REG - San Leon Energy PLC - Update on Proposed Transactions

San Leon EnergyAnnouncement

01/09/2023 07:00

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RNS Number : 0323L  San Leon Energy PLC  01 September 2023

 

 

 

Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information for the purposes of
Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310.
With the publication of this announcement, this information is now considered
to be in the public domain.

 

1 September 2023

San Leon Energy plc

("San Leon" or the "Company")

 

Update on Proposed Transactions

San Leon, the independent oil and gas production, development and exploration
company focused on Nigeria, announces a further extension to the longstop
dates for the proposed transactions with Midwestern Oil & Gas Company
Limited ("Midwestern") and the Company's further conditional investments in
Energy Link Infrastructure (Malta) Limited ("ELI") (together the "Proposed
Transactions").  Details of the Proposed Transactions were announced by the
Company on 8 July 2022 and set out in an admission document published by the
Company on the same day (the "Admission Document").

 

All longstop dates in relation to the Proposed Transactions have, in agreement
with Midwestern and the other relevant parties, now been extended to 30
September 2023. The longstop dates are in relation to the New Eroton Debt
Facilities, the Sahara OML 18 Acquisition Agreement, the MLPL Reorganisation
Agreement and the ELI Reorganisation Agreement (details of all of which are
set out in the Admission Document).

 

The Company is in discussions with Midwestern on whether a potential revision
to the Proposed Transactions can be agreed to allow completion to occur whilst
the New Eroton Debt Facilities and the Sahara OML 18 Acquisition continue to
be delayed for reasons outside of the Company's control. There can be no
guarantee that any such revised terms will be agreed.

 

Further to the update on refinancing discussions and outstanding creditors
(including the US$5.0 million loan from funds managed by Toscafund Asset
Management LLP) announced on 8 August 2023, San Leon remains in discussions
with a third party in relation to securing an alternative loan facility of
US$50.0 million and will provide an update to shareholders when the loan
facility is entered into.

 

Further to the Company's announcement of 8 August 2023, San Leon remains in
discussions with ELI regarding making further potential investments of up to
US$37.0 million, in ELI, which would be conditional, inter alia, on San Leon
completing the alternative loan facility of US$50.0 million referred to above.

 

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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