LONDON (Alliance News) - Lekoil Ltd posted a narrower loss for the first-half on Tuesday on the back of a fall in costs in the period as the company produced no revenue.
The Nigeria and West Africa-focused oil explorer said its pretax loss for the six months to June 30 was USD5.3 million, down from USD18.1 million a year earlier. The loss last year was pushed higher by by one-off costs relating to the company's flotation on AIM.
The company said its focus for the coming year will be to develop the Otakikpo field in Nigeria, which Lekoil last week significantly upgraded the oil reserves estimate for.
A survey carried out by AGR TRACS International Ltd found the gross unrisked 2C contingent resources for the Otakikpo site, based offshore Nigeria adjacent to the eastern part of the Niger Delta, are estimated to be 56.8 million barrels, compared to the 36 million barrels estimated in the most recent resource estimates available when the company acquired its interest in the field in May.
"Our priorities are the appraisal of the Ogo discovery and the development of Otakikpo. We remain committed to our strategy of building a substantial, Africa focused exploration and production business, diversified by risk, maturity of assets and geography," said Lekoil Chief Executive Officer Lekan Akinyanmi.
Lekoil shares were flat on Tuesday, quoted at 68.25 pence per share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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