Oil and gas exploration company San Leon Energy, which has its headquarters in Dublin, has agreed a deal for the proposed reorganisation and consolidation of the Midwestern Leon Petroleum (MLPL) vehicle which holds a stake in the OML 18 oil assets in Nigeria.

The deal will see San Leon take full ownership of the MLPL vehicle, acquiring from Midwestern Oil and Gas Company its 60 per cent in return for outstanding debts owed to San Leon which are due for repayment this year.

Following the transaction, the company will own 100 per cent of the equity in MLPL. San Leon currently owns 40 per cent of the equity in MLPL and Midwestern owns the remaining 60 per cent.

“ The heads of terms, which are subject, inter alia, to due diligence, agreement of final contracts, Nigerian regulatory approvals and the approval of San Leon’s shareholders, sets out the structure of the potential transaction and includes, inter alia, the proposed further debt and equity investments to be made by San Leon in Energy Link Infrastructure (Malta) Limited,” the company said.