Lekoil Limited Re Cost and Revenue Sharing Agreement for OPL 310 (1199Q)
24 February 2021 - 6:00PM
UK Regulatory
TIDMLEK
RNS Number : 1199Q
Lekoil Limited
24 February 2021
24 February 2021
Lekoil Limited
("LEKOIL" or the "Company")
Re Cost and Revenue Sharing Agreement for OPL 310
LEKOIL (AIM: LEK), the oil and gas exploration and production
company with a focus on Nigeria and West Africa, announces that
Mayfair Assets and Trusts Limited ("Mayfair"), in which the Company
has a 90 per cent. economic interest, has received a letter from
Optimum Petroleum Development Company ("Optimum"), the Operator of
the OPL 310 Licence, proposing to terminate the Cost and Revenue
Sharing Agreement ("CRSA" or the "Agreement") executed for OPL
310.
As announced on 11 December 2020, Optimum conveyed its
enforcement of the default clause within the CRSA. Pursuant to the
CRSA, the default clause stipulates that, following a cure period,
if a default has occurred, Optimum and Mayfair shall jointly seek
and agree on a buyer to whom Mayfair's 17.14% Participating
Interest as well as the financial obligation within OPL 310 will be
transferred. Mayfair will also be entitled to a full reimbursement
of all amounts due to it, as a result of past costs spent on the
asset, from future production proceeds from OPL 310.
The Company believes that this further letter proposing to
terminate the CRSA is not valid as the relevant provisions of the
CRSA have not been adhered to by Optimum. The Company will engage
with Optimum to ensure that the appropriate steps outlined in the
Agreement are followed, and is also seeking legal advice on the
matter. Further updates to shareholders will be provided in due
course.
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
Hamilton Esi, Corporate Communications
Ore Bajomo, Investor Relations +44 20 7457 2020
SP Angel Corporate Finance LLP (Nominated
Adviser and Joint Broker)
John Mackay / Jeff Keating / Stuart Gledhill
/ Richard Hail +44 20 3470 0470
Tennyson Securities (Joint Broker)
Peter Krens / Edward Haig-Thomas +44 20 7186 9030
Instinctif (Financial PR) +44 20 7457 2020
Mark Garraway / Galyna Kulachek / Sarah lekoil@instinctif.com
Hourahane
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END
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