Oil exploration firms are celebrating today after drilling on a find off Nigeria was found to be ‘significantly ahead’ of previous estimates.
Afren, Lekoil and Optimum Petroleum had been targeting around 202million barrels of oil for the Ogo prospect off the Nigerian coast.
But new drilling work on the field suggests the amount of oil could be more than three times that amount – and could reach more than 1billion barrels of oil.
The licence, on the West African Transform margin, had been drilled as a wildcat after early evaluation showed similar prospects to large discoveries off Ghana and the Ivory Coast.
“Based on the well data, the partners estimate the P50 to P10 gross recoverable resources range to be significantly ahead of pre-drill expectations at 774 to 1,180 mmboe across the Ogo four-way dipped closed and syn-rift structures,” the companies said in a statement.
“Additional upside potential is expected in the syn-rift play.”
Drilling on the prospect has been suspended ahead of new 3D scans and a further appraisal well on the find, which could be one of the largest in recent history off the West African coast.
Optimum, operating the find, has a 60% stake in the block, with Afren holding 22.86% and Lekoil the remaining 17.14%.
“Today’s announcement confirms a very significant upgrade to the resources at Ogo compared with our pre-drill expectations,” said Lekoil’s chief executive Lekan Akinyanmi.
“We will continue to work with our partners to progress the Ogo discovery while also focusing on examining other opportunities to build our portfolio of assets.
“Ogo has provided us with a flying start to our strategy to build a substantial, Africa-focused oil and gas business.”
The news provides a welcome boost for Lekoil, which revealed today it faced a £4.3million bill after scrapping its proposed farm into the Aje field off Nigeria.
The firm had agreed a deal to take a stake in the OML113 licence for the Aje field, but could not agree final terms.