San Leon Energy PLC Settlement Agreement with Avobone - Revised Terms (0888H)
05 June 2017 - 4:00PM
UK Regulatory
TIDMSLE
RNS Number : 0888H
San Leon Energy PLC
05 June 2017
5 June 2017
San Leon Energy plc
("San Leon" or the "Company")
Revised terms to the settlement agreement with Avobone
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 EUR3 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 EUR5,125,000
-- During October 2017, San Leon shall pay to Avobone a further sum of EUR8,000,000
-- During November 2017, San Leon shall pay to Avobone, a further sum of EUR6,694,840
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 + 353 1291 6292
Oisin Fanning, Chief Executive
SP Angel Corporate Finance LLP (Nominated +44 20 3470
Adviser) 0470
Richard Morrison
Ewan Leggat
Whitman Howard Limited (Financial +44 20 7659
adviser and Joint broker) 1234
Nick Lovering
Francis North
Brandon Hill Capital Limited (Joint +44 203 463
broker to the Company) 5000
Oliver Stansfield
Jonathan Evans
Vigo Communications (Financial Public +44 207 830
Relations) 9700
Chris McMahon
Alexandra Roper
Plunkett Public Relations +353 1 280 7873
Sharon Plunkett
This information is provided by RNS
The company news service from the London Stock Exchange
END
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