San Leon Energy PLC Update on proposed transactions (0433V)
03 April 2023 - 8:00AM
UK Regulatory
TIDMSLE
RNS Number : 0433V
San Leon Energy PLC
03 April 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.
3 April 2023
San Leon Energy plc
(" San Leon " or the " Company ")
Update on proposed transactions, refinancing update and ELI
operational update
San Leon, the independent oil and gas production, development
and exploration company focused on Nigeria, announces a further
update in relation to: i) the proposed transactions with Midwestern
Oil & Gas Company Limited ("Midwestern") and the Company's
further conditional investments in ELI (together the "Proposed
Transactions"); ii) its current refinancing discussions; and iii)
an Energy Link Infrastructure (Malta) Limited ("ELI") operational
update.
Details of the Proposed Transactions were announced by the
Company on 8 July 2022.
Update on the Proposed Transactions
Further to the announcement made on 24 March 2023, all of the
longstop dates in relation to the Proposed Transactions have now
been extended to 30 June 2023, in agreement with Midwestern and the
other relevant parties. 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.
As announced on 24 March 2023, the Board continues to believe
that the Proposed Transactions will be transformational for the
Company and it continues to work towards completing them. However,
the Board notes the recent challenge by NNPC Limited and OML 18
Energy Resource Limited to the operatorship of Oil Mining License
(OML) 18 ("OML 18") and the potential delays this will cause to the
Proposed Transactions. The extension of the longstop dates, inter
alia, reflects this.
Update on the refinancing discussions
Also as announced by the Company on 24 March 2023, San Leon
remains in discussions on the proposed refinancing. Those
discussions continue to progress and the Board expects to make
progress in relation to the proposed refinancing in the near term.
Further announcements will be made as and when appropriate.
Energy Link Infrastructure ("ELI") - operational update
The Company is also pleased to announce that Century Energy
Group Partners ("CEG") has partnered with ELI for the
spread-mooring completion, operations and maintenance of the
Floating Storage and Offloading ("FSO") vessel, the ELI Akaso.
The FSO ELI Akaso terminal is an integral component in OML 18's
Alternative Crude Oil Evacuation System's ("ACOES") infrastructure.
The partnership between ELI and CEG is under a risk service
contract in line with standard terms for oil and gas asset
commercialisation and production enhancement.
CEG has deployed its personnel, infrastructure and expertise
towards the engagement and has made significant progress in the
completion of the FSO spread-mooring. CEG is scheduled to complete
the important milestone of spread-mooring the FSO by 10 April 2023.
Upon completion of the spread-mooring for the ELI Akaso, CEG will
be responsible for the daily operations and maintenance of the FSO
ELI Akaso terminal. The terminal will serve as a dedicated crude
oil storage and export terminal for OML holders and marginal field
producers in the Eastern Niger Delta, including OML 18. This
partnership will enable ELI to not only facilitate improved
realised production and revenue streams from OML 18 but also
generate revenues from third party oil & gas companies
operating in the Eastern Niger Delta.
ELI's ACOES infrastructure comprises a new 47-kilometre secure
undersea pipeline from OML 18 to the FSO ELI Akaso terminal. The
ACOES pipeline component is expected to have a throughput
capability of 100,000 barrels per day (b/d) of oil, while the FSO
ELI Akaso has a storage capacity of 2 million barrels of oil. This
ACOES infrastructure will enhance crude oil commercialisation,
primarily through the reduction of downtime and crude losses
associated with the existing export routes. The ACOES pipeline is
expected to be completed in the second half of 2023.
Kolapo Ademola, CEO of ELI and a Non-Executive Director of San
Leon, commented:
"ELI is delighted to collaborate with Century Energy Group.
CEG's proven expertise and experience in the sector provides ELI
with a reliable partner towards the attainment of our corporate
goals within the midstream oil and gas sector in Nigeria. Our
collaboration with CEG should expedite our ability to deliver value
to our key partners and stakeholders; Crude Oil producers in the
Eastern Niger Delta, the Federal Government of Nigeria and the
Nigerian economy at large."
Unless otherwise defined herein, the capitalised defined terms
used in this announcement have the same meaning as those used in
the Company's Admission Document published on 8 July 2022 .
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
James Sinclair-Ford
John Prior
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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