Mayfair gets 17.14 per cent interest in Lagos oil well

Optimum Petroleum Development Limited has granted its minority partner, Mayfair Assets and Trust Limited, a subsidiary of Lekoil Limited, a 17.14 per cent economic interest in Oil Prospecting License (OPL) 310.

The company said that the decision was made with the consent of Ministry of Petroleum Resources subject to Mayfair’s payment of 2.5 per cent of the transaction cost to the Federal Government and the signing of an agreement with the operator.

Managing Director/Chief Executive Officer, Optimum Petroleum, Yusuf K.J. N’Jie stated: “Optimum Petroleum is pleased to announce progress on the resolution of the issues in relation to OPL 310 development and has pledged to continue in its efforts to  bring  yet  another Benin Basin field into production following the successful development of the Aje field on OML 113. The forthcoming appraisal and development work on OPL 310 is expected to commence in 2017 and should contribute to the production oil and gas reserves  supporting the industrial development and energy needs of Lagos State and the petroleum industry of the Federal Republic of Nigeria.”

The media statement explained that in line with the ministerial guidance on this issue, Optimum Petroleum remains resolute in finalising the agreement for the 17.14 per cent assignment and to define the rights and obligations of both parties for the optimal development of OPL 310 without further delay.

It stated that the operator, however, can make no assurances for the successful completion as negotiations have been ongoing since 2013 and plans for a well to be spudded in early 2016 were not completed.

The statement pointed out that to date Optimum Petroleum has not executed an agreement nor received payments as detailed in a 24 October 2015 non-binding term sheet. “Optimum Petroleum wishes to appreciate the position of the Ministry of Petroleum Resources as demonstrated by the Department of Petroleum Resources (DPR),” it added.

It disclosed: “The OPL 310 license is an upper cretaceous play in the West African Transform Margin.  Most of the prospects are in water depths of 100 to 800 meters, where in 2013 included the successful drilling of an exploration well (Ogo-1) and its planned sidetrack (Ogo-1 ST). The block extends from the shallow water continental shelf near the city of Lagos extending to the deep-water.

”The Ogo-1 well encountered a gross hydrocarbon section of 524ft, with 216 feet of net stacked pay while the Ogo-1 ST well encountered the same reservoirs as Ogo-1 in addition to the syn-rift section which encountered a 280 feet vertical section gross hydrocarbon interval. Owing to well data collected from the two wells, the partners estimated P50 gross recoverable resources to be at 774  mmboe across the Ogo prospect four-way dip-closed and syn-rift structure.

”Geophysical works including a 1,505 square kilometre 3D seismic acquisition program, representing nearly 80 per cent of the block, and interpretation has been completed.Commissioning of a full-field Competent Persons Report has begun.

”Drilling of two appraisal wells and two exploration wells is expected to begin in early 2017. Appraisal wells will focus on prospects around the Ogo discovery that have been de-risked following the completion of seismic interpretation of multiple horizons”.