Lekoil (LON:LEK) told investors that some 15mln barrels of resources at the Otakikpo oil field have been lifted to reserves status.
The AIM quoted firm has a 36% interest in the Nigerian field which is now estimated to have 14.99mln barrels of proved and probable (2P) reserves – equating to 5.4mln barrels net to Lekoil.
Proved (1P) reserves are estimated at 8.43mln barrels, which is just over 3mln barrels net.
These reserve figures are for Phase 1 of the project, and for Phase 2 there is estimated to be 41.61mln barrels of contingent oil resources (14.98mln barrels net).
The changes to the reserve and resource measurements were carried out by AGR TRACS International, which authored a prior competent persons report in September. The updated represents progress on the project since the Nigerian authorities approved the recompletion of two wells in December.
Lekoil added that economic evaluation, also carried out by AGR TRACS, indicate that based on the new reserves and resources Otakikpo is a robust project with a US$77.2mln net present value, against a US$40 oil price scenario.
The project’s value would, by AGR’s estimation, increase to US$85.2mln should it be granted ‘Pioneer Status’ by the Nigerian authorities – this award would enhance tax relief for the field.
A recovery of oil prices back to US$80 per barrel, meanwhile, would see the project’s value rise to US$365.3mln.
Chief executive Lekan Akinyanmi said: "The Otakikpo project is robust and production, once commenced, will provide valuable cash flow from Phase 1 that will enable us to develop additional resources in Phase 2.
“We look forward to commencing production and to exploring the exciting prospects already identified onshore together with those offshore in shallow water."