News and Press Releases Rsssanleonenergy.com10/22/2018 10:38:07 AMumbraco v4News feed of San Leon EnergyenMidwestern Becomes Significant Shareholder/media-centre/news-releases/2018/october/1/midwestern-oil-gas-company-limited-becomes-significant-shareholder.aspx2018-10-01T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/october/1/midwestern-oil-gas-company-limited-becomes-significant-shareholder.aspx

San Leon Energy plc (“San Leon” or “the Company”), the AIM-listed oil and gas exploration and production company focused on Africa and Europe, announces that Midwestern has notified the Company that Midwestern has entered into a binding agreement with SunTrust Oil Company Nigeria Limited (“SunTrust”) to acquire SunTrust’s equity interest in San Leon.

Pursuant to the agreement, Midwestern will acquire a total of 71,487,179 ordinary shares in San Leon (representing 14.29 % of the issued ordinary shares of the Company and SunTrust’s entire remaining interest in the Company). The shares which are currently held directly and/or indirectly by SunTrust are being transferred to Midwestern in exchange for the transfer of interests in certain assets currently owned by Midwestern. San Leon has been informed by Midwestern that 47,243,590 ordinary shares in San Leon (representing 9.44% of issued ordinary shares) have already been transferred to Midwestern, and that the remaining shares will be transferred by SunTrust in the coming weeks.

The transaction does not directly involve San Leon or its assets.

Midwestern is a partner of the Company, in Midwestern Leon Petroleum Limited (“MLPL”).

Charles Odita, Managing Director/CEO of Midwestern, commented:
“Midwestern is delighted to become a significant shareholder with San Leon, our partner in MLPL, which has indirect interests in OML 18. I expect this transaction to further cement the partnership.”

Oisin Fanning, CEO of San Leon, commented:
“I wish to welcome Midwestern as a significant shareholder in the Company, which I believe will continue to enhance the alignment of our indirect interests in developing the value in OML 18.”

Enquiries:

San Leon Energy plc
Oisin Fanning, Chief Executive (+ 353 1291 6292)

Cantor Fitzgerald Europe (Nominated adviser, financial adviser and joint broker to the
Company)
Nick Tulloch (+44 131 257 4634)
David Porter (+44 207 894 8896)

Whitman Howard Limited (Financial adviser and joint broker to the Company)
Nick Lovering (+44 20 7659 1234)

Brandon Hill Capital Limited (Joint broker to the Company)
Oliver Stansfield (+44 203 463 5000)
Jonathan Evans (+44 203 463 5016)

Vigo Communications (Financial Public Relations)
Chris McMahon (+44 207 830 9700)
Kate Rogucheva (+44 207 830 9705)

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

San Leon Energy plc (“San Leon” or “the Company”), the AIM-listed oil and gas exploration and production company focused on Africa and Europe, announces that Midwestern has notified the Company that Midwestern has entered into a binding agreement with SunTrust Oil Company Nigeria Limited (“SunTrust”) to acquire SunTrust’s equity interest in San Leon.

Pursuant to the agreement, Midwestern will acquire a total of 71,487,179 ordinary shares in San Leon (representing 14.29 % of the issued ordinary shares of the Company and SunTrust’s entire remaining interest in the Company). The shares which are currently held directly and/or indirectly by SunTrust are being transferred to Midwestern in exchange for the transfer of interests in certain assets currently owned by Midwestern. San Leon has been informed by Midwestern that 47,243,590 ordinary shares in San Leon (representing 9.44% of issued ordinary shares) have already been transferred to Midwestern, and that the remaining shares will be transferred by SunTrust in the coming weeks.

The transaction does not directly involve San Leon or its assets.

Midwestern is a partner of the Company, in Midwestern Leon Petroleum Limited (“MLPL”).

Charles Odita, Managing Director/CEO of Midwestern, commented:
“Midwestern is delighted to become a significant shareholder with San Leon, our partner in MLPL, which has indirect interests in OML 18. I expect this transaction to further cement the partnership.”

Oisin Fanning, CEO of San Leon, commented:
“I wish to welcome Midwestern as a significant shareholder in the Company, which I believe will continue to enhance the alignment of our indirect interests in developing the value in OML 18.”

Enquiries:

San Leon Energy plc
Oisin Fanning, Chief Executive (+ 353 1291 6292)

Cantor Fitzgerald Europe (Nominated adviser, financial adviser and joint broker to the
Company)
Nick Tulloch (+44 131 257 4634)
David Porter (+44 207 894 8896)

Whitman Howard Limited (Financial adviser and joint broker to the Company)
Nick Lovering (+44 20 7659 1234)

Brandon Hill Capital Limited (Joint broker to the Company)
Oliver Stansfield (+44 203 463 5000)
Jonathan Evans (+44 203 463 5016)

Vigo Communications (Financial Public Relations)
Chris McMahon (+44 207 830 9700)
Kate Rogucheva (+44 207 830 9705)

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

Annual General Meeting: Result of Meeting and Directorate Change/media-centre/news-releases/2018/september/28/annual-general-meeting-result-of-meeting-and-directorate-change.aspx2018-09-28T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/september/28/annual-general-meeting-result-of-meeting-and-directorate-change.aspx

The Annual General Meeting of the Shareholders of San Leon Energy plc (the "Company") was held on 28 September 2018 at 11.00 am in the Herbert Park Hotel, Ballsbridge, Dublin 4, Ireland. The Company is pleased to confirm that all the resolutions were successfully passed with the exception of resolution 2d (re-election by rotation of Raymond King) which was withdrawn by the Chairman at the start of the meeting.

Mr King has advised the board that he will not stand for re-election and wishes to retire as a director of San Leon with immediate effect. Mr King will continue to fulfil his duties as the Company Secretary of the Company until the end of 2018.

Oisín Fanning, Chief Executive of San Leon said:
"I would like to lead the Board in offering our grateful thanks to Ray for his many years of service to the Company since its inception. We wish him the very best in retirement."

Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

Cantor Fitzgerald Europe
(Nominated adviser, financial adviser and joint broker to the Company)
Nick Tulloch
(+44 131 257 4634)
David Porter
(+44 207 894 8896)

Whitman Howard Limited
(Financial adviser and joint broker to the Company)
Nick Lovering
(+44 20 7659 1234)

Brandon Hill Capital Limited
(Joint broker to the Company)
Oliver Stansfield
(+44 203 463 5000)
Jonathan Evans
(+44 203 463 5016)

Vigo Communications
(Financial Public Relations)
Chris McMahon (+44 207 830 9700)
Kate Rogucheva (+44 207 830 9705)

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

The Annual General Meeting of the Shareholders of San Leon Energy plc (the "Company") was held on 28 September 2018 at 11.00 am in the Herbert Park Hotel, Ballsbridge, Dublin 4, Ireland. The Company is pleased to confirm that all the resolutions were successfully passed with the exception of resolution 2d (re-election by rotation of Raymond King) which was withdrawn by the Chairman at the start of the meeting.

Mr King has advised the board that he will not stand for re-election and wishes to retire as a director of San Leon with immediate effect. Mr King will continue to fulfil his duties as the Company Secretary of the Company until the end of 2018.

Oisín Fanning, Chief Executive of San Leon said:
"I would like to lead the Board in offering our grateful thanks to Ray for his many years of service to the Company since its inception. We wish him the very best in retirement."

Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

Cantor Fitzgerald Europe
(Nominated adviser, financial adviser and joint broker to the Company)
Nick Tulloch
(+44 131 257 4634)
David Porter
(+44 207 894 8896)

Whitman Howard Limited
(Financial adviser and joint broker to the Company)
Nick Lovering
(+44 20 7659 1234)

Brandon Hill Capital Limited
(Joint broker to the Company)
Oliver Stansfield
(+44 203 463 5000)
Jonathan Evans
(+44 203 463 5016)

Vigo Communications
(Financial Public Relations)
Chris McMahon (+44 207 830 9700)
Kate Rogucheva (+44 207 830 9705)

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

Interim results/media-centre/news-releases/2018/september/25/interim-results.aspx2018-09-25T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/september/25/interim-results.aspx

San Leon Energy, the AIM listed company focused on oil and gas development and appraisal in Africa, today announces its unaudited interim results for the six months ended 30 June 2018, and provides an update on its indirect interest in OML 18, a world-class oil and gas block onshore Nigeria, and other assets.

