San Leon Energy PLC Sale of Polish Assets (5618P)
18 November 2016 - 8:25AM
UK Regulatory
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 +353 1291 6292
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)