Lekoil Limited OPL 310 Project Update (4897A)
January 21 2020 - 8:29AM
UK Regulatory
TIDMLEK
RNS Number : 4897A
Lekoil Limited
21 January 2020
21 January 2020
Lekoil Limited
("LEKOIL" or the "Company")
Joint update with OPL 310 Operator - Optimum Petroleum
Development Company
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 announcement on 13 January
2020, it has reached an agreement with Optimum Petroleum
Development Company ("Optimum"), the Operator of the OPL 310
License, on deferring the Company's financial and operational
obligations due during February 2020 pursuant to the Cost Recovery
and Sharing Agreement executed between LEKOIL and Optimum in August
2019.
As previously announced, pursuant to the Cost Recovery and
Sharing Agreement, LEKOIL was required to pay a portion of
Optimum's sunk costs and consent fees (previously estimated at
US$10.0 million) as well as provide evidence of its ability to fund
42.86 per cent. of the costs and expenses for the drilling of the
first appraisal well during February 2020 (estimated at a further
US$28 million).
Optimum and LEKOIL have agreed the final payment of US$9.6
million to Optimum which covers sunk costs and consent fees as
follows:
-- The sum of US$2.0 million to be paid on or before 20 March 2020.
-- The sum of US$7.6 million to be paid on or before 2 May 2020.
Optimum and LEKOIL have also agreed that the obligation for
LEKOIL to provide evidence of its ability to fund 42.86 per cent.
of the costs and expenses for the drilling of the first appraisal
well on OPL 310 be deferred until July 2020.
Engr. Yusuf K. N'jie, Managing Director, Optimum Petroleum
Development Company, commented, "We are pleased to continue to
support LEKOIL by deferring their obligations which were due this
quarter. We remain confident in LEKOIL's ability to by July this
year, raise the financing that is required for the commencement of
the appraisal drilling programme for OPL 310 which we truly believe
is a world class strategic asset."
Lekan Akinyanmi, LEKOIL's CEO, commented, "We remain excited
about the opportunities of OPL 310 and are focused on securing the
necessary funding under the revised schedule. We are grateful for
the support and commitment shown by our partner Optimum, the
Operator of the OPL 310 License. This alignment with our partner is
crucial in unlocking significant value for all our investors and
stakeholders."
Investigation into OPL 310 Facility Agreement
As announced on 13 January 2020, an Investigation Committee has
been set up to investigate the origination and execution of the
Facility Agreement (as defined in that announcement), what steps
can be taken to retrieve monies already paid in association with
the transaction and the Company's wider corporate governance
practices. The investigation continues and the Company will provide
an update once the investigation has concluded.
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 +44 20 7457 2020
Strand Hanson Limited (Financial &
Nominated Adviser)
James Spinney / Ritchie Balmer +44 20 7409 3494
Mirabaud Securities Limited (Joint
Broker) +44 20 7878 3362 / +44 20
Peter Krens / Edward Haig-Thomas 7878 3447
Numis Securities Limited (Joint Broker)
John Prior / Emily Morris +44 20 7260 1000
Instinctif (Financial PR) +44 20 7457 2020
Mark Garraway / Dinara Shikhametova lekoil@instinctif.com
/ Sarah Hourahane
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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