REG - San Leon Energy PLC - Update on proposed transactions - Midwestern & ELI

San Leon EnergyAnnouncement

01/09/2022 07:00

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

 

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                               +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
 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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