San Leon Energy says transaction talks continue over its OML 18 interests

San Leon Energy Plc told investors that talks over a potential transaction to restructure its interests in OML 18 are ongoing.

A payment waiver agreed in July relating to San Leon owned debt has now expired, though the company noted that it is discussing a new extension to the waiver.

Whilst talks are ongoing the company provided the customary cautionary note that there can no certainty that the potential transaction will proceed.

In July, San Leon agreed to a waiver of a US$32mln debt repayment due on July 5. The paused payment is one of three remaining instalments which together total US$98mln, due before the end of 2021.

The debt repayment was paused as the transaction under negotiation may see San Leon gain ownership and control of the Midwestern Leon Petroleum Limited vehicle (which holds the OML 18 interests) instead of cash.

Story by ProactiveInvestors