San Leon Energy, a London-listed oil and gas explorer, is on the brink of a $185m deal with a US-based investor that will enable it to take control of a key Nigerian pipeline asset.

Sky News has learnt that San Leon, shares in which have been suspended since July pending the publication of its annual results, could announce the investment from Tri-Ri Asset Management as soon as this week.

Banking sources said the deal was expected to hand Tri-Ri an initial stake in the company of approximately 10%.

Its investment is being made at a price of 30p-per-share – almost twice the level at which the stock was suspended.

Tri-Ri would then move to a holding of roughly 25%, with warrants to increase that stake still further through new warrants in the company, the sources added.

The deal is said to have the backing of Toscafund Asset Management, which owns a 75% stake in San Leon.

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One industry analyst said shareholders were now likely to be confident that San Leon could ultimately achieve a $1bn valuation, with an additional listing in Abu Dhabi expected to form part of its plans.

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One source said the proceeds from the investment would be used to achieve majority ownership of ELI, a pipeline ultimately capable of handling daily flows of 100,000 barrels of oil.

A previously agreed structure to invest in San Leon was terminated by the company’s board, according to a stock exchange announcement on Monday afternoon.

San Leon declined to comment, while Toscafund has been contacted for comment.

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