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Lekoil Ltd: THE INVESTMENT CASE

Lekoil confirms start of continuous oil production in Nigeria

Otakikpo will now be ramped up from 5,000 bopd to 10,000 bopd over the coming months.
Lekoil oil field development operations at Otakikpo project
INVESTMENT OVERVIEW: LEK The Big Picture
Otakikpo was developed in what was a swamp location

Lekoil Ltd (LON:LEK) has declared that the Otakikpo oil field in Nigeria is now in continuous production.

The company highlighted that in recent weeks it has completed commissioning of a six kilometre pipeline, as well as both onshore and offshore infrastructure, and the operation has been signed off by regulators.

Initial production is in line with the company’s expectations, at around 5,000 barrels of oil per day.

It is now targeting a ramp up to 10,000 barrels per day by the end of the second quarter of 2017.

"Lekoil is now a producing company,” said Lekan Akinyanmi, Lekoil chief executive.

“I would again like to thank the entire team that has worked so hard on this project, our partner Green Energy, our investors and debt financiers, our host communities and our government regulators for their continuing support. 

“The Otakikpo project began in a swamp location with no infrastructure and our team delivered production in under two years with, importantly, nearly 915,000 hours without any lost time injuries.  I am extremely proud of our people's achievements."

The company separately announced the appointment of a new chief financial officer, with Bruce Burrows joining from February 27.

Burrows joins from Seven Energy, a privately owned integrated gas group in Nigeria, and he was previously finance director for JKX Oil & Gas.

Lekoil chairman Samuel Adegboyega said: “We are delighted to welcome Bruce to LEKOIL. His experience working in Nigeria, his knowledge of the investment and banking communities and his experience at a producing company will be invaluable to us as we embark on the next chapter in LEKOIL's development. "



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