RE: SP and RNS15 Jul 2019 08:11
RNS Number : 4564F
Lekoil Limited
15 July 2019
15 July 2019
LEKOIL Limited
("LEKOIL" or the "Company")
Operational & Trading Update
LEKOIL (AIM: LEK), the oil and gas exploration and development company with a
focus on Nigeria and West Africa more generally, provides the following
operational and trading update.
Highlights
• H1 2019 average production was 5,822 barrels of oil per day ("bopd"), with
2,329 bopd net to LEKOIL Nigeria, compared to 2,042 bopd for the same period
in 2018
• Downtime was zero days since the beginning of the calendar year 2019
• The Joint Venture partners remain focused on Phase Two of the Otakikpo
Field Development Plan
Outlook
• Production rates are expected to remain steady through 2019, with H2 2019
average production expected to be circa 5,800 bopd, with 2,324 bopd net to
LEKOIL Nigeria
• One lifting is scheduled from the FSO Ailsa Craig in July of circa 350,000
barrels of oil
• Plans underway, subject to finalisation of funding, for a multi-well
drilling programme
Financial
• 2019 full year costs, comprising of operating expenses and general
administrative costs is expected to be in line with current market
expectations; the Company remains focused on decreasing general and
administrative costs by 25%
• Phase One capital expenditure for the full year is currently expected to
be US$5.1 million, largely attributed to minor infrastructure upgrades at
Otakikpo, which is in line with current market expectations. Approximately
US$2.7 million of this was spent in H1 2019.
• Outstanding debt financing, less cash is expected to be US$4.5 million at
year end
Otakikpo
The Joint Venture partners remain focused on Phase Two of the Otakikpo Field
Development Plan, with a Schlumberger-led consortium aiming to reach gross
volumes of up to approximately 15,000 bopd to 20,000 bopd. The plan involves
drilling up to five wells as well as expanding processing infrastructure.
Site mobilisations are tentatively scheduled to begin in Q3 of 2019. Please
refer to the Company's announcement dated 1 July 2019 for further information
on the Otatikpo MoU.
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR").
For further information, please visit www.lekoil.com (http://www.lekoil.com)
or contact:
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