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Lekoil said it had reached a resolution with Optimum Petroleum Development Company concerning the ownership of a 22.86% in the OPL 310 licence.
Both parties agreed to use the stake in the block as potential funding to support the programme development within the OPL 310 licence.
The company said it had executed a legally binding agreement with Optimum to progress appraisal and development programme activities at the Ogo discovery, which sits within the OPL 310 licence.
Once an extension of the OPL 310 licence was granted and the necessary funding for the programme was secured, Optimum and Lekoil would target a two-well programme over the next 12 to 18 months.
They also agreed to drill two additional appraisal-development wells, contingent on the results of the initial two well appraisal campaign and the associated extended well tests to be undertaken.
Plans to move forward the development of the block comes after activity was halted over a dispute as to the legitimate ownership of a 22.86% stake in OPL 310.
Rather than pursue the matter further, both companies agreed to use the 22.86% equity stake in the Block as a potential funding and security vehicle for the accelerated development of the block by an industry partner or a third party that elects to farm-in to the block to fund field development.
But while the agreement does not address the recovery of the US$13m consideration previously paid by LEKOIL with respect to the acquisition of the shares of Afren Oil & Gas in 2015, which held the 22.86% stake in OPL310, Lekoil said it was working with Optimum on a resolution.
At 9:35am: (LON:LEK) Lekoil share price was +0.21p at 6.4p