Petroleum Africa
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Monday, August 29, 2016
San Leon Energy has conditionally raised approx. £170.3 million through an issue of 378,400,000 new ordinary shares at a placing price of 45 pence per Ordinary Share with institutional and other investors.
The net proceeds are being used to complete the OML 18 Production Agreement in Nigeria, which will result in the company securing an initial 9.72% indirect economic interest in OML 18 and for general corporate purposes.
The Placing and the OML 18 Production Arrangement are conditional on the passing of various resolutions, which are being put to Shareholders at an Extraordinary General Meeting.
Oisin Fanning, Executive Chairman of San Leon said: “This is a transformational transaction representing the progress that we have made in delivering against our strategy of securing production and near-term operational cash flow. The OML 18 field in Nigeria is a world class asset currently producing more than 50,000 barrels of oil per day and 50MMscfpd of gas and containing substantial 2P reserves. San Leon’s interest in OML 18, secured through an initial 9.72% indirect holding, provides material production, cash flow and significant expected returns to our Shareholders. Cash flow is expected from three different sources: repayment of loan and interest provided by the Company to BidCo (with preferential repayment terms); dividends as a shareholder of BidCo; and income from the provision of rig and workover services.”
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