REG - San Leon Energy PLC - Response to press speculation

San Leon EnergyAnnouncement

11/04/2024 10:30

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RNS Number : 2785K  San Leon Energy PLC  11 April 2024

 

 

11 April 2024

San Leon Energy plc

("San Leon" or the "Company")

 

Response to press speculation

 

San Leon, the independent oil and gas production, development and exploration
company focused on Nigeria, notes the comments in today's Irish press about a
petition by Ocean Pearl Maritime SA ("Ocean Pearl") to wind up one of its
subsidiaries, San Leon ELI Limited.

 

On 10 October 2023, San Leon announced amongst other matters its proposal to
acquire a further 13.5 per cent. of Energy Link Infrastructure (Malta)
Limited's ("ELI") existing shares from Ocean Pearl for US$12 million. This
proposal was part of wider series of investments in ELI which, when completed,
will make San Leon the majority shareholder in ELI.  Furthermore, this
proposal had been successfully negotiated down from the indicative price of
US$15 million as set out in the Company's admission document published in July
2022.

 

It is self-evident that the acquisition from Ocean Pearl was conditional on
completion of San Leon's refinancing.  Furthermore, as all shares in ELI are
pledged to ELI's senior lender, completion of any transfer of shares requires
the consent of the lender.  The agreement with Ocean Pearl requires the
parties to work together to secure that consent. However, to date, Ocean Pearl
has made no offer or representations in this regard.  Instead, Ocean Pearl
has lodged a petition for the winding up of San Leon ELI Limited, which is the
member of the San Leon group that contracted with Ocean Pearl.

 

San Leon considers the petition to be both aggressive and vexatious in
nature.  The directors of the Company believe that it will have no bearing on
the speed at which funding can be put in place and is arguably detrimental to
Ocean Pearl's own interests if prospective funding partners object to Ocean
Pearl's approach.  San Leon has strongly advised Ocean Pearl to withdraw its
petition and instead work constructively with the Company towards an expedient
completion of the acquisition of its 13.5 per cent interest in ELI. If Ocean
Pearl does not withdraw its winding up petition, then San Leon has retained
legal advisers to robustly defend and overturn the petition.

 

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
 Fortified Securities                                  +44 7493989014

 (Joint broker to the Company)
 Guy Wheatley
 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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