Update on proposed transactions - Midwestern & ELI

RNS Number : 8389X
San Leon Energy PLC
01 September 2022
 

image1.png

 

1 September 2022

San Leon Energy plc

("San Leon" or the "Company")

 

Update on proposed transactions with Midwestern and ELI

 

San Leon, the independent oil and gas production, development and exploration company focused on Nigeria, announces the following update in relation to its forthcoming Proposed MLPL Reorganisation and the Further ELI Investments, as defined in the Company's AIM Admission Document published on 8 July 2022 (the "Admission Document").

 

On 8 July 2022 the Company announced that it had entered into a series of agreements with Midwestern Oil & Gas Company Limited ("Midwestern") to consolidate Midwestern's holdings in San Leon, Midwestern Leon Petroleum Limited ("MLPL") and Energy Link Infrastructure (Malta) Limited ("ELI") into a single holding in San Leon (together the "Proposed Midwestern Reorganisation").  In addition, San Leon announced further conditional investments in ELI (together the "Further ELI Investments").  Taken together the Proposed Midwestern Reorganisation and Further ELI Investments are collectively referred to as the "Proposed Transactions".  The Admission Document set out details of the Proposed Transactions and the Proposed Transactions were approved by shareholders at an extraordinary general meeting of the Company held on 5 August 2022.

 

Extension of timeline for New Eroton Debt Facilities

 

Completion of the Proposed MLPL Reorganisation is subject to a number of conditions, details of which were set out in the Company's announcement of 8 July 2022 and in the Admission Document.  Several of these conditions have been satisfied, notably the publication of the Admission Document and approval of relevant matters pertinent to the Proposed Transactions by shareholders at the Company's extraordinary general meeting held last month.

 

In order to acquire additional interests in OML 18 and take its economic interest to 45% of OML 18, Eroton proposes to enter into new senior secured reserve-based lending facilities totaling US$750 million (the "New Eroton Debt Facilities"), to be provided to Eroton by a lending consortium headed by Afreximbank.  Whilst this process has advanced it remains a complex procedure with several interested parties and, as a result, additional time is needed to finalise the loan agreements and ancillary documentation.  Consequently the condition relating to the New Eroton Debt Facilities, which had been due to be finalised by 31 August 2022, has now been extended to 30 September 2022 by agreement with Midwestern.  Aside from the extension of timing, the structure of the New Eroton Debt Facilities remains in accordance with the description set out in the Admission Document.

 

The board of San Leon remains confident that the Proposed Transactions will complete by or during the final quarter of this year, as originally set out in the Admission Document.

 

 

 

Enquiries:

 

San Leon Energy plc

+353 1291 6292

Oisin Fanning, Chief Executive

Julian Tedder, Chief Financial Officer

 

Allenby Capital Limited

(Nominated adviser and joint broker to the Company)

+44 20 3328 5656

Nick Naylor

Alex Brearley

Vivek Bhardwaj

 

Panmure Gordon & Co

(Joint broker to the Company)

+44 20 7886 2500

James Sinclair-Ford

 

Tavistock

(Financial Public Relations)

+44 20 7920 3150

Nick Elwes

Simon Hudson

 

Plunkett Public Relations

+353 1 230 3781

Sharon Plunkett

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
MSCEAXPFDEFAEFA
UK 100