Oando Exploration and Production Limited (OEPL), the upstream arm of Oando PLC, Nigeria's leading integrated energy solutions provider, has announced the acquisition of 75% interest in Exiles Resources' 40% working interest in the Akepo Field through the signing of a Financial and Technical Services Agreement on 23 October, 2008.
Under the terms of the Agreement that is structured in two stages, Oando will re-imburse Exile's past expenses on the Akepo Field, and finance the development of the project, in return for taking 75% of Exile's current economic interest in the project. This will see Oando own 30% Equity stake in the entire project, subject to the approval of the relevant Authorities, and Sogenal Limited, the Operator.
Tunde Ogunnaike, Chief Executive Officer, OEPL, commented, "We are excited about this acquisition as it is in line with our plans to boost our portfolio with near term oil and gas assets. As the technical and management partners, we will be conducting immediately, additional technical studies to facilitate the drilling of more wells to fast track the development of this block".
Tony Henshaw, President and Chief Executive Officer of Exile Resources, commented "I am very pleased that Oando has joined Sogenal and Exile in the Akepo Project. In the current uncertain financial climate, Oando's financial strength and capability, and experience in the Nigerian sector will enable the Project to move forward to First Oil Production in the earliest timeframe, and Exile looks forward to working with Oando and Sogenal in the future on other projects in Nigeria".
The Akepo Field is located within OML 90 situated offshore in the South Eastern part of Nigeria. Originally a Joint Venture agreement between NNPC and Chevron, the Marginal field was awarded to Sonegal during the 2003 Marginal Oil Fields Allocation Rounds in 2003 by the Department of Petroleum Resources.