Lifting of Suspension and Financial Position

RNS Number : 3657Q

San Leon Energy PLC

11 September 2017

 

11 September 2017

San Leon Energy plc

("San Leon" or the "Company")

Lifting of Suspension, Financial Position and Holding in Company

The Company announces that it posted its Annual Report and Accounts for the year ended 31 December 2016 on 08 September 2017 to shareholders and that it is available on the Company's website, www.sanleonenergy.com. The directors expect that trading in the Company's ordinary shares will commence on AIM at 11.00 a.m. today.

The Company, in conjunction with its partners, will undertake a corporate governance review of its procedures given the delay in the production of the 2016 annual report and accounts, and also confirms that it is commencing a search for a new independent non-executive director.  

The preparation of San Leon's accounts to 31 December 2016 required accounting information from Eroton up through intermediary companies in order to prepare consolidated accounts for Midwestern Leon Petroleum Limited ("MLPL"). This is a process which took far longer than originally envisaged.

Clarification of statement

The Company would seek to clarify that the 45 day period that China Great United Petroleum (Holding) Limited ("China Great United") requested for due diligence has now passed. No formal offer has been received to date. San Leon anticipates an update from China Great United in the near-term and will update shareholders in due course. 

Financial Position

In accordance with the terms of the instrument for the $174.5 million secured loan notes ("Loan Notes") issued by Midwestern Leon Petroleum Limited ("MLPL") and held by San Leon, approximately $77.7 million of loan principal and interest payments are currently scheduled for payment to San Leon. To date, San Leon has received approximately $18.5 million from MLPL which have been applied in satisfaction of principal and accrued interest on the Loan Notes.

Under the Avobone Arbitration Award, the Group has to pay Avobone €8,000,000 by October 2017 and €6,694,840 by November 2017.  Since 21 May 2017, €8,125,000 has been paid to Avobone.

As at today's date, the Company has cash at bank of approximately €956,000.  The Group also has well established loan relationships with various parties in addition to committed financing facilities in place which may be required to help fulfil the Group's immediate cash flow requirements in the period from September 2017 to December 2018 in the event that the advance of the cash inflows from OML 18, which are forecast to flow to the Group on a quarterly basis, are delayed. The facilities which may be available are as follows:

·    A Fixed Schedule Equity Funding Agreement ("FSEFA") between the Company and YA Global Master SPV Ltd ("YA Global") provides the Group with a debt facility of £15 million) accessible over a 30 month period from 21 May 2015 until 21 November 2017. YA Global has indicated that it may be prepared to extend the term of the FSEFA for a further period but there can be no guarantee of this.

·     A facility of up to €20 million which may be available in two tranches from a UK-based institution for an 18 month period until the end of 2018 in the event that the Company should require additional working capital. Whilst the Company has agreed the terms and conditions applicable to this facility, should the Company wish to avail itself of this facility there can be no guarantee of this.

The directors have assumed that additional loan facilities of €12 million will be obtained in October 2017 and a further €7 million will be obtained in November 2017 to meet the Group's payment commitments.

Holding in Company

Following the increase in the issued share capital announced on 22 June 2017, Amara Equity Invest S.A. which remains beneficially interested in 31,743,589 ordinary shares in the Company which now represents 6.96 per cent. of the issued share capital of the Company (as opposed to the previously notified 7.05%).

Directors' Responsibility Statement

The directors of San Leon accept responsibility for the information contained in this announcement. To the best of their knowledge and belief (having taken all reasonable care to ensure such is the case), the information contained in this announcement is in accordance with the facts and does not omit anything likely to affect the import of such information.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:

San Leon Energy plc	+ 353 1291 6292
Oisin Fanning, Chief Executive
SP Angel Corporate Finance LLP (Nominated adviser to the Company)	[phone]
Richard Morrison
Ewan Leggat
Soltan Tagiev
Whitman Howard Limited (Financial adviser to the Company)	[phone]
Nick Lovering
Brandon Hill Capital Limited (Joint broker to the Company)	[phone]
Oliver Stansfield
Jonathan Evans
Vigo Communications (Financial Public Relations)	[phone]
Chris McMahon
Alexandra Roper
Plunkett Public Relations	[phone]
Sharon Plunkett

www.sanleonenergy.com

 

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