LukOil(OAO) LKOB Re Project in Sierra Leone

  LukOil(OAO) (LKOB) - Re Project in Sierra Leone

RNS Number : 5571Q
LukOil (OAO)
07 November 2012




  LUKOIL JOINS UPSTREAM PROJECT OFF SIERRA LEONE SHORE IN THE GULF OF GUINEA



LUKOIL has acquired a 25% stake in the geological exploration, development and
production project  at  the SL-4B-10  offshore  block  in the  waters  of  the 
Republic of Sierra Leone in the Gulf of Guinea.

LUKOILacquired  this  stake  from  Canada's  Talisman  Energy,  the   project 
operator.  The  other  project  parties  are  Malaysia's  Petronas  (25%)  and 
Britain's Prontinal Ltd (20%).

The block, with an area of approximately 2,200 sq. km and water depths ranging
from 100 to 3,000 meters, borders on another block, SL-05-11, where LUKOIL  is 
the operator of exploration and development.

Prospecting and  exploratory  drilling is  currently  being conducted  at  the 
Djembe structure by means of a Stena DrillMax drill rig.

A Framework Agreement  for the SL-4B-10  block was signed  in 2003. The  first 
geological exploration stage of the contract area (2D seismic surveys with the
scope exceeding 300 linear kilometers and 3D covering more than 1,000 sq.  km) 
was completed in 2009.  The exploration resulted in  the discovery of  several 
potential pay zones in the block. Besides, an earlier exploratory well with  a 
depth of more than 2,400 meters, drilled in the shallow waters of the block in
1982, had helped trace oil showings in the Albian-Cenomanian deposits.

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


STRGMMGMZNRGZZM -0- Nov/07/2012 12:10 GMT