REG - San Leon Energy PLC - Extension & update to investment in the Oza field

San Leon EnergyAnnouncement

03/05/2022 16:30

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RNS Number : 1684K  San Leon Energy PLC  03 May 2022

 

 

 

3 May 2022

 

San Leon Energy plc

("San Leon" or the "Company")

 

Extension and update to investment in the Oza field, Nigeria

San Leon, the independent oil and gas production, development and exploration
company focused on Nigeria, is pleased to announce the following extension to
the timing of its follow-on investment in the Oza oil field in Nigeria
("Oza").

On 27 January 2022, San Leon announced certain amendments to the terms of its
investment in Oza which included an option to provide a further loan of US$2.0
million to Decklar by 30 April 2022 to increase its shareholding in Decklar
Resources Limited ("Decklar") from 11.5% to 15% (or otherwise accept the pro
rata reduction in its shareholding to 11.5%).  San Leon and Decklar have now
agreed to extend the time period for providing this loan to 30 June 2022 on
the basis that San Leon's further loan will increase to US$2.5 million.  This
increased loan will continue to be made via 10% per annum unsecured
subordinated loan notes of Decklar on the same repayment terms as originally
announced on 1 September 2020.  Furthermore, the extension gives San Leon
additional time to assess the fundamentals of Oza, given that Decklar
Resources Inc has today made an announcement that notes that the re-entry of
the Oza-1 well in the Oza oil field in Nigeria has converted several
hydrocarbon zones from contingent resources to reserves, prior to San Leon
deciding whether to take up the option.

The extension also enables completion of San Leon's proposed further
investment in Oza to be more in line with the proposed timing for the entering
into of binding conditional transaction documentation in relation to the
proposed reorganisation to consolidate Midwestern Oil and Gas Company
Limited's ("Midwestern") shareholdings in: i) the Company; and ii)
Midwestern Leon Petroleum Limited into a single shareholding in the Company,
which also comprises, inter alia, a proposed consolidation of Midwestern's
indirect debt and equity interests in Energy Link Infrastructure (Malta)
Limited ("ELI") with those of the Company, as well as further new debt and new
and existing equity investments to be made by San Leon in ELI, updated details
of which were most recently announced on 29 April 2022.  All other terms of
the Company's investment in Oza remain unchanged.

 

 

Enquiries:

 

 San Leon Energy plc                                   +353 1291 6292
 Oisin Fanning, Chief Executive

 Julian Tedder, Chief Financial Officer
 Allenby Capital Limited                               +44 20 3328 5656

 (Nominated adviser and joint broker to the Company)
 Nick Naylor

 Alex Brearley

 Vivek Bhardwaj
 Panmure Gordon & Co                                   +44 20 7886 2500

 (Joint broker to the Company)
 Nick Lovering

 James Sinclair-Ford
 Tavistock                                             +44 20 7920 3150

 (Financial Public Relations)
 Nick Elwes

 Simon Hudson
 Plunkett Public Relations                             +353 1 230 3781
 Sharon Plunkett

 

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