LEKOIL LTD Otakikpo Operational Update June 26 2017

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 LEKOIL LIMITED (LEK) 
LEKOIL LTD Otakikpo Operational Update June 26 2017 
 
26-Jun-2017 / 07:05 GMT/BST 
Dissemination of a Regulatory Announcement that contains inside information 
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
26 June 2017 
 
*LEKOIL Limited * 
("LEKOIL" or the "Company") 
 
*Otakikpo Operational Update* 
*Full Cargo Lifted from FSO Ailsa Craig* 
 
LEKOIL (AIM: LEK), the oil and gas exploration, development and production 
company with a focus on Africa, is pleased to announce its second export 
from the Otakikpo Marginal Field ("Otakikpo") in OML 11. Approximately 
250,000 barrels of gross production have been lifted from the FSO Ailsa 
Craig by Shell Western Supply and Trading Limited ("Shell Trading"), a 
subsidiary of Royal Dutch Shell (LSE: RDSA, RDSB). Under the terms of the 
Crude Sales Agreement with Shell Trading, the Company is due to receive its 
share of the payment for this crude within the next month. 
 
With regular liftings from Otakikpo underway, the Company does not intend to 
provide updates for each export. The Company expects to provide export 
updates concurrent with the Company's reporting dates going forward. 
 
Current production at Otakikpo is approximately 5,500 bopd. The Company 
continues to focus on ramping up to Phase One target production of 10,000 
bopd. 
 
For further information, please visit www.lekoil.com [1] or contact: 
 
+----------------------------------+---------------------------+ 
|*LEKOIL Limited*                  |[phone]           | 
|Alfred Castaneda, Investor        |[phone]           | 
|Relations                         |                           | 
|Hamilton Esi, Corporate           |                           | 
|Communications                    |                           | 
+----------------------------------+---------------------------+ 
|*Strand Hanson Limited (Financial |[phone]           | 
|& Nominated Adviser)*             |                           | 
|James Harris / James Spinney /    |                           | 
|Ritchie Balmer                    |                           | 
+----------------------------------+---------------------------+ 
|*Mirabaud Securities LLP (Joint   |[phone] / +44 20  | 
|Broker)*                          |7878 3447                  | 
|Peter Krens / Edward Haig-Thomas  |                           | 
+----------------------------------+---------------------------+ 
|*BMO Capital Markets (Joint       |[phone]           | 
|Broker)*                          |                           | 
|Jeremy Low / Neil Haycock / Thomas|                           | 
|Rider                             |                           | 
+----------------------------------+---------------------------+ 
|*Tavistock (Financial PR)*        |[phone]           | 
|Simon Hudson / Barney Hayward /   |                           | 
|Merlin Marr-Johnson               |                           | 
+----------------------------------+---------------------------+ 
 
*Background to Otakikpo* 
Otakikpo is sited in a coastal swamp location in oil mining lease (OML) 11, 
adjacent to the shoreline in the south-eastern part of the Niger Delta. 
LEKOIL Nigeria exercises the rights and benefits of its 40% Participating 
and Economic interest in Otakikpo via the Farm-in Agreement and Joint 
Operating Agreement signed on 17 May 2014 with Green Energy International 
Limited ("GEIL"), the Operator. 
 
The Company holds 90% of the economic interests in LEKOIL Nigeria. LEKOIL 
Limited's economic interest in Otakikpo therefore equates to 36%. The 
Otakikpo Joint Venture (LEKOIL as Financial and Technical Partner to GEIL) 
began operations in December 2014. Ministerial consent was granted by the 
Honourable Minister of Petroleum Resources of Nigeria in June 2015. LEKOIL 
funded the costs of development and is entitled to recover this expenditure 
preferentially from 88 per cent. of production cash flow from Otakikpo. 
 
The Otakikpo Field Development Plan consists of two phases. Phase 1 
comprises the recompletions of two wells, Otakikpo-002 and Otakikpo-003, 
with the installation of an Early Production Facility of 10,000 bopd 
capacity and export via shuttle tanker. Phase 2 covers the subsequent 
incremental development of the rest of the field with a new Central 
Processing Facility and new wells expected. Otakikpo commenced commercial 
production in 2017. 
 
h-ends- 
 
Language:      English 
ISIN:          KYG5462G1073 
Category Code: MSCH 
TIDM:          LEK 
Sequence No.:  4341 
 
End of Announcement EQS News Service 
 
586093 26-Jun-2017 
 
 
1: http://public-cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=524bf3f76e0f421770279a5e67ce69b5&application_id=586093&site_id=vwd_london&application_name=news 
 

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June 26, 2017 02:06 ET (06:06 GMT)