FBN Capital Re-Financing and Operations Update
Lekoil (AIM: LEK), the oil and gas exploration and development company with a focus on West Africa, announces today the refinancing of an existing debt facility and the completion of a new debt facility raising, in aggregate, US$20 million and provides an operation update for Otakikpo.
Otakikpo Operational Update
Otakikpo-002 has been completed, evacuation facilities are nearing completion and the rig has been mobilised to Otakikpo-003. The Company is nearing commercial production and first cargoes are expected to be lifted in Q3 2016. The Company is targeting production of 10,000 bopd by year-end 2016 and will then proceed to phase two of the Otakikpo Field Development Plan, with new wells planned to bring aggregate production to a target of 20,000 bopd by the end of 2017, subject to requisite approvals.
Debt Financing Update
Lekoil has refinanced its existing US$10 million Notes Issuance Agreement (“NIA”) with FBN Capital Limited (“FBN”) and has secured a new 2 billion Naira (approximately US$10 million at the Central Bank of Nigeria exchange rate of 199NGN:1USD at time of execution) facility from FBN.
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