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Lekoil eyes production growth, increased shareholder returns

Lekoil, an Africa-focused oil and gas exploration and production company, has said production growth and increased shareholder value are central to its 2019 strategy.

The Chief Executive Officer, LEKOIL, Olalekan Akinyanmi, disclosed this in a note that accompanied its 2018 financial report, according to a statement.

He said, “The priority for 2019 is to grow production volumes at Otakikpo through Phase Two development (subject to funding) to reach gross volumes of 15,000 to 20,000 bopd.  The first step has already occurred, with 3D seismic data acquisition and interpretation now completed.”

He said 2019 should provide key catalysts for value appreciation for shareholders “as we move forward in building a leading Africa-focused exploration and production business.”

“We also continue to advance towards the start of the appraisal drilling programme on Ogo in OPL 310.  We will work with our joint venture partner, Optimum, to negotiate agreements that will allow us to make progress on the block, after securing all relevant regulatory extensions and approvals,’ Akinyanmi added.

According to the statement, Lekoil was founded in 2010 by a group of professionals with extensive experience in the international upstream oil and gas industry as well as in global fund management and investment banking.

It said, “Working with partners, government and regulatory agencies, the company has sustained production levels and continues an aggressive investment campaign, which is projected to result in increased production and profitability in the short to medium term.

“Apart from its interests in OML 310, the company and its partners finalised technical evaluation on OPL 325 in January 2018. Its consultants, Lumina, identified and reported on 11 prospects and leads, which were estimated to contain potential gross aggregate oil-in-place volumes of over 5.7 billion barrels (un-risked, best estimate case). After finalising terms for a Production Sharing Contract on the block, Lekoil intends to farm-down a portion of its 62 per cent working interest following a detailed prospect/lead risking study.”