By Dipo Olowookere
An extension has been given to an oil and gas exploration and production company, LEKOIL, for the filing of its audited financial results for the year ended December 31, 2019.
The firm, with a focus on Nigeria and West Africa, had applied for the grace before it was granted by regulators, who said the results must be submitted within the next three months.
With this, LEKOIL will have till September 30, 2020, to publish its financial documents to the investing public, who rely on them for certain actions.
The energy company explained that delay in filing the results was due to the COVID-19 pandemic, which disrupted work practices, particularly for the company’s auditors.
But the firm expressed confidence that the financial statements would be released on or before the new deadline.
Meanwhile, LEKOIL has implemented general and administrative cost reduction measures, with constructive discussions regarding the restructuring of current loans to reduce quarterly amortisation ongoing.
The firm renewed offtake agreement with Shell Western Supply and Trading Limited for at least another year with the potential to extend for a further year following the provision of a prepayment facility.
Also, the company noted that it has sustained production as average output for the first five months of the year at Otakikpo at 5,755 bopd gross with 2,302 bopd net to LEKOIL Oil and Gas Investments Limited (LOGL), a wholly-owned subsidiary of Lekoil Nigeria Limited, which the company has a 90 percent economic interest.
This year, LOGL has lifted 372,136 barrels in equity crude through its nominated offtaker, Shell Western Supply and Trading Limited.
The last lifting occurred on May 25, 2020, with cash proceeds of $2.7 million received by the company on June 25, 2020.
The firm said the next lifting, of a similar quantity, is expected to occur in mid-July 2020.
“Cashflows generated at Otakikpo in conjunction with our significant cost reduction initiatives have been key for us as we remain committed to creating value for our shareholders.
“We will continue to proactively review options for further cost savings where appropriate. We are working closely with all our partners, including GEIL and Optimum, in these challenging times to deliver on our joint ambitions.
“We thank all of our shareholders for their continued patience which we have every confidence will be justified, especially as the wider outlook improves,” the CEO of LEKOIL, Mr Lekan Akinyanmi, said.
In a related development, LEKOIL has announced the completion of the site survey on OPL 310. With the site survey completed, Optimum Petroleum Development Company and LEKOIL can finalise the selection of the appropriate rig to commence appraisal drilling.
Adedapo Adesanya