Lekoil : Commencement of Site Survey on OPL 310

RNS Number : 3675Z

Lekoil Limited

10 January 2020

10 January 2020

Lekoil Limited

("LEKOIL" or the "Company")

Commencement of Site Survey on OPL 310

LEKOIL (AIM: LEK), the oil and gas exploration and production company with a focus on Nigeria and West Africa, announces today on behalf of O p mum Petroleum Development Company ("O p mum"), the O perator of the O P L 310 License, and LEKO I L Nigeria Limited, a member of the LEKOIL Limited group, that the site survey on OPL 310 has commenced.

Following on from the drilling of O go-1 and O go-1 ST in 2013 which encountered hydrocarbons within the SynRi and PostRi , Optimum and LEKOIL are envisaging a two-well programme with the objective of obtaining dynamic flow data from well testing while preserving the drilled wells as producers . I n conjunc on with this appraisal drilling plan, the site survey is required for the assessment of top-hole drilling, jack-up rig and potential platform foundation hazards and any seabed obstructions .

Approval for the site survey on O P L 310 was granted by the Department of Petroleum Resources ("D P R"), in accordance with provision of the Petroleum (Drilling and Produc on) Regula ons . The marine vessel, conduc ng the site survey, arrived at site loca on yesterday and has commenced its opera on which is expected to be completed before the expira on of the approval received from DPR which occurs on 24 March 2020.

O p mum and LEKO I L envisage that first well spud could occur in the second half of this year and as previously announced on 2 January 2020, LEKO I L has secured US$184 million (gross) of funding for the appraisal drilling and ini al development programme activities on the Ogo field.

L ekan Akinyanmi, L EKO IL 's C EO, commented,"W ith the commencement of the site survey, we are delighted to begin in earnest the two well appraisal drilling work programme of ac vi es which is expected to lead to the spudding of the first well in the second half of this year. We celebrate this milestone with our partner and the O perator of the O P L 310 License, O p mum Petroleum, as together we pursue value for all stakeholders ."

For further information, please visit www.lekoil.comor contact:

LEKOIL Limited
Ore Bajomo, Investor Relations	+44	20 7457 2020
Strand Hanson Limited (Financial & Nominated Adviser)
James Spinney / Ritchie Balmer / Georgia Langoulant	+44	20 7409 3494
Mirabaud Securities Limited (Joint Broker)
Peter Krens / Edward Haig-Thomas	[phone] / [phone]
Numis Securities Limited (Joint Broker)	[phone]
John Prior / Emily Morris
Instinctif (Financial PR)	[phone]
Mark Garraway / Sarah Hourahane / Dinara Shikhametova	[e-mail]

Technical Background on OPL310

I n 2013, the first explora on well (O go-1) drilled by the O P L 310 partners - then consis ng of O p mum, LEKO I L and Afren - was the O go prospect, a four-waydip-closed structure in the Turonian to Albian sandstone reservoirs . The drilling programme included a planned side-track well (O go-1 ST) which aimed to test a new play of stra graphically trapped sediments at the basement of the O go

prospect. The O go-1 well encountered a gross hydrocarbon sec on of 524	, with 216	of net stacked pay whilst the O go-1 ST well
encountered the same reservoirs as O go-1 in addi on to the syn-ri sec	on which encountered a 280 ver cal sec on gross
hydrocarbon interval . O wing to well data collected from the two wells, the partners es	mated P50 gross recoverable resources to be
at 774 mmboe across the Ogo prospect four-waydip-closed and syn-rift structure.

The informa on contained within this announcement is deemed by the Company to cons tute inside informa on s pulated under the Market A buse Regula on (EU) No. 596/2014. Upon the publica on of this announcement via the Regulatory Informa on Service, this inside information is now considered to be in the public domain.

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