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Lekoil Raises $20 Million for Drilling and Testing in Nigeria

Lekoil

Lekoil, the oil and gas exploration and production company with a focus on Nigeria and West Africa more broadly, announces that it has conditionally raised, in aggregate, gross proceeds of approximately US$20.0 million (approximately £13.2 million) through the placing of, in aggregate, 33,850,000 new Ordinary Shares at a placing price of 39 pence per Ordinary Share (the “Placing Price”) with certain existing and new institutional and other investors (the “Placing”).

The net proceeds of the Placing will be used to fund the drilling and testing of the sidetrack well: Ogo-1 ST, on the OPL310 licence offshore Nigeria, as referenced in the announcement dated 26 June 2013, as well as for general working capital purposes.

The Company also announces that, pursuant to certain costs associated with the admission of the Company’s ordinary shares (the “Ordinary Shares”) to trading on the AIM market of the London Stock Exchange,  it has settled these costs through the issue and allotment of 250,000 new Ordinary Shares in lieu of payment (the “Fee Shares”). Admission to trading of the Fee Shares is expected to occur on 22 July 2013, in conjunction with the admission of the First Placing Shares.

Following admission to trading of the First Placing Shares and the Fee Shares, the Company will have 201,026,233 Ordinary Shares in issue. Following the issue of the Second Placing Shares, the Company will have 216,624,233 Ordinary Shares in issue.

The net proceeds will be used to fund the drilling and testing of the sidetrack well Ogo-1 ST on the OPL310 licence offshore Nigeria as well as for general working capital purposes. The placing — which is conditional only upon admission — will be conducted in two stages.

The first placing will use the directors’ existing authority to allot shares for cash on a non pre-emptive basis while the second placing is subject to approval at an extraordinary general meeting on 7 August.

Chief executive Olalekan Akinyanmi said: “We are pleased with the interest and support we have seen from both existing and new investors in Lekoil’s growth strategy, following the recent discovery of oil in the Ogo-1 well on OPL310.

“The net proceeds from this entire fundraising will allow the Company fully to complete the drilling and testing of the Ogo-1 sidetrack, as well as continuing to identify and progress further opportunities.”

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