RNS

San Leon Energy, the AIM listed company focused on oil and gas exploration in Europe and North Africa, today announces its audited final results for the year ended 31 December 2014.

Highlights:

Operational

  • Farm-in to Rawicz conventional field and the Siekierki tight gas field by Palomar Natural Resources for $20m and a 65% working interest. Planned five well work programme and no up-front drilling costs to San Leon. Post year end, announced Rawicz-12 a commercial gas discovery and expected to be the largest gas development in Poland for 20 years.
  • Lewino-1G2 in the Gdansk W concession in Poland’s Baltic Basin regarded by the Board as the best single vertical frac in a European shale well to date. A horizontal multi-fracced well has been fully designed and engineered with farm-out discussions ongoing.
  • Initiated a three well shallow drilling programme in the Karpaty area and Permian Basin in Poland. The Kęty and Gierałtowice wells in Karpaty did not flow commercial hydrocarbons. Niwiska, the third well (Permian Basin), was put on hold due to the low oil price.
  • Positive results from core sampling and bench test retorting on the Timahdit oil shale licence, onshore Morocco. Signed a MOU with Chevron Lummus Global to upgrade the shale oil to synthetic crude.
  • Preparations were made to drill the first well in the conventional Tarfaya licence onshore Morocco. This is expected to spud in early Q3 2015.
  • The SM-1 well offshore Morocco recovered high quality oil during drilling and testing but did not achieve sustained flow and was plugged and abandoned. Evaluation work ongoing.

Corporate

  • Significant efforts have been made in reducing costs.
  • As part of its asset optimisation strategy San Leon exited Germany and Slovakia, relinquished all or part of a number of Polish licences, as well as relinquishing the Tarfaya oil shale licence in Morocco
  • Oisin Fanning, Executive Chairman of San Leon, agreed with the Board in 2014 to take 80 per cent of his salary in shares, which came into effect on 1 January 2015.

Financial

  • Total comprehensive loss for the year of €34.4m (2013: loss of €25m).
  • Total assets decreased to €281m at 31 December 2014 (2013: €308m).
  • At year end the group had cash and cash equivalents of €1.8m (2013: €11.4m).
  • Post year end, San Leon announced a contingent Placing of £29 million, as well as a share capital reorganisation.

Outlook

  • ToscaFund showed continued support by committing £16 million as part of the £29 million placing, subject to shareholder approval at the EGM. These funds will help transform San Leon to a cash-generating producer, and will bring other assets towards development.
  • Together with PNR, San Leon is in advanced stages of the planning and design of several development scenarios focused on bringing the Rawicz gas field online in early 2016.

Enquiries:

San Leon Energy plc
Oisin Fanning, Executive Chairman
+353 1291 6292

Brandon Hill Capital
Oliver Stansfield
Jonathan Evans
+44 (0) 20 3463 5000

finnCap Ltd
Corporate Finance
Matt Goode
Christopher Raggett
Corporate Broking
Joanna Weaving
+44 (0) 20 7220 0500

Macquarie Capital (Europe) Limited
Jon Fitzpatrick
Nicholas Harland
+44 (0) 20 3037 2000

Westhouse Securities Ltd
Nominated Adviser
Richard Johnson
Antonio Bossi
+44 (0) 20 7601 6100

Vigo Communications
Financial Public Relations
Chris McMahon
Alexandra Roper
+44 (0) 20 7016 9572

Plunkett Public Relations
Sharon Plunkett
+353 (0) 1 280 7873

Chairman’s statement

2014 was a transformational year for San Leon Energy and for the whole energy industry, but for different reasons.

For key energy players around the world, 2014 was the year when the price of oil fell significantly, putting enormous pressure on their financial performances and share prices, forcing some of them to cut costs and jobs. For San Leon, 2014 was the year when one of our assets, the Rawicz-12 well on the Rawicz gas field in Southwestern Poland, tested at a highly successful 4.5 million standard cubic feet per day.

2014 saw San Leon move considerably closer to its production and cash flow goal, enhanced by the placing announced in June 2015. The partnership deal, struck in July 2014 with Palomar Natural Resources around its Rawicz and Siekierki fields, involves significant work programmes and an upfront payment to the Company of $20 million, positioning San Leon for near-term production. 

