MX Oil to sell stake in Aje field, offshore Nigeria

MX Oil has signed an agreement to sell its investment in the Aje field offshore Nigeria to GEC Petroleum Development (GPDC), a wholly owned E&P subsidiary of Global Energy.

GPDC chairman and CEO Joe Obiago said that the field and license OML 113 will add 10MMboe of 2P net reserves and would diversify the company’s portfolio in the Dahomey Basin.

Under the agreement, GPDC can acquire indirect investment of MX Oil in the Aje field for $18m.

GPDC is expected to acquire the investment once oil production starts from the field.

GPDC operates two offshore licences, including the OPLs 2009 and 2010 and onshore licenses OPLs 907 and 917, and OML 149 in a joint venture with Eni/Nigerian AGIP and Seven Energy.

The Aje gas and condensate field lies in oil mining lease 113 (OML 113) in the Benin Basin, 24km offshore of western Nigeria in depths of 3,000ft.

OML 113 is operated by Yinka Folawiyo Petroleum (YFP) with a 60% interest and the remaining 40% is owned by a joint venture of Chevron Nigeria Deepwater, Vitol Exploration Nigeria, Panoro Energy, Energy Equity Resources and Jacka Resources.

Providence Resources Oil and Gas previously held a 2.667% interest in the lease.