San Leon Regulatory News (SLE)

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.

1 September 2023

San Leon Energy plc

("San Leon" or the "Company")

Update on Proposed Transactions

San Leon, the independent oil and gas production, development and exploration company focused on Nigeria, announces a further extension to the longstop dates for the proposed transactions with Midwestern Oil & Gas Company Limited ("Midwestern") and the Company's further conditional investments in Energy Link Infrastructure (Malta) Limited ("ELI") (together the "Proposed Transactions"). Details of the Proposed Transactions were announced by the Company on 8 July 2022 and set out in an admission document published by the Company on the same day (the "Admission Document"). 

All longstop dates in relation to the Proposed Transactions have, in agreement with Midwestern and the other relevant parties, now been extended to 30 September 2023. The longstop dates are in relation to the New Eroton Debt Facilities, the Sahara OML 18 Acquisition Agreement, the MLPL Reorganisation Agreement and the ELI Reorganisation Agreement (details of all of which are set out in the Admission Document).

The Company is in discussions with Midwestern on whether a potential revision to the Proposed Transactions can be agreed to allow completion to occur whilst the New Eroton Debt Facilities and the Sahara OML 18 Acquisition continue to be delayed for reasons outside of the Company's control. There can be no guarantee that any such revised terms will be agreed.

Further to the update on refinancing discussions and outstanding creditors (including the US$5.0 million loan from funds managed by Toscafund Asset Management LLP) announced on 8 August 2023, San Leon remains in discussions with a third party in relation to securing an alternative loan facility of US$50.0 million and will provide an update to shareholders when the loan facility is entered into.

Further to the Company's announcement of 8 August 2023, San Leon remains in discussions with ELI regarding making further potential investments of up to US$37.0 million, in ELI, which would be conditional, inter alia, on San Leon completing the alternative loan facility of US$50.0 million referred to above.

Unless otherwise defined herein, the capitalised defined terms used in this announcement have the same meaning as those used in the Admission Document.

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