25th Feb 2016 14:12
LONDON (Alliance News) - San Leon Energy PLC Thursday said the date by which it must pay for its acquisition of Candian-firm Mart Resources Inc has been extended for a second time as the company edges closer to securing the financing needed to pay for the deal.
San Leon was supposed to transfer the USD64.6 million consideration for Mart Resources into an escrow account by February 17, but then extended that by one week before securing another extension on Thursday.
The most recent extension gives San Leon until the first day of March, which is next Tuesday, to pay the consideration into the escrow account. Although shareholders may expect further extensions, San Leon seems confident it can pay the consideration very soon.
"The financing of the transaction has advanced considerably over the last week. Completion of the financing is now considered to be imminent," said Chairman Oisin Fanning on Thursday.
The result of the acquisition, together with a restructuring, is that San Leon will secure a 9.72% indirect economic interest in the OML 18 block, onshore Nigeria.
San Leon shares are currently suspended.
By Joshua Warner; [email protected]; @JoshAlliance
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