To view the full press release, please click here.

Highlights

Corporate

  • US$77.3 million has been received to date in relation to the US$174.5 million Midwestern Leon Petroleum Limited ("MLPL") Loan Notes (“Loan Notes”). The Company is scheduled to continue to be repaid against the Loan Notes, whose balance is currently $157.8 million.
  • The Company's cash position (€22.6 million at 30 June 2018) has been substantially strengthened over the period, enabling management to focus further on yielding value from its indirect interest in OML 18.
  • The Company anticipates future cash flow from continued principal and interest repayments from the Loan Notes, income from the Master Services Agreement (“MSA”), dividends from the Company’s initial indirect 9.72% economic interest in OML 18 (once Eroton is in a position to pay such dividends), and through the potential income or sale of the Company’s 4.5% Net Profit Interest in the Barryroe oil field (offshore Ireland).
  • The Company intends initially to return not less than $10 million to shareholders through a share buy-back programme (the "Programme"), once it has completed its capital reorganisation (expected to complete in October/November 2018).

Operational

An update on OML 18 activity during the first six months of 2018 is provided below.

  • Workovers using cement packers have been performed on five wells, and are continuing. Gas lift has been installed in seven wells (with further wells to be added). Both activities are increasing production rates, and the gas lift installation is enabling the wells to restart production more rapidly after any production upset.
  • Three of the five planned Lease Automatic Custody Transfer ("LACT") units are now operational in the field (on Alakiri, Krakama and Cawthorne-1 production areas), with units on Cawthorne-2 and Cawthorne-3 expected to be operational around the start of Q4.
  • Eroton expects a drilling rig to arrive in OML 18 within the next month to drill the first new well of Eroton's operatorship, with others planned to follow. It expects the well to spud by early November, have a duration of approximately 60 days, and will be an infill well in the Akaso field.
  • The Buguma field is still planned to be brought online by Eroton, and awaits permissions before the operational work is carried out.
  • The proposed new dedicated export system for OML 18 (which is expected materially to reduce downtime and pipeline losses) is forecast by Eroton to be online during 2019.

Production has continued to be affected in the first half of 2018 by Nembe Creek Trunk Line (“NCTL”) pipeline downtime and allocated pipeline losses (although the installation of the LACT units is expected to reduce these). In addition, there has been a decline of more than 4,000 bopd in production from the Awoba field (of which the OML 18 partners have a 50% equity share) over the 12 months to 30 June 2018. Average production before pipeline losses for the first six months of 2018 was 38,578 bopd (after downtime), or 46,086 bopd on a producing days basis. Average sales oil for the period was 26,003 bopd (after pipeline losses).

Current trouble-free production (including 50% of Awoba, and before pipeline losses) is approximately 49,000 bopd, with an expectation that it will increase as well activity ramps up in the coming months.

Financial

  • Profit from continuing operations for the period ended 30 June 2018 was €3.8m (30 June 2017: loss of €5.2m)
  • Cash and cash equivalents as at 30 June 2018 of €22.6m (30 June 2017: €0.3m)
  • During 2018 to date US$37.7m (€31.1m) has been received in relation to payments due to San Leon under the US$174.5m Loan Notes
  • All loans provided to San Leon have been fully settled.

Chief Executive Officer of San Leon, Oisin Fanning, commented:
"With the Company on an increasingly sound financial footing, with substantial cash in hand, I am pleased to see the effects of Eroton’s well work coming through. As that activity continues and is joined by new well drilling, I look forward to updating shareholders on OML 18’s performance. With the installation of LACT units, and the expected new OML 18 export system, Eroton expects a steady improvement in downtime and allocated losses, which would translate into increased sales volumes. I look to the Company’s future with increased confidence.”

To view the full press release, please click here.

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:

San Leon Energy plc
Oisin Fanning, Chief Executive (+ 353 1291 6292)

Cantor Fitzgerald Europe (Nominated adviser, financial adviser and joint broker to the Company)
Nick Tulloch (+44 131 257 4634)
David Porter (+44 207 894 8896)

Whitman Howard Limited (Financial adviser and joint broker to the Company)
Nick Lovering (+44 20 7659 1234)

Brandon Hill Capital Limited (Joint broker to the Company)
Oliver Stansfield (+44 203 463 5000)
Jonathan Evans (+44 203 463 5016)

Vigo Communications (Financial Public Relations)
Chris McMahon (+44 207 830 9700)
Kate Rogucheva (+44 207 830 9705)

San Leon Energy, the AIM listed company focused on oil and gas development and appraisal in Africa, today announces its unaudited interim results for the six months ended 30 June 2018, and provides an update on its indirect interest in OML 18, a world-class oil and gas block onshore Nigeria, and other assets.

To view the full press release, please click here.

Highlights

Corporate

  • US$77.3 million has been received to date in relation to the US$174.5 million Midwestern Leon Petroleum Limited ("MLPL") Loan Notes (“Loan Notes”). The Company is scheduled to continue to be repaid against the Loan Notes, whose balance is currently $157.8 million.
  • The Company's cash position (€22.6 million at 30 June 2018) has been substantially strengthened over the period, enabling management to focus further on yielding value from its indirect interest in OML 18.
  • The Company anticipates future cash flow from continued principal and interest repayments from the Loan Notes, income from the Master Services Agreement (“MSA”), dividends from the Company’s initial indirect 9.72% economic interest in OML 18 (once Eroton is in a position to pay such dividends), and through the potential income or sale of the Company’s 4.5% Net Profit Interest in the Barryroe oil field (offshore Ireland).
  • The Company intends initially to return not less than $10 million to shareholders through a share buy-back programme (the "Programme"), once it has completed its capital reorganisation (expected to complete in October/November 2018).

Operational

An update on OML 18 activity during the first six months of 2018 is provided below.

  • Workovers using cement packers have been performed on five wells, and are continuing. Gas lift has been installed in seven wells (with further wells to be added). Both activities are increasing production rates, and the gas lift installation is enabling the wells to restart production more rapidly after any production upset.
  • Three of the five planned Lease Automatic Custody Transfer ("LACT") units are now operational in the field (on Alakiri, Krakama and Cawthorne-1 production areas), with units on Cawthorne-2 and Cawthorne-3 expected to be operational around the start of Q4.
  • Eroton expects a drilling rig to arrive in OML 18 within the next month to drill the first new well of Eroton's operatorship, with others planned to follow. It expects the well to spud by early November, have a duration of approximately 60 days, and will be an infill well in the Akaso field.
  • The Buguma field is still planned to be brought online by Eroton, and awaits permissions before the operational work is carried out.
  • The proposed new dedicated export system for OML 18 (which is expected materially to reduce downtime and pipeline losses) is forecast by Eroton to be online during 2019.

Production has continued to be affected in the first half of 2018 by Nembe Creek Trunk Line (“NCTL”) pipeline downtime and allocated pipeline losses (although the installation of the LACT units is expected to reduce these). In addition, there has been a decline of more than 4,000 bopd in production from the Awoba field (of which the OML 18 partners have a 50% equity share) over the 12 months to 30 June 2018. Average production before pipeline losses for the first six months of 2018 was 38,578 bopd (after downtime), or 46,086 bopd on a producing days basis. Average sales oil for the period was 26,003 bopd (after pipeline losses).

Current trouble-free production (including 50% of Awoba, and before pipeline losses) is approximately 49,000 bopd, with an expectation that it will increase as well activity ramps up in the coming months.

Financial

  • Profit from continuing operations for the period ended 30 June 2018 was €3.8m (30 June 2017: loss of €5.2m)
  • Cash and cash equivalents as at 30 June 2018 of €22.6m (30 June 2017: €0.3m)
  • During 2018 to date US$37.7m (€31.1m) has been received in relation to payments due to San Leon under the US$174.5m Loan Notes
  • All loans provided to San Leon have been fully settled.

Chief Executive Officer of San Leon, Oisin Fanning, commented:
"With the Company on an increasingly sound financial footing, with substantial cash in hand, I am pleased to see the effects of Eroton’s well work coming through. As that activity continues and is joined by new well drilling, I look forward to updating shareholders on OML 18’s performance. With the installation of LACT units, and the expected new OML 18 export system, Eroton expects a steady improvement in downtime and allocated losses, which would translate into increased sales volumes. I look to the Company’s future with increased confidence.”

