Syntroleum Corporation and Sovereign Oil & Gas Company have completed the formation of an industry co-operative group, to undertake the appraisal and development of the crude oil and gas containing Aje Field in Oil Mining Lease (OML) 113, offshore Nigeria.
The Aje Field/OML 113 Project, located 40 miles southwest of Lagos, is the first project that Syntroleum and Sovereign have completed under their March 2004 joint development agreement (JDA).
The JDA charges Sovereign with sourcing proven stranded natural gas assets for Syntroleum’s proprietary GTL (gas-to-liquids) Barge technology, and with assisting Syntroleum in obtaining equity in and in assembling upstream industry groups to develop such assets.
On October 7, Syntroleum and Sovereign executed a JVA with OML 113’s license holder, Yinka Folawiyo Petroleum Co (YFP). The JVA grants Syntroleum 100% of the foreign investor’s participation interest in OML 113 in exchange for a firm drilling commitment to further appraise the Aje Field, an undeveloped crude oil, condensate and natural gas discovery made by YFP in 1997.
As part of the JVA commitment, not later than January 15, Syntroleum and Sovereign were to assemble an industry group with the requisite technical and financial capability to assist YFP in the development of the Aje Field.
As a result of this and upon government approval, the Aje Field/OML 113 venture group will consist of: Yinka Folawiyo Petroleum Co – operator, Lundin Petroleum AB – technical advisor, Syntroleum Corporation, Palace Exploration Company, Challenger Minerals Inc, Providence Resources PLC, and Howard Energy Co Inc.
The group of seven companies are prepared to undertake the development of an integrated crude oil, condensate, and GTL project in the Aje Field, subject to the successful drilling of one or more appraisal wells in the field, to be drilled as soon as practicable following Nigerian government approval of the assignments to the farmees.
Syntroleum’s president and CEO, Jack Holmes, said, We are extremely pleased to announce the successful formation of this premier industry group to undertake the further appraisal and development of the Aje Field in OML 113. We are right on schedule with the Aje Field, and we have a number of other exciting projects at various stages of development in West Africa and the Middle East.