According to the company’s final audited results for the year ended December 31, 2017, the target is to enable it to grow towards more profitability.

The company had achieved revenue of $30.8 million as at December 2017.

Following this performance, Lekoil said it plans an aggressive production boost and is already in the process of securing extra funding from industry sources to finance the second phase of development.

Besides that, the company is planning a two-well appraisal drilling programme at Ogo field, with long lead time items such as wellheads already ordered.

This is as it awaits Nigerian government’s approval on its acquisition of an additional 22.86 percent stake in Oil Prospecting License, OPL 310, which will take its total interest in the asset to 40 percent.
Once that is all sorted, Lekoil expects to finalize its funding plans for the drilling programme.

“Our priority for 2018 is to continue to grow production volumes and profitability at Otakikpo. Our planning for Phase 2 field development is already underway, targeting 20,000 bpd to be reached in 2020, subject to securing additional funding from industry sources” said Chief Executive Officer, Lekan Akinyanmi.

Akinyanmi stated that part of the growth strategy includes further appraisal and development work at the Ogo field.
“In tandem, we will aim to progress the appraisal and development of our Ogo discovery in OPL 310. Once we receive the second Ministerial Consent, we plan to finalize funding plans for an appraisal drilling programme. The programme will comprise two wells which will include flow testing.”

According to him: “Our aim is to secure enough information to enable the partners to take a Final Investment Decision in 2019 and then to proceed with development in partnership with GE Oil & Gas. Lekoil had earlier signed a Memorandum of Understanding with GE Oil & Gas for the full field development of Ogo field.”

Samuel Adegboyega, Chairman, Lekoil added, “To our great satisfaction, 2017 saw Lekoil’s first commercial production, and first crude oil sales. These are perhaps the most important milestones in the history of the Company and represent the fruits of efforts that have been ongoing since Lekoil’s inception in 2010.”