Nigeriaâ€™s oil output has risen as Lekoil, an oil and gas exploration and development company with a focus on Nigeria and West Africa begins oil production.
The company indicated that its half year results for the six months ended 30 June 2015 that first oil from Otakikpo was achieved on 5 September 2015.
It maintained that Otakikpo-002 well produced from only the first of four planned production strings across the two wells, and flowed oil at a peak rate of 5,703 bopd at a 36/64 inch choke, significantly ahead of expectations.
The company disclosed that original guidance of around 6,000 bopd from the four strings at Otakikpo-002 and -003 is likely to be exceeded substantially, subject to further testing and analysis.
â€œThe Company is in discussions with partners in OPL 310 regarding options for further appraisal and the allocation of financial responsibilities and interests between the partners,â€ it added.
It maintained that net loss of $6.6 million reported for the period (2014: net loss of $5.3 million).
The company indicated that cash balances of $32.4 million and net cash (after deducting short-term bank debt) of $22.6 million at the end of August 2015.
It indicated that the company is in discussions with off takers and debt providers to seek additional funding for growth and expansion.
The company maintained that focus remains on growing cash flow and production base at Otakikpo and appraising the significant Ogo discovery on the OPL 310 licence.
Â The Chief Executive Officer of the company, Mr. Lekan Akinyanmi, stated that:
â€œWe believe that the successful transition to a producing company has positioned Lekoil to grow further in the coming years â€“ even in a prolonged lower oil price environment.Â We will continue to look for acquisitions, subject to the availability of finance that can add the kind of value for our shareholders that Otakikpo looks likely to do.â€