(Ecofin Agency) - Lekoil Ltd, oil and gas exploration and production company which is very active in Africa, announced yesterday the lifting of the first crude cargo from its Otakikpo marginal field in Nigeria.

The cargo was lifted by Shell Western Supply and Trading Limited, subsidiary of Anglo-Dutch oil firm Shell, in respect to an agreement signed in March between the two parties. Under the contract, Lekoil is to receive within the next month, a payment for a volume of 120,000 barrels of crude that it will provide Shell’s subsidiary (at prevailing market price).

“Selling our first oil marks the commencement of cash flow from Otakikpo. Dollar receipts will increase as we further ramp-up production to our phase one target of 10,000 barrels of oil a day [against 5,000 currently],” said Lekoil’s chief executive officer, Lekan Akinyanmi (photo).

With its headquarters in Nigeria, AIM-listed Lekoil saw its share soar by 4.1% Wednesday, following the announcement regarding lifting.