DUBLIN, Ireland -- San Leon Energy is closer to a merger with Island Oil & Gas. In October, San Leon proposed a share offer to Island, with a view to building a strong Irish-based oil and gas E&P business.
Island’s directors have reacted favorably, and appear ready to accept should San Leon convert its proposal into a firm offer.
On this basis, San Leon has agreed to advance a loan facility to Island of €0.5 million ($0.71 million) to provide working capital to Island. It is repayable by March 31, 2010.
In exchange, Island will grant a charge in favor of San Leon over all shares Island owns in its subsidiary Island (Seven Heads) Ltd. This company’s main asset is a 12.5% interest in the Seven Heads gas-producing field in the Celtic Sea off southern Ireland.
San Leon, Island in merger talks
San Leon Energy is closer to a merger with Island Oil & Gas.