San Leon Announces Second Extension of Deadline

London Stock Exchange-listed San Leon Energy has announced that it has agreed a second extension to complete its obligations for an acquisition of Canada's Mart Resources. 

San Leon originally expected the purchase price for Mart Resources to be delivered into escrow on or before February 17. It announced on February 18 that that process would be slightly delayed, with both parties agreeing that the purchase price be placed into escrow on or before 24 February 2016.

On February 25, San Leon announced a second extension for completion of the escrow process. By agreement with Mart Resources, it now expects to complete the process on or before 5 pm on March 1. The purchase price for the transaction is $180mn. 

San Leon's CEO Oisin Fanning, says the process is nearing completion. "The financing of the transaction has advanced considerably over the last week," he said. "Completion of the financing is now considered to be imminent."

San Leon stands to increase its African interest when the acquisition of Mart Resources is completed. Significantly, San Leon will gain a 9.72% economic interest in the onshore OML 18 block in Nigeria. Mart Resources acquired the stake in March 2015 along with a consortium of other buyers. At that time, it said that the assigned fields produced an average of approximately 14,000 gross boe/d of oil, condensate and gas during 2014.

Erica Mills