Update on the Proposed Acquisition of Interest in OML113
Further to the announcement on 18 June 2013 in which the Company set out its proposed acquisition from a subsidiary of Panoro Energy ASA ("Panoro") of a 6.502 per cent. participating interest (corresponding to a 12.19 per cent. revenue interest and 16.26 per cent. cost interest) in OML113 offshore Nigeria for a consideration of US$30 million (the "Consideration"), Lekoil is today pleased to announce that it has made a payment of $3 million as part of the Consideration to Panoro. Lekoil and Panoro have agreed that the Company will fund the escrow with the balance of the consideration on or before 31 of October 2013.
The Company is in advanced discussions with potential debt providers to fund the balance of the Consideration.
The Company has issued an addendum to the bid bond which will allow Panoro to draw an additional $3million if the escrow is not funded by October 31 2013. In the event that the Consideration has not been paid by 31 October 2013, Panoro may elect to grant another extension or terminate the SPA, retaining the $3million bid bond and $3million down payment. The closing date of the transaction is expected to be November 9th 2013.
The transfer of the participating interest is also conditional on the consent of the Minister of Petroleum Resources in Nigeria, the consent of each of the other parties to the Joint Operating Agreement in respect of OML113 and the execution by each of those parties of the deeds of novation for the Farm-in Agreement in respect of OML113 dated 21 September 2007 and the JOA and the Technical Support Services Agreement.