To view the full press release, please click here.

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:

San Leon Energy plc
Oisin Fanning, Chief Executive (+ 353 1291 6292)

Cantor Fitzgerald Europe (Nominated adviser, financial adviser and joint broker to the Company)
Nick Tulloch (+44 131 257 4634)
David Porter (+44 207 894 8896)

Whitman Howard Limited (Financial adviser and joint broker to the Company)
Nick Lovering (+44 20 7659 1234)

Brandon Hill Capital Limited (Joint broker to the Company)
Oliver Stansfield (+44 203 463 5000)
Jonathan Evans (+44 203 463 5016)

Vigo Communications (Financial Public Relations)
Chris McMahon (+44 207 830 9700)
Kate Rogucheva (+44 207 830 9705)

Update on Barryroe Farm-Out Agreement/media-centre/news-releases/2018/september/20/update-on-barryroe-farm-out-agreement.aspx2018-09-20T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/september/20/update-on-barryroe-farm-out-agreement.aspx

San Leon notes the announcement today from Providence Resources Plc (“Providence”) regarding the Barryroe Field, offshore Ireland, in which San Leon holds a 4.5% Net Profit Interest. San Leon Energy is not required to pay any further appraisal or development costs on the Licence. The main text of Providence’s announcement is set out below for reference.

The Company congratulates Providence on finalising binding farm-out terms.

Start of text from Providence’s announcement:

  • BINDING BARRYROE FARM-OUT AGREEMENT SIGNED
  • DRILLING PROGRAMME OF 5 FIRM WELLS AND 2 OPTION WELLS SET TO COMMENCE IN 2019
  • CASH ADVANCE PAYMENTS OF $19.5 MILLION TO EXOLA AGREED

Dublin and London - September 20, 2018 - Providence Resources P.l.c. (PVR LN, PRP ID), the Irish based Oil & Gas Exploration Company ("Providence" or the "Company"), today provides a commercial update on Standard Exploration Licence ("SEL") 1/11 that contains the Barryroe oil accumulation. SEL 1/11 is operated by EXOLA DAC ("EXOLA", 80%), a wholly-owned Providence subsidiary, on behalf of its partner, Lansdowne Celtic Sea Limited ("Lansdowne", 20%). The area lies in c. 100 metre water depth in the North Celtic Sea Basin and is located c. 50 km off the south coast of Ireland.

Binding Barryroe Farm-Out with APEC
Further to the RNS announcement of March 28, 2018 regarding the signing of a Farm-Out Agreement ("FOA") with APEC Energy Enterprises Limited ("APEC"), the Company is pleased to now confirm that, following the completion of all required ancillary documentation and the receipt of both governmental consents, EXOLA, Lansdowne and APEC (collectively referred to as the "Barryroe Partners") have signed an amended and restated Farm-Out Agreement ("Updated FOA") which assigns 50% equity in SEL 1/11 to APEC.

Summary of Updated FOA Terms & Conditions
The Updated FOA provides for a fully cost-carried firm programme comprising of the drilling and testing of four vertical wells and one horizontal sidetrack (collectively the "Drilling Programme"), plus the optional drilling of two additional horizontal wells, together with cash advances to EXOLA for certain agreed project and operational costs such as well site survey acquisition totaling $19.5 million.

Commenting today, Tony O'Reilly, Chief Executive Officer of Providence Resources said:

"We are very pleased to confirm that, having received governmental approval for the assignment of equity in Barryroe to APEC, we have now executed a revised Farm-out Agreement with APEC.

The finalisation of these binding farm-out terms with APEC is transformational for Providence as it delivers a firm and comprehensive drilling programme comprising of four vertical wells and one horizontal sidetrack, cash advances for certain operational costs of $19.5 million, plus the financing of two further optional wells. Subject to regulatory consents and appropriate arrangements with contractors, we expect mobilisation to commence in Q2 2019. In this regard, we are also pleased to confirm that we have contracted Gardline's Ocean Observer vessel to carry out the requisite site surveys during Q4 2018.

This drilling programme is a significant step forward for Barryroe as it is designed to provide modern dynamic data that will assist in the field development to production. Importantly, the structure of the farm-out transaction means that Providence has no upfront risk or capital exposure for the drilling programme, whilst also providing a roadmap to take this project, subject to the results of the drilling and subsequent regulatory consents, to project sanction and then on to production."

As certain operational, financial and commercial terms of the transaction have changed from those previously announced on March 28, 2018, the section below provides the final details of the Updated FOA:

Cash Payments

  • With the signing of the Updated FOA, APEC will now proceed with the payment of $9.0 million to EXOLA for certain agreed front-loaded project related costs;
  • A further $10.5 million payment will be made to EXOLA to cover future operational costs, such payment to be made 14 days prior to the commencement of drilling.

Drilling Programme

  • The drilling of four vertical wells allowing for the evaluation of the main Basal Wealden reservoir interval;
  • The first well to include the drilling of a sidetrack to provide a 200-metre horizontal reservoir section in the Basal Wealden;
  • Drill-stem testing is planned for three of the four vertical wells, as well as the horizontal sidetrack;
  • The four vertical wells are located across the geographic extent of the Barryroe structure and are designed to test the full potential of the Basal Wealden;
  • Drilling to the underlying Purbeckian and Upper Jurassic section is planned in three of the four wells;
  • Planning for the drilling of these wells is already advanced, together with the consenting of the recently contracted Gardline "Ocean Observer" vessel to carry out the well site survey operations during Q4 2018, subject to regulatory approval;
  • Rig procurement, based on a Q2 2019 mobilisation for the Drilling Programme is also well advanced, as are contract discussions with various oil field service providers;
  • At the completion of the Drilling Programme, APEC also has an option to drill, test and complete two further additional horizontal wells to the Basal Wealden reservoir interval ("Option Wells");

Financing

  • APEC is directly responsible for paying 50% of all cost obligations associated with the Drilling Programme, and the Option Wells (if applicable);
  • APEC to finance, by way of a non-recourse loan facility (the "Loan"), the remaining 50% of all cost obligations attributable to EXOLA and Lansdowne in respect of the Drilling Programme as well as the Option Wells (if applicable);
  • The Loan, drawable against the budget for the Drilling Programme, will incur an annual interest rate of LIBOR +5% and will be repayable from production cashflow from SEL 1/11 with APEC being entitled to 80% of production cashflow from SEL 1/11 until the Loan is repaid in full;
  • Following repayment of the Loan, APEC will be entitled to 50% of production cashflow from SEL 1/11 with EXOLA and Lansdowne being entitled to 40% and 10% of production cashflow, respectively;
  • The 4.5% Net profits Interest, held by San Leon Plc, has not been assigned to APEC and so remains the obligation of EXOLA.

Operations

  • EXOLA will remain as Operator of SEL 1/11 for the execution of the Drilling Programme;
  • Following completion of the Drilling Programme, APEC will have the right to become Operator for the development/production phase (subject to Ministerial consent).

Working Interest

  • Following governmental approval for the assignment of equity to APEC, the revised working interest will be APEC (50%), EXOLA (40%), and Lansdowne (10%), with EXOLA retaining the role of Operator of SEL 1/11.

Warrants

  • Upon completion of the Drilling Programme, APEC will be able to subscribe for warrants over 59.2 million shares in Providence at a strike price of £0.12 per share (the "Warrants").
  • The Warrants, representing circa 9.9% of the current issued share capital of Providence, are exercisable for a period of 6 months following the completion of the Drilling Programme

End of text from Providence’s announcement

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:
San Leon Energy plc
Oisin Fanning, Chief Executive (+ 353 1291 6292)

Cantor Fitzgerald Europe (Nominated adviser, financial adviser and joint broker to the Company)
Nick Tulloch (+44 131 257 4634)
David Porter (+44 207 894 8896)

Whitman Howard Limited (Financial adviser and joint broker to the Company)
Nick Lovering (+44 20 7659 1234)
Francis North (+44 20 7659 1234)

Brandon Hill Capital Limited (Joint broker to the Company)
Oliver Stansfield (+44 203 463 5000)
Jonathan Evans (+44 203 463 5016)

Vigo Communications (Financial Public Relations)
Chris McMahon (+44 207 930 0230)
Kate Rogucheva (+44 207 930 0236)

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

San Leon notes the announcement today from Providence Resources Plc (“Providence”) regarding the Barryroe Field, offshore Ireland, in which San Leon holds a 4.5% Net Profit Interest. San Leon Energy is not required to pay any further appraisal or development costs on the Licence. The main text of Providence’s announcement is set out below for reference.

