Lekoil secures new facility with Sterling Bank

30th Jun 2016 13:19

(ShareCast News) - West Africa focused oil and gas exploration and development company Lekoil announced on Thursday the execution of a new debt facility totalling NGN 5bn.The AIM-traded company said the agreement was for the Otakikpo asset and was agreed with Sterling Bank, subject to the fulfilment of conditions precedent which are near complete.Its board said the facility has a maturity of three years and is repayable quarterly following a six-month moratorium, with a margin of 10% over NIBOR."I am delighted that we have agreed to this additional facility with Sterling," said CEO Lekan Akinyanmi."This facility provides us with funding we need to complete phase one of our Otakikpo Field Development Plan, culminating in 10,000 bopd of production by year-end."We appreciate Sterling's support, and look forward to building a long-term relationship with them," Akinyanmi added.