LEKOIL (AIM: LEK), the oil and gas exploration and development company with a focus on West Africa, announces that it has paid the US$7.5 million license extension fee for OPL 310 ("the Block") as mandated by the Federal Government of Nigeria and Ministry of Petroleum Resources, and previously first announced on 6 September 2019. The Company funded this payment from a mix of existing financial resources and debt facilities.
In addition, LEKOIL has paid in full the balance of outstanding G&A arrears of approximately US$3 million together with US$1 million of the US$5 million Operator's fee due to its partner on the Block, Optimum Petroleum Development Company ("Optimum"), as announced on 30 August 2019. The balance of this fee (US$4 million) is now due by 2 February 2020, which the Company expects to fund from a combination of existing financial resources and a potential funding partner, as previously announced.
Lekan Akinyanmi, LEKOIL's CEO, said, "We are pleased with the positive momentum being created with our partner Optimum and the Federal Government of Nigeria in taking the Block forward. We continue to expect to unlock significant value in this asset for all stakeholders involved, who we thank for their patience and support."