San Leon Energy plc LON:SLE the AIM quoted oil and gas exploration and production company focused on Europe and Africa, has given DirectorsTalk 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 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 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.”
