HOUSTON TX -- (Marketwire) -- 07/20/10 -- AsherXino Corporation (OTCBB: AXNO) announces that it has successfully completed the acquisition of 40% economic interest and operatorship of OPL 289, following obtaining government approval and meeting the conditions precedent of the 'farm-in' agreement entered into with Cleanwaters Consortium and Seven Waves, including customary Nigerian governmental approvals of work program and issuance of 'deed of assignment.'
This is the second oil and gas property AsherXino has interest in, and it provides the company with a platform to build upon.
OPL 289 is located 33 miles offshore in the western Niger Delta in shallow water (80-160 meters). It occupies an approximate area of 385.4 sq.km2. The oil field is centrally located in the western basin with the Apoi/Funiwa Oil Field (500MB0) located 20 miles to the east, and the Agbami Field (1BBO) located 50 miles to the south. The Bonga Field (1BBO) is located more than 50 miles toward the west. The prospectivity of this oil field is very high based on the extensive amount of work already carried out to date, including three-dimensional (3-D) seismic, seismic interpretations and downdip well data, which indicates potential oil in place of between 200 and 500 million barrels recoverable. At present market values, AsherXino's 40% interest in OPL 289 is valued at between USD$5.6 billion and USD$14 billion
Under the terms of the agreement, AsherXino will be responsible for paying all costs for the development of the field, and will be able to recover those costs via an allocation of oil and gas produced from the field. After all costs have been recovered, AsherXino, Cleanwaters and Seven Waves will share in the production in accordance with their working interests.
Michael C. Hinton, President of AsherXino, commented: 'We are pleased to have obtained the Nigerian government approval to participate in and develop such a prolific oil field. We will now move on rapidly to appraise the previous work done and commence immediately the development of our target field -- Okporoko field -- in a cost effective manner.'
Highlights of OPL 289
- Oil Prospect License (OPL) 289 (formerly Oil Mining License (OML) 87) is located offshore Nigeria, in the Niger Delta Basin, and covers 385.4 sq.km2
- Extensive technical work has been carried on in the oil block including, three-dimensional (3-D) seismic, identification of primary targets, which are Upper Cretaceous deep water sandstone reservoirs.
- The play type is very similar to that successfully proven by recent drilling to the west in Texaco Madu field, Chevron Apo North and Middletown-Ekehi fields.
- The estimated petroleum resources of the prospects in OPL 289 indicate substantial petroleum resources of potential oil in place of between 200 and 500 million barrels and 1 tcf of gas based on seismic, adjacent well data and proximity to several large oil fields.
Michael C. Hinton
Asher Xino Corporation