San Leon Energy Announces Extension to Nigeria Investment

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San Leon Energy updated the market on its proposed investment in Decklar Petroleum and the Oza Field in Nigeria on Wednesday, which it initially announced at the beginning of September.

The AIM-traded firm said the parties had agreed to a one-month extension to 31 October.

It said that was in order to finalise certain conditions precedent in the subscription agreement.

San Leon Energy Announces Extension to Nigeria Investment

“Further to its announcement of 1 September 2020 regarding its proposed investment in Decklar Petroleum Limited and the Oza Field in Nigeria, San Leon announces that the parties have agreed to a one-month extension to 31 October 2020 in order to finalise certain conditions precedent in the Subscription Agreement.  All other terms of the transaction remain unchanged”, the board said in its statement.

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In 2020 to date, the company received US$41.5mln in payments from operators, via loan note arrangements. Some US$88.7mln of future loan note payments remain.

With US$35.6mln in cash at the end of the half-year – US$22.6mln by September 18, 2020, after US$6.8mln was put in escrow – the company said it is positioned to invest and grow further. In early September, new deals were announced which will see San Leon secure an interest in the Oza field, onshore Nigeria.

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“Whilst the world and the industry have been through turbulent times, we have taken advantage of the opportunities presented by this as well as utilising our cash position to further build our portfolio in Nigeria in line with our strategy,” Oisín Fanning, San Leon’s chief executive said in the results statement.

Fanning added: “Our strong position is expected to continue in the year ahead as we receive further loan note payments and deliver upon our strategy.”

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San Leon paid out US$35.3mln to shareholders in the first half of 2020 and in May it announced that a US$33.3mln special dividend would be paid – representing a dividend yield of about 30% at that time – and a US$2mln share repurchase programme was completed early in the reporting period.

Also in May, Fanning purchased 98mln San Leon shares, taking his shareholding to 24%.

Eroton delivered an average of 25,200 barrels of oil per day to the Bonny terminal during the first half of 2020. San Leon noted that operations in Nigeria continue to be impacted by pipeline losses and downtime, an impact of around 32%

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San Leon Energy Announces Extension to Nigeria Investment - Brand SpurSan Leon Energy Announces Extension to Nigeria Investment - Brand Spur

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San Leon Energy Announces Extension to Nigeria Investment - Brand SpurSan Leon Energy Announces Extension to Nigeria Investment - Brand Spur

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