San Leon Energy Secures Funding for Shale Gas Assets
San Leon Energy announced a number of transactions related to funding to further support the Company’s exploration and production of oil and gas projects in Poland, Ireland, Italy, Morocco, Netherlands and North America.
San Leon has entered into a Standby Equity Distribution Agreement (“SEDA”) with YA Global Master SPV Ltd, an investment fund managed by Yorkville Advisors LLC, for a GBP15 million equity line of credit. Under the terms of the agreement San Leon may draw down funds from time to time, at its sole discretion, over a period of up to three years in exchange for the issue of new shares in the capital of the Company.
San Leon Energy entered into the SEDA as a means of raising additional capital when required, to assist its company strategy to support the development of its Polish shale gas assets.
San Leon is a significant player in the Polish market, with interests in six licence areas in a joint venture farm-out agreement with Talisman Energy. In its Third Quarter earnings report today, Talisman noted that seismic acquisition is planned to commence in fourth quarter.
Separately San Leon has also agreed an unsecured loan facility of up to GBP2.2 million with Yorkville to be drawn down at San Leon’s discretion. San Leon also completed an institutional share placing for gross proceeds of GBP1.625 million.
Oisin Fanning, Executive Chairman of San Leon Energy Plc stated: "We are very happy with the flexibility and responsiveness that Yorkville showed in putting this instrument together which not only creates a funding option for San Leon but also minimises dilution as has been demonstrated by other Oil and Gas companies use of this facility. We look forward to a productive and ongoing relationship with Yorkville."
Brian Kinane, Managing Director, Yorkville Advisors UK, commented: "San Leon Energy is a dynamic and ambitious company with an experienced management team and we believe our financing can support San Leon in realising the potential of its exciting Polish assets."
Source: San Leon Energy plc