The two junior oil and gas exploration and development companies said the OPL310 site showed a gross recoverable P50 resource estimated at 774 million barrels of oil equivalent, almost four times more than their originally targeted 202 million barrels.
Afren holds a 22.86 per cent participating interest and 40 per cent economic interest at the site, while Lekoil holds a 17.14 per cent participating interest and 30 per cent economic interest.
The Ogo-1 well was drilled to a total measured depth of 10,518 feet and encountered a large hydrocarbon area spanning 524 foot with 216 foot of net stacked oil pay, while its side track reached a total depth of 17,987 feet and encountered hydrocarbon intervals in the same region.
Both companies said they intend to drill the OPL310 appraisal well in the second half of 2014, ahead of their original development plan, on the positive results.
Lekoil also announced that it had decided to terminate the binding conditional sale and purchase agreement with Pan Petroleum Aje Limited, Pan-Petroleum Nigeria Holding BV and Pan-Petroleum (Holding) Cyprus Limited for its OML113 site offshore Nigeria due to an inability to agree final terms.
Lekoil also said the parties have the right to call a USD3 million bid bond entered into as part of the agreement, which the company will finance out of its cash reserves, allowing the company to focus on its discovery at OPL310.
In early trading Tuesday, Lekoil shares were up 22 per cent to 60.45 pence, making them the leading AIM winner, while Afren shares were up 8.6 per cent to 161.70 pence, making it the biggest FTSE 250 winner.
Meanwhile, Heritage Oil Plc yesterday said it had continued its positive momentum into its third quarter with vastly increased production and sales on the ramp-up of its OML 30 licence in Nigeria.
The exploration and production oil and gas company said its sales increased to USD49.1 million for the three months ended September 30, compared with USD2.1 million in the same period the previous year.
Heritage said the majority of its sales came from Shoreline Natural Resources Limited in Nigeria after its acquisition of interest in the OML 30 licence transformed company finances.
The company said its production ramped up to 11,649 barrels of oil per day average during the three months, compared with 617 barrels the previous year, which also represents a 60 per cent increase on the first half of the year.
Heritage Oil said its Uzere West Field in Nigeria will commence production shortly and is expected to reach gross production of 5,000 barrels of oil per day within the next few weeks.
The company also said it is currently planning a drilling programme for 2014/2015.
Heritage Oil shares were up 5.9 per cent to 183.75 pence as at Tuesday.
– This Day