Oil and Gas firm, Lekoil Limited has raised US$20 million fresh capital through the refinancing of an existing debt facility as well as the completion of a new debt facility.
The firm said US$10 million was raised through the refinancing of its existing notes issuance agreement with FBN Capital Ltd, while the remaining US$10 million was secured through a new facility also with FBN.
The existing facility has a maturity of three years and is repayable quarterly after a six-month moratorium. The new facility also has a maturity of three years and is repayable quarterly with ten quarterly installments after a six-month moratorium.
Chief Executive, Lekan Akinyanmi, who spoke on the development in a statement, said:“I am delighted that we have secured this facility with local lender FBN.”
“This funding represents a strong endorsement of our asset’s value in this market environment and provides validation of our strategy to secure non-dilutive funding from near term commercial production. We appreciate FBN’s support, and look forward to building a long-term relationship with them.”
Lekoil added that, following successful drill stem tests at Otakikpo in Nigeria, which produced oil flows in excess of the company’s expectations, it is on track to complete Otakikpo within the original USD82 million capital expenditure budget that was estimated in 2014.