San Leon Energy PLC on Tuesday hailed an investment it has received that will enable it to become a majority shareholder in Energy Link Infrastructure Malta Ltd, which San Leon said was part of its long-term strategy.
The Nigeria-focused oil and gas production, development and exploration company said it received an investment of up to $187 million by Tri Ri Asset Management Corp. Tri Ri will subscribe for up to about 45.0 million San Leon shares for $16 million at 30 pence per share.
San Leon shares were untraded at 16.14 pence each on Tuesday afternoon in London. It has a £74.0 million market capitalisation. A year ago, the stock fetched a price of 3,900p.
San Leon also received a $125 million convertible secured loan from Tri Ri, which San Leon will draw down immediately. Finally, San Leon announced a potential further $46 million investment by Tri Ri via a grant of warrants for 62.5 million San Leon shares at 60p per share.
San Leon will use the Tri Ri funds to become a majority shareholder in Energy Link Infrastructure Malta, owning a 55% stake in the midstream infrastructure company that services the offspring oil and gas sector.
Chief Investment Officer of Tri Ri Management Asad Ali said: ‘We are delighted to announce this financial partnership with San Leon which we expect is the start of a long-term relationship. We have come to know [San Leon Energy Chief Executive Officer] Oisin [Fanning] and the team well in recent weeks and their professionalism and understanding of sub-Saharan Africa is a strong fit for our investment criteria, and we are looking forward to working with them in fulfilment of their strategic objectives. We believe that the scale of oil mining licence 18 and the efficiencies that ELI’s new infrastructure will bring represents a very exciting opportunity for us and all investors in San Leon.’
San Leon CEO Fanning added: ‘We are confident that the floating storage and offloading unit and the ACOES pipeline will be a significantly profitable and cash-generative project from which San Leon expects substantial upside.’
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