Re-structure of Financial Obligations to Optimum

RNS Number : 4026L

Lekoil Limited

30 April 2020

 

30 April 2020

Lekoil Limited

("LEKOIL" or the "Company")

Re-structure of Financial Obligations to Optimum

LEKOIL (AIM: LEK), the oil and gas exploration and production company with a focus on Nigeria and West Africa, is pleased to announce that, further to the Company's announcements on 21 January 2020, 25 March 2020 and 3 April 2020, the Company has reached an agreement with Optimum Petroleum Development Company ("Optimum"), the Operator of the OPL 310 License, on deferring the final tranche of payment of US$7.6 million due on or before 2 May 2020.

As previously announced on 21 January 2020, the Company agreed with Optimum a final payment of US$9.6 million, in aggregate, would be made by the Company to Optimum to cover sunk costs and consent fees. This final payment was to be made in two tranches with the first payment of US$2.0 million completed as announced on 3 April 2020. For the second and final payment of US$7.6 million, Optimum and LEKOIL have agreed a deferred payment schedule as follows:

· The sum of US$1.0 million to be paid on or before 15 July 2020;

· The sum of US$2.0 million to be paid on or before 30 September 2020; and

· The sum of US$4.6 million to be paid on or before 30 November 2020

Alhaji Yusuf N'jie, Optimum's Managing Director, commented, "The current challenges in the oil industry - the unprecedented supply and demand shock brought on by the COVID-19 pandemic, require true partnership and collaboration and we are pleased to work with LEKOIL in this regard."

Lekan Akinyanmi, LEKOIL's CEO, commented, "We would like to thank Optimum for their continued support and understanding during these challenging times for the oil and gas industry and the global economy. We remain aligned and committed to delivering on our joint appraisal ambitions."

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	[phone]
Strand Hanson Limited (Financial & Nominated Adviser) James Spinney / Ritchie Balmer / Georgia Langoulant	[phone]
Mirabaud Securities Limited (Joint Broker) Peter Krens / Edward Haig-Thomas	[phone] / [phone]
Numis Securities Limited (Joint Broker) John Prior / Emily Morris	[phone]
Instinctif (Financial PR) Mark Garraway / Dinara Shikhametova / Sarah Hourahane	[phone] [e-mail]

Background on OPL 310

In 2013, the first exploration well (Ogo-1) drilled by the OPL 310 partners - then consisting of Optimum, LEKOIL and Afren - was the Ogo prospect, a four-way dip-closed structure in the Turonian to Albian sandstone reservoirs. The drilling programme included a planned side-track well (Ogo-1 ST) which aimed to test a new play of stratigraphically trapped sediments at the basement of the Ogo prospect. The Ogo-1 well encountered a gross hydrocarbon section of 524ft, with 216ft of net stacked pay whilst the Ogo-1 ST well encountered the same reservoirs as Ogo-1 in addition to the syn-rift section which encountered a 280 ft vertical section gross hydrocarbon interval. Owing to well data collected from the two wells, the partners estimated P50 gross recoverable resources to be at 774 mmboe across the Ogo prospect four-way dip-closed and syn-rift structure.

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.

 

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