Lekoil Ltd (LEK)


Lekoil reports first lifting from FSO Ailsa Craig

Lekoil has announced that the first crude cargo produced from the Otakikpo marginal field in OML 11 has been lifted from the FSO Ailsa Craig by Shell Western Supply and Trading, a subsidiary of Royal Dutch Shell.

Lekoil said 120,000 barrels of gross production had been lifted and that under the terms of the crude sales agreement with Shell Trading, the company was due to receive its payment for this crude within the next month.

Chief executive Lekan Akinyanmi said: "Selling our first oil marks the commencement of cash flow from Otakikpo.

"Dollar receipts will increase as we further ramp up production to our Phase 1 target of 10,000 bopd and will contribute to funding Phase 2 expansion.

"The production and now offtake and export sale from the FSO Ailsa Craig is the culmination of our team's hard work over the last two years to bring Otakikpo into revenue generating production.

"I would again like to thank the entire team that has worked so hard on this project, our partner Green Energy, FSO owner and operator Amni, our contractors, our host communities and our government regulators for their continuing support."

At 8:11am: (LON:LEK) Lekoil share price was +0.5p at 18.75p