San Leon Energy has provided the following update in relation to its investment in Energy Link Infrastructure (Malta) Limited (ELI), the owner of the Alternative Crude Oil Evacuation System (ACOES) project. The ACOES is being constructed to provide a dedicated oil export route from OML 18, comprising a new pipeline from OML 18 and a floating storage and offloading vessel.
As previously announced by San Leon on 3 August 2020, the Company originally invested US$15 million in ELI. The investment comprised a 10% equity interest in ELI together with a US$15 million shareholder loan with a coupon of 14% per annum over four years, repayable quarterly following a one-year moratorium from the date of investment. The first repayment installment from ELI, which amounts to approximately US$2.2 million, has recently become due (the “First Installment”).
San Leon announced on 24 June 2021 that it is considering making further debt and equity investments in ELI and reaffirmed that intention in subsequent announcements during July 2021. The Company has agreed with ELI that, should these further investments be made, then the First Installment will be offset from any investment monies payable to ELI by San Leon under certain of these new arrangements. Pending any further investment in ELI, the First Installment will continue to accrue interest at 14% per annum.