Some US$32mln was due on July 5, as one of three instalments amounting to US$98mln due before the end of 2021.
Amid ongoing talks to merge and consolidate interests in the producing OML 18 asset, in Nigeria, the parties have agreed to a temporary waiver until the end of August (with interest accruing in the event that a transaction doesn’t proceed).
In June, it was announced that talks had begun with Midwestern Oil and Gas over a transaction that would represent a reverse takeover – with SLE taking the 60% of Midwestern that it doesn’t already own and the outstanding payments taken into account in the overall deal structure.
If the deal goes ahead, it will consolidate the ownership structure behind the Nigerian oil operation.
Presently, SLE holds 40% of the Midwestern Leon Petroleum Limited (MLPL) joint venture vehicle and is owed due to the loan note investment agreements through which the AIM-quoted firm initially invested in the venture. At the same time, Midwestern is guarantor of the loan notes.
MLPL owns 100% of the Martwestern Energy vehicle which holds a 98% economic interest in Eroton Exploration and Production Company that in-turn has a 27% interest and is the operator of the OML 18 asset.