Rawicz saw the first well drilled since the 1980s, and in early 2015, after the reporting period, we announced a highly successful well test which is expected to lead to Rawicz being the largest gas development in Poland for 20 years. This has now booked material reserves for San Leon.

Siekierki has an existing stock of three wells that tested at 3 mmscf/d each.

Poland
Besides Rawicz and Siekierki, the significant success of the Lewino-1G2 well in the Gdansk W concession in Poland’s Baltic Basin makes it the most successful single shale frac in a vertical well in Europe. During 2014 a horizontal multi-fracced well was fully designed and engineered and is now the subject of ongoing farm-out activity. Other Operators’ work in this area adds further weight to there being a significant chance that the planned well could prove the commerciality of this enormous play potential.

Other well activity has been less successful. The Company carried out drilling in two wells in its three well shallow drilling programme in Poland. Unfortunately neither well flowed commercial hydrocarbons, and the results will be used to high-grade the portfolio. Niwiska, the third well in the programme, has been put on hold due to the low oil price.

Morocco
The SM-1 well offshore Morocco, operated by Genel Energy, recovered high quality oil during drilling and testing, but did not achieve sustained flow and was plugged and abandoned. San Leon was carried for part of the well cost, although the drilling problems encountered and the addition of well testing to the programme, required material funding by the Company. The Company expects followup well activity on the block. Onshore, preparations were made to drill our first well in the Tarfaya licence, in the conventional Tertiary sandstone.

The 36 Km(c7000 acres) Timahdit oil shale licence continues to show real promise. In August 2014, surface and core samples of oil shale were bench tested by Enefit in Germany to assess the ability of the Enefit process to generate shale oil. The results, announced in January 2015, prove the Enefit process (which is already used in Estonia) to be applicable to the Company’s acreage, with attractive yields per tonne of rock, and will now be used to assess the efficiency of the Chevron Lummus upgrading technology on the shale oil.

Corporate
Significant efforts have been made to manage costs. The Company has exited Germany and Slovakia, and relinquished all or part of a number of Polish licences. The Warsaw office has been moved to new premises, roughly halving its rental overhead. During 2014 I agreed with the Board that I would take 80 per cent of my salary in Company shares from 1st January 2015. These shares will be issued in due course.

Once again the Company recorded no Lost Time Incidents (LTIs) for the year, reflecting the firm HSEQ commitment of all staff and contractors. It remains our top priority.

Outlook
Our Company is now poised to generate cash flow from 2016, starting with the Rawicz gas field, followed by Siekierki, and then joined in 2018 by the Barryroe oil field, offshore Ireland.

The proposed recent placing will enable the Company to retain and benefit from those assets, as well as to execute other exciting activities from the portfolio. Immediate priorities are drilling the Tarfaya-1 gas well, onshore Morocco, and a well in Albania using an onshore drilling location to target an offshore oil target.

While deal-making in the Exploration & Production sector has slowed with the depressed oil price, we continue to experience significant interest in many of our assets. In particular, the Baltic Basin shale and tight sandstone assets in Poland are ripe for further appraisal and are considered by San Leon to be on the cusp of proving commerciality. In addition, our Romanian assets combine a discovery with a variety of exploration targets that are ready to drill.

I believe San Leon now has the critical mass to capitalise on its cash flow and existing assets and to deliver the shareholder value that we have been working towards. The proposed increase in ToscaFund’s stake in the Company to approximately 42% makes San Leon strong and resilient, and positions us as one of the few AIM production growth stories.

LONG TERM PROJECTS

Morocco
Oil shale technology development
The 36 Km2 Timahdit oil shale block onshore Morocco moved a step closer to development with the testing of the Enefit oil shale process on 10 tonnes of oil shale samples from the block, in what is effectively a small-scale version of the plant operational in Estonia. Positive results were obtained, showing that the shale is suitable for the Enefit process, has a high yield of shale oil, and can be run effectively at a relatively low temperature (thus reducing power requirements). A Memorandum of Understanding was signed in 2013 with Chevron Lummus Global LLC to cooperate in oil shale upgrading technology to produce high quality synthetic crude oil from the shale oil, and results from the Enefit trial are being provided to them.

