San Leon Energy PLC (AIM:SLE, OTC:SLGYF) has extended the longstop dates for its proposed transactions with Midwestern Oil & Gas Company and the company's further conditional investments in Energy Link Infrastructure (Malta) Limited.
The transactions will see San Leon’s interest in the OML 18 oilfield asset in Nigeria increase fourfold to 44.1%.
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.
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.
San Leon is in discussions with Midwestern on whether a potential revision to the proposed transactions can be agreed on to allow completion to occur whilst the new Eroton debt facilities and the Sahara OML 18 acquisition continue to be delayed.
San Leon noted that the delay are outside of the group’s control.
The company remains in discussions with a third party in relation to securing an alternative loan facility of US$50 million to fund further investments in ELI and to repay existing creditors.
San Leon also remains in discussions with ELI regarding making further potential investments of up to US$37.0 million in ELI, which would be conditional on San Leon securing this US$50 million loan facility.