Source - LSE Regulatory
RNS Number : 7579K
San Leon Energy PLC
06 September 2021



Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.


6 September 2021

San Leon Energy plc

("San Leon" or the "Company")


Update on the Conditional Payment Waiver in relation to the MLPL Loan Notes

San Leon, the independent oil and gas production, development and exploration company focused on Nigeria, provides the following update regarding its loan to Midwestern Leon Petroleum Limited ("MLPL") (the "Loan Notes").




As previously announced by San Leon, during the course of this year, San Leon was due to receive, under the Loan Note instrument which governs the loan it made at the time of its investment in OML 18, its final payments of over US$98 million in three equal instalments, commencing in July 2021 and completing by December 2021. 


MLPL is part of the structure through which San Leon holds its current 10.58% indirect economic interest in OML 18.  San Leon currently has a 40% equity interest in MLPL with the remaining interest in MLPL being owned by Midwestern Oil and Gas Company Limited ("Midwestern"). Midwestern is also the guarantor of the Loan Notes.  MLPL has a 100% equity investment in Martwestern Energy Limited ("Martwestern"), which in turn has a 98% economic interest in Eroton Exploration and Production Company Limited ("Eroton"), which holds a 27% working interest in OML 18 and is its operator.


On 24 June 2021, San Leon announced that, inter alia, the Company was in preliminary discussions with Midwestern in relation to a transaction that would effect a reorganisation to consolidate Midwestern's holdings in the Company and MLPL into a single holding in the Company, with the Company holding the remaining 60% equity interest in MLPL that it does not currently own (the "Potential Transaction").  It was also announced that it is expected that, inter alia, as part of the Potential Transaction, the amounts owed to San Leon by MLPL pursuant to the Loan Notes will be taken into account in the overall structure and eliminated from the resulting structure. 


On 7 July 2021, San Leon agreed with MLPL, Midwestern and Martwestern to a conditional payment waiver in respect of the repayment of approximately US$32 million of MLPL's Loan Notes and interest that fell due on 5 July (the "Conditional Payment Waiver"). As part of the terms to the agreement, the Conditional Payment Waiver expires at the end of August 2021 or, if sooner, the termination of discussions or the signing of an agreement to effect the Potential Transaction, and interest will accrue on this installment of the Loan Notes over this period.  The sums to which the Conditional Payment Waiver relates (and those falling due within 30 days after the expiry of the Conditional Payment Waiver) will be payable 90 days after such expiry, save for, inter alia, if there is an event of default.


Conditional Payment Waiver expiry


San Leon's discussions and considerations regarding the Potential Transaction described above and more recently on 12 July 2021, remain ongoing, although there continues to be no certainty that the Potential Transaction will proceed. Accordingly, in this light, the Conditional Payment Waiver has now expired. However, San Leon is in discussions to extend the Conditional Payment Waiver in relation to the MLPL Loan Notes. A further announcement will be made as appropriate.






San Leon Energy plc

+353 1291 6292

Oisin Fanning, Chief Executive

Allenby Capital Limited

(Nominated adviser and joint broker to the Company)

+44 20 3328 5656

Nick Naylor

Alex Brearley

Vivek Bhardwaj


Panmure Gordon & Co

(Joint broker to the Company)

+44 20 7886 2500

Nick Lovering

Brandon Hill Capital Limited

(Joint broker to the Company)

+44 20 3463 5000

Oliver Stansfield

Jonathan Evans


(Financial Public Relations)

+44 20 7920 3150

Nick Elwes

Simon Hudson

Plunkett Public Relations

+353 1 230 3781

Sharon Plunkett


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