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Afren Plc (ticker: AFR) and Lekoil (ticker: LEK) jointly announced a major discovery of significant light oil accumulation at the Ogo-1 well located on the OPL 310 license offshore Nigeria. Today’s discovery confirms the extension of the same Cretaceous sandstones that have shown-way for other significant discoveries along the West African Transform Margin.

Well Details

The Ogo-1 well was drilled to 10,518 feet and wire line logs confirmed a gross hydrocarbon section of 524 feet (216 feet of net stacked pay). The well was drilled by AFR as technical partner under a farm out agreement to LEK.

Afren initially estimated the Ogo-1 well held 78 MMBOE of gross P50 prospective resources. After initial tests, the company believes it could be even bigger. Afren and its partner plan to deepen the well to 11,800 feet to evaluate the possibility of additional pay zones.

In AFR’s most recent independent assessment, Netherland Sewell & Associates, AFF’s independent reservoir engineer, evaluated gross P50 unrisked prospective resources on OPL 310 at 476 MMBOE.

“The discovery of oil in the Ogo-1 well opens up a new oil basin in an under-explored region and represents a possible extension of the West African Transform Margin,” Osman Shahenshah, Chief Executive of Afren said. “Based on evidence to date, targeted resources are likely to be significantly in excess of previous estimates, with some high-potential zones still to be drilled. We look forward to working with our Partners to realize the full potential of Ogo and our additional prospects on the license.”

Location map- West African Transform Margin

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“The discovery is a clear validation of Lekoil’s technical analysis and of our extensive studies on the Dahomey Basin,” LEK CEO Lekan Akinyanmi said in the LEK news release. “Results to date indicate that the discovered resources could be significantly in excess of P50 estimates prior to drilling. While Lekoil notes these results are preliminary, we believe there exists substantial scope for upward revisions to the data announced today as drilling and interpretation continues.”

After completion of the Ogo-1 operations, plans for a side-track drill (Ogo-1 ST) will be put into motion to test “stratigraphically trapped sediments that pinch-out onto the basement high targeting 124 mmboe of gross P50 prospective resources.”

Working Interest Breakdown of Block OPL 310

OPL310_drilling_update_250613 (1)_Page_1

*Following the announcement of the farm-out to Lekoil Limited (“Lekoil”) on 14 May 2013, subject to Nigerian Ministerial consent. Economic Interest post Afren and Optimum achieving cost recovery.

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