Exile Wins Nod for Akepo Equity Interest
Exile Resources Inc. has received all approvals regarding its 40% equity in the Akepo Field in Nigeria. The Akepo Farm In Agreement and Joint Operating Agreement, originally announced in November 2006, were subject to the approval of the Government of Nigeria, NNPC and Chevron (the holders of the license) and the TSX Venture Exchange, all of which have now been received.
Tony Henshaw, President and CEO of Exile, stated: "We are firmly positioned to commence development work in Nigeria now that all approvals have been received. This brings us a step closer to realizing our goal of delivering production by 2008."
The initial work program on the field will entail reservoir studies, and appraisal and development planning. An appraisal well is planned to be drilled on the field prior to a development commitment. The Company expects to be ready to drill the appraisal well by late 2007/early 2008, subject to rig availability.
Exile expects production from Akepo to begin during 2008. The Company continues to target building a reserve base of over 10 million barrels net to Exile and to this end is in active discussions to participate in further Niger Delta discoveries and other opportunities in West Africa.
Mr. Henshaw added, "Exile had always planned to commence the detailed work program once all approvals were in place and the Presidential elections had occurred. This is now the case and Exile is looking forward to moving the project ahead."
As a result of the receipt of approvals, the balance of the signature bonus monies in the amount of US$1.785 million have been released from escrow to Exile's Nigerian partner, Sogenal Limited.
As previously announced, Exile entered into definitive agreements with Sogenal, an indigenous Nigerian oil and gas company, to acquire a 40% participating interest, and up to an 80% economic interest, in the Akepo license and to engage in the appraisal and development of the Akepo oilfield.
Exile Resources Inc. is an oil and gas exploration company with interests in the Akepo Oilfield in the shallow water Niger Delta, Nigeria, and in the Brazeau River Project, located 160 km southwest of Edmonton, Alberta.
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