01 April 2017, Sweetcrude, London — 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.”