Lekoil Plc is an African focused oil and gas exploration and production company which currently
holds interests offshore Nigeria and offshore Namibia. The Company was founded by a group of
leading professionals with extensive experience in the international upstream oil and gas industry
as well as in global fund management and investment banking.

Lekoil Operations

http://www.lekoil.com/index.php/continental-africa-map.html

Latest News

http://www.lekoil.com/index.php/latest-news.html

26.06.2013

Significant oil discovery offshore Nigeria

Lekoil is pleased to announce that the high impact Ogo-1 well located on the OPL 310 licence offshore Nigeria has discovered a significant light oil accumulation, based on the results of drilling and wireline logs.

The Ogo-1 well is being drilled by Afren Plc (“Afren”), as technical partner, under a farmout to Lekoil of OPL310, offshore Nigeria (“OPL310”), as announced on 14 May 2013. The well has been drilled to a total measured depth of 10,518ft (10,402ft true vertical depth subsea (“TVDSS”)), and has encountered a gross hydrocarbon section of 524ft, with 216ft of apparent stacked,net pay.

Further wireline log evaluation is currently underway prior to extending the well to target deeper prospectivity above basement, to a total measured depth of 11,800ft (11,684ft TVDSS). The expected timetable for completion of this further drilling together with additional testing is four to six weeks (inclusive of drilling a planned Ogo-1 side-track well).

The Ogo-1 discovery, testing a four-way dip-closed structure in the Turonian, Cenomanian, and Albian sandstone reservoirs, confirms the extension of the same Cretaceous play that has yielded other significant discoveries along the West African Transform Margin.

The results also indicate a working hydrocarbon system that is weighted more towards liquids than gas. This has been confirmed by MDT samples; light oil samples in the Turonian and Cenomanian sands and condensate samples in the Albian sands.

Following the completion of drilling and testing operations at Ogo-1, the Partners in OPL310 (the “Partners”) plan to drill a side-track well, Ogo-1 ST, which will test a stratigraphic pinch-out trap on the flanks of the basement high – a new potential play in the area.

Lekan Akinyanmi, CEO, said: “The discovery of oil in the Ogo-1 well opens up a new oil basin in an under-explored region and represents a possible extension of the Cretaceous play along the West African Transform Margin. The discovery is a clear validation of Lekoil’s technical analysis and of our extensive studies on the Dahomey Basin.

“Results to date indicate that the discovered resources could be significantly in excess of P50 estimates prior to drilling. While Lekoil notes these results are preliminary, we believe there exists substantial scope for upward revisions to the data announced today as drilling and interpretation continues.

“We look forward to working with our Partners to realise the full potential of Ogo and the additional prospects on the license.”

Robbie

I prefer using Sipp as i invest for longer term periods which are mainly mid to large
cappers,but every so often i pop a junior in that i think will reap rewards.Lekoil is
one that i have very high hopes for and i think it will treble in value or more during
the next 12 months.News on the OGO sidetrack this week?

Ahoj

It is best to scan the internet for latest deals on Sipp Providers,but Sippdeal is a
good one to start from or use as a comparison,hope that helps?

Mack,i have not started a SIPP yet but i think am seriously thinking of setting one up this year.Yes an update on the ogo sidetrack should be released this week and i will be expecting some very good numbers :-)

Rns today on the EGM with all resolutions passed,i have a hunch that they have been
holding back the update on the OGO discovery until they had shareholders approvals.

Also two very large late buys today after close of £806k and £366k !

Standby for news :-)

Robbie

Lekoil is looking very good indeed,i increased my holding yesterday and looking
forward to the update now.I came across this post on another bb that is worth
a look :-)



Post From Zengas on Advfn

"Look at what Lekoil have been going for and current value at just £82m m/cap after todays passing of all resolutions/new shares in issue.

In January 2011 Lekoil partnered with Dragon Oil and Afren to bid for Shells divested interest in OML-30. This had 35,000 bopd production and over 700 mmbo gross P2 reserves.

OML-30 interest was won by Heritage Oil and Shoreline.

In February 2011 Lekoil partnered with a local company and various private equity firms to bid for the interest in OML-40.

OML-40 interest was won by Eland Oil &Gas that floated on AIM last year.
Elands only asset is its OML-40 interest.

Elands net entitlement reserves have increased to 23.5 mmbls and 12 mmbl resources = 35.5 mmboe. No production.

Elands m/cap is currently £160m (previously £180m) at 118p. Had $24m cash left at the end of December 2012/8 months ago and a $22m debt facility. Northland have a target price of 171p which would equate to a m/cap of £232m.

Again that's Elands 'only' asset though it has exploration upside.

After today, Lekoil will have 216.6m shares and at 38p = m/cap of £82m or half that of Eland.

Net attributable mid case to Lekoil was estimated at 16.7 mmboe or to a high of 47.6 mmboe for EKO.

Apparently we've paid the deposit for our interest in OML-113 and the AJE Oil and Gas field.

AJE will give us a net 2C contingent resource of 25.3 mmboe for circa a further £18m. This has like Eland further exploration upside.

So say in due course a further £18m is raised within the next 2 months to pay for AJE/OML-113 (though it could be via debt), then the additional £18m and our current m/cap would be £100m at a still 38p but £60m cheaper than Lekoil who have only one asset and a target by Nothland for £232m m/cap.

For Lekoil to be on a par with Eland now, then the share price would be circa 65p but we could have between 42 - 72 mmboe reserve/resource which would be much greater than Eland and this just from the Eko prospect and Aje farm-in so potentially on these the share could be worth 75-130p but without the current Agege prospect sidetrack (which offers net 33.5 mmboe mid case to 88.5 mmboe high case, but much higher risk).

Northlands 171p target for Eland (+ 45% upside) would extend Lekoils future valuation even further.

This isn't allowing for the current sidetrack into the high potential but higher risk Agege prospect.

It's not factoring into account our small current 1% interest in OPL 241 or our significant (circa 69.7% net) stakes in 2 Namibian blocks (something that Eland don't have - ie they only have that one asset).

38p as I see it, is way too cheap. I'm looking for a re-rating to between 75p and 130p on EKO and the Aje field deal with that target to be worth much more down the road.

Any success at the current Agege sidetrack, from either of the 2 targets there will be a bonus but regardless of success or failure, it will in my opinion still leave Lekoil significantly undervalued.

The discovery of a significant oil find at Eko also helps derisk the Ado and Shasha leads and the smaller OKO prospect.

When you look at them chasing a major producing asset such as the 35,000 bopd OML-30 then it would not surprise me if we can leverage of our current discoveries to pick up an interest in a producing asset in due course and then we really could see the share price out-perform. They've already demonstrated that they can partner with major companies such as Dragon Oil and Afren and on that basis i think interest in Lekoil will definitely increase. "

Nice looking play this !

Mack,there is some serious upside coming here and i think Ogo will just be the start
of it.I predict this will be trading £1+ by end of year and if the markets settle down
maybe a fair bit higher.

News update on the sidetrack drill coming this week :-)

Robbie

What will be interesting if this proves to be a 500 mmboe field is will they be tempted to take an offer for their stake (say at 10 times their investment ) or will they use the block to fund the other big plays they working on.Either way i see this discovery as a very good start indeed for the company.This could soon be a very big company IMO

Mack,standby for news :-)

Keep ramping P - we know it's you.

Why big drop today ?

Watch: Lekoil (LEK) - Company update

Click here to watch