San Leon Energy PLC (AIM:SLE, AQSE:SLE, OTC:SLGYF) highlighted that a huge amount of work continues to be put into closing the deal for the company to increase its holding in the OML 18 asset in Nigeria.
It continues to progress the transaction, which will be classed as a reverse takeover under AIM rules, with key documents presently being finalised. The deal will result in San Leon’s indirect economic interest in the Eroton business increasing to 98% from 39.2% and consequently its indirect economic interest in OML 18 rising to up to 44% from 10.58%.
"We believe that OML 18 is a world class oil and gas asset,” said chief executive Oisin Fanning.
“Our plans to further enhance our involvement in this asset, via the potential transaction, have the potential to be very significant. A huge amount of work has been carried out and a great deal has been achieved to progress this transaction in the last few months.”
Fanning added: “We now currently expect to publish an admission document in respect of our Potential Transaction in June 2022.
“This we believe will deliver a transformational deal to the company which will put San Leon in a very strong position as a significant player in West Africa with the potential to deliver considerable future value to all our stakeholders.
“We look forward to providing further updates in due course."
San Leon’s interests in OML 18 are being consolidated to cover outstanding debt owed to the company. The company continues to waive payments under the prior lending agreements whilst the transaction is being executed.