The Company congratulates Providence on finalising binding farm-out terms.

Start of text from Providence’s announcement:

  • BINDING BARRYROE FARM-OUT AGREEMENT SIGNED
  • DRILLING PROGRAMME OF 5 FIRM WELLS AND 2 OPTION WELLS SET TO COMMENCE IN 2019
  • CASH ADVANCE PAYMENTS OF $19.5 MILLION TO EXOLA AGREED

Dublin and London - September 20, 2018 - Providence Resources P.l.c. (PVR LN, PRP ID), the Irish based Oil & Gas Exploration Company ("Providence" or the "Company"), today provides a commercial update on Standard Exploration Licence ("SEL") 1/11 that contains the Barryroe oil accumulation. SEL 1/11 is operated by EXOLA DAC ("EXOLA", 80%), a wholly-owned Providence subsidiary, on behalf of its partner, Lansdowne Celtic Sea Limited ("Lansdowne", 20%). The area lies in c. 100 metre water depth in the North Celtic Sea Basin and is located c. 50 km off the south coast of Ireland.

Binding Barryroe Farm-Out with APEC
Further to the RNS announcement of March 28, 2018 regarding the signing of a Farm-Out Agreement ("FOA") with APEC Energy Enterprises Limited ("APEC"), the Company is pleased to now confirm that, following the completion of all required ancillary documentation and the receipt of both governmental consents, EXOLA, Lansdowne and APEC (collectively referred to as the "Barryroe Partners") have signed an amended and restated Farm-Out Agreement ("Updated FOA") which assigns 50% equity in SEL 1/11 to APEC.

Summary of Updated FOA Terms & Conditions
The Updated FOA provides for a fully cost-carried firm programme comprising of the drilling and testing of four vertical wells and one horizontal sidetrack (collectively the "Drilling Programme"), plus the optional drilling of two additional horizontal wells, together with cash advances to EXOLA for certain agreed project and operational costs such as well site survey acquisition totaling $19.5 million.

Commenting today, Tony O'Reilly, Chief Executive Officer of Providence Resources said:

"We are very pleased to confirm that, having received governmental approval for the assignment of equity in Barryroe to APEC, we have now executed a revised Farm-out Agreement with APEC.

The finalisation of these binding farm-out terms with APEC is transformational for Providence as it delivers a firm and comprehensive drilling programme comprising of four vertical wells and one horizontal sidetrack, cash advances for certain operational costs of $19.5 million, plus the financing of two further optional wells. Subject to regulatory consents and appropriate arrangements with contractors, we expect mobilisation to commence in Q2 2019. In this regard, we are also pleased to confirm that we have contracted Gardline's Ocean Observer vessel to carry out the requisite site surveys during Q4 2018.

This drilling programme is a significant step forward for Barryroe as it is designed to provide modern dynamic data that will assist in the field development to production. Importantly, the structure of the farm-out transaction means that Providence has no upfront risk or capital exposure for the drilling programme, whilst also providing a roadmap to take this project, subject to the results of the drilling and subsequent regulatory consents, to project sanction and then on to production."

As certain operational, financial and commercial terms of the transaction have changed from those previously announced on March 28, 2018, the section below provides the final details of the Updated FOA:

Cash Payments

  • With the signing of the Updated FOA, APEC will now proceed with the payment of $9.0 million to EXOLA for certain agreed front-loaded project related costs;
  • A further $10.5 million payment will be made to EXOLA to cover future operational costs, such payment to be made 14 days prior to the commencement of drilling.

Drilling Programme

  • The drilling of four vertical wells allowing for the evaluation of the main Basal Wealden reservoir interval;
  • The first well to include the drilling of a sidetrack to provide a 200-metre horizontal reservoir section in the Basal Wealden;
  • Drill-stem testing is planned for three of the four vertical wells, as well as the horizontal sidetrack;
  • The four vertical wells are located across the geographic extent of the Barryroe structure and are designed to test the full potential of the Basal Wealden;
  • Drilling to the underlying Purbeckian and Upper Jurassic section is planned in three of the four wells;
  • Planning for the drilling of these wells is already advanced, together with the consenting of the recently contracted Gardline "Ocean Observer" vessel to carry out the well site survey operations during Q4 2018, subject to regulatory approval;
  • Rig procurement, based on a Q2 2019 mobilisation for the Drilling Programme is also well advanced, as are contract discussions with various oil field service providers;
  • At the completion of the Drilling Programme, APEC also has an option to drill, test and complete two further additional horizontal wells to the Basal Wealden reservoir interval ("Option Wells");

Financing

  • APEC is directly responsible for paying 50% of all cost obligations associated with the Drilling Programme, and the Option Wells (if applicable);
  • APEC to finance, by way of a non-recourse loan facility (the "Loan"), the remaining 50% of all cost obligations attributable to EXOLA and Lansdowne in respect of the Drilling Programme as well as the Option Wells (if applicable);
  • The Loan, drawable against the budget for the Drilling Programme, will incur an annual interest rate of LIBOR +5% and will be repayable from production cashflow from SEL 1/11 with APEC being entitled to 80% of production cashflow from SEL 1/11 until the Loan is repaid in full;
  • Following repayment of the Loan, APEC will be entitled to 50% of production cashflow from SEL 1/11 with EXOLA and Lansdowne being entitled to 40% and 10% of production cashflow, respectively;
  • The 4.5% Net profits Interest, held by San Leon Plc, has not been assigned to APEC and so remains the obligation of EXOLA.

Operations

  • EXOLA will remain as Operator of SEL 1/11 for the execution of the Drilling Programme;
  • Following completion of the Drilling Programme, APEC will have the right to become Operator for the development/production phase (subject to Ministerial consent).

Working Interest

  • Following governmental approval for the assignment of equity to APEC, the revised working interest will be APEC (50%), EXOLA (40%), and Lansdowne (10%), with EXOLA retaining the role of Operator of SEL 1/11.

Warrants

  • Upon completion of the Drilling Programme, APEC will be able to subscribe for warrants over 59.2 million shares in Providence at a strike price of £0.12 per share (the "Warrants").
  • The Warrants, representing circa 9.9% of the current issued share capital of Providence, are exercisable for a period of 6 months following the completion of the Drilling Programme

End of text from Providence’s announcement

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:
San Leon Energy plc
Oisin Fanning, Chief Executive (+ 353 1291 6292)

Cantor Fitzgerald Europe (Nominated adviser, financial adviser and joint broker to the Company)
Nick Tulloch (+44 131 257 4634)
David Porter (+44 207 894 8896)

Whitman Howard Limited (Financial adviser and joint broker to the Company)
Nick Lovering (+44 20 7659 1234)
Francis North (+44 20 7659 1234)

Brandon Hill Capital Limited (Joint broker to the Company)
Oliver Stansfield (+44 203 463 5000)
Jonathan Evans (+44 203 463 5016)

Vigo Communications (Financial Public Relations)
Chris McMahon (+44 207 930 0230)
Kate Rogucheva (+44 207 930 0236)

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

Payment Received Against MLPL Loan Notes/media-centre/news-releases/2018/july/3/payment-received-against-mlpl-loan-notes.aspx2018-07-03T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/july/3/payment-received-against-mlpl-loan-notes.aspx

Repayment of Midwestern Leon Petroleum Limited ("MLPL") Loan Notes (the "Loan Notes")

San Leon Energy plc (the "Company"), the AIM listed company focused on oil and gas development and appraisal in Africa and Europe, announced on 29 June 2018 that it had received USD $11 million in satisfaction of payments due for Q2 2018 under the MLPL Loan Notes (details of which have been described in previous Company announcements).

The Company now confirms that it has received a further USD $7.7 million in full satisfaction of MLPL's obligations to the Company for Q2 2018 in respect of the Loan Notes.

A balance of USD $157.7 million of principal remains outstanding and payable to the Company as of 02 July 2018. Interest continues to accrue at 17% per annum on the outstanding principal, in addition to this balance.

