Lekoil has raised around $100 million in a London share placing to fund drilling, testing and appraisal of the Ogo oil discovery off Nigeria.

The AIM-listed junior said that new and existing institutional investors among others had bought around 113 million Lekoil shares at £0.55 each.

West Africa-focused Lekoil announced on Thursday that a sidetrack on the Optimum Petroleum-operated Ogo find had encountered hydrocarbon intervals meriting further testing.

Of the $97 million net proceeds from the placing, the explorer will use $32 million to fund its share of completion and testing at Ogo.

Lekoil will also spend $28 million to pay back a loan to Afren.

The explorer also said it was in the process of gaining debt financing to pay Panoro Energy $28 million owed to the Norwegian independent for its 6.5% stake in Aje acquired by Lekoil in June.

A further $20 million from the placing will go to future development at Aje.


Information from Upstream was used in this report.