Update on OML113

RNS Number : 3458T

Lekoil Limited

19 November 2013

 



19 November 2013

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, OR INTO, THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA

Lekoil Limited

("Lekoil" or the "Company")

Update on OML113, Offshore Nigeria

Lekoil (AIM: LEK), the oil and gas exploration and development company with a focus on Nigeria and West Africa, announces that, further to the announcement on 7 November 2013, the Company has decided to terminate the binding conditional Sale and Purchase Agreement (the "SPA") with Pan Petroleum Aje Limited, Pan-Petroleum Nigeria Holding BV and Pan-Petroleum (Holding) Cyprus Limited (together, the "Parties") entered into on 17 June 2013, according to which it proposed to acquire an interest in OML113. This is as a result of an inability to agree final terms with the Parties.

Lekoil understands that the Parties have a right to call the US$3million bid bond entered into as part of the SPA or receive an equivalent cash payment in lieu of the bid bond which Lekoil will finance out of its current cash reserves. This cost is in addition to the US$4million already paid to the Parties as part of the consideration (inclusive of cash calls) under the SPA.

This decision will allow the Company to fully focus on developing its discovery at OPL310, which as announced earlier today, has produced results significantly ahead of Lekoil's initial resources estimates at the time of the IPO.

Lekoil also continues to review other opportunities and has identified a number to date with near-term cash flow potential.

Further updates will be provided as and when appropriate.  

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

Lekoil Limited Dave Robinson, Chief Financial Officer	[phone]
Strand Hanson Limited  (Financial and Nominated Adviser) James Harris / James Spinney / Ritchie Balmer	[phone]
Mirabaud Securities LLP (Broker) Peter Krens Edward Haig-Thomas Ladenburg Thalmann & Co. Inc. (US Placing Agent) Jim Hansen Barry Steiner	[phone] [phone] [phone] [phone]
Tavistock Communications (Financial PR) Simon Hudson / Conrad Harrington / Ed Portman	[phone]

Certain statements in this Announcement are forward-looking statements which are based on the Company's expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The information contained in this Announcement is subject to change without notice and neither the Company nor Mirabaud assumes any responsibility or obligation to update publicly or review any of the forward-looking statements contained herein.

Past performance is not a guide to future performance.

The material in this Announcement is for informational purposes only and does not constitute an offer of securities for sale in the United States or any other jurisdiction in which such an offer or solicitation is unlawful.  The Company's securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or the laws of any state, and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state laws.  No public offering of securities will be made in the United States.

Neither the content of websites referred to in this Announcement, nor any hyperlinks on such websites is incorporated in, or forms part of, this Announcement.

-ends-

 

END

 

 

MSCBPBBTMBTBTIJ