It comes as travel restrictions related to the coronavirus (COVID-19) pandemic have caused certain deal conditions to take longer than expected to finalise. A new deadline is now set as November 21, 2020.
In early September the company unveiled its agreement to invest US$7.5mln investment into the Oza field via a loan agreement with Decklar, which is a subsidiary of Asian Mineral Resources (CVE:ASN).
Decklar owns a majority interest in production and cash flow rights for the Oza field which was historically operated by Shell, between 1959 and 1974, but has never reached commercial-scale production.
It is proposed San Leon will subscribe for US$7.5mln of Decklar loan notes, carrying interest at 10%, and it will also receive 1.76mln Decklar shares.
Decklar plans to use the funds to fast-track the initial redevelopment of the Oza oil field. It intends to re-enter the existing Oza-1 well to test three oil-bearing zones, two of which are expected to be put into production. After that, from the same location, the rig will drill a new horizontal well.
The agreement sees San Leon take a 15% interest in Decklar initially, potentially rising to 30% with a further subscription alongside the subsequent funding.
Oisin Fanning, San Leon chief executive, previously noted that the deal was in-line with a strategy to invest in assets with expected near-term cash flow, via a low-risk lending-based model.