Lekoil

Mirabaud acted as bookrunner for IPO of Lekoil – an oil exploration and production company listed on AIM (London's Secondary Market) with assets in Nigeria and Namibia.

A successful IPO

In 2013 the company’s IPO raised US$50m to fund the acquisition of parts of the OPL310 licence, an offshore oilfield located off the west coast of Nigeria, and the drilling of a promising exploration well. Mirabaud has also acted as bookrunner in three secondary placings, raising a total of US$158m. The most recent was in May 2015 to fund the purchase of a near-production asset known as the Otakikpo field.

OPL310 – valuation revised upwards

Lekoil holds 30% of the OPL310 licence in the Dahomey basin. The company acquired its interest from Afren as part of a farm-out agreement that involved funding a share of the Ogo-1 exploration well drilled in mid-2013. The outcome of the well exceeded pre-drill expectations, with partner Afren estimating gross recoverable resources of 774 to 1,180 mmboe (P50-P10) across two separate structures – making Ogo the third largest oil discovery globally in 2013. In 2014 Lekoil launched a new exploratory seismic study for OPL310 to better define the Ogo structure and assess the potential across the licence area. An appraisal well will be drilled in 2015 once this analysis is complete.

Otakikpo marginal field

In addition to OPL310, Lekoil holds 40% of the Otakikpo marginal field in the Niger Delta. The interest in the asset was acquired from Green Energy, a local Nigerian company, which was awarded 100% of the block in 2011. Under the terms of the deal, Lekoil paid US$7m in cash up front and agreed to fund 100% of the capex to first oil, which is expected in mid-2015. Otakikpo holds 36 mmbbls of 2C resources and provides a source of near-term cash flow.