REG - San Leon Energy PLC - Update on proposed transactions

San Leon EnergyAnnouncement

03/04/2023 07:15

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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                               +44 20 3328 5656

 (Nominated adviser and joint broker to the Company)
 Nick Naylor

 Alex Brearley

 Vivek Bhardwaj
 Panmure Gordon & Co                                   +44 20 7886 2500

 (Joint broker to the Company)
 James Sinclair-Ford

 John Prior
 Tavistock                                             +44 20 7920 3150

 (Financial Public Relations)
 Nick Elwes

 Simon Hudson
 Plunkett Public Relations                             +353 1 230 3781
 Sharon Plunkett

 

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