San Leon Energy, the AIM listed international oil and gas company with assets in Morocco, Italy, Poland, the Netherlands and the USA, announced that it has agreed to extend its EUR500,000 working capital facility with potential acquisition target, Island Oil & Gas, to February 26th.
San Leon announced in October 2009 that it had made a proposal to Island Oil & Gas for the combination of the two companies with a view to building a strong Irish-based oil and gas exploration and development business. Founded in 2003, Island Oil & Gas is an independent exploration and production Company with interests innine Irish offshore licences, including a producing gas field. The Company also holds interests in projects in offshore Albania, onshore Morocco and has a royalty interest in the Amstel field development, offshore The Netherlands.
San Leon put a €500,000 working capital facility in place back in December 2009. According to the latest announcement, the Loan will now be repayable on 26 February 2010 if San Leon and Island do not make an announcement pursuant to rule 2.5 of the Irish Takeover Rules in relation to Island by this date.
Discussions between San Leon and Island are said to be ongoing and both companies are working towards an agreement on an offer for Island. If this happen on the current terms, the Directors of Island Oil & Gas have indicated that they will recommend it.