An update to the existing pre-feasibility study for developing the asset is expected to be carried out by a major engineering company in due course.

France
Shale gas licences
In France, San Leon continues to hold over 2.4 million acres (c9,000 Km2) of licences under application. These are pending due to the current moratorium in France. In the event of France lifting the moratorium, San Leon would have first mover advantage. Our position is retained at a very low cost.

Spain
Shale gas
In Spain, we hold more than 1.5 million acres which contain significant gas potential. As with France, this position is held at a low cost to the Company.

EXPLORATION ASSETS

Albania offshore
The Company’s licence extension on its offshore Albania Durresi block continues to July 2015. Despite plenty of interest, securing a farm-in partner for a high cost offshore oil well has proved difficult in the oil price climate of the past nine months as some companies’ budgets have become constrained. San Leon will instead now drill an exploration well targeting an offshore Burdigalian carbonate from an onshore location. This is a substantial prospect, with a best estimate of around 11 mmbbl oil and some associated gas, and from a wellsite location that is in close proximity to an oil refinery and gas infrastructure.

Spain
Conventional
San Leon holds over 1.5 million net acres (c6000 Km2) in Spain, a country currently under-explored, with fewer than 500 exploration wells drilled. Conventional potential exists here, in addition to the shale prospectivity already mentioned under the “Long-Term Projects” section.

Morocco
Morocco offshore (Sidi Moussa, Foum Draa)
The Genel-operated well on Sidi Moussa (San Leon net 10.0% interest) targeting the Noor oil prospect was drilled in the second half of 2014. High quality oil (26 API) was recovered during drilling and testing operations, but no sustainable hydrocarbon flow was possible. The extensive dataset gathered is being analysed to determine next steps on the licence. Cost exposure to San Leon was reduced by a significant carry.

The Foum Draa block, in which San Leon holds a 14.33% equity interest, continues to be evaluated by Operator, Cairn Energy, following the drilling of a well in late 2013.

Morocco onshore (Zag, Tarfaya)
A commitment well targeting Tertiary channel sands will be drilled in 2015 in the onshore Tarfaya licence. This is updip of gas found in an old well, and within easy pipeline distance of a phosphate production plant for marketing gas. Several other channel sands would be follow-on prospects in the event of success, and deeper stacked horizons also exist. The extensive Zag licence continues to be evaluated and may be the subject of further geophysical surveying in the medium term.

Poland
During the last year a three-well shallow drilling programme was planned in Poland, targeting gas in the Karpaty area (in conjunction with 40% partner PGNiG) and oil in the Permian Basin (as the final stage of a farm-in agreement with Celtique Energy). The Kety and Gieratowice wells in the Karpaty area were both drilled and well tested, but in each case the gas rate tested was sub-commercial. The wells have been plugged and abandoned. Data acquired during the drilling will be used to re-evaluate the blocks and develop a forward plan. 

The Niwiska well in the Permian Basin has been deferred while the oil price is low, as it could no longer be justified on a risk-reward basis. Romania In the Romanian Carpathians we have over 350,000 gross acres (c1400 Km2). In addition to the Voitinel gas discovery well, the Company has several other shallow and deep targets in a region with existing gas production.

APPRAISAL AND READY TO DEVELOP

Poland
Baltic Basin
LEWINO-1G2 FRAC SUCCESS
In January 2014, we announced highly successful flow test results on our hydraulic fracture of the Lewino-1G2 well in Gdansk W concession in the Baltic Basin, Poland. A horizontal multi-fracced well is planned and has been engineered. The Company is confident that this horizontal well, following what the Board believes is the most successful single frac in a vertical well in Europe, has a good chance of proving the commerciality of this huge resource as the existing positive frac results are scaled up to the individual well configuration which would be used for a development. San Leon has 220,000 net acres in the Gdansk W concession alone, and around 1.2 million net acres across the Baltic Basin. We are currently looking for a partner to continue appraisal on this promising asset.