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:
San Leon Energy plc
Oisin Fanning, Chief Executive (+ 353 1291 6292)

Cantor Fitzgerald Europe (Nominated adviser, financial adviser and joint broker to the Company)
Nick Tulloch (+44 131 257 4634)
David Porter (+44 207 894 8896)

Whitman Howard Limited (Financial adviser and joint broker to the Company)
Nick Lovering (+44 20 7659 1234)
Francis North (+44 20 7659 1234)

Brandon Hill Capital Limited (Joint broker to the Company)
Oliver Stansfield (+44 203 463 5000)
Jonathan Evans (+44 203 463 5016)

Vigo Communications (Financial Public Relations)
Chris McMahon (+44 20 7390 0232)
Kate Rogucheva (+44 20 7390 0236)

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

Repayment of Midwestern Leon Petroleum Limited ("MLPL") Loan Notes (the "Loan Notes")

San Leon Energy plc (the "Company"), the AIM listed company focused on oil and gas development and appraisal in Africa and Europe, announced on 29 June 2018 that it had received USD $11 million in satisfaction of payments due for Q2 2018 under the MLPL Loan Notes (details of which have been described in previous Company announcements).

The Company now confirms that it has received a further USD $7.7 million in full satisfaction of MLPL's obligations to the Company for Q2 2018 in respect of the Loan Notes.

A balance of USD $157.7 million of principal remains outstanding and payable to the Company as of 02 July 2018. Interest continues to accrue at 17% per annum on the outstanding principal, in addition to this balance.

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:
San Leon Energy plc
Oisin Fanning, Chief Executive (+ 353 1291 6292)

Cantor Fitzgerald Europe (Nominated adviser, financial adviser and joint broker to the Company)
Nick Tulloch (+44 131 257 4634)
David Porter (+44 207 894 8896)

Whitman Howard Limited (Financial adviser and joint broker to the Company)
Nick Lovering (+44 20 7659 1234)
Francis North (+44 20 7659 1234)

Brandon Hill Capital Limited (Joint broker to the Company)
Oliver Stansfield (+44 203 463 5000)
Jonathan Evans (+44 203 463 5016)

Vigo Communications (Financial Public Relations)
Chris McMahon (+44 20 7390 0232)
Kate Rogucheva (+44 20 7390 0236)

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

Final Results/media-centre/news-releases/2018/june/29/final-results.aspx2018-06-29T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/june/29/final-results.aspx

San Leon Energy plc (“San Leon” or “the Company”), the AIM listed oil and gas exploration and production company focused on Africa and Europe, today announces its audited final results for the year ended 31 December 2017.

To view the full press release, please click here.

Highlights:

  • 2017 was the first full year of the Company’s involvement in OML 18, onshore Nigeria, and the first year of cash flow from the Company’s OML 18 investment. $39.6 million was received by the Company in 2017, with an additional $30 million received in H1 2018 up to 28 June.
  • The Company’s cash position (€17 million at 28 June 2018) has been substantially strengthened compared with this time last year, enabling management to focus further on yielding value from OML 18. While the financial results show 31 December 2017 figures, continued Loan Notes payments in 2018 have enabled significant additional improvement in creditor and cash positions.
  • As of June 2018 the Company anticipates future cash flow from:

1) Principal and interest repayments to the Company from its $174.5 million Midwestern Leon Petroleum Limited (“MLPL”) Loan Notes which were issued as part of the Company’s OML 18 investment (balance as of 28 June 2018 is $165.4 million).
2) Dividend payments as a consequence of the Company holding an initial indirect 9.72% economic interest in OML 18. Delays in dividend payments to date are discussed below.
3) Income from the provision of rig-based drilling and workover services, and production services, to the operator of OML 18 under a Master Services Agreement (“MSA”).
4) The Company’s 4.5% Net Profit Interest in the Barryroe oil field, offshore Ireland, through potential income or a potential sale.

OML 18, Nigeria Operational Highlights

  • While Krakama Field was brought onto production in early 2017 and a number of wells have had work performed on them, several operational issues constrained OML 18 performance during 2017.
  • Underlying production from the assets has been steady at approximately 50,000 bopd. However, as previously disclosed, a number of operational issues, mostly external to the asset, have resulted in average OML 18 oil sales of approximately 26,000 bopd for 2017.
  • 20% production downtime in 2017, primarily caused by third party terminal and gathering system issues, has impacted annual production. This issue is being addressed by the planned implementation of the new export pipeline and FSO project, and is also expected to improve overall well performance by removing the requirement to restart wells following any shut downs.
  • 35% pipeline losses allocated to all operators by the Bonny Terminal operator are much higher than was anticipated in the 2016 Admission Document. Allocated losses are being disputed by Eroton Exploration and Production Company Limited (“Eroton”), the operator of OML 18. In the short term, this issue is being partially addressed by the installation of Lease Automatic Custody Transfer (“LACT”) units to make sure that the OML 18 partners have fiscal metering of the oil prior to export into the gathering system. In the longer term, the export pipeline and FSO system mentioned above will provide additional control.
  • The Nigerian National Petroleum Corporation (“NNPC”) has made substantial repayments to Eroton for 2015 and 2016 joint venture cash call arrears. However, significant outstanding arrears still remain unpaid, which if received would provide capital for further investment in OML 18. NNPC has been paying its 2017 and 2018 cash calls and it is hoped that the improved business climate and outlook will enable settlement of remaining arrears to Eroton.
  • Removing the challenges will enable greater capital allocation to production growth and support future dividends from Eroton to the Company via its initial indirect 9.72% economic interest in OML 18.

Corporate Highlights

  • The Company spent much of 2017 in a formal offer period. San Leon confirmed in January 2018 that such offer talks ceased.
  • In November 2017, San Leon confirmed that it had received a letter from Midwestern Oil and Gas Company Limited (“Midwestern”) with an indicative proposal that included San Leon acquiring Midwestern’s 60% shareholding in MLPL (the “Proposal”). San Leon holds the remaining 40% of MLPL. Since the Proposal could have resulted in a transaction being characterised as a “reverse takeover”, the Company’s shares were temporarily suspended. In late April 2018, the Company announced that its board had elected not to accept Midwestern’s proposal, and the Company’s shares recommenced trading.
  • In December 2017, San Leon paid the final instalment of amounts owing to Avobone N.V. and Avobone Poland B.V. (together “Avobone”) in relation to Avobone’s exit from the Siekierki project in Poland. This was aided by the provision to the Company of a £11,000,000 convertible loan facility by funds managed by Toscafund Asset Management LLP (“Toscafund”), which was subsequently converted into shares of the Company.
  • The receipt of the MLPL Loan Notes payments and the conversion of the loan facility from Toscafund into shares has put the Company in the financial position whereby many creditors at the year-end have now been settled. The Company is therefore able to progress with the planned capital reorganisation, which upon completion is anticipated to allow returns to shareholders.
  • Following on from the resignation of Nick Butler as a non-executive director in September 2017, the Company subsequently appointed Linda Beal as a non-executive director and chair of the Audit Committee in January 2018. In May 2018, the Company appointed Bill Higgs as a non-executive director.
  • The Company continued its policy of reducing costs outside Nigeria and focussing on its Nigerian assets. Agreements were entered into in September 2017 for the sale of the majority of the Company’s Polish assets, subject to certain conditions. A decision was also made to relinquish Sidi Moussa, offshore Morocco, and to fully impair its other Moroccan assets due to a lack of expected activity on those other assets. As a result of these decisions, impairments and provisions of €55.5 million have been recognised.
  • Oisin Fanning (Chief Executive Officer) has drawn only 20% of his salary in cash with the balance paid or accruing in San Leon shares.

