San Leon Energy Plc in its interim result and operational update on its interest in the OML 18 block, onshore Nigeria, announced that the Production Agreement on the block is finally scheduled to be completed today Friday, 30th of September 2016.

This is coming after shareholders approved the acquisition and placement of 378,400,000 Ordinary Shares at 45 pence to raise £170.3 million on 20 September 2016.

So as to acquire its interests in the operations San Leon raised £170mln of new capital, and secured the debt securities that helped in financing the assets. Upon completion of the transaction, San Leon will get not more than 10% of OML 18 and will also receive interest payments.

According to the company, the operations at the OML 18 asset are producing at rates of 54,000 barrels of oil per day and Eroton, the operator, has organized significant on-ground resources to perform development activities in order to increase production from OML 18. San Leon is to partner with Eroton to carry out the redevelopment.

“The company has succeeded in finding, funding and executing what we believe is an exceptional deal for shareholders, despite a challenging sector environment. We expect the OML 18 transaction to underpin the future cash flow of the company with significant returns to shareholders, redeveloping a world-class producing asset in a country where the oil and gas industry benefits from transactions being in US Dollars and there being no restrictions to repatriation of funds. San Leon is partnering closely with Eroton to execute the redevelopment of OML 18,” Oisin Fanning, San Leon chief executive, told Proactive Investors.

Anita Fatunji