San Leon Secures Nigerian Finance Extension

San Leon Energy has obtained a week longer to complete its obligations under the terms of its reverse takeover proposal of Canadian Mart Resources.

San Leon originally undertook for the Mart Resources purchase price to be delivered into escrow on or before February 17 but the parties have agreed that the purchase price should be placed into escrow on or before 24 February 2016. "Other than certain corresponding date changes, all other material terms of the Arrangement Agreement remain unchanged," the company said February 18. 

The extension has been granted to allow completion of the financing, a process which is already well advanced, it said.

The $180mn transaction will result in San Leon securing a 9.72% indirect economic interest in OML 18 block, onshore Nigeria and is expected to close next month. The license is close to the Shell-operated Bonny export terminal. Three fields are currently on production. Crude oil production from OML 18 is exported through the Bonny Crude Oil Terminal via the Nembe Creek Trunkline and 40% of the output has been hedged at $95/b. Gas production from OML 18 is delivered to Notore Petrochemical Plant via the Nigeria Gas Company's pipeline.

William Powell