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San Leon Energy invests $15m in ACOES owner

By Iain Gilbert

Date: Monday 03 Aug 2020

San Leon Energy invests $15m in ACOES owner

(Sharecast News) - Independent oil and gas firm San Leon Energy will pour $15m into Alternative Crude Oil Evacuation System (ACOES) project owner, Energy Link Infrastructure.

San Leon said on Monday that its investment comprised a 10% equity interest in Energy Link Infrastructure - together with a $15m shareholder loan at a coupon of 14% per annum over four years, repayable quarterly following a one-year moratorium from the date of investment.

ACOES, designed to be a dedicated oil export route from its OML 18 asset, will reduce downtime and allocated pipeline losses currently associated with the Nembe Creek Trunk Line to below 10%.

Chief executive Oisin Fanning said: "We are delighted to make this investment, which is in line with our strategy of investing in assets with near-term cash flow, where the initial investment is considered to be of limited risk and where there is material upside.

"The structure of the transaction, which combines an equity investment in the project together with a loan, gives us the opportunity to generate a meaningful return from loan repayments in the coming years as well as looking forward to a longer-term dividend return from our shareholding."

As of 1330 BST, San Leon shares were up 3.98% at 23.50p.

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