Lekoil receives $15m loan from Shell

Shares in Lekoil gained on Friday after the oil and gas explorer revealed that it has agreed to an advance payment facility with Royal Dutch Shell for a $15m loan to fund development at the Otakikpo site in Nigeria.

The AIM-listed company’s subsidiary Lekoil Oil & Gas Investments agreed to the facility with Shell Western Supply and Trading, a member of Shell’s group of companies.

The loan has a maturity of three years and is repayable quarterly following a six-month moratorium with a market margin over LIBOR, the average interbank interest rate.

Lekoil chief executive Lekan Akinyanmi said: "The facility is a strong endorsement of our commercial production and secures funding which is non-dilutive to our shareholders.

“We believe that this relationship with a globally recognised oil and gas major will complement Lekoil in its long-term growth and aspirations."

Shares in Lekoil were up 4.55% to 23p at 1202 BST.