(Alliance News) - Nigeria-focused oil and gas firm Lekoil Ltd has swung to an annual profit, the company reported on Wednesday, as revenue grew strongly.
Lekoil shares were 14% higher on Wednesday morning at 3.58 pence each.
Lekoil, which produces from the Otakikpo oil field, produced an average of 2,076 barrels of oil per day net during 2018. Otakikpo began producing in 2017.
Looking ahead, Lekoil is aiming at net oil production of between 6,000 barrels and 8,000 barrels of oil a day.
The firm's revenue rose 58% to USD48.7 million, and Lekoil posted a pretax profit of USD2.3 million after a USD14.8 million pretax loss in 2017.
Lekoil said 2018 was a milestone year for the company. As well as expanding Otakikpo, Lekoil has two more licences, both currently in the exploration stage.
At OPL310, Lekoil is in a dispute with the Nigerian government over buying a further stake, while at OPL325, the company is finalising a production sharing contract ahead of a farm-down.
Due to some delays on "key initiatives", Lekoil said, it is to reduce costs by 25% annually, including reducing board pay by the same amount.
"The next year should provide key catalysts for value appreciation for shareholders as we move forward in building a leading Africa-focused exploration and production business," said Chief Executive Olalekan Akinyanmi.
