San Leon Energy Plc, said it has delayed using a loan facility agreed upon in July as it edges closer to the sale of non-core Oza oil field investments.
San Leon also revealed that it is in advanced negotiations for the sale of its non-core investments relating to the Oza oil field in Nigeria, which has a book value of US$5.6mln.
Specifically, an alternative lender has indicated it may be interested in acquiring a stake in the company, a form of investment it believes is more in line with its overall strategic and financing objectives.
Additionally, this form of investment will allow the company to diversify its shareholder base and build long-term support ahead of the planned expansion of its activities in Nigeria, it said.
The oil and gas company pointed out that it is yet to utilise the US$50mln made available for working capital requirements and financing of further investments by MM Capital Holdings.
San Leon had previously said it expected discussions over alternative lending to be completed by mid-December.
However, given the complexity of the discussions, and the upcoming holiday period, the timetable has become protracted, although it said talks remain positive and the alternative facility can be finalised in the new year.
All terms of the sale are agreed, although San Leon expects the transaction to formally be completed when the buyer has finalised its own financing arrangements, which it believes is imminent.