Lekoil swings to profit as Otakikpo ramps up

19th Jun 2019 12:05

(Sharecast News) - Lekoil on Wednesday swung to an annual profit as revenue climbed after production at the Nigerian Otakikpo oil field ramped up.The oil and gas exploration and production company recorded a profit before tax of $2.3m for 2018, after $14.8m of red ink for the year before, after revenue jumped by 58% to $48.7m.The Otakikpo oil field, which started producing in 2017, produced an average of approximately gross 5,345 barrels of oil per day in 2018, of which of 2,076 barrels per day were attributable to Lekoil.The AIM traded company alsosaid it was aiming to boost total oil production to between 15,000 to 20,000 barrels per day, of which between 6,000 barrels and 8,000 barrels would be attributable to Lekoil through Otakikpo's phase two development.The first step of that development had already taken place, with 3D seismic data acquisition and interpretation now completed.Meanwhile, Lekoil was moving towards the start of an appraisal drilling programme at its Ogo project, while also aiming to reduce costs by 25% through measures that include a 25% cut in board remuneration."We continue to look at new, promising opportunities in-country that are consistent with Lekoil's original portfolio strategy of securing assets with robust production and exploration upside. The group will continue to focus on new ventures-driven growth for producing or near producing assets. The next year should therefore provide key catalysts for value appreciation for shareholders as we move forward in building a leading Africa-focused exploration and production business," said Lekoil.Lekoil's shares were up 3.17% at 3.25p at 1314 BST.