9th Oct 2023 17:54
San Leon Energy PLC - Nigeria-focused oil and gas production, development and exploration company - Announces the termination of its proposed transactions with Midwestern Oil & Gas Co Ltd and the further conditional investments in Energy Link Infrastructure (Malta) Ltd. Notes these were initially announced on July 8, 2022. Remains in early-stage discussions with Midwestern regarding a revised transaction in relation to Midwestern Leon Petroleum Ltd and Midwestern's indirect shareholding in ELI.
Explains reasons for ending deals are, firstly the new Eroton debt facilities and the Sahara OML 18 acquisition continue to be delayed for reasons outside of the company's control; and secondly, the legal challenges in Nigeria to Eroton Exploration & Production Co Ltd's ongoing operation of the oil mining license in Nigeria, which the board believes will not be resolved in the short term.
Considers alternate structure to the deal. Explains although the discussions are at an early stage, the board anticipates a potential transaction may involve swapping a proportion of the outstanding loan notes into new assets in MLPL. In addition, San Leon remains interested in acquiring Midwestern's indirect interests in ELI.
Current stock price: suspended at 16.14 pence
12-month change: down 58%
By Jeremy Cutler, Alliance News reporter
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