BRANIEWO S CONCESSION
Both shales (Silurian and Ordovician) and tight Cambrian sandstone are oil targets in this concession. Further well activity, such as a multi-fractured horizontal well in the tight sandstone, has been put on hold until the oil price improves the economics. Oil is already produced commercially from the sandstone in the region.

NEAR-TERM INCOME
Ireland
Net Profit Interest
San Leon’s 4.5% Net Profit Interest (NPI) on the Barryroe oil field provides access to future revenue streams with no additional capital required. A number of approaches have been received to execute a transaction on the NPI and provide monetisation, but the Company believes maximum shareholder value will be realised by retaining it and its cash flows. Internal economic modelling, based upon the Barryroe 2013 CPR summary and reasonable pricing assumptions, indicates cash flow of more than $700 million net to San Leon through field life.


Poland
Mature assets in the Carboniferous and Permian Basin
In July 2014, Palomar Natural Resources farmed into our assets in Poland’s Carboniferous and Permian Basins. The Rawicz and Siekierki fields were identified for early production and cash flow. Palomar paid a total of $20 million up-front for a 65% equity stake and will execute work programmes as Operator.

On Rawicz, Palomar agreed to drill and test two wells at no up-front cost to San Leon, with the Company only paying back its 35% share of drilling costs through production. The first of those wells, Rawicz-12, was drilled in late 2014 and tested in early 2015 after the end of the reporting period. It was a great success, with stable flow reaching 4.5 mmscf/d, and allowed a number of wells drilled on the structure in the 1970s to be re-evaluated. In May 2015 a Competent Persons Report (CPR) was completed for Palomar by Ryder Scott Company, yielding just over 50 Bcf of Probable reserves for the full field. When an offtake agreement is signed, Palomar and San Leon expect some reserves to be moved to Proved. Production is targeted for Q1 2016.

On Siekierki, Palomar has undertaken to carry San Leon for the workover of three existing wells, with the aim of tying in gas production to the nearby distribution network. 

 

View the full press release here.

   

Consolidated income statement for the year ended 31 December 2014

 

    
31/12/14       31/12/13 
EUR EUR

Continuing operations
Revenue 2,942 3,013
Cost of sales (543) (453)
------------- -------------
Gross profit 2,399 2,560

Other income - 4,229,277
Loss on disposal of subsidiaries (6,429,007) -
Administrative expenses (16,877,640) (10,899,228)
Impairment of exploration and
evaluation assets (9,149,836) (7,036,679)
Impairment of equity accounted
investments (3,345,664) (7,036,679)
Loss from operating activities (35,799,748) (13,704,070)

Finance expense (1,796,659) (1,587,240)
Finance income 231,352 1,751,393
Share of loss of equity-accounted
investments (54,002) (141,745)

Loss before income tax (37,419,057) (13,681,662)

Income tax expense (875,557) (19,778)
------------- -------------

Loss for the year after tax
from continuing operations (38,294,614) (13,701,440)
------------- -------------

Discontinued operations
Profit / (loss) from discontinued
operations (net of income tax) 30,258 (3,350,138)
------------- -------------
Loss for the year attributable
to equity holders of the Group (38,264,356) (17,051,578)
------------- -------------



Loss per share (cent) - continuing
operations
Basic and diluted loss per (1.52) (0.70)
ordinary share cent cent
------- -------

(Loss) / earnings per share
(cent) - discontinued operations
Basic and diluted earnings 0.01 (0.17)

   

/ (loss) per ordinary share               cent     cent 

Loss per share (cent) - total
Basic and diluted loss per (1.51) (0.87)
ordinary share cent cent
------- -------

 

    

Consolidated statement of other comprehensive income for the year ended 31 December 2014

 

31/12/14       31/12/13 
EUR EUR
Loss for the year (38,264,356) (17,051,578)
------------- -------------

Items that may be reclassified
subsequently to the income statement
Foreign currency translation
differences - foreign operations 817,175 (5,282,870)
Fair value movements in available-for-sale
financial assets 5,102,461 (2,658,522)
Deferred tax on fair value movements
in available-for-sale financial
assets (2,084,197) -
------------- -------------
Total comprehensive loss for
the year (34,428,917) (24,992,970)
------------- -------------

