West Africa-focused junior oil firm Lekoil reported Wednesday that it has completed a $37.7-million fundraising that it plans to use to help pay for the initial work program on the Otakikpo Marginal Field, offshore Nigeria.
Lekoil announced Tuesday that it had agreed to buy a 40-percent participating interest in the Otakikpo field. The field lies in a swamp location in oil mining lease 11 (OML 11) adjacent to the shoreline in the eastern part of the Niger Delta. The most-recent 2C reserve estimates for the field are for 36 million barrels of oil and 31 billion cubic feet of gas.
Lekoil believe that Otakikpo could be brought into production within 12 to 18 months of commencement of its work program.
To raise the funds, Lekoil placed 33 million new shares at a placing price of 67.75 pence ($1.14) per share.
In a company statement, Lekoil CEO Olalekan Akinyanmi commented:
"We are pleased with the continued support exhibited in this equity raise and remain committed to our strategy of growing the business in a diversified manner in terms of exploration, appraisal and near term production. Acquiring an interest in Otakikpo – an exciting near term production asset – represents another important step for Lekoil and we look forward to developing this asset."
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