Financial

  • Total comprehensive loss for the year of €87.1 million (2016: profit of €10.7 million).
  • Total assets of €255.8 million at 31 December 2017 (2016: €345.7 million).
  • At year end the Group had cash and cash equivalents of €8.1 million (2016: €1.5 million).
  • In 2017 the Company received a total of $39.6 million (€34.3 million) of Loan Note payments under the Loan Notes agreements entered into in September 2016 with MLPL, with a further $30.0 million being received in H1 2018 up to 28 June 2018. This leaves $165.4 million of principal and interest outstanding and payable as of 28 June 2018. Such receipts to date have been paid on behalf of MLPL due to the existence of guarantees to the Company under the Loan Note instruments, as dividends have yet to be received by MLPL. The Company anticipates continued payment receipts of an average of $18.1 million per quarter in H2 2018 and $16.6 million per quarter in 2019 until the Loan Notes are repaid in full following similar payments in 2020. San Leon has various guarantees and a share pledge is in place which provide security for payments due to the Company under the Loan Notes.
  • San Leon income from its initial 9.72% indirect economic interest in OML 18 has been delayed because asset performance has not been as expected. As mentioned above, efforts are underway to address underlying issues.
  • Other potential future income streams comprise the Master Services Agreement (entitling San Leon to provide rigs and related services to the OML 18 operator, Eroton), and the Barryroe Net Profit Interest, offshore Ireland.
  • A facility is available as contingency to enable the Company to fulfil its cash flow requirements. This facility comprises up to £10 million available for a 2 year period from 08 June 2018 which can be drawn down in quarterly amounts of £1.25 million from Shard Capital Limited and Shard Capital Management Limited at the discretion of the lender.

Outlook
The Company is now in a far stronger financial position compared with the same time last year, with the benefit of an expected regular future income stream from its ongoing quarterly Loan Notes repayments. The Company continues to believe in its Nigerian asset and, as issues outlined above are addressed, anticipates future cash flows from both San Leon’s indirect economic interest in OML 18, and from providing services under the MSA in due course.

The Annual Report and Accounts are available on the Company’s website at www.sanleonenergy.com and will be posted to shareholders.

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

To view the full press release, please click here.

CHAIRMAN'S STATEMENT
OVERVIEW

2017 was the first full year of the Company's involvement in OML 18, onshore Nigeria, and the year under review was the first year of cash flow from the Company's entry into Nigeria.

The Company's cash position has significantly strengthened compared with this time last year, enabling management to focus further on yielding value from OML 18. We have exited or are exiting non-core assets and we anticipate future cash flow from:

  1. Repayment of the Loan Notes.
  2. Dividend payments as a consequence of holding an initial indirect 9.72% economic interest in OML 18.
  3. Income from the provision of rig-based drilling and workover (and associated) services, and production services, under a Master Services Agreement ("MSA") with Eroton Exploration and Production Company Ltd ("Eroton"), the operator of OML 18.
  4. 4.5% Barryroe Net Profit Interest (through potential income or a potential sale).

CORPORATE
San Leon's board took the view in 2015 that the Company needed to change its strategy, moving away from pure exploration and appraisal, and focussing on development, production and cash flow. The business climate in the industry had changed, partly as a result of lower commodity prices. It was against this background that San Leon sourced and completed its OML 18 transaction in September 2016.

1) Loan Notes repayment and interest
The Company entered into a Loan Notes agreement in September 2016 with Midwestern Leon Petroleum Limited ("MLPL"), whereby, once certain conditions have been met and using an agreed distribution mechanism, San Leon would be repaid the principal of $174.5 million (€165.6 million) plus an annual coupon of 17% through to 2020. By 31 December 2017, San Leon had received a total of $39.6 million (€34.3 million) of Loan Notes payments in order to avoid a default under the Loan Notes instruments, the start of such payments having been delayed due to the OML18 operational and external issues described in the Chief Operating Officer's report. During H1 2018, a further payment of $30.0 million was received, bringing total receipts to date to $69.6 million and leaving $165.4 million of principal and interest outstanding and payable as of 28 June 2018. Such receipts to date have been paid on behalf of MLPL due to the existence of guarantees to the Company under the Loan Notes instruments, as dividends have yet to be received by MLPL. The Company has a future receivable profile of an average of $18.1 million for H2 2018 and $16.6 million for 2019, with final quarterly payments during 2020, and the board anticipates that MLPL will continue to make these payments. San Leon has various guarantees and a share pledge in place which provide security for payments due to the Company under the Loan Notes.

2) Indirect equity interest
Eroton is the Operator of OML 18 while San Leon has a defined partner role through its shareholding in MLPL. San Leon has appointed a senior operational consultant into Eroton to assist in the development of the OML 18 asset.

The strategy for the asset is dividend growth from the indirect equity interest, as reserves are converted into production and cash flow. No dividend has been paid by Eroton in 2017 because asset performance has not been as hoped due to funding constraints caused mainly by external factors, although there have also been some delays caused by operational issues. These operational issues are summarised below, and explained in more detail in the Chief Operating Officer's Statement.

Firstly, while underlying production from the assets has been steady at approximately 50,000 bopd, substantial production downtime, caused by problems in the third party terminal and gathering system, resulted in the majority of the approximately 20% downtime in 2017 (reducing field production effectively to 40,000 bopd). This issue is being addressed by the planned implementation of the new export pipeline and Floating Storage and Offloading ("FSO") project, and is also expected to improve overall well performance by removing the requirement to restart wells following any shut downs.

Secondly, substantial pipeline losses have been allocated to all operators by the Bonny Terminal operator. The 35% pipeline losses (reducing field oil sales further to approximately 26,000 bopd) are much larger than the 9% assumed in the Admission Document and are being disputed by Eroton, who have asked the relevant authorities to investigate. In the short term, this issue is being partially addressed by the installation of Lease Automatic Custody Transfer ("LACT") units to make sure that the OML 18 partners have fiscal metering of the oil prior to export into the gathering system. In the longer term, the export pipeline and FSO system mentioned above will provide additional control.

Finally, the Nigerian National Petroleum Corporation ("NNPC") still has significant outstanding payments due to Eroton, settlement of which would provide capital for further investment in the asset. NNPC have been paying their cash calls through 2017 and it is hoped that the improved business climate and outlook will enable settlement of the outstanding payments.

Removing the above challenges will enable greater capital allocation to production growth and support future dividends from Eroton to the Company via its initial indirect 9.72% economic interest in OML 18.

The Reserves Based Lending ("RBL") conditions required for the payment of dividends by Eroton have now been met, with the exception of satisfying the amount payable to the Debt Service Reserve Account ("DSRA") and thereafter submitting audited accounts. As announced on 7 September 2017, depositing three future quarterly RBL repayments into the DSRA attached to Eroton's existing RBL facility, is one of the conditions that needs to be met before the RBL lenders will allow distribution of dividends from Eroton to its shareholders. The cumulative amount required to fill the DSRA varies according to the RBL amortisation schedule and is approximately $90m for much of 2018. The DSRA balance however fluctuates according to operational needs and due to some of the funding challenges experienced.

Any future payments of dividends by Eroton to Martwestern and from Martwestern to MLPL, after settlement of MLPL's Loan Notes obligations, will enable MLPL to pay dividends to its shareholders including San Leon. Given the delays in operational activity, downtime and pipeline losses, dividend payments by Eroton are not expected until the impact of the alternative export pipeline and/or the rig-based well activity have materially increased sales volumes of oil.

3) Services revenue
San Leon expects to provide the majority of the services for heavy well workovers and new well drilling on OML 18, through a new service entity under its control. The budget for doubling production from OML 18 via such operations is hundreds of millions of dollars, illustrating the potential for services income under the MSA.

4) Barryroe Net Profit Interest
The Company's 4.5% Net Profit Interest in Barryroe oil field, offshore Ireland, provides a zero cost potential future cash stream that has a carrying value of €42.6 million. Providence Resources Plc, the operator of Barryroe, has made recent progress with the announcement of a farm-out to drill three wells and is at the initial stages of development.

OTHER OPERATIONS
The Company continued its policy of reducing costs outside Nigeria and focussing on its Nigerian assets. As announced in September 2017, agreements were entered into for the sale of the majority of the Company's Polish assets, subject to certain conditions. Subject to closing of those transactions, the Company will retain material profit interests for no additional outlay to the Company. A decision was also made to relinquish Sidi Moussa, offshore Morocco, and to fully impair its other Moroccan assets due to a lack of expected activity.

The Company has applied for entry into the appraisal period of its offshore Duressi asset in Albania, for which a farm out is sought.

As a result of these decisions, impairments, write offs and provisions of €55.5 million have been recognised as set out in the financial review contained in the Chief Executive Officer's Statement. The total comprehensive loss for the year of €87.1 million is predominantly such impairment/write offs and provisions of non-Nigerian assets, and foreign exchange loss.

CORPORATE TRANSACTION ACTIVITY
The Company spent much of 2017 in a formal offer period, although in early January 2018 San Leon confirmed that such offer talks had ceased.

