LONDON, UK: San Leon Energy, a Nigerian-focused oil and gas company, has announced a US$187m investment from Tri Ri Asset Management Corp. (TRAM), a global investment firm. The deal includes a US$125m loan, a US$16m share subscription, and a potential US$46m warrant exercise.
San Leon will use the proceeds of the investment to increase its stake in Energy Link Infrastructure (ELI), the owner of a floating storage and offloading (FSO) vessel and a pipeline project in Nigeria. San Leon will become the largest and majority shareholder in ELI with approximately 55 per cent. of the company.
The FSO Akaso Terminalis is expected to be a game changer for the OML 18 oil field, which San Leon has a 10.58 per cent. indirect interest in. The FSO and the pipeline will improve the efficiency and profitability of the oil production and transportation.
San Leon CEO Oisin Fanning said the investment was one of the largest fundraisings by an AIM oil and gas company in recent years, and that it would enable San Leon to fulfil its long-held strategy of becoming the majority shareholder in ELI. He also said the deal would align San Leon with a strategic funding partner who has committed a greater level of support than its previous proposed lender.
TRAM CIO Asad Ali said he was delighted to announce the financial partnership with San Leon, which he expected to be the start of a long-term relationship. He said he was impressed by San Leon’s professionalism and understanding of Sub-Saharan Africa, and that he believed that OML 18 and ELI’s new infrastructure represented a very exciting opportunity.
The transaction is subject to customary conditions, including due diligence, finance approval, shareholder approval, and other consents. San Leon shareholders will be asked to approve the deal at a general meeting in early 2024.