San Leon Energy PLC Nigerian Onshore Production Deal Update (0678Z)

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RNS Number : 0678Z

San Leon Energy PLC

24 May 2016

24 May 2016

San Leon Energy plc

Nigerian Onshore Production Deal Update

San Leon Energy plc ("San Leon" or "the Company"), the AIM quoted oil and gas exploration and production company focused on Europe and Africa, is pleased to provide the following update on its production deal on the OML 18 block, onshore Nigeria.

Certain defined terms used herein are set forth in the "Definitions" section of this press release.

All dollar amounts or references to "$" refer to US dollars.

As announced on 16 May 2016, in order to complete the subsequent parts of the OML 18 Production Arrangement (collectively the "Remaining Transactions") which would result in the Company securing a 9.72% indirect economic interest in OML 18, BidCo was required to raise an additional $100 million which was intended to be structured as secured notes ("Loan Notes") issued by BidCo.

A further $30 million, structured as Loan Notes, issued on the same terms as the previous Loan Notes (i.e 17% coupon), has now been provided by funds managed by Toscafund. BidCo has, through a share buyback of its own shares, completed the second step of the three-step OML 18 Production Arrangement. As a result Midwestern now holds 70.43% of Bidco and San Leon's share of BidCo has increased to 29.57%, equal to an economic interest in OML 18 of 5.75%.

San Leon's shares in Bidco remain pledged to Toscafund pending San Leon shareholder and regulatory approvals. Following completion of the third and final step of the Remaining Transactions (requiring $70 million) and of the OML 18 Production Arrangement, San Leon will hold a 40% interest in BidCo.

Oisin Fanning, Executive Chairman, commented:

"The Company is grateful to Toscafund for providing debt funding to secure the second step of the Acquisition, while the Company organises placing funds. As announced on 16 May 2016, the Company is proposing to repurchase all Loan Notes, subject to San Leon shareholder and regulatory approvals, using funds from the proposed placing."

Enquiries:

 
 San Leon Energy plc 
  Oisin Fanning, Executive 
  Chairman                    [phone] 
 SP Angel Corporate 
  Finance LLP 
  Nominated Adviser 
  and Joint Broker 
  Ewan Leggat 
  Richard Morrison            +44 (0) 20 
  Richard Hail                 3470 0470 
 Whitman Howard Limited 
  Joint Broker 
  Nick Lovering               +44 (0) 20 
  Francis North                7659 1234 
 Brandon Hill Capital 
  Limited 
  Joint Broker 
  Oliver Stansfield           +44 (0) 20 
  Jonathan Evans               3463 5000 
 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

Definitions

 
  "Acquisition" or       The acquisition of an interest 
   "OML 18 Production     in OML 18 by San Leon 
   Arrangement" 
  "BidCo" 
 
                          Midwestern Leon Petroleum Limited, 
                          a Mauritian incorporated special 
                          purpose vehicle, established for 
                          the purpose of holding the combined 
                          OML 18 interest of both San Leon 
                          Energy and Midwestern Oil & Gas 
                          Limited. On completion, San Leon 
                          will hold 40% and Midwestern will 
                          hold 60% of BidCo 
 "Midwestern"           Midwestern Oil & Gas Company Limited, 
                         a private Nigerian upstream and 
                         midstream exploration and production 
                         company 
  "OML 18 "              The onshore mining lease in the 
                          Southern Niger Delta region of 
                          Nigeria known as OML 18 
  "Toscafund"            Toscafund Asset Management LLP 
 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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May 24, 2016 02:01 ET (06:01 GMT)