Update on Convertible Loan Facility

RNS Number : 6372A

San Leon Energy PLC

02 January 2018

 

02 January 2018

San Leon Energy plc

("San Leon" or the "Company")

Update on Convertible Loan Facility and Repayment of Avobone, Payments Received Against MLPL Loan Notes, Polish Asset Sale Agreement Update

Update on Convertible Loan Facility

San Leon Energy plc (the "Company"), the AIM listed company focused on oil and gas development and appraisal in Africa and Europe, announces that it has settled in full the loan facility agreement ("Facility Agreement") with nominees of funds managed by Toscafund Asset Management LLP (together, "Toscafund") in relation to a £11 million convertible secured loan facility (the "Loan"), including interest and fees.  As a result, the security provided to Toscafund by San Leon during the tenure of the Facility Agreement will be released in due course.

Payments to creditors

The Company has paid approximately €11.53 million to Avobone N.V. and Avobone Poland BV (together, "Avobone") which has fully settled all amounts due to Avobone.  The Company has also made its agreed Q4 2017 payment to YA II PN Ltd (formerly known as YA Global Master SPV Ltd), an investment fund managed by Yorkville Advisors Global LP ("Yorkville").

Repayment of Midwestern Leon Petroleum Limited ("MLPL") Loan Notes (the "Loan Notes")

The Company is scheduled to be paid approximately US$19 million per quarter by MLPL in respect of the Loan Notes from Q4 2017. The Company has previously announced the receipt of US$11million in satisfaction of payment of amounts due for Q4 2017. A further US$7.75 million has also now been received, meaning that MLPL's obligations for Q4 2017 in respect of the Loan Notes have been met.

Polish Asset Sale Agreement Update

On 17 November 2016, the Company signed a sale and purchase agreement ("SPA") for the sale of its 35% interest in the Rawicz gas field in the Permian Basin, to Palomar Natural Resources ("Palomar"). The sale was effected through the sale of SLE's 35% share in TSH Energy Joint Venture BV ("TSH").  The total cash consideration due to the Company was US$9.0 million, of which US$4.5 million was received in November 2016.  The balance of US$4.5 million plus accrued interest (the "Amount Due") was due to paid to San Leon on or before 01 October 2017. Under a novation agreement and extension agreement dated 22 December 2017, the Amount Due is now the full responsibility of NSP Investments Holdings Ltd, a BVI registered company that holds a 35% interest in TSH.

The Company announces that it has now received a further US$1.5 million payment of the Amount Due.  The Company is due to receive a further $3.6 million, including an extension fee plus any further accrued interest on or before 01 September 2018.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:

San Leon Energy plc	+ 353 1291 6292
Oisin Fanning, Chief Executive
SP Angel Corporate Finance LLP (Nominated Adviser)	[phone]
Richard Morrison
Ewan Leggat
Whitman Howard Limited (Financial adviser and Joint broker)	[phone]
Nick Lovering
Francis North
Brandon Hill Capital Limited (Joint broker to the Company)	[phone]
Oliver Stansfield
Jonathan Evans
Vigo Communications (Financial Public Relations)	[phone]
Chris McMahon
Kate Rogucheva
Plunkett Public Relations	[phone]
Sharon Plunkett

 

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