San Leon Energy raises up to £170.3m, to complete OML 18 production deal

San Leon Energy has raised about £170.3m, with net proceeds going to complete the OML 18 production agreement. OML 18 is a world-class Nigerian onshore oil and gas asset.

The placing was of about 378.4m shares at premium 45p each.

Net proceeds were being used to complete the OML 18 production agreement, which would see the company secure an initial 9.72% indirect economic stake.

The funds would also be used for general corporate purposes.

"This is a transformational transaction representing the progress that we have made in delivering against our strategy of securing production and near-term operational cash flow," said executive chairman Oisin Fanning.

"The OML 18 field in Nigeria is ... currently producing more than 50,000 barrels of oil per day and 50MMscfpd of gas and containing substantial 2P reserves.

"San Leon's interest in OML 18, secured through an initial 9.72% indirect holding, provides material production, cash flow and significant expected returns to our shareholders."