In November 2017 San Leon confirmed that it had received a letter from Midwestern Oil and Gas Company Limited ("Midwestern") with an indicative proposal that included San Leon acquiring Midwestern's 60% shareholding in MLPL (the "Proposal"). Through MLPL, Midwestern and San Leon are both indirect shareholders in Eroton, the operator of OML 18. Since the Proposal could have resulted in a transaction being characterised as a "reverse takeover", the Company's shares were temporarily suspended. In late April 2018, the Company announced that its Board had elected not to accept Midwestern's proposal, as it was not in the best interests of San Leon's shareholders since it did not provide a sufficient balance of added value for shareholders and certainty of near-term cash flow, and the Company's shares recommenced trading.

Settlement of outstanding obligations
In December 2017, San Leon paid the final instalment of amounts owing to Avobone N.V. and Avobone Poland B.V. (together "Avobone") in relation to Avobone's exit from the Siekierki project in Poland. This was aided by the provision to the company of a £11,000,000 convertible loan facility by funds managed by ToscaFund Asset Management LLP, which was subsequently converted into shares of the Company.

The receipt of the MLPL Loan Notes payments and the conversion of the loan facility from Toscafund into shares has put the Company in the financial position whereby many creditors at the year end have now been settled.

The Company is therefore able to progress with the planned capital reorganisation. This capital reorganisation, which has already been approved by the shareholders, requires legal work to be completed by the Company, and is subject to the confirmation of the High Court in Ireland, and will allow returns to shareholders.

Appointments of non-executive Directors
Following on from the resignation of Nick Butler as a non-executive Director in September 2017, the Company subsequently appointed Linda Beal as a non-executive Director and chair of the Audit Committee in January 2018. Linda brings extensive experience of working with African oil and gas groups, African-based advisers, and corporate and asset transactions.

In May 2018 the Company appointed Bill Higgs as a non-executive Director. Bill brings considerable operational experience, including in Africa, with companies ranging from a major to smaller independents.

OUTLOOK
The Company is now in a strong financial position, with the benefit of an expected regular future income stream from its ongoing quarterly Loan Notes repayments. The Company continues to believe in its Nigerian interests, as cash flows from San Leon's indirect equity interest in OML 18, and from its service offering under the MSA, are expected in due course as the issues outlined are addressed. I look forward to updating shareholders as OML 18 developments unfold.

Mr Mutiu Sunmonu
Non-Executive Chairman

CHIEF EXECUTIVE OFFICER'S STATEMENT
YEAR OVERVIEW

2017 was the year when the Company faced significant challenges - both financial and operational - and emerged positively in respect of the former, and with plans in place to address the latter.

FINANCIAL REVIEW

Income statement
Revenue for the twelve months to 31 December 2017 was €0.3 million compared with €0.3 million for the twelve months to 31 December 2016. San Leon generated a loss before tax of €71.3 million for the twelve months to 31 December 2017, compared with a profit before tax of €3.5 million in the twelve months to 31 December 2016. The tax charge to 31 December 2017 was €2.2 million (2016: credit of €2.2 million). The loss after tax to 31 December 2017 was €73.5 million (2016: profit of €5.7 million). Loss per share for the period is 16.18 cent per share (2016: profit of 3.42 cent per share).

Administration and Other Costs
Administration costs decreased for the 12 month period to €17.0 million (2016: €26.4 million). There were also some residual costs to finalise outstanding obligations to Avobone of €1.9 million (2016: €3.6 million) and some minor income to reduce operating costs along with a reduction in the decommissioning costs estimate amounting to €0.2 million.

Impairments/write offs and Provisions
During 2017 the Directors decided to make impairments/write offs totalling €49.1 million (2016: €9.3 million). These impairments/write offs partly relate to the intangible exploration and evaluation assets as detailed in Note 12 to the accounts being Albania €6.0 million (2016: €Nil), Morocco €28.9 million (2016:€6.4 million) and Poland €7.9 million (2016:€2.9 million). In addition, as explained in Note 22 to the accounts, due to the protracted nature of approval from the Polish authorities the Directors concluded that it is prudent to fully write off the Polish assets held for sale of €3.1 million.

Similarly, given the length of time to obtain approval for the Ardilaun transaction, as detailed in Note 17, and the 15% of Ardilaun shares still to be issued to San Leon, and the valuation of those shares when compared to other similar entities that are listed on a stock exchange, the Directors felt it prudent to carry a lower value of €2.2 million. Consequently, €3.2 million has been charged to the Income Statement in 2017.

During 2017, the directors, with regard to a fee due on the Ardilaun transaction, due to the protracted nature of government approval, and the potential length of time to receive such payment in the event of approval of up to 36 months, and a debtor which is in dispute, and VAT deemed to be potentially irrecoverable in an overseas jurisdiction, in order to be prudent, fully provided for €5.3 million.

As detailed in Note 20 to the accounts €1.2 million has been provided for in the event that a bank guarantee cannot be recovered.

The directors continue to vigorously pursue the value in many of the items detailed above which have either been impaired, written-off or provided for, and expect that in due course some amounts will be collected.

Finance Income and Expense and Equity Investments
Finance expense for the 12 months to 31 December 2017 was €25.5 million (2016: €13.0 million). This is made up of €4.2 million of interest expense (2016: €4.8 million), finance arrangement fees of €2.2 million (2016: €7.9 million), foreign exchange loss of €18.9 million (2016: gain of €8.0 million) on the Loan Notes, and a fair value charge on the issue of options and warrants €0.2 million (2016: €0.3 million).

Finance income for the 12 months to 31 December 2017 was €35.1 million (2016: €16.8 million). This is made up of €34.6 million of interest income (2016: €8.8 million) on the Loan Notes and other minor interest receivable and finance extension fees €0.5 million (2016: €nil).

The loss on equity investments during 2017 was €7.1 million (2016 profit of €12.2 million) and represents the Group's 40% share in the loss of MLPL.

Balance Sheet
As set out in the Chairman's Statement the receipt of Loan Notes proceeds by San Leon and the settlement of the obligation to Avobone significantly strengthened the cash position of the Group. The cash and cash equivalents including restricted cash at 31 December 2017 amounted to €8.1 million (31 December 2016: €1.5 million). In addition the San Leon balance sheet is now focused on the principal investments being the Loan Notes, the 40% equity investment in MLPL and the net profit interest in Barryroe.

COMPANY POSITION AND MARKET OVERVIEW
Our financial position has evolved since discussions with any of the various potential offerors or Midwestern commenced. With the first three quarterly payments in respect of Loan Notes received by 01 April 2018, we look forward to continued quarterly Loan Notes payments until the Loan Notes are fully repaid. Consequently, San Leon is now on a solid financial footing with a cash balance of €17 million at 28 June 2018 and all material issues with creditors and litigation behind us. I thank all shareholders, and in particular, our largest supporter, ToscaFund Asset Management LLP for their patience and support during the past year, which included a period of shares suspension arising as a consequence of our discussions with Midwestern.

I have been pleased to note the efforts made by the Nigerian administration with regard to supporting Nigerian National Petroleum Corporation ("NNPC") to become up-to-date with its historical and current financial commitments, as we approach the country's general election in February 2019. Of course, the improvement in the oil price during 2017 and into 2018 has been a boost to the country and to all those operating in it.

Finally, it was encouraging to note the passing of the first part of the Petroleum Industry Bill ("PIB"), being the Petroleum Industry Government Bill ("PIGB") through the National Assembly and Senate in 2018. We now look forward to the President signing the PIGB into law, which will help underpin investment into Nigeria. Of course we would also like to see progress of the remaining three parts of the PIB through Government.

STRATEGY
Our strategy is to deliver value to shareholders as we mature our interests in Nigeria. We shall continue to strive to monetise our existing assets outside Nigeria, allowing focus on our OML 18 core area via our indirect economic interest, Loan Notes, and MSA.

Oisín Fanning
Chief Executive Officer

CHIEF OPERATING OFFICER'S STATEMENT
OML 18

OML 18 is a world-class asset with substantial reserves and a CPR target gross production rate of over 100,000 bopd. From a subsurface technical perspective, the steps to achieve that are not particularly onerous - involving relatively simple workovers of existing wells, and the drilling of new wells in a prolific region with multiple stacked reservoir layers. That begs the question: why is OML 18 not yet generating more cash flow from operations?

