OPL 310 - Update Re: Application for a Declaration

RNS Number : 8175N Lekoil Limited

23 January 2019

23 January 2019

LEKOIL Limited ("LEKOIL" or the "Company")

OPL 310 - Update Re: Application for a Declaration regarding Ministerial Consent

LEKOIL (AIM: LEK), the oil and gas explora&on, development and produc&on company with a focus on Africa, provides an update on OPL310 (the "Block") with reference to the Company's Applica&on for a Declara&on regarding Ministerial Consent filed at the Federal High Court, Lagos on March 28, 2018.

Further to the Company's announcement on 14 January 2019, the ma5er has now been re-assigned to Honourable Jus&ce Hassan of the Federal High Court as the previous judge hearing the ma5er has been transferred out of Lagos. The matter comes up for mention before Justice Hassan on Thursday 24 January 2019.

The par&es remain in nego&a&ons aimed at seeking a sa&sfactory conclusion for all par&es on the above ma5er. LEKOIL and Op&mum con&nue commercial discussions regarding the financial and technical obliga&ons of both par&es in the block once development work is underway. LEKOIL will provide further updates to the market as appropriate. The Company is represented by Fidelis Oditah QC, SAN.

For further information, please visitwww.lekoil.com or contact:

LEKOIL Limited

Alfred Castaneda, Investor Relations	[phone]
Lisa Mitchell, Chief Financial Officer
Strand Hanson Limited (Financial & Nominated Adviser)
James Harris / James Spinney / Ritchie Balmer	[phone]
Mirabaud Securities Limited (Joint Broker)
Peter Krens / Edward Haig-Thomas	[phone] / [phone]
BMO Capital Markets (Joint Broker)
Jeremy Low / Thomas Rider	[phone]
Numis Securities (Joint Broker)
John Prior / Ben Stoop	[phone]
Tavistock (Financial PR)
Simon Hudson / Nick Elwes / Barney Hayward	[phone]

The informa on contained within this announcement is deemed by the Company to cons tute inside informa on as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

Technical Background on OPL310

In 2013, the first explora&on well (Ogo-1) drilled by the OPL 310 partners - then consis&ng of Op&mum, LEKOIL and Afren - was the Ogo prospect, a four-way dip-closed structure in the Turonian to Albian sandstone reservoirs. The drilling programme included a planned side-track well (Ogo-1 ST) which aimed to test a new play of stra&graphically trapped sediments at the basement of the Ogo prospect. The Ogo-1 well encountered a gross hydrocarbon sec&on of 524D, with 216D of net stacked pay whilst the Ogo-1 ST well encountered the same reservoirs as Ogo-1 in addi&on to the syn-riD sec&on which encountered a 280 D ver&cal sec&on gross hydrocarbon interval. Owing 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-way dip-closed and syn-rift structure.

On 25 November 2015, the Company entered into an agreement with the administrator of Afren and Afren Nigeria Holding Limited to acquire the shares of AIOGNL, which held a 22.86% par&cipa&ng interest in OPL 310 for a total considera&on of US$13 million, subject to Ministerial Consent. Post acquisi&on, the Company holds a 40% working interest and 70% economic interest in the block, with AIOGL's 22.86% working interest and 40% economic interest subject to Ministerial Consent.

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