 

    

Consolidated statement of other comprehensive income for the year ended 31 December 2014

 

 

 

 

 

 

 

31/12/14

31/12/13

 

 

Loss for the year

 

(38,264,356)

(17,051,578)

 

 

 

 

Items that may be reclassified subsequently to the income statement

 

 

 

Foreign currency translation differences - foreign operations

 

817,175

(5,282,870)

Fair value movements in available-for-sale financial assets

 

5,102,461

 (2,658,522)    

Deferred tax on fair value movements in available-for-sale financial assets

 

(2,084,197)

-    

Total comprehensive loss for the year

 

(34,428,917)

(24,992,970)

Consolidated statement of changes in equity for the year ended 31 December 2014

 

 

 

 

Share

capital

reserve

 

Share

Premium

reserve

 

Currency translation

in Group

Share based payment

reserve

 

 

Fair

value reserve

 

 

Retained earnings

 

 

 

Attributable to equity holders

 

 

 

Non-controlling interest

 

Total

equity

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 January 2014

126,560,947

164,232,712

(1,388,753)

 

 

10,213,497

(3,095,243)

 

 

(12,604,325)

 

 

283,918,835

 

 

527,851

284,446,686

Total comprehensive income for year

 

 

 

 

 

 

 

 

 

Loss for the year

 

-

-

-

-

 

-

(38,264,356)

(38,264,356)

-

(38,264,356)

Other comprehensive income

 

 

 

 

 

 

 

 

 

Foreign currency translation differences - foreign operations

-

-

817,175

-

 

-

-

817,175

-

817,175

Fair value movements in available-for-sale financial assets

-

-

-

-

5,102,461

-

-

5,102,461

Deferred tax on fair value movements

-

-

-

-

 

 

(2,084,197)

-

(2,084,197)

-

(2,084,197)

Total comprehensive income for year

-

-

817,175

-

 

 

3,018,264

(38,264,356)

(34,428,917)

-

(34,428,917)

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners recognised directly in equity

 

 

 

 

 

 

 

 

Contributions by and distributions to owners

 

 

 

 

 

 

 

Cost of issue of shares for cash in 2013

-

(473,715)

-

-

-

-

(473,715)

-

(473,715)

Share based payment

-

-

-

1,211,407

-

-

1,211,407

-

1,211,407

Effect of share options exercised

26,825

5,859

-

-

-

-

32,684

-

32,684

Shares issued to Realm shareholders on conversion of exchangeable shares

190,861

334,742

-

-

 

 

-

-

525,603

(525,603)

-

Total transactions with owners

217,686

(133,114)

-

1,211,407

 

-

-

1,295,979

(525,603)

770,376

Balance at 31 December 2014

126,778,633

164,099,598

(571,578)

11,424,904

(76,979)

(50,868,681)

250,785,897

 

Consolidated statement of changes in equity for the year ended 31 December 2014

 

 

 

Share

capital

reserve

 

Share

Premium

reserve

 

Currency translation

in Group

Share based payment

reserve

 

 

 

Fair

value

reserve

 

 

Retained earnings

 

 

 

 

Attributable to equity holders

 

 

 

Non-controlling interest

 

Total

equity

 

 

 

 

 

 

 

 

 

Balance at 1 January 2013

61,471,639

131,511,450

3,894,117

7,974,447

 

 

(436,721)

4,295,235

 

 

208,710,167

 

 

1,440,050

210,150,217

Total comprehensive income for year

 

 

 

 

 

 

 

 

 

Loss for the year

-

-

-

-

-

(17,051,578)

 

(17,051,578)

-

(17,051,578)

Other comprehensive income

 

 

 

 

 

 

 

 

 

Foreign currency translation differences - foreign operations

-

-

(5,282,870)

-

 

-

-

 

(5,282,870)

 

-

(5,282,870)

Fair value movements in available-for-sale financial assets

-

-

-

-

 

(2,658,522)

-

 

(2,658,522)

 

-

(2,658,522)

Total comprehensive income for year

-

-

(5,282,870)

