LEKOIL, the oil and gas exploration and development company with a focus on West Africa, announces today the signing of a new US$11.5 million debt facility.

LEKOIL Oil & Gas Investments Limited, a wholly owned subsidiary of LEKOIL Nigeria Limited, has signed an agreement for a new US$11.5 million debt facility with FBNQuest Merchant Bank. The Company has agreed to guarantee the obligations of Lekoil Oil & Gas Investments Limited pursuant to the Facility.

The Facility has a maturity of four years and is repayable quarterly with a margin of LIBOR + 10%. The Facility will be used primarily to pay all outstanding quarterly repayments (including principal and interest) due to Shell Western Supply and Trading Limited and payment of the license/lease extension fees on OPL 276 (as announced on 23 August 2019) and OPL 310 (US$7.5 million due by 31 October 2019). 

The Company expects to draw down on the Facility as needed, which has no pre-payment penalty.  

Lekan Akinyanmi, LEKOIL's CEO, said, 
"I am delighted that we have agreed to this additional facility with FBNQuest, a key local lender in Nigeria. This facility provides us with increased flexibility at a cost of capital in-line with our existing facilities. We appreciate FBNQuest's support and appreciate our growing long-term relationship with them." 

Link to Lekoil Nigeria country profile