San Leon Rolls Mart Deadline for 4th Time
London AIM-listed San Leon Energy said on March 9 it has agreed to a further extension of timelines required to complete its obligations under the Mart Resources arrangement – which relates to its planned Nigerian asset acquisition. This is the fourth extension of a deadline for payment into an escrow account, following previous extensions announced on February 18 and 25, and March 2.
The three parties involved – San Leon, Midwestern Oil and Gas, and Mart Resources itself – have now agreed that the purchase price should be placed into escrow on or before March 21 2016. San Leon said that, apart from certain corresponding date changes, all other material terms of the arrangement remain unchanged. It added that Midwestern has agreed to deposit $1mn cash with Mart, as a deposit towards its obligation to pay the San Leon reverse break fee, should the arrangement not proceed. On March 2, San Leon said that funds of about C$89.26mn ($66.4mn) plus about $4.5mn in transaction costs had already been secured.
San Leon on January 22 announced a US$180mn transaction to finance its acquisition of Mart Resources, Inc. and an additional interest in MartWestern Energy Limited, and to restructure the assets and liabilities of these acquisitions with Midwestern Oil and Gas. The deals would secure San Leon a 9.72% indirect economic interest in the OML 18 block onshore Nigeria where 40% of current and future production is hedged at $95/bbl until end-2017.