Lekoil pays fee to extend licence on OPL 310 block

Oil and gas exploration and development company Lekoil has paid the $7.5m license extension fee for OPL 310 as mandated by the Federal Government of Nigeria and Ministry of Petroleum Resources, it announced on Thursday, as it had first outlined on 6 September.

The AIM-traded firm said it funded the payment from a mix of existing financial resources and debt facilities.

In addition, the company said it had paid in full the balance of outstanding general and administrative arrears of around $3m, together with $1m of the $5m operator's fee due to its partner on the block, Optimum Petroleum Development Company, as it announced on 30 August.

The balance of that fee - $4m - was now due by 2 February, which Lekoil expected to fund from a combination of existing financial resources and a potential funding partner.

“We are pleased with the positive momentum being created with our partner Optimum and the Federal Government of Nigeria in taking the block forward,” said chief executive officer Lekan Akinyanmi.

“We continue to expect to unlock significant value in this asset for all stakeholders involved, who we thank for their patience and support.”

As at 1432 GMT, shares in Lekoil were up 6.63% at 5.06p.