Following an announcement on 28 February 2022 that it had entered into an agreement with Savannah Energy Investments Limited, a subsidiary of Savannah Energy PLC, Lekoil Nigeria Limited has secured court injunction to retain its assets.
The energy company, joined by a number of third-parties including Lekoil Oil & Gas Investments Limited, Mayfair Assets & Trust Limited, Lekoil 276 Limited and Lekoil Exploration & Production Nigeria Limited, has sought and been granted an injunction in the Federal High Court of Nigeria against Lekoil Limited and Savannah Energy Investments Limited.
Specifically, the injunction restrains them from taking any steps in furtherance of the transfer of any interests in oil and gas assets of Lekoil Nigeria Limited and the transfer or creation of any interest in Lekoil Nigeria Limited, that will alter the ownership, equity or share capital structure of Lekoil Nigeria Limited.
Lekoil Nigeria Limited is an oil and gas exploration and production company with a focus on Nigeria and West Africa, in which Lekoil Limited has a 40 per cent equity interest.
Following the court injunction, the parent company, Lekoil Limited, will suspend two resolutions it intends to pass at its forthcoming Extraordinary General Meeting scheduled for Thursday 7th April 2022.
The first resolution is approving the Option Agreement entered into with Savannah Investments, in accordance with the requirements of Rule 15 of the AIM Rules.
The second is authorising the Directors to allot and issue fully paid ordinary shares up to an aggregate number of 151,755,547, which is approximately 20 per cent (20%) of the Company’s current issued ordinary share capital.
According to a press statement made available to Business Metrics on Wednesday, the Board of Lekoil Nigeria Limited express delight at the development.
According to them, the has prohibited what they described as a substantially dilutive issuance of equity and an option agreement with Savannah Energy Investments Limited which would have denied shareholders of significant value.
The court order in full can be seen by clicking here:
