News

Revised terms to the settlement agreement with Avobone

05 June 2017

Further to the announcements on 8 November 2016, 28 April 2017 and 15 May 2017, San Leon, the AIM listed company focused on oil and gas development and appraisal in Africa and Europe, announces that a sum of €3 million in respect of part payment of the second payment due to Avobone N.V. and Avobone Poland B.V. (together “Avobone”), was paid on 22 May 2017 and pursuant to an agreement dated 2 June 2017, between San Leon and Avobone, San Leon and Avobone have agreed a revised payment schedule in respect of sums owed to Avobone (the “Extension Agreement”) as follows:

  • During June 2017, San Leon shall pay to Avobone the total sum of €5,125,000
  • During October 2017, San Leon shall pay to Avobone a further sum of €8,000,000
  • During November 2017, San Leon shall pay to Avobone, a further sum of €6,694,840

In the event that San Leon fails to make payment, Avobone shall be able, without further recourse to San Leon, immediately to execute and / or enforce a High Court Order it obtained by consent from the Commercial High Court in London, dated 16 May 2017. San Leon has also given Avobone an undertaking that if it receives payment for the sale of its shares in TSH Energy Joint Venture B.V. (being the final payment from Palomar Natural Resources for the sale by San Leon of certain assets, announced in the RNS of 18 November 2016) then San Leon, within five days of receipt of funds, shall forward such proceeds to Avobone to reduce the next payment amount due to Avobone.

Financial Position
In accordance with the terms of the $174.5 million loan note instruments held by San Leon pursuant to the OML 18 assets, approximately $58 million of loan principal and interest payments are now payable to San Leon as of 1 April 2017.

The Reserves Based Lending ("RBL") conditions required for the payment of dividends by Eroton have been met, with the exception of satisfying the Debt Service Reserve Account ("DSRA") and the filing of the Eroton 2016 audited financial accounts. As advised on 30 December 2016, and as continues to be the case, Eroton awaits repayment of the majority of the Nigerian National Petroleum Company’s (“NNPC”) historic operational expenditure and capital expenditure cash calls from 2015 and 2016. Encouragingly, NNPC has recommenced paying its 2017 cash calls promptly from January 2017, and continues to do so, whilst the Company has also been advised that discussions regarding the payment of the outstanding operational expenditure and capital expenditure cash calls are also progressing.

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Directors' Responsibility Statement
The Directors of San Leon accept responsibility for the information contained in this announcement. To the best of their knowledge and belief (having taken all reasonable care to ensure such is the case), the information contained in this announcement is in accordance with the facts and does not omit anything likely to affect the import of such information.

Enquiries:
San Leon Energy plc 
Oisin Fanning, Chief Executive
+ 353 1291 6292

SP Angel Corporate Finance LLP (Nominated Adviser) 
Richard Morrison
Ewan Leggat
+44 20 3470 0470

Whitman Howard Limited (Financial adviser and Joint broker) 
Nick Lovering
Francis North
+44 20 7659 1234

Brandon Hill Capital Limited (Joint broker to the Company) 
Oliver Stansfield
Jonathan Evans
+44 203 463 5000

Vigo Communications (Financial Public Relations) 
Chris McMahon
Alexandra Roper
+44 207 830 9700

Plunkett Public Relations 
Sharon Plunkett
+353 1 280 7873

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