Nigerian Oil and Gas exploration and production company, Lekoil, has released its unaudited interim results for H1 2020 ended June 30th 2020. The company restated its commitment to long term growth. Lekoil’s share of equity crude during the period was 408,8000 barrels.
It completed site survey operation on OPL30; Otakikpo production averaged 5,676 bopd gross with 2,271 bopd net to LEKOIL Nigeria; renewed its offtake agreement with Shell Western Supply and Trading Limited for two years and included the provision of a $3.5 million prepayment facility to aid short term liquidity.
Phase two development plans at OPL 310 are underway, subject to securing funding, for the drilling of up to seven wells while the first two wells are expected to increase gross production to 10,000 bopd. With major preparatory work concluded for the Ogo appraisal drilling programme and well locations selected, funding discussions are currently underway with industry partners.
Also, net loss for the period stood at $7.9 million compared to $5.2 million in the same period in 2019. Administrative and general expenses reduced to approximately $1 million. The total outstanding debt financing, net of cash was US$15.6 million, as of 30th June 2020.
Commenting in the release, the Chief Executive Officer of LEKOIL, Lekan Akinyanmi said, “Despite the challenges of the first six months of the year, we have navigated this demanding period with steady production and cash flow generation from Otakikpo while implementing a range of significant cost reduction initiatives across our operations.”
“We are excited and encouraged by the interest received and the progress made towards raising the requisite financing to develop our high-quality portfolio of assets and delivering on our drive to unlock the significant value that exists within them. We remain committed to creating value and generating attractive returns for our shareholders, our partners, employees and all our stakeholders.”