(Alliance News) - San Leon Energy PLC on Thursday said that a deadline for a new debt facility has been extended, ahead of its proposed merger with Midwestern Oil & Gas Co Ltd.
San Leon is a oil and gas exploration and production company focused on Nigeria.
Back in July, San Leon entered a series of agreements with Midwestern Oil & Gas to consolidate Midwestern's holdings in San Leon, Midwestern Leon Petroleum Ltd and Energy Link Infrastructure Ltd into a single holding in San Leon.
The company said the move will "simplify the group structure". As a result, San Leon's exposure to OML 18 asset will increase fourfold to a 44% initial indirect economic interest.
It also announced further conditional investments in Energy Link, which would increase San Leon's ownership in Energy Link to about 50%.
On Thursday, San Leon said a number of the conditions for the MLPL reorganisation have been satisfied. It noted that it has published the admission document and received approval from shareholders at the company's extraordinary general meeting held last month.
Further, it said that in order to acquire additional interest in OML 18, Eroton has proposed to enter into new senior secured reserve-based lending facilities totalling USD750 million.
San Leon explained that this "complex" procedure will require additional time to be finalised and therefore the deadline for the new debt facilities has been extended to September 30, from August 31.
It added that it remains confident that the proposed transactions will be complete by or during the final quarter of the year.
Shares in San Leon were down 0.3% to 41.06 pence each in London on Friday afternoon.
By Sophie Rose; sophierose@alliancenews.com
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San Leon (SLE)