MXO plc, an oil and gas investing company listed on AIM, is pleased to announce that the operator of the offshore licence in Nigeria, OML 113, in which it has a  5.0006% revenue interest, has received consent from the Minister of Petroleum Resources for its renewal for another term of 20 years. The renewal is subject to the satisfaction of certain conditions, including a commitment to develop the gas potential of the licence.

OML 113

OML 113 covers an area of 835 sq km offshore Nigeria close to the Benin border and holds the Aje field as well as a number of exploration prospects.  Aje, which was discovered in 1997, has multiple oil, gas and gas condensate reservoirs in the Turonian, Cenomanian and Albian sandstones, similar to the producing Jubilee field offshore Ghana.  To date five wells have been drilled: Aje-1 and Aje-2 both flow tested oil and gas condensate at high rates, while Aje-4 intersected significant pay in four productive reservoirs. Aje-4 and the recently drilled Aje-5 have both been completed.

The Government of Nigeria approved the Aje Field Development Plan ("FDP") in March 2014 and by October 2014, the Final Investment Decision ('FID') for the project was agreed. The FDP involves a three phase development programme. Phase 1 will focus on the Aje Cenomanian oil reservoir and include the tie-back of two existing subsea wells and a leased Floating Production Storage and Offloading vessel ("FPSO"). Phase 1 production commenced in May 2016.  The planning for Phase 2 is now underway and will see additional wells drilled in order to increase total Cenomanian oil production.  Phase 3 will target the development of the Turonian gas condensate reservoir.