San Leon Energy Enters Nigerian Oil, Gas Exploration Space

San Leon Energy has announced its proposed entry into Nigerian onshore oil and gas production.

The said Friday it has entered into $180 million transaction to finance the acquisition of Mart Resources, Inc. and an additional interest in MartWestern Energy Limited, and to restructure the assets and liabilities of these acquisitions with Midwestern Oil and Gas Company Limited.

The acquisition and restructuring will result in San Leon securing a 9.72 percent indirect economic interest in OML 18 block, onshore Nigeria.

Martwestern Energy Limited, a Nigerian holding company which is a major shareholder of EROTON Exploration and Production Limited (the operator of OML 18), is owned by Midwestern, Mart and SunTrust Oil Company Limited.

Subject to necessary approvals, the transaction is expected to close in March 2016.

The OML 18 licence area is mangrove swamp in the Southern Nigerian Delta close to the Shell-operated Bonny export terminal. It covers 1,035km2 (larger than the country of Bahrain), is a world-class resource of oil, natural gas and condensate and includes the Alakiri, Awoba, Cawthorne Channel, Krakama, and Buguma Creek fields and related facilities.