Lekoil Limited Advance Payment Facility with Shell (1034B)
31 March 2017 - 5:01PM
UK Regulatory
TIDMLEK
RNS Number : 1034B
Lekoil Limited
31 March 2017
31 March 2017
LEKOIL Limited
("LEKOIL" or the "Company")
Advance Payment Facility with Shell
LAGOS, NIGERIA - LEKOIL (AIM: LEK), the oil and gas exploration,
development and production company with a focus on Africa,
announces that its wholly owned subsidiary, LEKOIL Oil and Gas
Investments Limited ("LOGL"), has agreed an advance payment
facility with Shell Western Supply and Trading Limited ("Shell
Western"), a member of the Royal Dutch Shell group of companies
(LSE: RDSA, RDSB), in accordance with which Shell Western will
provide LOGL with a facility of $15 million.
The facility has a maturity of three years and is repayable
quarterly following a six-month moratorium with a market margin
over LIBOR.
Lekan Akinyanmi, LEKOIL's CEO, said, "We are pleased to be
working with Shell as a commercial and financial partner to enable
the continued development at Otakikpo. The facility is a strong
endorsement of our commercial production and secures funding which
is non-dilutive to our shareholders. We believe that this
relationship with a globally recognised O&G major will
complement LEKOIL in its long-term growth and aspirations."
For further information, please visit www.lekoil.com or
contact:
Lekoil Limited
Alfred Castaneda, Investor
Relations +44 20 3434 5800
Hamilton Esi, Corporate Communications +44 20 7920 3150
Strand Hanson Limited (Financial
& Nominated Adviser)
James Harris / James Spinney
/ Ritchie Balmer +44 20 7409 3494
Mirabaud Securities LLP (Joint
Broker) +44 20 7878 3362 / +44
Peter Krens / Edward Haig-Thomas 20 7878 3447
BMO Capital Markets (Joint
Broker)
Vicary Gibbs / Neil Haycock
/ Thomas Rider +44 20 7236 1010
Tavistock (Financial PR)
Simon Hudson / Merlin Marr-Johnson +44 20 7920 3150
Background to 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 Niger Delta. LEKOIL Nigeria exercises the rights and
benefits of its 40% Participating and Economic interest in Otakikpo
via the Farm-in Agreement and Joint Operating Agreement signed on
17 May 2014 with Green Energy International Limited ("GEIL").
The Company holds 90% of the economic interests in LEKOIL
Nigeria. LEKOIL Limited's economic interest in Otakikpo therefore
equates to 36%. The Otakikpo Joint Venture (LEKOIL as Financial and
Technical Partner to GEIL) began operations in December 2014.
Ministerial consent was granted by the Honourable Minister of
Petroleum Resources of Nigeria in June 2015. LEKOIL funded the
costs of development and is entitled to recover this expenditure
preferentially from 88 per cent. of production cash flow from
Otakikpo.
The Otakikpo Field Development Plan consists of two phases.
Phase 1 comprises the recompletions of two wells, Otakikpo-002 and
Otakikpo-003, with the installation of an Early Production Facility
of 10,000 bopd capacity and export via shuttle tanker. Phase 2
covers the subsequent incremental development of the rest of the
field with a new Central Processing Facility and new wells
expected.
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
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