REG - San Leon Energy PLC - Further update on the proposed transactions

San Leon EnergyAnnouncement

01/11/2022 07:00

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RNS Number : 8137E  San Leon Energy PLC  01 November 2022

 

 

 

1 November 2022

San Leon Energy plc

("San Leon" or the "Company")

 

Further update on the 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 the
Proposed MLPL Reorganisation and the Further ELI Investments, details of which
were set out in the Company's AIM Admission Document published on 8 July 2022
(the "Admission Document").

 

New Eroton Debt Facilities

 

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.  The process of finalising the New Eroton Debt Facilities has
continued during October 2022, and whilst nearing its conclusion, further
additional time is needed to finalise the loan agreements and ancillary
documentation.  Consequently, the condition relating to the New Eroton Debt
Facilities being entered into, which had already been extended to 31 October
2022, has now been extended to 30 November 2022 by agreement with Midwestern.

 

In addition to the requirement to enter into the New Eroton Debt Facilities,
the MLPL Reorganisation Agreement required the Sahara OML 18 Acquisition
Agreement (as defined in the Admission Document) to be entered into by all
parties by 30 September 2022, which was subsequently extended to 31 October
2022. The Sahara OML 18 Acquisition Agreement is not expected to be entered
into until after the New Eroton Debt Facilities have been entered into and the
funds are available, and therefore this date has now been further extended to
30 November 2022 by agreement with Midwestern.

 

San Leon US$50 million loan facility

 

As previously announced by the Company on 30 September 2022, whilst a loan
facility of US$50.0 million has been made available to the Company by MM
Capital Holding Limited for the purposes of funding its working capital
requirements and financing the Further ELI Investments (as set out in the
Admission Document), the Company has been discussing alternative financing on
terms that are better aligned with the Company's overall strategic and
financing objectives. In this regard, progress has been made on securing
alternative financing and the Board intends to finalise these discussions in
the coming weeks with full loan documentation and drawdown of the funds
thereafter.

 

Unless otherwise defined herein, the capitalised defined terms used in this
announcement have the same meaning as those used in the Admission Document.

 

 

 

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)
 James Sinclair-Ford

 John Prior
 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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