Lekoil moves ahead with Otakikpo oil field development

LEKOIL (AIM: LEK), the oil and gas exploration and development company with a focus on Nigeria and West Africa, reports half year results for the six months to 30 June 2018.

Highlights

Financial

· Operating profit of US$3.0 million;

· Net profit of US$1.8 million;

· Net debt for the period of US$40 million;

· Period end cash of US$9.8m, and cash of US$6.3 million as at 31 August 2018; and

· Refinancing and redenomination of Naira facilities into new USD facility underway.

 

Operational

· Continuous commercial production and cash flow generation at Otakikpo;

· Otakikpo gross average production for the period 5,047 bopd, current gross production is 6,000 bopd;

· Approximately 2.5 million barrels of oil has been produced from Otakikpo to date;

· The Otakikpo project has now recorded 1.5 million hours with no lost time injuries;

· 3D seismic acquisition now complete at Otakikpo;

· Updated OPL310 CPR nearing completion; and

· Planning for OPL325 farm-out process continues.

Outlook

· Otakikpo seismic data processing and interpretation to commence in Q4 2018 with an updated CPR expected in H1 2019;

· Planning for drilling for Phase Two in Otakikpo is underway with a target spud date in Q4 2018, subject to financing; and

· Preparation for appraisal drilling at Ogo continues.

Lekan Akinyanmi, LEKOIL’s CEO, commented, “Otakikpo is a high quality producing asset, with an impeccable safety record. As a Company, we are looking forward to bringing the field into Phase Two of development as we look to move closer to our goal of achieving production of 20,000 bopd of oil during 2020. As part of our growth strategy, we are eager to commence an appraisal drilling programme for Ogo within the block and subsequently develop this world class field. Within Lekoil, we have the technical and commercial capability to achieve both these objectives and generate significant value for our shareholders, partners and communities.”

Source: Lekoil

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