San Leon Energy PLC - oil and gas exploration and production in Nigeria - Confirms it is in reverse takeover talks with Midwestern Oil & Gas Company Ltd about buying an indirect interest in the OML 18 oil and gas block located onshore in Nigeria. San Leon would buy all outstanding shares as part of the deal and is not considering acquiring Midwestern, it says. San Leon currently holds an 11% interest in the OML 18 block.
Midwestern currently holds over 10% of San Leon's shares and would end up as the majority owner of the shares if the reverse takeover goes ahead.
Separately, San Leon has invested USD2 million as well as an option to invest a further USD6.5 million in Energy Link Infrastructure Ltd. Energy Link owns the Alternative Crude Oil Evacuation System project, which will provide an oil export route from OML 18, comprising a new pipeline and floating storage vessel. The deal sees San Leon up its stake in Energy Link from 10% to 16%.
Current stock price: 39.97 pence, up 7.0%
Year-to-date change: up 64%
By Will Paige; willpaige@alliancenews.com
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San Leon (SLE)