Lekoil Limited Proposed Acquisition of Interest in OML113

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• Proposed acquisition from a subsidiary of Panoro Energy ASA of a 6.502 per cent. participating interest (representing c. 16.3 per cent.cost interest and c. 12.2 per cent. revenue interest) in OML113 offshore Nigeria for a consideration of US$30 million:

 - Located in the Benin Embayment along the West African Transform Margin adjacent to OPL310, in which Lekoil Nigeria, has an ultimate 30 per cent. economic interest
 - Contains the Aje oil and gas field, for which AGR TRACS International Ltd, in its recently updated CPR, estimated the unrisked 2C Contingent Resources to be 198.7 mmboe, comprising gas, gas liquids and condensate, as well as a significant oil leg in one of the reservoirs. Around 50 per cent of the 2C Contingent Resources in the Aje field are liquid hydrocarbons, comprising oil, gas liquids, and condensate.
 - Net unrisked 2C Contingent Resources attributable to Lekoil Nigeria will be approximately 25.3 mmboe.
 

• Based on discussions to date, Lekoil is confident that it will be able to access capital to fund the acquisition and associated capital expenditure. 

Commenting on the announcement, Lekan Akinyanmi, Lekoil's CEO, commented, "The acquisition of an interest in the Aje field, adjacent to our existing interest in OPL310, is exactly in line with our strategy to focus on assets in corridors of interest identified in our detailed evaluation programme when we established Lekoil.  It also brings us potential near term production in line with our ambition to create a producing business with higher upside appraisal and exploration assets. In addition, we continue to assess further opportunities.
 
"This acquisition sees us well on our way to realising our vision for Lekoil and its shareholders, following our Admission to AIM last month."