San Leon Energy PLC Sale of Polish Assets (5618P)

TIDMSLE

RNS Number : 5618P

San Leon Energy PLC

18 November 2016

18 November 2016

San Leon Energy plc

("San Leon" or the "Company")

Sale of Polish Assets

San Leon Energy, the AIM listed company focused on oil and gas development and appraisal in Africa and Europe, announces that on 17 November 2016 it signed and completed sales agreements for its interests in two Polish onshore assets, principally the Rawicz and Siekierki fields in the Permian Basin, to Palomar Natural Resources ("Palomar").

San Leon has sold its 35 per cent. interest in the Rawicz gas field for a cash consideration of US$9 million, and the release of certain San Leon liabilities. These liabilities include loans which were advanced by Palomar to the Company as a temporary carry of the drilling and testing costs of the Rawicz-12 and Rawicz-15 wells, and amount to approximately US$3.0 million.

The Company has sold its 35 per cent. interest in the Poznan assets (largely the Siekierki field) for a consideration of EUR1 plus a 10 per cent. Net Profit Interest ("NPI") in the Poznan assets. The NPI removes any further cost exposure to San Leon, while providing an interest in any future profits made by Palomar on the Poznan assets.

The first US$2.2 million will be payable on closing, the next US$2.3 million by 30 November 2016 and the remaining US$4.5 million is due to paid to San Leon on or before 01 October 2017. An interest charge of LIBOR plus 5% will be applied to any sum not paid by February 1 2017.

The current book value of the assets being disposed of is approximately EUR12.1 million. The losses attributable to the assets in the last financial year were EUR0.

Chief Executive Officer, Oisin Fanning, commented:

"The sale of certain Polish assets is a natural further step in focusing the Company's financial and management resources on the world-class OML 18 asset in Nigeria, as per the Company's stated strategy. The sale price achieved is very similar to the carrying value of those assets in the latest audited financial statement, after the liabilities release is applied, and is considered by the Board to be full and fair. It also reduces overheads costs through a downsizing of the Polish office, and no further licence fees or overheads on the assets sold."

Enquiries:

 
 San Leon Energy plc 
  Oisin Fanning, Chief 
  Executive Officer             [phone] 
 Brandon Hill Capital 
  Limited 
  Joint Broker 
  Oliver Stansfield             +44 (0) 20 
  Jonathan Evans                 3463 5000 
 SP Angel Corporate Finance 
  LLP 
  Nominated Adviser and 
  Joint Broker 
  Ewan Leggat                   +44 (0) 20 
  Richard Morrison               3470 0470 
 Whitman Howard Limited 
  Joint Broker 
  Nick Lovering                 +44 (0) 20 
  Francis North                  7659 1234 
 Vigo Communications 
  Financial Public Relations 
  Chris McMahon                 +44 (0) 20 
  Alexandra Roper                7830 9700 
 Plunkett Public Relations      +353 (0) 1 
  Sharon Plunkett                280 7873 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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November 18, 2016 03:25 ET (08:25 GMT)