Lekoil fails to agree terms for OML113 stake

Lekoil has decided to terminate the binding conditional sale and purchase agreement over the proposed acquisition of an interest in OML113. Lekoil says it has been unable to agree final terms with Pan Petroleum Aje Limited, Pan-Petroleum Nigeria Holding BV and Pan-Petroleum (Holding) Cyprus Limited.

Lekoil understands that the parties have a right to call the US$3m bid bond entered into as part of the SPA or receive an equivalent cash payment in lieu of the bid bond which Lekoil will finance out of its current cash reserves. This cost is in addition to the US$4m already paid to the parties as part of the consideration (inclusive of cash calls) under the SPA.

This decision will allow the Company to fully focus on developing its discovery at OPL310, which as announced earlier today, has produced results significantly ahead of Lekoil’s initial resources estimates at the time of the IPO according to reports by StockMarketWire.com