Strategic Alliance Agreement with NAMCOR

RNS Number : 5468D

Lekoil Limited

29 October 2020

 

29 October 2020

Lekoil Limited

("LEKOIL" or the "Company")

Strategic Alliance Agreement with NAMCOR Exploration and Production

LEKOIL (AIM: LEK), the oil and gas exploration and production company with a focus on Nigeria and Africa, today announces that it has entered into a Strategic Alliance Agreement ("SAA") with NAMCOR Exploration and Production (PTY) Limited ("NAMCOR E&P") through its subsidiary, LEKOIL Exploration & Production (PTY) Namibia Limited ("LEKOIL Namibia" or the "Subsidiary").

NAMCOR E&P, a subsidiary of the national oil company of Namibia, namely the National Petroleum Corporation of Namibia Pty Limited ("NAMCOR"), seeks to invest capital in the acquisition of interests in well-managed oil producing assets in politically stable jurisdictions as a means of securing long-term sustainability. The SAA will leverage the technical capabilities of the respective parties towards the joint evaluation and acquisition of low-risk quick-to-production oil and gas assets across Africa.

LEKOIL has a long-standing history in Namibia with its holding of an 80 per cent. stake in LEKOIL Namibia, providing an entitlement to 90 per cent. of income distributed by the Subsidiary. LEKOIL Namibia previously owned a 77.5 per cent Participating Interest in two Namibian offshore exploration blocks (Blocks 2514A and 2514B) and continues to maintain a strong relationship with NAMCOR.

Lekan Akinyanmi, LEKOIL's CEO, commented, "We are excited by this opportunity to work with NAMCOR again in evaluating and subsequently investing and developing high value assets within Africa. We look forward to benefitting from the synergies of this partnership as we share our considerable technical experience in oil and gas development and production in Africa."

Immanuel Mulunga, NAMCOR's Managing Director, added, "We will greatly leverage from LEKOIL's wealth of experience in operating and managing oil producing assets, as well as its deep knowledge of key African markets. At the same time, I believe LEKOIL will benefit from strategic commercial relationships that NAMCOR, as a national oil company, enjoys with a number of oil majors."

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]
SP Angel Corporate Finance LLP (Joint Broker) Richard Hail / Stuart Gledhill / Sam Wahab	[phone]
Instinctif (Financial PR) Mark Garraway / Dinara Shikhametova / Sarah Hourahane	[phone] [e-mail]

 

END

 

 

MSCFFFSFIFLTFII