San Leon Energy PLC Extension & update to investment in the Oza field (1684K)
May 03 2022 - 11:28AM
UK Regulatory
TIDMSLE
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
(Nominated adviser and joint broker to the Company) +44 20 3328 5656
Nick Naylor
Alex Brearley
Vivek Bhardwaj
Panmure Gordon & Co
(Joint broker to the Company) +44 20 7886 2500
Nick Lovering
James Sinclair-Ford
Tavistock
(Financial Public Relations) +44 20 7920 3150
Nick Elwes
Simon Hudson
Plunkett Public Relations +353 1 230 3781
Sharon Plunkett
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END
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