-

 

(2,658,522)

(17,051,578)

 

(24,992,970)

 

-

(24,992,970)

Transactions with owners recognised directly in equity

 

 

 

 

 

 

 

 

 

Contributions by and distributions to owners

 

 

 

 

 

 

 

 

Issue of shares related to business combinations

32,126,484

29,002,133

-

-

 

-

-

 

61,128,617

 

-

 

61,128,617

Issue of shares for cash

32,631,579

3,138,175

-

-

-

-

35,769,754

-

35,769,754

Share based payment

-

-

-

3,821,953

-

-

3,821,953

-

3,821,953

Effect of share warrants forfeit

-

-

-

(29,948)

-

29,948

-

-

-

Effect of share options forfeit

-

-

-

(1,552,955)

-

122,070

(1,430,885)

-

(1,430,885)

Shares issued to Realm shareholders on conversion of exchangeable shares

331,245

580,954

-

-

-

-

912,199

(912,199)

-

Total transactions with owners

65,089,308

32,721,262

-

2,239,050

 

-

152,018

100,201,638

(912,199)

99,289,439

Balance at 31 December 2013

126,560,947

164,232,712

(1,388,753)

 

 

10,213,497

(3,095,243)

 

 

(12,604,325)

 

 

283,918,835

 

 

527,851

284,446,686

                                       

 

Consolidated statement of financial position as at 31 December 2014

 

 

 

 

 

 

 

 

 

31/12/14

31/12/13

 

 

 

Assets

 

 

 

 

Non-current assets

 

 

 

 

Exploration and evaluation assets

 

 

163,375,424

186,052,006

Equity accounted investments

 

 

44,483,000

23,728,594

Property, plant and equipment

 

 

10,831,903

10,514,451

Other non-current assets

 

 

833,045

3,407,821

Financial assets

 

 

42,534,544

37,432,083

Other financial assets

 

 

5,360,034

-

 

 

 

267,417,950

261,134,955

 

Current assets

 

 

 

 

Inventory

 

 

320,043

229,978

Trade and other receivables

 

 

10,344,339

13,216,437

Other financial assets

 

 

1,335,361

6,274,202

Cash and cash equivalents

 

 

1,808,715

11,420,968

Assets classified as held for sale

 

 

-

15,705,353

 

 

 

13,808,458

46,846,938

Total assets

 

 

281,226,408

307,981,893

 

Equity and liabilities

 

 

 

 

Equity

 

 

 

 

Called up share capital

 

 

126,778,633

126,560,947

Share premium account

 

 

164,099,598

164,232,712

Share based payments reserve

 

 

11,424,904

10,213,497

Currency translation reserve

 

 

(571,578)

(1,388,753)

Fair value reserve

 

 

(76,979)

(3,095,243)

Retained earnings

 

 

(50,868,681)

(12,604,325)

Attributable to equity holders of the Group

 

 

250,785,897

283,918,835

Non-controlling interest

 

 

2,248

527,851

Total equity

 

 

250,788,145

284,446,686

 

 

 

 

 

Non-current liabilities

 

 

 

 

Derivative

 

 

4,017

208,434

Deferred tax liabilities

 

 

12,198,995

9,329,447

 

 

 

12,203,012

9,537,881

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

 

10,963,732

6,228,211

Loans and borrowings

 

 

5,814,022

-

Provisions

 

 

1,457,497

1,397,094

Liabilities classified as held for sale

 

 

-

6,372,021

 

 

 

18,235,251

13,997,326

 

 

 

 

 

Total liabilities

 

 

30,438,263

23,535,207

Total equity and liabilities

 

 

281,226,408

  307,981,893

Consolidated statement of cash flows for the year ended 31 December 2014

 

 

 

 

 

 

 

 

31/12/14

31/12/13

 

 

 

Cash flows from operating activities

 

 

 

 

Loss before tax - Continuing operations

 

 

(37,419,057)

(13,681,662)

Profit / (loss) before tax - Discontinued operations

 

 

30,258

(3,350,138)

Adjustments for:

 

 

 

 

Depletion and depreciation

 

 

101,570

118,006

Finance expense

 

