Lekoil acquires 40% WI in Otakikpo Marginal Field

• 20 May 2014: Lekoil announced acquisition of 40% participating and economic interest in Otakikpo, a Nigerian onshore Marginal Field; located within OML11
• Vendor: Green Energy
• Consideration: USD7m upfront, plus USD4m contingent on production and ministerial approval
• Lekoil will also fund work programme for re-entry of existing wells and all costs up to production (estimated c.USD67m); this is recoverable from enhanced share (88%) of production cash flow
• Lekoil expects to bring Otakikpo into production within 12-18 months
• Acquisition and work programme partly funded by placing; 70-80% of the work programme expected to be funded through RBL
• 2C estimate: 36mmbbl + 31 bcf (gross)
• Otakikpo has partial 2D and 3D coverage; 3 wells to date, with h/c encountered in multiple intervals; field is close to existing infrastructure
• Lekoil's other assets are:
• 30% economic interest in OPL310 (17.14% WI) which contains Ogo. Partners are Optimum (30% economic interest, 60% WI), Afren (40% economic interest, 22.86% WI)
• 1% in OPL241
• 77.5% in exploration Blocks 2514A and 2514B, Namibia