LEKOIL

Investor news

30.09.2013

Half Yearly Report

Lekoil plc (AIM: LEK) the oil and gas exploration and production company with a focus on Nigeria and West Africa more broadly, reports its Half Year Results for the six months ended 30 June 2013.

Summary

  • Successful IPO on the AIM market of the London Stock Exchange completed in May 2013 raising US$50m (approximately £32m).
  • High impact Ogo-1 well located on the OPL 310 licence offshore Nigeria discovered a significant light oil accumulation, based on the results of drilling and wireline logs.
  • Proposed acquisition of a 6.502 per cent. participating interest (16.3 per cent. cost interest and 12.2 per cent. revenue interest) in OML 113 offshore Nigeria, which includes the Aje field, for a consideration of US$30 million.
  • Post the period end, additional US$20m (approximately £13.2m) raised in July 2013 to fund the drilling and testing of the sidetrack well, Ogo-1 ST, on the OPL 310 licence as well as for general working capital.

Financial

  • Loss after tax of $8.7 million, includes one-off costs of $5.4 million, relating to the Company’s May 2013 IPO related expenditure. Cash outflow from operations (before changes in non-cash working capital) of $8.7 million.
  • Cash at 30 June 2013 of $5.9 million and no debt (subsequent to the period end, the Company drew down $15 million of the loan facility entered into with Afren plc at the time of the IPO; $11.1 million of this remains outstanding as at the release date of this report).

Outlook

  • The Ogo-1 sidetrack well is drilling ahead and is currently at a depth of approximately 16,000ft, with a proposed total depth of approximately 17,900ft. Testing is expected to commence thereafter.
  • Based on discussions to date, Lekoil is confident that it will be able to access capital to fund the proposed acquisition and associated capital expenditure related to OML 113.

Lekan Akinyanmi, Lekoil’s CEO, commented, “Following the Company’s IPO on the AIM market of the London Stock Exchange in May 2013, I would like to welcome our new shareholders and thank our long standing investors for their support. We are successfully executing our strategy to build a business focused on West Africa that will be diversified across lower risk production assets and appraisal projects and higher risk exploration assets in both known exploration basins and newly discovered basins.”

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