Zak Mir interviews Oisin Fanning, CEO of San Leon Energy (LOD:SLE)

San Leon, the independent oil and gas production, development and exploration company focussed on Nigeria, announced that it has received a Loan Notes payment of US$40 million.

Zak Mir talks with Oisin Fanning, CEO of San Leon about the last RNS update and what the dividend situation would be for shareholders further down the line.



The Company also announces that it has entered into an agreement dated 6 April 2020 amending the Loan Notes Instrument (the “Amendment”) between San Leon and Midwestern Leon Petroleum Limited (“MLPL”). Under the terms of the Amendment, the remaining balance payable is approximately US$82 million. A further US$10 million will be paid to the Company on or before 6 October 2020, with the balance of the Loan Notes receivable payable in three quarterly instalments, commencing July 2021 and completing by December 2021.

The balance will continue to accrue interest at a coupon of 17% per annum until repaid. All other material terms of the Loan Notes Instrument remain unchanged.

The Company has received just over US$190 million from Loan Notes payments to date, and has a cash balance at 7 April 2020 of approximately US$74 million with no debt.

Midwestern Oil & Gas Company Limited (“Midwestern”) remains as the guarantor of the loan notes. Midwestern is a related party of the Company for the purposes of the AIM Rules by virtue of its shareholding of 13.18% of the existing Ordinary Shares. The Amendment is therefore a related party transaction under the AIM Rules. The Directors consider, having consulted with the Company’s nominated adviser, Cantor Fitzgerald Europe, that the terms of the Amendment are fair and reasonable insofar as the Company’s shareholders are concerned.

Oisin Fanning, Chief Executive Officer, commented:

“The Company is in a very strong position armed with such significant cash. We believe that this is a situation that will continue. San Leon has around US$100 million of additional Loan Notes and interest receipts expected by the end of next year, as well as income from the provision of our technical services to Eroton as operator of OML 18. In addition, the Company expects to receive dividends from its indirect shareholding in Eroton in due course. I look forward with confidence to updating shareholders on the Company’s growth and progress.”

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SLE - Zak Mir interviews Oisin Fanning, CEO of San Leon Energy (LOD:SLE)SLE - Zak Mir interviews Oisin Fanning, CEO of San Leon Energy (LOD:SLE)
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