New Oil Site Found In Nigeria Offshore

Afren and LekOil shares advanced after striking oil offshore Nigeria. The Ogo-1 well, on the OPL 310 licence, has made a significant light oil discovery, Afren said.

The well was drilled to a depth of 10,518ft and found a 524ft of gross hydrocarbons, with 216ft of ‘stacked’ net pay.
Before Ogo-1 was drilled, the prospect was estimated at 78mln barrels but Afren says, based on the evidence to date, the oil find is likely to be significantly larger than that.

"The discovery of oil in the Ogo-1 well opens up a new oil basin in an under-explored region and represents a possible extension of the West African Transform Margin," said chief executive Osman Shahenshah.

"Based on evidence to date, targeted resources are likely to be significantly in excess of previous estimates, with some high-potential zones still to be drilled. We look forward to working with our partners to realise the full potential of Ogo and our additional prospects on the license."

Afren has a 40% economic interest in the Ogo-1 well, while recently listed AIM explorer LekOil (LON:LEK) has 30%.
In early deals Afren shares are up 7.23% to 130p, while LekOil shares are up 27% to 44.5p each.