(Alliance News) - Lekoil Ltd on Friday said it has fully repaid its outstanding debt to Shell Western Supply & Trading Ltd using the proceeds of a new debt facility granted by FBNQuest Merchant Bank.
The new facility of USD11.5 million was obtained to fund the oil & gas firm's license extension fee repayments. It has a maturity of four years and attracts an interest rate of the London Interbank Offered Rate plus 10%.
As of the end of October, the debt to Shell Western stood at USD7.5 million. Shell Western is part of Royal Dutch Shell PLC.
Lekoil Chief Executive Lekan Akinyanmi said: "We would like to thank Shell Western for their support with our business operations and look forward to continuing our mutually beneficial and value enhancing relationship."
Following the repayment to Shell Western, Lekoil has an outstanding balance of interest-bearing loans and borrowings of USD21.4 million, excluding inter-company loans, it said.
Shares in Lekoil were up 6.1% at a price of 4.88 pence per share on Friday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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