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Case study


ico-oilGas.pngLekoil Limited


Deal Type:AIM IPO of Lekoil Limited (“Lekoil” or the “Company”), co-terminous with the completion of a significant acquisition 

Deal Size:Total fundraise of US$50 million resulting in a market capitalisation of approximately US$110 million on admission to AIM


In early 2013, Strand Hanson was engaged by Lekoil, the oil & gas company established to acquire assets in sub-Saharan Africa and in particular Nigeria, to advise on the acquisition of an ultimate 30 per cent. economic interest in OPL310, offshore Nigeria from Afren PLC and simultaneous admission to trading on AIM. OPL310 is an early stage Nigerian oil & gas asset, located in the Dahomey-Benin Basin, with significant potential. Admission to trading on AIM occurred in mid-May 2013.

Strand Hanson acted as nominated and financial adviser to Lekoil and worked alongside Mirabaud Securities LLP (“Mirabaud”) and Revere Securities Corp. (“Revere”), the company’s Broker and US placing Agent, to co-ordinate the largest H1 2013 AIM IPO, overcoming the challenges faced by a multi-jurisdictional transaction and significantly raising the profile of AIM in one of Africa’s rapidly growing and resource rich economies.

Following the announcement of positive drilling results on OPL310, and the intention to acquire a 6.502 per cent. participating interest in the adjacent block OML113 (which contains the Aje field), Lekoil successfully raised a further US$20 million in July 2013, through Mirabaud and Revere, to progress its drilling programme.

Following the announcement of further positive drilling results on OPL310, Lekoil successfully raised a further US$100 million in November 2013 via an accelerated book-build led by Mirabaud (acting as sole bookrunner) with Ladenburg Thalmann & Co. Inc. acting as US Placing Agent. The net proceeds will be used to fund the drilling completion and testing of the Ogo-1 well and the Ogo-1 sidetrack well on OPL310, the future development of OML113 and for general working capital purposes.

Despite the complex jurisdictional issues, the listing was completed on an accelerated basis in order to secure the acquisition prior to the commencement of drilling on OPL310.

Lekoil - Key Facts

  • Africa focused exploration and production company
  • Management and board with strong technical and financial experience and relationships on continent
  • Lekoil Nigeria recently entered into a farm out agreement with Afren PLC to acquire an overall 30 per cent economic interest, including a 17.14 per cent participating interest, in OPL310, an offshore Nigerian asset located in the Dahomey-Benin Basin
  • Participated in Shell and Conoco Nigeria divestment processes and reviewed opportunities through the continent