Independent oil and gas production, San Leon which is pushing development and exploration in Nigeria, has announced a further extension to the longstop dates for the proposed transactions with Midwestern Oil & Gas Company and the Company’s further conditional investments in Energy Link Infrastructure (Malta) Limited, ELI.
Further to the update on refinancing discussions and outstanding creditors (including the US$5.0 million loan from funds managed by Toscafund Asset Management LLP) announced on 8 August 2023, San Leon remains in discussions with a third party in relation to securing an alternative loan facility of US$50.0 million and will provide an update to shareholders when the loan facility is entered into.
San Leon remains in discussions with ELI regarding making further potential investments of up to US$37.0 million, in ELI, which would be conditional, inter alia, on San Leon completing the alternative loan facility of US$50.0 million referred to above.
All longstop dates in relation to the Proposed Transactions have, in agreement with Midwestern and the other relevant parties, now been extended to 30 September 2023. 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 (details of all of which are set out in the Admission Document).
The Company is in discussions with Midwestern on whether a potential revision to the Proposed Transactions can be agreed to allow completion to occur whilst the New Eroton Debt Facilities and the Sahara OML 18 Acquisition continue to be delayed for reasons outside of the Company’s control. There can be no guarantee that any such revised terms will be agreed.