(MENAFN- ProactiveInvestors - UK) San Leon Energy Plc (LON:SLE) has confirmed that the arrangements which see Mart Resources acquired by the AIM company's new partner Midwestern Oil & Gas have now completed.
The company helped Midwestern Oil &Gas finance the C$89.2mln takeover of Mart Resources by helping the Nigerian oil firm secure debt.
In return the AIM group gets just less than 10% of a Nigerian oil field that currently produces more than 30000 barrels per day.
San Leon will initially receive a 4.05% indirect economic interest in OML 18 which hosts operating oil fields. Its interest in the project can increase to 9.72% subject to securing further funds as part of a larger overall deal.
It will benefit from a minimum 65% 'enhanced cash sweep' which would see expeditious repayment of the debt financing. The company also secures the right to provide oil field services such as workover and drill rigs to the operator of OML 18.
In a stock market statement on Monday April 4 San Leon said it requires shareholder approval and other regulatory approvals to benefit from San Leon's shares in Midwestern's BidCo vehicle.
'Completion of this part of the transaction is not expected per se to constitute a reverse takeover under the AIM rules but the company will make a further announcement in due course to confirm this' it said.
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