NIGERIA - The Aje JV.

In early 2005 a consortium signed agreements to join with Yinka Folawiyo Petroleum (YFP) and Syntroleum to develop the deep-water Aje oil and gas find in OML 113. Additions to the permit are Lundin Petroleum (22.5%) will serves as technical adviser to the JV, Palace Exploration and Howard Exploration, both private US firms, Challenger Minerals (a unit of drilling contractor GlobalSantaFe) and Providence Resources (6.328%) of Ireland.

The Aje-1 discovery is 24 km offshore in water depths from 100 to 1,500m close to the maritime border with Benin. The well encountered a thin oil rim in a gas-charged Turonian sandstone, and tested at 42 MCF/d of gas and 2,262 b/d of oil from three zones. Due to mechanical problems, Aje-1 only reached the Turonian sandstone.

The 1997 Aje-2 appraisal penetrated the deeper Cenomanian sandstone at a depth of 2,400m. This oil zone was tested by Aje-2 from a structurally low position, at 3,866 b/d of 39[degrees] API oil from an 8m thick interval. The agreements involve the payment of a signature bonus to Syntroleum and YFP, as well as paying carry on costs to drill and test the Aje-3 appraisal in 2005, plus one further optional well. In addition, a further bonus on the start of commercial production will be paid to Syntroleum and YFP.