San Leon Energy PLC LON:SLE Chief Executive Officer, Oisin Fanning, commented:“The Company has succeeded in finding, funding and executing what we believe is an exceptional deal for shareholders, despite a challenging sector environment. We expect the OML 18 transaction to underpin the future cash flow of the Company with significant returns to shareholders, redeveloping a world-class producing asset in a country where the oil and gas industry benefits from transactions being in US Dollars and there being no restrictions to repatriation of funds.
San Leon is partnering closely with Eroton to execute the redevelopment of OML 18. The operational activity listed in this report demonstrates the strong breadth and depth of the technical work being carried out and planned. We look forward to reporting the results of the Nigerian work programme in due course.”
San Leon Energy LON:SLE, the AIM listed company focused on oil and gas development and appraisal in Africa and Europe, today announces its interim results for the six months ended 30 June 2016, and provides an update on its interest in the OML 18 block, onshore Nigeria.
Highlights:
Operational
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· Current OML 18 gross production rates are 54,000 bopd of oil and 55 mmscf/d of gas; |
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· Considerable on-ground resources deployed by Eroton to carry out the stated development activities to increase production of OML 18; |
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· Drilled and tested a second successful gas well, Rawicz-15, on the Rawicz field, onshore Poland; and |
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· Continued asset optimisation and cost reduction strategy, resulting in relinquishing certain non-core Polish licences, and six Spanish licence applications. |
Corporate
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· OML 18 Production Agreement scheduled to complete today, following shareholder approval of the Acquisition and Placing of 378,400,000 Ordinary Shares at 45 pence to raise £170.3 million on 20 September 2016; |
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· The Company announced a capital distribution policy, whereby 50% of free cash flow from Nigeria will be returned to shareholders via either share buybacks or dividends for five years; |
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· On 21 September 2016, the Board was restructured in view of the OML 18 Production Agreement with Mutiu Sunmonu, former Managing Director of Shell Nigeria, appointed Non-Executive Chairman, Oisin Fanning assuming the role of Chief Executive Officer, Joel Price and Alan Campbell appointed Executive Directors, Ewen Ainsworth appointed Finance Director and Nick Butler and Mark Phillips appointed as Non-Executive Directors; |
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· Paul Sullivan and Daniel Martin resigned from the Board effective on 21 September 2016, and Piotr Rozwadowski resigned on 5 May 2016; and |
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· SP Angel was appointed as Nominated Advisor and joint broker, and Whitman Howard was appointed as joint broker. |
Financial
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· Equity placing to raise approximately £170.3 million (gross), completed after the reporting period, to fund the OML 18 transaction, pay creditors, and provide working capital; |
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· Loss for the period was €6.23m (2015: loss of €8.26m); |
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· Cash and cash equivalents as at 30 June 2016 of €0.7m (30 June 2015: €0.75m); |
