Page 15 - AfrOil Week 15 2020

AfrOil
NEWS IN BRIEF
AfrOil
“This Board decision to refocus the strategy is in response to sector and investor appetite for frontier exploration. However, given the signif- icant potential and quality of the Lixus asset, we are well placed to benefit from the transition to natural gas as an important fuel source in the energy matrix and remain well funded to react to any opportunities that might arise in the cur- rent environment.
“Reducing the overall cost base of the Com- pany is directly linked to our continued focus on capital discipline, while ensuring that we main- tain the capacity to execute our business plan. These changes significantly reduce our annual running costs, but enable us to retain our core expertise, operating capability and ability for project delivery, meaning we are well placed to deliver on our strategy and generate value for shareholders.”
Larry Bottomley, CEO commented: “Lixus is a high-quality asset that has the potential to be of strategic significance to the Kingdom of Morocco. The country has a growing economy and is one of the most attractive places to operate in the world. The partnering process for Lixus has endorsed our excitement for this project, and we remain highly motivated to deliver value from Anchois and the additional potential of the Lixus licence over the coming years.
“Finally, I would like to thank our staff for their hard work and dedication, during what has been a difficult time for the industry. I am grateful to the Directors for agreeing to share the burden and we believe that the decision to restructure the business gives us the best possible opportunity to generate returns from this high value asset in due course.”
Chariot Oil and Gas, April 09 2020
Total announces asset
sales in Brunei, Sierra
Leone and Liberia
In line with its strategy of actively managing its asset portfolio and its objective to divest $5bn in 2019-2020, Total is pursuing the divestment of several non-core assets in both Exploration-Pro- duction (Brunei) and Marketing & Services (Sierra Leone and Liberia).
These divestments represent a global value of more than $400mn.
Following the approval of the competent authorities, Total has closed the sale to Shell of its wholly owned subsidiary Total E&P Deep Off- shore Borneo, which holds an 86.95% interest in Block CA1. Total was the operator of the block, alongside partners Murphy Oil (8.05%) and Pet- ronas (5%) and the production of this block was 5,000 boepd net to Total in 2019. This deal was announced in October 2019.
Total has signed an agreement to sell its mar- keting and services businesses in Liberia and Sierra Leone to Conex Oil & Gas Holdings, a regional player in petroleum products import, distribution and supply chain management in West Africa. It consists of a network of 63 service stations, general trade fuel sales and petroleum products import and storage operations.
The sale of these two affiliates is expected to be completed in the second quarter of 2020.
“These sales will contribute to Total’s ongo- ing divestment program and demonstrate our ability to relentlessly high-grade our portfolio,” commented Jean-Pierre Sbraire, Chief Financial Officer of Total. “In the current context of low oil prices, these transactions support the action plan announced to weather the crisis.”
Total, April 07 2020
San Leon Energy reports
cash receipt of $40mn from
Midwestern Leon Petroleum
San Leon, the independent oil and gas produc- tion, development and exploration company focused on Nigeria, is pleased to announce that it has received a Loan Notes payment of $40mn.
The Company also announces that it has entered into an agreement dated April 6, 2020, amending the Loan Notes Instrument between San Leon and Midwestern Leon Petroleum Ltd (MLPL). Under the terms of the Amendment, the remaining balance payable is approximately $82mn. A further $10mn will be paid to the Company on or before October 6, 2020, with the
balance of the Loan Notes receivable payable in three quarterly instalments, commencing July 2021 and completing by December 2021.
The balance will continue to accrue interest at a coupon of 17% per annum until repaid. All other material terms of the Loan Notes Instru- ment remain unchanged.
The Company has received just over $190mn from Loan Notes payments to date, and has a cash balance at April 7, 2020, of approximately $74mn with no debt.
Midwestern Oil & Gas Company remains as the guarantor of the loan notes. Midwestern is a related party of the Company for the purposes of the AIM Rules by virtue of its shareholding of 13.18% of the existing Ordinary Shares. The Amendment is therefore a related party trans- action under the AIM Rules. The Directors consider, having consulted with the Company’s nominated adviser, Cantor Fitzgerald Europe, that the terms of the Amendment are fair and reasonable insofar as the Company’s sharehold- ers are concerned.
Oisin Fanning, Chief Executive Officer, commented: “The Company is in a very strong position armed with such significant cash. We believe that this is a situation that will continue. San Leon has around $100mn of additional Loan Notes and interest receipts expected by the end of next year, as well as income from the provision of our technical services to Eroton as operator of OML 18. In addition, the Company expects to receive dividends from its indirect shareholding in Eroton in due course. I look forward with con- fidence to updating shareholders on the Compa- ny’s growth and progress.”
San Leon Energy, April 07 2020
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