Lekoil Oil, Gas Field Future at Risk After Alleged Scam - Bloomberg

Lekoil Oil, Gas Field Future at Risk After Alleged Scam - Bloomberg:

Lekoil Ltd., an explorer and producer in Nigeria, dropped to a record low in London trading after falling victim to an alleged fraud.

The company now has until February to raise enough money to cover its share of drilling costs to develop a license off Nigeria, or risk losing the asset altogether.

A loan agreement struck earlier this month, purportedly with the Qatar Investment Authority, “seems to have been entered into by the company with individuals who have constructed a complex facade in order to masquerade as representatives of the QIA,” Lekoil said in a statement on Tuesday.

“The facility agreement can no longer be considered to be legally binding or enforceable,” and it should be assumed that none of the funding will be forthcoming, Lekoil said. The company has until February to show its ability to raise 42.86% of costs, equivalent to about $12 million, to drill an appraisal well in offshore block OPL 310.