LPH hits first oil in Benin but warns of formal restructuring risk

Drilling delays and cost overruns strain the group’s financial position.

Lime Petroleum Holding AS (LPH), a subsidiary of Rex International, has achieved first oil from the AK-2H well in Benin’s Sèmè Field Block 1, but drilling delays and cost overruns have strained its finances and heightened restructuring risk.

Production from the well is expected to commence within the next two weeks, according to a bourse filing dated 19 February.

However, drilling operations encountered significant technical complications, resulting in a material increase in costs and a production delay of more than three months.

Such developments have had a material adverse effect on its financial position, said Rex International.

The company cautioned that there can be no assurance that the process will result in a transaction or outcome outside a formal restructuring proceeding.

It added that in the absence of a timely and comprehensive recapitalisation or restructuring solution, it may be unable to meet its financial obligations as they fall due.

Meanwhile, LPH has appointed ABG Sundal Collier as financial adviser and Arntzen Grette as legal counsel to undertake a comprehensive strategic and financial review.

The mandate includes evaluating alternatives to strengthen its balance sheet and secure a sustainable capital structure. Moreover, the LPH is in dialogue with creditors, suppliers and other key stakeholders.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia