(Alliance News) - Lekoil Ltd said Monday it expects oil production for the second half of 2019 to be largely in line with the first half, following a slight improvement year-on-year.
For the six months to the end of June, average production was 5,822 barrels of oil per day, with 2,329 bopd net to Lekoil, up from 2,042 barrels for the same period the year before.
Since the beginning of the year, there were no days of downtime. Looking ahead, production rates are expected to remain steady, with second half production set to be 5,800 barrels, with 2,324 barrels net to Lekoil.
Plans are underway for a multi-well drilling programme, subject to finalisation of funding.
For 2019, annual costs comprising of operating expenses and general administrative costs are expected to be in line with current market expectations, while Lekoil remains focused on lowering general and administrative costs by 25%.
For phase one of the Otakikpo field development firm, capital expenditure is expected to be USD5.1 million for 2019, largely attributed to minor infrastructure upgrades.
Phase two of the plan is the focus of the joint venture between Lekoil and Green Energy International Ltd, with a Schulmberger-led consortium aiming to reach gross volumes in between 15,000 to 20,000 barrels of oil per day.
Shares in Lekoil were up 1.2% at 4.20 pence on Monday in London.