Lekoil Limited Prepayment Facility (7750R)
02 July 2020 - 4:00PM
UK Regulatory
TIDMLEK
RNS Number : 7750R
Lekoil Limited
02 July 2020
2 July 2020
Lekoil Limited
("LEKOIL" or the "Company")
Prepayment Facility
LEKOIL (AIM: LEK), the oil and gas exploration and production
company with a focus on Nigeria and West Africa, is pleased to
announce that LEKOIL Oil and Gas Investments Limited ("LOGL"), in
which the Company has a 90 per cent. economic interest in, has
executed a prepayment facility agreement with Shell Western Supply
and Trading Limited ("SWST"), a member of the Royal Dutch Shell
group of companies (LSE: RDSA, RDSB).
This prepayment facility follows the renewal of the offtake
agreement with SWST, which occurred in the second quarter of this
year as announced on 26 June 2020, and will provide further
short-term liquidity with the proceeds already received.
The facility size is US$3.5 million, and it has a tenor of five
months and charges a market margin over LIBOR. The facility is
repayable from future crude oil liftings. With the receipt of this
facility, the offtake agreement between SWST and LOGL has been
extended for an additional year and will now expire on 28 April
2022.
Lekan Akinyanmi, LEKOIL's CEO, commented, "We are pleased to
continue our relationship with Shell as a commercial and financial
partner. Together with the recent cost reduction measures we have
undertaken, receipt of the proceeds of this prepayment facility
will further strengthen our balance sheet to support execution of
our strategy."
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 / Georgia
Langoulant +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
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 Niger Delta. LOGL exercises the rights and benefits of
its 40% Participating and Economic interest in Otakikpo through the
Farm-in Agreement and Joint Operating Agreement signed on 17 May
2014 with Green Energy International Limited ("GEIL"), the
Operator. LOGL is a wholly owned subsidiary of Lekoil Nigeria
Limited, which the Company has a 90 per cent. economic interest.
The Otakikpo JV begun operations in December 2014. Ministerial
consent was granted by the Honourable Minister of Petroleum
Resources of Nigeria in June 2015. Commercial production started in
February 2017.
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
MSCSSMFMFESSEEW
(END) Dow Jones Newswires
July 02, 2020 02:00 ET (06:00 GMT)
Lekoil (LSE:LEK)
Historical Stock Chart
From Apr 2024 to May 2024
Lekoil (LSE:LEK)
Historical Stock Chart
From May 2023 to May 2024