17:00 Fri 26 Jun 2020
Lekoil Limited - Extension of annual results and trading update
26
("LEKOIL" or the "Company")
Extension of annual results filing deadline and trading update
LEKOIL (AIM: LEK), the oil and gas exploration and production company with a focus on
The Company intends to publish its 2019 Audited Annual Results in advance of
Key summary
· Implemented general and administrative (G&A") cost reduction measures (including reduced headcount, office space and service provider costs) with annual run rate of
· As at
· Constructive discussions regarding restructuring of current loans to reduce quarterly amortisation ongoing
· Renewed offtake agreement with
· Average production for the first five months of the year was 5,755 bopd gross with 2,302 bopd net to
· LOGL lifted 372,136 barrels in equity crude this year through its nominated offtaker,
· Successful completion of site survey on OPL 310
Corporate Update
The Company is pleased to announce that it has renewed its offtake agreement with
Following the approval from the
As at
Portfolio Update
Otakikpo
On behalf of the Otakikpo Joint Venture ("Otakikpo JV") which is made up of
· Despite the wider impact of COVID-19, operations continue to run effectively. For the first five months of the year, production at Otakikpo averaged 5,755 bopd gross with 2,302 bopd net to LOGL
· LOGL reported revenue of US$13.9 million over the same period, which represents LOGL's share of crude oil sales from its Otakikpo operation during the period ("equity crude")
· LOGL lifted 372,136 barrels in equity crude this year in three liftings through its nominated offtaker,
· The third lifting for the year occurred on
· The next lifting, of a similar quantity, is expected to occur in mid July
· As at
As at
Lender |
Facility Type |
Pricing |
Maturity Date |
Outstanding Balance |
|
Term loan with quarterly repayment |
LIBOR + 10.00% |
|
US$2.5 million |
|
Term loan with quarterly repayment |
LIBOR + 10.00% |
|
US$4.3 million |
|
Term loan with quarterly repayment |
LIBOR + 10.00% |
|
US$10.7 million |
Total debt outstanding |
|
LOGL is in discussions with its existing lenders to restructure its current loans with a view to reducing quarterly amortisations following the extension of the loans. It is expected that these discussions will be completed before servicing of the next quarterly payments.
OPL 310
The Company, on behalf of the
As part of the two-well appraisal programme, the site survey required to evaluate top-hole drilling, jack-up rig and potential platform foundation hazards and any seabed obstructions was successfully completed in the first quarter of this year without any reported personnel injuries or damage to the environment. All data acquisition objectives were met during the operations which were completed before the scheduled expiration of the approval received to undertake the site survey from the
Lekan Akinyanmi, LEKOIL's CEO, commented, "Cashflows generated at Otakikpo in conjunction with our significant cost reduction initiatives have been key for us as we remain committed to creating value for our shareholders. We will continue to proactively review options for further cost savings where appropriate. We are working closely with all our partners, including GEIL and Optimum, in these challenging times to deliver on our joint ambitions. We thank all of our shareholders for their continued patience which we have every confidence will be justified, especially as the wider outlook improves."
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
For further information, please visit www.lekoil.com or contact:
|
+44 20 7457 2020 |
Strand |
+44 20 7409 3494 |
|
+44 20 7878 3362 / +44 20 7878 3447 |
|
+44 20 7260 1000 |
|
+44 20 7457 2020 |
Background on Otakikpo
Otakikpo is sited in a coastal swamp location in oil mining lease ("OML") 11, adjacent to the shoreline in the south-eastern part of the
Background on OPL310
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.
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