San Leon Energy PLC on Friday said discussions regarding its refinancing have advanced ‘much slower than anticipated’ since its statement in December that it was expecting to conclude the refinancing early in 2023.

The oil and gas production, development and exploration company focused on Nigeria said discussions continue with its preferred alternative funding partner, as well as with a second potential lender, adding that it expects to complete the refinancing in the near-term.

The company noted that it is currently receiving ‘very limited’ cash flows, which are contributing to the day to day running of the business, while it continues to manage overheads.

San Leon added that several creditors remain outstanding, and that it is in ‘regular dialogue’ with these creditors to keep them informed with the progress of the refinancing.

‘The company’s creditors are not currently putting the company under undue pressure and the board of directors is confident that all creditors will be settled following the conclusion of the proposed refinancing,’ the company said.

San Leon also noted that the potential sale of its investments in Decklar Petroleum Ltd remains subject to the purchaser finalising funding for the acquisition.

San Leon shares fell 3.5% to 21.28 pence each in London on Friday morning.

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