Lekoil shares drop as annual loss widens
Oil and gas company Lekoil’s share price dropped this morning after the firm revealed that losses widened last year.
The figures
The company, which fell victim to fraud earlier this year, reported a $12m loss in the year ended 31 December 2019 compared to a loss of $7.8m in 2018.
Total revenue for the year was $42m, down 13 per cent from the previous year due to lower crude listings and production in the year.
Total production was approximately 759,666 barrels of oil, down from 780,500 barrels in 2018.
Lekoil had cash and cash balances of $2.7m, down from $10.4m.
Why it’s interesting
The African oil and gas exploration firm said it had contacted authorities following an attempt to defraud the company in January this year, outside of the reporting period.
Lekoil was a victim of fraud by individuals purporting to be representatives of a Qatari equity fund.
The Qatar Investment Authority (QIA) contacted the firm questioning the validity of a $184m loan Lekoil had announced with it on 2 January. As a result, the AIM-listed company’s shares were suspended.
The group has set up an investigation committee to probe the origination of the fraud and to explore whether and money can be retrieved.
What Lekoil said
Lekoil chief executive Lekan Akinyanmi: “The priority for 2020 is to advance towards the start of the drilling programmes at both Otakikpo and Ogo in OPL 310.
“The next two years will prove to be transformative and provide key catalysts for value appreciation for shareholders through the drill bit as we advance in building a leading Africa-focused exploration and production business.”