20th Jun 2016 07:59
LONDON (Alliance News) - Oil & gas company Lekoil Ltd on Monday said it has raised USD20 million through the refinancing of an existing debt facility as well as the completion of a new debt facility.
Lekoil said USD10 million was raised through the refinancing of its existing notes issuance agreement with FBN Capital Ltd, while the remaining USD10 million was secured through a new facility also with FBN.
The existing facility has a maturity of three years and is repayable quarterly after a six-month moratorium. The new facility also has a maturity of three years and is repayable quarterly with ten quarterly installments after a six-month moratorium.
"I am delighted that we have secured this facility with local lender FBN. This funding represents a strong endorsement of our asset's value in this market environment and provides validation of our strategy to secure non-dilutive funding from near term commercial production. We appreciate FBN's support, and look forward to building a long-term relationship with them," Chief Executive Lekan Akinyanmi said in a statement.
Lekoil added that, following successful drill stem tests at Otakikpo in Nigeria, which produced oil flows in excess of the company's expectations, it is on track to complete Otakikpo within the original USD82 million capital expenditure budget that was estimated in 2014.
Lekoil said it is nearing commercial production and first cargoes are expected to be lifted in the third quarter of 2016. Lekoil is targeting production of 10,000 barrels of oil per day by the end of 2016 and will then proceed to phase two of the Otakikpo field development plan, with new wells planned to bring production to a target of 20,000 bopd by the end of 2017.
Shares in Lekoil were trading up 0.2% at 16.03 pence on Monday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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