Things are looking up for San Leon Energy (LON: SLE), with the company closing in on the completion of its Nigeria deal and managing to avoid the termination of its listing on London’s AIM.
Nigeria has long had issues with safety, not least in keeping workers safe from militants. The government has shown little sign of tackling the problem among legal operations, let alone the safety challenges of widespread illicit bunkering and refining.
San Leon Energy has been working on a Nigerian transaction, and as a result its shares suspended, for so long that it faces the prospect of its listing on London’s AIM being cancelled.
San Leon Energy continued its theme of paying out dividends, while projecting better times ahead as pipeline losses are expected to fall dramatically.
Nigeria-focused San Leon Energy will stump up $15 million as a loan to secure the completion of the Alternative Crude Oil Evacuation System (ACOES), for exports from its OML 18.
San Leon Energy’s Nigerian production held steady in 2019 as downtime and pipeline losses reduced exports.
San Leon Energy has received $40 million under its loan notes agreement in Nigeria, while changing the terms of its lending.
San Leon Energy expects its new export route in Nigeria to be commissioned in May, following a week where force majeure was declared on its current shared pipeline.
Losses and downtime from Nigeria’s OML 18 have reached 32% of production, San Leon Energy has reported in its half-year results.
San Leon Energy is aiming to raise at least $200million through a share placing priced at a significant premium in order to fund the acquisition of an indirect interest in a producing oilfield in Nigeria.