Lekoil raises approximately US$100 million

Lekoil raises approximately US$100 million

Lekoil (AIM: LEK), the oil and gas exploration and development company with a focus on Nigeria and West Africa, announces, further to the announcement made yesterday afternoon, that it has entered into a placing agreement (the “Placing Agreement”) with Mirabaud Securities LLP (“Mirabaud”) and has conditionally raised, in aggregate, gross proceeds of approximately US$100 million (approximately £62 million) through the placing of, in aggregate, 113,282,000 new Ordinary Shares at a placing price of 55 pence per Ordinary Share (the “Placing Price”) with certain existing and new institutional and other investors via an accelerated book-build (the “Placing”).

The net proceeds of the Placing are estimated to be US$97 million (approximately £60 million) and will be used to fund the completion of drilling and testing of the Ogo-1 well and Ogo-1 ST, the future development of the OML113 licence offshore Nigeria, which contains the Aje Field, as well as for general corporate and working capital purposes, including the full repayment of the loan facility that the Company has entered into with Afren.

Olalekan Akinyanmi, Chief Executive Officer of Lekoil, commented: ‘This equity raise reflects Lekoil’s success in implementing the strategy, set out at the time of our IPO in May this year, to build a business focused initially on West Africa and diversified in terms of exploration, appraisal and near term production. I am delighted that our existing and new shareholders have responded so positively and look forward to continuing to grow our Company for the benefit of all shareholders and stakeholders.’

Source: lekoil