(Alliance News) - San Leon Energy PLC said on Friday it expects to publish an AIM admission document by the end of February for the proposed reorganisation of Midwestern Oil & Gas Ltd's holdings in San Leon and Midwestern Leon Petroleum Ltd into a single holding.
The Dublin-based oil and gas exploration company with operations focused on Nigeria said this would increase its economic interest in the OML 18 oil and gas block and result in San Leon becoming the largest shareholder of Alternative Crude Oil Evacuation System project.
As part of the transaction, San Leon has proposed that new preference shares will be issued to the shareholders in the company. These preference shares will entitle holders to a preferential right to any dividends declared and paid by the company in the three years following the completion of the transaction. This would be up to USD40 million in aggregate over a three-year period.
San Leon currently has a 40% equity interest in Midwestern Leon Petroleum with the remaining equity interest being owned by Midwestern Oil & Gas.
Chief Executive Oisin Fanning said: "Our potential transaction with Midwestern is a transformational opportunity for San Leon, achieving our twin aims of increasing our interest in OML 18 and building our shareholding in the operator of the new Alternative Crude Oil Evacuation System pipeline project."
"We have long considered OML 18 to be a world class oil and gas asset and our plans to further enhance our involvement there could be very significant to the company's future growth plans. A considerable amount of work has already been carried out by both parties and their respective advisers. We continue to diligently progress the transaction towards completion."
Shares in San Leon Energy are suspended at 40.75 pence.
By Heather Rydings; heatherrydings@alliancenews.com
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