San Leon Energy, the independent oil and gas production, development and exploration company focused on Nigeria, has announced a further extension to the deadline for the proposed transactions with Midwestern Oil & Gas Company. The company has also announced further conditional investments in Energy Link Infrastructure (Malta) Limited (ELI).
The proposed transactions, which were first announced on July 8, 2022, involve the consolidation of San Leon’s interests in the OML 18 asset in Nigeria. It also involves the acquisition of a 10% stake in ELI, the owner of the Alternative Crude Oil Evacuation System (ACOES) project.
The deadline for the proposed transactions, which was previously extended to August 31, 2023, has now been extended to September 30, 2023, in agreement with Midwestern and the other relevant parties. San Leon said that the reason for the delay was due to factors outside the company’s control, such as the documentation for the proposed Eroton debt facilities and the Sahara OML 18 acquisition.
San Leon also said that it was in discussions with Midwestern on whether a potential revision to the proposed transactions can be agreed. This would allow completion to occur while the Eroton debt facilities and the Sahara OML 18 acquisition continue to be delayed.
San Leon’s chief executive, Oisin Fanning, said that the proposed transactions have the ability to be transformational not only for OML 18 but also for San Leon itself and its shareholders. He said that the potential transaction is expected to deliver to San Leon a far greater interest in OML 18, as well as pave the way for better infrastructure enabling more efficient production from the field.
Source: Independent.
