LAGOS, Nigeria – Lekoil (AIM: LEK), an oil and gas exploration and development company with a focus on Nigeria and West Africa, has updated its progress on the Otakikpo marginal field in oil mining lease (OML) 11, offshore Nigeria.
Lekoil, the technical and financial partner in the Otakikpo project (Lekoil has 40% participating and economic interest) and its partner Green Energy have secured approvals for the well re-entry plan. Lekoil has also begun a phased re-entry plan, fully funded with cash on hand, to reach production.
Earlier in the year, Lekoil said it expected to begin production in 2H 2015. Based on the updated phased approach, the company says that production is now expected in 1H 2015. Under the terms of the acquisition of the interest in Otakikpo, Lekoil will fund costs to first oil and will be entitled to recover this expenditure preferentially.
Contracting has begun for the rig, well services, and production facilities construction. Rig mobilization is initially expected within 1Q 2015 at the same time as construction and the subsequent commissioning of production facilities.