Offer To Purchase Mayfair Loan

Released 07:00:10 01 April 2022
RNS Number: 8744G
Lekoil Nigeria Limited

(“Lekoil Nigeria”)

OFFER TO PURCHASE THE MAYFAIR LOAN

LAGOS, Nigeria. 01 April 2022

Lekoil Nigeria Limited, the oil and gas exploration and production company with a focus on Nigeria and West Africa, in which Lekoil Limited (AIM: LEK) (the “Company”) has a 40% equity interest, hereby notifies shareholders of Lekoil Limited that it has made an offer to the Board of Directors of the Company to acquire the inter-company loan of US$110 million made by the Company to group company, Mayfair Assets & Trust Limited (the “Mayfair Loan”), for:

• (a)  an initial purchase price of US$1.5m, representing 50% more than that which the Board of Directors of the Company has agreed to sell the Mayfair Loan to Savannah Energy Investments Limited (“Savannah”) pursuant to the Option Agreement; and
• (b)  a deferred payment of US$110 million, being more than twice the deferred consideration proposed to be paid by Savannah pursuant to the Option Agreement.

The offer from Lekoil Nigeria will provide the Company with the necessary working capital that it purports to require whilst averting the consummation of the value-destructive Option Agreement and the likely loss of OPL 310 to Savannah. Whereas the acquisition of the Mayfair Loan by Lekoil Nigeria will not only prevent the loss of OPL 310, it will have a neutral effect on the value of your shares.

In light of the offer by Lekoil Nigeria to acquire the Mayfair Loan, there remains no commercial reason for the Company to consummate the Option Agreement. Lekoil Nigeria urges the Board of Directors of the Company to act in the best interest of shareholders and call off the extraordinary general meeting scheduled for Thursday 7 April 2022. Lekoil Nigeria believes that any contractual issues arising from the cancellation of the extraordinary general meeting can be managed with limited impact on the Company.

If the Board of Directors of the Company is not willing to act in the best interest of the shareholders of the Company, Lekoil Nigeria urges shareholders to vote against the approval of the Option Agreement at the extraordinary general meeting scheduled for Thursday 7 April 2022.

The offer letter sent to the Board of Directors of the Company can be accessed by shareholders by clicking the links below.

https://tinyurl.com/lekoilnigeriaoffer or https://lekoil.com/corporate-documents

http://www.rns-pdf.londonstockexchange.com/rns/8744G_1-2022-4-1.pdf

For further information, please contact:

LEKOIL Nigeria Limited
Hamilton Esi, Corporate Communications
+234 810 642 1047
Damilola Isafiade, Investor Relations
+234 818 007 5493

Hudson Sandler (Financial PR)
Mark Garraway
+44 (0)7771 860938

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