Further to the Company's announcements made on 24 June 2021 and 7 July 2021, San Leon today announced that heads of terms have been signed in respect of, inter alia, the proposed reorganisation to consolidate Midwestern Oil and Gas Company's holdings in the Company and Midwestern Leon Petroleum Limited ("MLPL") into a single holding in the Company. Following the Potential Transaction, the Company will own 100% of the equity in MLPL.  San Leon currently owns 40% of the equity in MLPL and Midwestern owns the remaining 60% of the equity in MLPL.

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 ("ELI"). The parties are now engaging with their respective advisers to prepare the necessary transaction documentation and to carry out due diligence.    

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