First oil has been obtained from the AK-2H well at the Sèmè Field Block 1 offshore Benin by Akrake Petroleum Benin, an indirect subsidiary of Rex International Holding, while parent Lime Petroleum moves ahead with a strategic and financial review after operational setbacks.
Lime Petroleum said output from AK-2H is expected to commence within the next two weeks following the first-oil milestone achieved earlier in February. The company warned, however, that there is no assurance the review will deliver a transaction or a solution outside a formal restructuring process, and that without a timely recapitalization or restructuring outcome, it may be unable to meet obligations as they fall due.
To address the situation, Lime Petroleum has appointed legal counsel to run a comprehensive strategic and financial assessment aimed at reinforcing the balance sheet and establishing a sustainable capital structure. The scope includes potential mergers or asset transactions, revisions to existing debt facilities, and broader restructuring measures. The company said it remains in discussions with creditors, suppliers, and other stakeholders.
AK-2H was drilled as a horizontal production well targeting the H6 reservoir in the Abeokuta Formation. The well features a 1,405 m horizontal section, including about 950 m of oil-saturated sandstone. The reservoir interval was completed with screens fitted with autonomous inflow control valves, and a downhole electrical submersible pump is being installed. The well is intended to drain the western part of the field during the initial development phase, alongside the planned AK-1H horizontal well.
Although first oil was achieved, Lime Petroleum said drilling activities ran into major technical complications that materially lifted drilling costs and pushed production back by more than three months. The company said the overruns have had a material adverse effect on its financial position, adding that the board and management are taking steps intended to protect creditor interests and maximize recoveries.
Sèmè Field lies in Block 1 offshore Benin. Akrake Petroleum Benin holds about a 76% working interest, with the government of Benin holding 15% and Octogone Trading holding 9%.
