Business
Operations & Debt Financing Update
Operations & Debt Financing Update.
About this update from Fenikso Ltd
[{"type":"text","content":"\n \nRNS Number : 6213B Lekoil Limited 20 June 2016 \n\n20 June 2016\n \nLekoil Limited\n(\"Lekoil\" or the \"Company\")\n \nFBN Capital Re-Financing and Operations Update\n \nLekoil (AIM: LEK), the oil and gas exploration and development company with a focus on West Africa, announces today the refinancing of an existing debt facility and the completion of a new debt facility raising, in aggregate, US$20 million and provides an operation update for Otakikpo.\n \nOtakikpo Operational Update\nOtakikpo-002 has been completed, evacuation facilities are nearing completion and the rig has been mobilised to Otakikpo-003. The Company is nearing commercial production and first cargoes are expected to be lifted in Q3 2016. The Company is targeting production of 10,000 bopd by year-end 2016 and will then proceed to phase two of the Otakikpo Field Development Plan, with new wells planned to bring aggregate production to a target of 20,000 bopd by the end of 2017, subject to requisite approvals.\n \nDebt Financing Update\nLekoil has refinanced its existing US$10 million Notes Issuance Agreement (\"NIA\") with FBN Capital Limited (\"FBN\") and has secured a new 2 billion Naira (approximately US$10 million at the Central Bank of Nigeria exchange rate of 199NGN:1USD at time of execution) facility from FBN.\n \nFurther details on the funding are as follows:\n \nA two-tranche facility arrangement for US$10 million and 2 billion Naira (approximately US$10 million).\n \n• The US$10 million facility has a maturity of three years and is repayable quarterly after a six-month moratorium with a margin of 11.25% over LIBOR. The existing NIA bridge facility, of which US$5 million was due May 2016, has been extended to August 2016 and subsequently refinanced into the new USD facility.\n \n• 2 billion Naira (US$10 million). This new facility has a maturity of three years, is repayable quarterly with ten quarterly instalments after a six-month moratorium. The notes have an interest rate referencing the higher of the 30-day average of 90 day NIBOR + 6% or 20%.\n \nFollowing the successful drill stem tests at Otakikpo which produced oil flows in excess of Company expectations, the Company reconfirms that it is on track to complete Otakikpo within the original US$82 million ca...