San Leon Energy PLC (AIM:SLE, OTC:SLGYF), the Nigeria-focused independent oil and gas production company, has said refinancing talks are at an advanced stage.
Investors were told that “with significant progress having been made in the past weeks, the board is still optimistic that a conclusion will be reached and expects to provide an update to shareholders in due course”.
San Leon owes around US$10.5 million. But while there is some pressure from creditors, the company said “all dues will be settled promptly after the proposed refinancing is finalised”.
It pointed to its “significant asset base” of $115 million and said it is in the process of selling non-core investment in Nigeria's Oza oil field, carried on the balance sheet at $5.6 million.
In the update, the market was informed that the spread mooring of the floating storage and offloading (FSO) vessel for ELI operation is complete.
The company is now in the process of is now finalising the renewal of “necessary administrative regulatory permits to commence full terminal operations”.