San Leon Energy PLC (AIM:SLE, AQSE:SLE, OTC:SLGYF) has noted the latest extension to transactions aimed at consolidating the interests in the OML 18 asset in Nigeria, with a new deadline set at 30 June 2023.
The company, in a statement, told investors it “continues to believe that the proposed transactions will be transformational for the company and it continues to work towards completing them.
“However, the board notes the recent challenge by NNPC Limited and OML 18 Energy Resource Limited to the operatorship of OML 18 and the potential delays this will cause to the proposed transactions. The extension of the longstop dates, inter alia, reflects this.”
San Leon, meanwhile, added that it remains in discussions over a proposed refinancing and those talks continue to progress, with the board expecting progress in relation to the proposed refinancing in the near term.
Separately, it also highlighted that Century Energy Group Partners has partnered with ELI for the spread-mooring completion, operations and maintenance of the Floating Storage and Offloading (FSO) vessel, the ELI Akaso, which services OML 18.
According to San Leon, the partnership will enable ELI to not only facilitate improved realised production and revenue streams from OML 18 but also generate revenues from third party oil and gas companies operating in the Eastern Niger Delta.
"ELI is delighted to collaborate with Century Energy Group,” said Kolapo Ademola, chief executive of ELI and non-executive director of San Leon.
“CEG's proven expertise and experience in the sector provides ELI with a reliable partner towards the attainment of our corporate goals within the midstream oil and gas sector in Nigeria.
“Our collaboration with CEG should expedite our ability to deliver value to our key partners and stakeholders; Crude Oil producers in the Eastern Niger Delta, the Federal Government of Nigeria and the Nigerian economy at large."