San Leon Energy PLC Nigerian Onshore Production Deal - Payment Made (9413S)

TIDMSLE

RNS Number : 9413S

San Leon Energy PLC

22 March 2016

22 March 2015

San Leon Energy Plc

("San Leon" or "the Company")

Nigerian Onshore Production Deal - Escrow Payment Made To BidCo Lawyers

San Leon Energy Plc (the "Company"), the AIM listed company focused on oil and gas exploration and production in Europe and Africa, announces that all of the funds required to be paid to satisfy the aggregate purchase price of Mart Resources Inc (together with certain transaction costs) have been received by lawyers acting for the acquisition vehicle ("BidCo"). Subject to the satisfaction of certain closing requirements, these funds will be paid to the depository by 5pm Calgary time on 22(nd) March 2016 and will allow for the finalisation of the Mart Arrangement Agreement.

As outlined in the RNS dated 22 January 2016, payment of these funds to the depository would constitute the initial step of a larger overall deal. The consideration paid for Mart Resources Inc shares is approximately CAD$89.2 million. The full escrow amount of approximately US$73 million has been provided by debt investors, who will hold security over San Leon's shares in BidCo, and which transaction is not subject to any further approvals.

San Leon requires shareholder approval and other regulatory approvals to benefit from San Leon's shares in BidCo. Subject to such approvals, this step of the transaction will provide San Leon with:

   --      a 4.05% indirect economic interest in the world-class OML 18 block, onshore Nigeria; 

-- a minimum 65% enhanced cash sweep of BidCo's production proceeds from OML 18 to cover the timely repayment of debt incurred to finance the total acquisition cost; and

-- the right to provide oilfield services, such as workover and drilling rigs, to the OML 18 operator (EROTON Exploration and Production Limited).

The remaining steps of the larger overall deal provide the opportunity for San Leon's indirect economic interest on OML 18 to be increased to a maximum of 9.72%, by arranging up to approximately US$100 million in additional funds to BidCo. Details of the approvals process, and plans for the next steps of the deal, will be announced in due course.

Enquiries:

 
 San Leon Energy plc 
  Oisin Fanning, Executive 
  Chairman                    [phone] 
 Brandon Hill Capital 
  Oliver Stansfield            +44 (0) 20 
  Jonathan Evans                3463 5000 
 finnCap Ltd 
  Corporate Finance 
  Matt Goode 
  Christopher Raggett 
  Corporate Broking           +44 (0) 20 
  Joanna Weaving               7220 0500 
 Macquarie Capital 
  (Europe) Limited            +44 (0) 20 
  Jon Fitzpatrick              3037 2000 
 Stockdale Securities 
  Ltd 
  Nominated Adviser 
  Robert Finlay               +44 (0) 20 
  Antonio Bossi                7601 6100 
 Vigo Communications 
  Financial Public 
  Relations 
  Chris McMahon               +44 (0) 20 
  Alexandra Roper              7830 9700 
 Plunkett Public Relations    +353 (0) 1 
  Sharon Plunkett              280 7873 
 

www.sanleonenergy.com

This information is provided by RNS

The company news service from the London Stock Exchange

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March 22, 2016 11:21 ET (15:21 GMT)