On behalf of the two Otakikpo Joint Venture partners, Green Energy International Limited, the operator of the Otakikpo Marginal Field, and LEKOIL Oil and Gas Investments Limited, the technical partner and a member of the LEKOIL group, following is an update on operational performance in respect of the Otakikpo Marginal Field in OML 11, the Company’s sole producing asset:
· For the full year 2020, average production levels were 5,062 bopd gross with 2,025 bopd net to LOGL. This was down 5% from 2019 (5,305 bopd gross with 2,122 bopd net to LOGL).
· Average daily production was 5,378 bopd gross with 2,151 bopd net to LOGL for January and February 2021.
· The first lifting of the year occurred in February 2021 with net cash proceeds of US$3.7 million.
· The second lifting occurred last week with increased net cash proceeds of US$6.6 million expected following an increase in the volume lifted and the improving crude pricing environment.
· The Company remains in discussions with financiers to raise its share of the funding required for the next two wells on the field, which amounts to US$10.0 million in aggregate.
The Company has engaged with Optimum regarding its notice to terminate the Cost and Revenue Sharing Agreement in respect of OPL 310. An update will be provided in due course.