Lekoil's total comprehensive losses narrowed to $15.8m in the year ended 31 December - down from $18.7m last time.
Cash balances at the year-end totalled $4.38m (2015: $26.02m) while loans and borrowings totalled $27.39m (2015: $8.25m(.
No dividends were paid or declared during the year (2015: nil).
Operating costs and administrative expenses totalled $21.1m compared with $22.8m in 2015.
Lekoil said the decrease was largely due to naira currency devaluation in 2016 which impacted the functional values of the report costs despite increased activity levels.
Chairman Samuel Adegboyega said|: "Our two priorities are to focus our resources on growing our low cost production from Otakikpo and to appraise and monetise the resources in the shallow water Ogo discovery.
"2017 is an important year for Lekoil as we grow Otakikpo production towards the Phase 1 steady state.
"A secondary focus will be on the evaluation and exploration of surrounding prospects in both OPL 310 and the Otakikpo licence area."
At 9:06am: (LON:LEK) Lekoil share price was -0.87p at 14.63p