San Leon Energy PLC Disposal of certain concessions in Poland (1727R)

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RNS Number : 1727R

San Leon Energy PLC

19 September 2017

19 September 2017

San Leon Energy Plc

("San Leon", "SLE" or the "Company")

San Leon Energy enters into definitive agreements to dispose of certain concessions in Poland

San Leon Energy Plc, the AIM listed oil and gas exploration and production company focused on Africa and Europe, today is pleased to announce that it has entered into a series of definitive agreements with TSX-Ventures listed Horizon Petroleum Ltd. ("Horizon") (TSXV: HPL) regarding the disposal of, through wholly-owned subsidiaries and other SLE-controlled entities, 100% interests in two oil & gas concessions in Poland known as Cieszyn and Bielsko-Biala (the "Primary Concessions"), plus 100% working interests in two additional oil & gas concessions in Poland known as Prusice and Kotlarka, and another concession which is under application (together the "Secondary Concessions").

Horizon previously paid a non-refundable deposit of US$100,000 and advanced a loan of US$100,000, as part of this transaction.

The consideration for the acquisition of the Primary Concessions is:

   1.            US$1,000,000 in cash, less the US$100,000 loan, for a net cash payment of US$900,000. 

2. C$1,000,000 worth of common shares in the capital of Horizon ("Horizon Shares") based on Horizon meeting specific issuance terms. The Horizon Shares are to be issued at the lesser of a) C$0.20 per share, b) the lowest price per share at which Horizon completes an equity placement for a minimum of C$1 million, up to but not including the date of closing of the acquisition (the "Completion Date"), and c) the volume weighted average price per Horizon Share for the period of 10 trading days immediately prior to the Completion Date. If Horizon is unable to meet the specific issuance terms by the Completion Date, it will be required to pay San Leon the equivalent value of the Horizon Shares in cash

   3.            A 6% net profits interest on each concession. 

The consideration for the acquisition of the Primary Concessions is payable on closing of the transaction which is subject to a number of conditions, including certain approvals by the government in Poland, as well as the approval of the TSX Venture Exchange.

The consideration for the acquisition of the Secondary Concessions is 10,000 Euros per concession, plus a 6% net profits interest on each concession. Closing of the Secondary Concessions transaction is also subject to a number of conditions including the closing of the acquisition of the Primary Concessions and the consent of the Irish Takeover Panel.

Separately, San Leon has entered into definitive agreements with Gemini Resources Limited, a United Kingdom company, ("Gemini") to dispose of, through wholly-owned subsidiaries and other SLE-controlled entities, 100% interests in two further oil & gas concessions in Poland known as the Gora and Nowa Sol Concessions.

Gemini shall pay a nominal cash consideration of one euro plus a 5% net profits interest on each concession. Closing of the disposal to Gemini is subject to certain approvals by the government of Poland.

The disposal of these six concessions in Poland reduces San Leon's expenditure on non-core assets whilst retaining future net profit interests in the case of development success. The disposals represent a loss of approximately EUR400,000 over the book value of assets, after adjusting for the reduction in San Leon's decommissioning liabilities.

Following the disposal, the Company holds the following unconventional exploration licences in Poland:

Baltic Basin - Gdansk West & Szczawno Concessions.

Enquiries:

 
                                               + 353 1291 
  San Leon Energy plc                                6292 
 Oisin Fanning, Chief Executive 
 
 SP Angel Corporate Finance LLP (Nominated    [phone] 
  adviser to the Company)                            0470 
 Richard Morrison 
 Ewan Leggat 
 Soltan Tagiev 
 
 Whitman Howard Limited (Financial            [phone] 
  adviser to the Company)                            1234 
 Nick Lovering 
 
 Brandon Hill Capital Limited (Joint              +44 203 
  broker to the Company)                         463 5000 
 Oliver Stansfield 
 Jonathan Evans 
 
 Vigo Communications (Financial Public            +44 207 
  Relations)                                     830 9700 
 Chris McMahon 
 Alexandra Roper 
 
                                               +353 1 280 
 Plunkett Public Relations                           7873 
 Sharon Plunkett 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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September 19, 2017 06:50 ET (10:50 GMT)