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
LEKO I L (AI M: LEK), the oil and gas explora on and produc on 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 O p mum Petroleum Development Company ("O p mum"), the O perator of the O P L 310 License, on deferring the Company's financial and opera onal obliga ons due during February 2020 pursuant to the Cost Recovery and Sharing Agreement executed between LEKO I L and O p mum in August 2019.
As previously announced, pursuant to the Cost Recovery and Sharing Agreement, LEKO I L was required to pay a por on of O p mum's sunk costs and consent fees (previously es mated 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 (es mated at a further US$28 million).
O p mum and LEKO I L have agreed the final payment of US$9.6 million to O p mum 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.
O p mum and LEKO I L have also agreed that the obliga on for LEKO I L 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, O p mum Petroleum Development Company, commented,"We are pleased to con nue to support LEKO I L by deferring their obliga ons which were due this quarter. We remain confident in LEKO I L's ability to by July this year, raise the financing that is required for the commencement of the appraisal drilling programme for O P L 310 which we truly believe is a world class strategic asset."
L ekan Akinyanmi, L EKO IL 's C EO, commented,"We remain excited about the opportuni es of O P L 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 O p mum, the O perator of the O P L 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 I nves ga on Commi ee has been set up to inves gate the origina on and execu | on of the |
Facility Agreement (as defined in that announcement), what steps can be taken to retrieve monies already paid in associa | on 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.comor 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) | ||
Peter Krens / Edward Haig-Thomas | +44 20 7878 3362 / +44 20 7878 3447 | |
Numis Securities Limited (Joint Broker) | +44 20 7260 1000 | |
John Prior / Emily Morris | ||
Instinctif (Financial PR) | +44 20 7457 2020 |
Mark Garraway / Dinara Shikhametova / Sarah Hourahane | lekoil@instinctif.com |
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Lekoil Ltd. published this content on 21 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 January 2020 16:13:05 UTC