San Leon Energy Plc (AIM:SLE) and Midwestern Oil & Gas Company Limited agreed to acquire 20% stake in MartWestern Energy Limited from Suntrust Oil Co. Nigeria Ltd. in cash on January 22, 2016. The transaction will result in San Leon securing a 9.72% indirect economic interest in OML 18 block. Midwestern Oil is already a shareholder in MartWestern. In a related transaction, Midwestern Oil & Gas Company Limited signed a binding arrangement agreement to acquire Mart Resources Inc. (TSX:MMT) on January 22, 2016. San Leon will provide $180 million to finance the acquisition of Mart. The balance of the $180 million total transaction cost is accounted for by the SunTrust acquisition and restructuring, and by transaction fees. Proof of debt funding for more than $100 million of the total $180 million has been secured by San Leon, and it is in advanced discussions to raise the balance. The transaction cost will be funded by the issue of debt instruments by San Leon.

The deal is subject to court approvals in Canada, third party approvals, regulatory and stock exchange approvals and shareholder approvals. The transaction is expected to close in March 2016. DSA Investments Inc. acted as advisor for San Leon Energy Plc. Oliver Stansfield and Jonathan Evans from Brandon Hill Capital, and Matt Goode and Christopher Raggett from finnCap Ltd acted as financial advisors for San Leon Energy Plc. Joanna Weaving from finnCap Ltd acted as broker for San Leon Energy Plc. Jon Fitzpatrick and Nicholas Harland from Macquarie Capital (Europe) Limited, and Richard Johnson and Antonio Bossi from Stockdale Securities Ltd acted as financial advisors for San Leon Energy Plc. Chris McMahon and Alexandra Roper from Vigo Communications, and Sharon Plunkett from Plunkett Public Relations acted as PR advisors for San Leon Energy Plc.