New Debt Facility with FBNQuest Merchant Bank

RNS Number : 2246R

Lekoil Limited

25 October 2019

 

25 October 2019

LEKOIL Limited 

("LEKOIL" or the "Company")

New Debt Facility with FBNQuest Merchant Bank

LEKOIL (AIM: LEK), the oil and gas exploration and development company with a focus on West Africa, announces today the signing of a new US$11.5 million debt facility.

LEKOIL Oil & Gas Investments Limited, a wholly owned subsidiary of LEKOIL Nigeria Limited, has signed an agreement for a new US$11.5 million debt facility with FBNQuest Merchant Bank ("FBNQuest") (the "Facility").  The Company has agreed to guarantee the obligations of Lekoil Oil & Gas Investments Limited pursuant to the Facility.

The Facility has a maturity of four years and is repayable quarterly with a margin of LIBOR + 10%. The Facility will be used primarily to pay all outstanding quarterly repayments (including principal and interest) due to Shell Western Supply and Trading Limited and payment of the license/lease extension fees on OPL 276 (as announced on 23 August 2019) and OPL 310 (US$7.5 million due by 31 October 2019).

The Company expects to draw down on the Facility as needed, which has no pre-payment penalty.  

Lekan Akinyanmi, LEKOIL's CEO, said, "I am delighted that we have agreed to this additional facility with FBNQuest, a key local lender in Nigeria.  This facility provides us with increased flexibility at a cost of capital in-line with our existing facilities.  We appreciate FBNQuest's support and appreciate our growing long-term relationship with them." 

For further information, please visit www.lekoil.com or contact:

LEKOIL Limited Alfred Castaneda, Investor Relations	[phone]
Strand Hanson Limited (Financial & Nominated Adviser) James Spinney / Ritchie Balmer / Eric Allan	[phone]
Mirabaud Securities Limited (Joint Broker) Peter Krens / Edward Haig-Thomas	[phone] / [phone]
Numis Securities (Joint Broker) John Prior / Emily Morris	[phone]
Tavistock (Financial PR) Simon Hudson / Barney Hayward / Nick Elwes	[phone]

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

 

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