Lime Petroleum Holding AS ('LPH') has announced the successful achievement of first oil from the AK-2H well, located in the Sèmè Field Block 1 in Benin. Production from the well is expected to commence within the next two weeks.
While this operational milestone marks an important step forward for LPH, the drilling operations encountered significant technical complications, resulting in a material increase in drilling costs and a production delay of more than three months. This has had a material adverse effect on LPH’s financial position, and the Board of Directors and management are taking all appropriate actions to safeguard creditor interests and maximise recoveries.
Considering the above, LPH has engaged ABG Sundal Collier as its financial advisor and Arntzen Grette as its legal counsel to undertake a comprehensive strategic and financial review. The mandate includes evaluating all available alternatives to strengthen LPH’s balance sheet and secure a sustainable capital structure. These alternatives may include, but are not limited to:
- Potential mergers or asset transactions
- Amendments to existing debt facilities
- A broader financial restructuring
LPH is in dialogue with its creditors, suppliers, and other key stakeholders and will provide further updates as appropriate.
There can be no assurance that this process will result in a transaction or outcome outside a formal restructuring proceeding.
Stakeholders should be aware that in the absence of a timely and comprehensive recapitalisation or restructuring solution, LPH may be unable to meet its financial obligations as they fall due.
Source: Lime Petroleum
