Challenger Minerals Inc., Providence Resources PLC, Energy Equity Resources Ltd, Yinka Folawiyo Petroleum Co. Ltd. ("YFP") and Syntroleum, have agreed to pursue the drilling of an additional appraisal well (Aje-4) on the Oil Mining Lease ("OML") 113 off the western coast of Nigeria.
Lundin Petroleum and Palace Exploration Company have opted not to participate in the drilling of Aje-4. As a result, YFP, the Nigerian firm which holds the rights to OML 113, and Syntroleum are in active discussions with several additional companies interested in joining the participant group. Under the original joint venture agreement with YFP, Syntroleum and its partners have until April 5, 2007 to commence drilling the Aje-4 well, subject to rig availability.
The Aje field was discovered in 1996 with the drilling of the Aje 1 and 2 wells which tested a combined rate of 6255 bpd of oil and 1729 bpd of condensate and 66.7 million cubic feet of gas per day. Since the drilling of the Aje-3 well, the participant group has re-processed the 3-D seismic and conducted a new evaluation of the reprocessed data. This work combined with the results of the Aje-3 well have led to agreement among those participants who have elected to pursue an additional well on the proposed location for the Aje-4 well.