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LEKOIL Provides Trading and Operations Update

LEKOIL (AIM: LEK), the oil and gas exploration and production company with a focus on Nigeria and West Africa, provides the following trading and operational update for the full year ended 31 December 2020.

Corporate Update

For the year ended 31 December 2020, unaudited revenue was US$31.5 million, down 25% from the previous year of US$42.0 million. This decrease was largely due to the lower realised oil price experienced in 2020 of US$35.5 per barrel compared with US$62.0 per barrel in 2019. With the improving macro-economic outlook, the Company is beginning to benefit from the more favourable crude pricing environment.

The Group expects to report a total comprehensive loss of US$16.2 million for the year ended 31 December 2020 (2019: loss of US$12.0 million). The unaudited total cash balance as at 31 December 2020 stood at US$4.5 million with US$1.7 million recognised as restricted cash (audited total cash balance as at 31 December 2019 was US$3.8 million with US$1.1 million recognised as restricted cash). As at 31 December 2020, total unaudited outstanding debt financing, net of cash (excluding restricted cash), was US$11.4 million, compared to US$15.6 million as at 30 June 2020 (31 December 2019: US$16.5 million). Trade and other payables stood at US$31.1 million as at 31 December 2020 (31 December 2019: US$20.6 million).

As at 28 February 2021, the Group has an outstanding balance of external interest-bearing loans and borrowings of approximately US$14.7 million and a total cash balance of US$2.1 million, with US$1.5 million recognised as restricted cash. Trade and other payables stood at US$33.2 million as at 28 February 2021.

The Board of Directors and management of LEKOIL believe that the underlying quality of the assets in the Company’s portfolio will underpin their commitment to deliver a high performing business that produces value for all shareholders.

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Source: PetroleumAfrica

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