Lekoil Limited Update on Otakikpo Operations (9311A)
January 27 2020 - 2:00AM
UK Regulatory
TIDMLEK
RNS Number : 9311A
Lekoil Limited
27 January 2020
27 January 2020
Lekoil Limited
("LEKOIL" or the "Company")
Update on Otakikpo Operations
LEKOIL (AIM: LEK), the oil and gas exploration and production
company with a focus on Nigeria and West Africa, announces today,
on behalf of the Otakikpo Joint Venture ("Otakikpo JV") which is
made up of Green Energy International Limited ("GEIL"), the
Operator, and the Technical Partner, LEKOIL Oil and Gas Investments
Limited ("LOGL"), a member of the LEKOIL Limited group, an
operational update on Otakikpo Marginal Field ("Otakikpo") in OML
11.
The Otakikpo JV, on 25 January 2020, completed the first crude
oil lifting of this year by the nominated offtaker, Shell Western
Supply and Trading Limited ("SWST") (a member of the Royal Dutch
Shell plc group of companies). LOGL expects to receive cash
proceeds from this crude oil lifting of c. US$7.0 million. The next
lifting, of a similar quantity, is expected to occur within the
next four to six weeks.
For the full year 2019, production from Otakikpo averaged 5,305
bopd gross with 2,122 bopd net to LOGL (full year 2018: 5,345 bopd
gross with 2,138 bopd net to LOGL). For the first twenty (20) days
of this year, production at Otakikpo has averaged 5,860 bopd gross
with 2,344 bopd net to LOGL.
Further to the announcement on 1 July 2019, where the Otakikpo
JV executed a Memorandum of Understanding ("MOU") with Schlumberger
and a subsidiary of a major international oil company, the parties
remain aligned and committed to the expansion project which has the
potential, subject to satisfaction of the conditions set as
previously announced, to increase production on the field up to
20,000 bopd (8,000 bopd net to LOGL). The phased development plan
for the project consists of drilling between five (5) and seven (7)
new wells as well as the expansion of processing infrastructure
which will be financed by a project finance debt facility. A
further update on the progress of this project will be provided
shortly.
As at 31 December 2019, LOGL has an outstanding balance
(including accrued interest) of interest-bearing term loans of
US$19.2 million. This outstanding balance is detailed in the table
below:
Lender Facility Type Pricing Maturity Outstanding
Date Balance
FBNQuest Capital Term loan with LIBOR + 10.00% 30-Jun-21 US$3.0 million
Limited quarterly repayment
--------------------- --------------- ---------- ----------------
FBNQuest Merchant Term loan with LIBOR + 10.00% 30-Jun-21 US$5.2 million
Bank Limited quarterly repayment
--------------------- --------------- ---------- ----------------
FBNQuest Merchant Term loan with LIBOR + 10.00% 24-Oct-23 US$11.0 million
Bank Limited quarterly repayment
--------------------- --------------- ---------- ----------------
Total debt outstanding US$19.2 million
----------------
Lekan Akinyanmi, LEKOIL's CEO, commented, "Otakikpo continues to
provide steady production and cashflow for LEKOIL. We are delighted
with the collaborative progress being made by all parties towards
the development and transformation project planned for Otakikpo,
that is aimed at increasing production from the field. We remain
fully focused to generate value on this asset for all
shareholders."
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
For further information, please visit www.lekoil.com or
contact:
LEKOIL Limited
Ore Bajomo, Investor Relations +44 20 7457 2020
Strand Hanson Limited (Financial &
Nominated Adviser)
James Spinney / Ritchie Balmer +44 20 7409 3494
Mirabaud Securities Limited (Joint
Broker) +44 20 7878 3362 / +44 20
Peter Krens / Edward Haig-Thomas 7878 3447
Numis Securities Limited (Joint Broker)
John Prior / Emily Morris +44 20 7260 1000
Instinctif (Financial PR) +44 20 7457 2020
Mark Garraway / Dinara Shikhametova lekoil@instinctif.com
/ Sarah Hourahane
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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