML 67.
Newcross has previously identi ed 10 pros- pects and seven leads in the area covered by the licence. Four wells have been drilled in the license area, resulting in four discoveries (two oil and two gas): Uda, drilled in 1972 (oil & gas dis- covery); Okposo-East, drilled in 1980 (oil & gas discovery); Mbo, drilled in 1990 (gas discovery), and Davy Bank, drilled in 1986 (gas discovery).
Preliminary resource estimates by Newcross based on data from these four wells reported gross recoverable volumes of 29mn barrels of oil and 333bn cubic feet (9.43bn cubic metres) of gas, upside of 33mn barrels of oil and 476 bcf (13.48 bcm) of gas (recoverable). LEKOIL has veri ed these estimates internally but also intends to commission an independent Compe- tent Persons Report in due course. LEKOIL sees a clear opportunity for re-entering one or more of these discovery wells, with the potential for rapid monetization of resources due to existing export facilities nearby.
e Company expects to nance the acqui- sition and the costs of the future asset work programme with a combination of its existing nancial resources and a nancing solution with a strategic industry partner, discussions about which have already commenced.
LEKOIL, August 23 2019
COMPANIES
Savannah Petroleum receives ministerial consent for Seven Energy transaction
Savannah Petroleum PLC, a British independ- ent oil and gas company focused around activ- ities in Niger and Nigeria, is pleased to provide an update in relation to the Seven Energy transaction.
Seven Energy International Ltd (SEIL) has received noti cation from the Nigerian Depart- ment of Petroleum Resources that President Muhammadu Buhari has approved the trans- fer of the Seven Assets (SEIL’s entire interests in Seven Uquo Gas, Universal Energy Resources and Accugas) to Savannah or any of its subsid- iary companies.
As anticipated, the Consent is subject to the payment of all taxes due in relation to the Transaction within 90 days of the receipt of the approval letter conveying the consent.
The receipt of the consent represents the
satisfaction of a signi cant condition precedent for the transaction. e principal remaining con- ditions precedent for the transaction relate to the execution of long-form documentation in rela- tion to the Accugas debt restructuring and the Frontier swap, following which the Transaction completion process is expected to commence.
This completion process will follow pre- agreed steps, as set out in the legally binding Implementation Agreement which was signed in February 2019. Further updates in relation to the outstanding conditions precedent and Transac- tion completion will be published as appropriate, and completion will be followed in due course by the publication of a supplemental admission document.
Andrew Knott, CEO of Savannah Petroleum, commented: “ e receipt of consent in relation to the Seven Energy transaction is a signi cant milestone for Savannah. I would like to take the opportunity to thank the Federal Government of Nigeria for their support in relation to the transaction. I look forward to working with all stakeholders as we advance the Seven Assets.” Savannah Petroleum, August 19 2019
Rosneft, INP and ENH
Expand Cooperation in
Mozambique
Russia’s Rosneft and the National Petroleum Institute of Angola have signed a co-operation agreement. e document was signed by Ros- ne CEO Igor Sechin and the chairman of INP, Carlos Zacarias.
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Week 34 27•August•2019