London Stock Exchange welcomes Lekoil Limited to AIM
Friday 17th May 2013
London Stock Exchange is pleased to welcome Lekoil Limited (“Lekoil” or the “Company”), to AIM. Lekoil was admitted to trading on AIM on 17 May 2013 (symbol LEK).
Lekoil is an African focused oil and gas exploration and production company which currently holds interests offshore Nigeria and offshore Namibia. The Company was founded in 2010 by a group of leading professionals with extensive experience in the international upstream oil and gas industry as well as in global fund management and investment banking.
The Company recently entered into a farm out agreement with Afren PLC to acquire an overall 30 per cent economic interest, including a 17.14% participating interest, in OPL310, an offshore Nigerian asset located in the Dahomey-Benin Basin. OPL310 represents an early stage asset with significant potential and strong partners. The initial exploration well, Ogo-1, was spudded on 23 April 2013 and is currently drilling at a depth of 3,500 ft. In addition, Lekoil is the operator of two Namibian offshore exploration blocks (Blocks 2514 A & B) located in the prospective Luderitz Basin.
Lekoil has raised £32 million before expenses, through the issue of 80,000,000 new Ordinary Shares at a price of 40 pence per share. On Admission, Lekoil will have 182,774,233 Ordinary Shares in issue thereby implying a market capitalisation on admission of approximately £73.0 million.
The Company intends to use the net proceeds of the Placing to satisfy the funding requirements for it payment obligations under the OPL310 farm out agreement and for general working capital purposes.
Lekan Akinyanmi, Chief Executive, commented: “We have been extremely pleased with the positive response from investors in both the UK and the US to Lekoil’s plans to take advantage of the undoubted opportunities in Nigeria for indigenous businesses. The Board believes that our transition to the public markets, and the consequent access to a wider pool of capital, represents an obvious next step towards our goal of building a multi-asset exploration, development and production business in Africa.
“I also welcome our new shareholders, thank them for their support so far and look forward to reporting the Group’s progress as we develop.”
Lekoil is being advised by Strand Hanson, which is acting as Financial and Nominated Adviser to the Company, and Mirabaud Securities which is acting as Broker. Tavistock Communications is acting as financial public relations adviser.