 

1,796,659

1,587,240

Finance income

 

 

(231,352)

(1,751,393)

Share based payments charge

 

 

249,064

639,954

Foreign exchange

 

 

(1,739,289)

(1,172,367)

Gain on Talisman acquisition

 

 

-

(4,229,277)

Impairment of exploration and evaluation assets - continuing operations

 

 

9,149,836

7,036,679

Impairment of equity accounted assets - continuing operations

 

 

3,345,664

3,579,880

Impairment of exploration and evaluation assets - discontinued operations

 

 

-

3,579,880

Decrease / (increase) in other non-current assets

 

 

457,051

(1,116,161)

Loss on disposal of subsidiaries

 

 

6,429,007

-

(Increase) / decrease in inventory

 

 

(90,065)

360,233

Decrease / (increase) in trade and other receivables

 

 

2,398,785

(2,746,657)

Increase / (decrease) in trade and other payables

 

 

5,483,083

(2,766,513)

Other non-current assets

 

 

2,117,728

-

Share of loss of equity-accounted investments

 

 

54,002

141,745

Tax paid

 

 

(21,031)

(31,122)

Net cash flows in operating activities

 

 

(7,888,087)

(17,381,553)

 

Cash flows from investing activities

 

 

 

 

Expenditure on exploration and evaluation assets

 

 

(19,909,050)

(31,250,052)

Joint venture partner share of exploration costs

 

 

363,293

4,045,909

Purchases of property, plant and equipment

 

 

(1,701,433)

(1,854,578)

Interest received

 

 

3,515

36,699

Decrease / (increase) in restricted cash

 

 

325,354

(5,517,332)

Advances to equity-accounted investments

 

 

(1,054,618)

(1,631,488)

Proceeds of farm-out arrangement

 

 

14,806,537

-

Proceeds of offshore Morocco farm-out

 

 

-

1,210,217

Net cash acquired with subsidiary

 

 

-

31,897,712

Cash acquired with asset acquisition

 

 

-

3,949,107

Payment to acquire financial assets

 

 

-

(1,329,349)

Net cash outflow from investing activities

 

 

(7,166,402)

(443,155)

 

Cash flows from financing activities

 

 

 

 

Proceeds from issue of share capital, net of costs

 

 

-

35,769,754

Cost of issue of shares in 2013

 

 

(473,715)

 

Proceeds from drawdown of other loans

 

 

8,415,037

2,612,315

Repayment of other loans

 

 

(3,070,671)

(9,258,223)

Movement in director loan

 

 

2,201,471

(859,373)

Interest and arrangement fees paid

 

 

(1,641,403)

(881,298)

Net cash inflow from financing activities

 

 

5,430,719

27,383,175

 

Net (decrease) / increase in cash and cash equivalents

 

 

(9,623,770)

 

9,558,467

Effect of foreign exchange fluctuation on cash and cash equivalents

 

 

11,517

37,702

Cash and cash equivalents at start of year

 

 

11,420,968

1,824,799

 

Cash and cash equivalents at end of year

 

 

1,808,715

11,420,968

General
San Leon Energy plc ("the Company") is a company incorporated in Ireland. The Group financial statements consolidate those of the Company with those of its subsidiaries (together referred to as "the Group").

The financial information presented in this report has been prepared using accounting policies consistent with International Financial Reporting Standards ("IFRS") as adopted by the European Union and as set out in the Group's annual financial statements in respect of the year ended 31 December 2014. The financial information herein does not include all the information and disclosures required in the annual financial statements, however the full financial statements are included within the Annual Report which are being distributed to shareholders and which are available on the Company's website www.sanleonenergy.com. It will also be filed with the Company's Annual Return in the Companies Registration Office. The financial information herein for the prior year ended 31 December 2013 represents an abbreviated version of the Group's statutory financial statements and the financial statements for the year ended 31 December 2013 have been filed with the Companies Registration Office.

Annual Report and Accounts
Copies of the Annual Report and Accounts, together with a notice of the annual general meeting, are being posted to shareholders today and are available within the Investor Relations section of the Company's website www.sanleonenergy.com

 

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