To date, the operational cash flow on OML 18 has been affected by:

  1. Slower-than-expected workover/drilling progress
  2. Production downtime
  3. Pipeline losses

Each factor is described below, together with the actions being taken to address them.

1. Workover/drilling progress
Non-rig workovers performed during 2017 continued to proceed less quickly than expected due primarily to downhole challenges. Undocumented debris ("fish") in the wells has been the main issue, albeit one which is expected to be overcome - and this is one of the focus areas for San Leon's senior operational manager now seconded into Eroton.

There were some challenges in execution due to the process of approvals with JV partners. Given the positive improvement in the prompt settlement of ongoing partner cash calls as described in the Chairman's Statement, Eroton expects the JV approvals process to continue to improve.

Following the 2018 budgetary planning process, the Company now expects that rig-based workovers, previously anticipated to commence in Q4 2017, will commence in Q3 2018, and new wells will be drilled commencing Q4 2018. This type of drilling activity has yielded material production gains in similar fields elsewhere in Nigeria and the Company remains confident the work will add materially to Eroton's production base. Such activity was the basis for the production gains reflected in the Company's admission document.

2. Production downtime
Tank tops and cargo shipping delays at the Bonny Terminal, as well as intermittent upstream outages on the Nembe Creek Trunk Line ("NCTL"), have resulted in material production downtime at OML 18. This accounted for the vast majority of the approximately 20% of downtime during 2017.

The proposed new export pipeline, described below, is expected to remove most of the production downtime.

3. Pipeline losses
First some definitions. The majority of operational income on OML 18 is derived from oil sales (although there is a ten-fold gas sales potential increase above the current 50 mmscf/d rate which Eroton plans to develop). Gross oil production is the volume of oil produced at the wellhead before it enters the export pipeline. Net oil production is the volume of oil deemed to be received at the Bonny terminal at the downstream end of the NCTL, the current export pipeline used to transport oil to the Bonny Terminal (and is therefore the volume actually sold). The difference between gross and net oil production is known as a "pipeline loss", and accounts for metering inaccuracies and deemed theft of oil - and is applied by the operator of the Bonny terminal as a blanket percentage adjustment to all users of the NCTL.

Following the installation of new Lease Automatic Custody Transfer ("LACT") units on the NCTL line in 2016, the Bonny Terminal operator allocated an average of approximately 35% pipeline losses to all operators using NCTL for 2017 (compared with 9% assumed and documented in the Admission Document). Eroton disputes the allocation and has requested that the relevant regulatory authorities investigate the allocation of such excessive losses with a view to reallocating losses in Eroton's favour (thereby boosting the sales numbers). Those discussions are ongoing.

LACT units for OML 18 are now in Nigeria and, following commissioning and regulatory sign off, are anticipated by Eroton to be operational by the end of Q3 2018. The use of these units is expected to provide accurate measurements at the transfer point and therefore reduce the pipeline losses allocated to Eroton.

The idea for a new export pipeline for OML 18 mentioned in last year's annual report, has now become a planned development. This pipeline would be dedicated to OML 18 and run to an offshore Floating Storage and Offloading ("FSO") system. Eroton would then not have to contend with metering issues or theft attributable to third parties, nor NCTL downtime (which is often caused by issues further upstream on that pipeline). It is therefore anticipated to realise significant advantages with respect to pipeline loss allocation and production up-time, coinciding with the expected timing of the production increases from rig-based activity.

It is clear to the Company, therefore, that the issues encountered are being dealt with. Additionally, there has been progress across the asset as detailed below.

  • Production at OML18 has continued uninterrupted by any on-block security issues in 2017. During January 2018 illegal bunkering activity caused a fire on a non-operational well on the Buguma field. This did not affect production, and there were no casualties. The fire was swiftly brought under control by Eroton without a reportable spill.
  • The Krakama field was brought into production in January 2017 on schedule. Further well activity on the field has yet to commence. Current oil production from Krakama is approximately 4,500 bopd.
  • The Buguma Creek field is expected online during H2 2018.
  • Field development plans ("FDPs") for Akaso, Cawthorne Channel and Alakiri have been submitted for approval to the NNPC.
  • Eroton is working on an updated reserves report, with an expectation of adding material oil and condensate volumes. A summary of the finalised reserves report will be communicated to shareholders once it is available and after review by the Company.
  • Gas lift installation in the near-term across a number of wells is expected to provide a production boost, as well as improving the ability of those wells to restart production after any field downtime.

I look forward to updating shareholders on the continued work to boost both gross and net oil production, and unlocking OML 18's value.

IRELAND
San Leon's 4.5% Net Profit Interest (NPI) on the Barryroe oil field provides access to potential future revenue streams with no additional capital required. A CPR was produced by the operator, Providence Resources Plc ("Providence") in 2013, and in March 2018 Providence announced a farm-out agreement with a privately-owned Chinese company to drill three wells and move the field towards development. Should this farm-out agreement complete, San Leon looks forward to this development work on an asset which has a 2013 CPR 2C resource of more than 260 mmbbl.

MOROCCO
San Leon announced during 2017 its exit from Sidi Moussa (offshore). Also during 2017, L'Office Nationale des Hydrocarbures et des Mines ("ONHYM") contacted San Leon to take control of the bank guarantee on Zag and to request a further payment for work not performed. The Company is in ongoing discussions with ONHYM regarding the area, which it believes should be subject to Force Majeure due to the security situation. No activity is currently planned on any other Moroccan assets, and consequently carrying values have been written to zero in the accounts.

The assets still held by San Leon comprise:

  • onshore gas appraisal (Tarfaya conventional area, with a well drilled in 2015) - onshore oil shale (Tarfaya oil shale)
  • onshore exploration (Zag).

POLAND
The Company has done what it set out to do last year, monetising Polish assets on the back of increased transaction interest. Subject to the closing of two separate transactions, San Leon will retain net profit interests in a number of assets in different geological settings, which will be operated by other companies. Other Polish assets have been relinquished, or are in such process.

ALBANIA
The Durresi block is an extensive offshore area (4,200 km2) gas Albania containing the A4-1X discovery well drilled by Agip and Chevron in 1993.

San Leon acquired 840 km2 of modern 3D seismic data in 2011, and continues to work on the technical side of the block while looking for a partner to take the asset through the appraisal phase by drilling a new well. Application has been made to enter the appraisal period on the asset.

Joel Price
Chief Operating Officer

To view the full press release, please click here.

San Leon Energy plc (“San Leon” or “the Company”), the AIM listed oil and gas exploration and production company focused on Africa and Europe, today announces its audited final results for the year ended 31 December 2017.

To view the full press release, please click here.

Highlights:

  • 2017 was the first full year of the Company’s involvement in OML 18, onshore Nigeria, and the first year of cash flow from the Company’s OML 18 investment. $39.6 million was received by the Company in 2017, with an additional $30 million received in H1 2018 up to 28 June.
  • The Company’s cash position (€17 million at 28 June 2018) has been substantially strengthened compared with this time last year, enabling management to focus further on yielding value from OML 18. While the financial results show 31 December 2017 figures, continued Loan Notes payments in 2018 have enabled significant additional improvement in creditor and cash positions.
  • As of June 2018 the Company anticipates future cash flow from:

1) Principal and interest repayments to the Company from its $174.5 million Midwestern Leon Petroleum Limited (“MLPL”) Loan Notes which were issued as part of the Company’s OML 18 investment (balance as of 28 June 2018 is $165.4 million).
2) Dividend payments as a consequence of the Company holding an initial indirect 9.72% economic interest in OML 18. Delays in dividend payments to date are discussed below.
3) Income from the provision of rig-based drilling and workover services, and production services, to the operator of OML 18 under a Master Services Agreement (“MSA”).
4) The Company’s 4.5% Net Profit Interest in the Barryroe oil field, offshore Ireland, through potential income or a potential sale.

OML 18, Nigeria Operational Highlights

  • While Krakama Field was brought onto production in early 2017 and a number of wells have had work performed on them, several operational issues constrained OML 18 performance during 2017.
  • Underlying production from the assets has been steady at approximately 50,000 bopd. However, as previously disclosed, a number of operational issues, mostly external to the asset, have resulted in average OML 18 oil sales of approximately 26,000 bopd for 2017.
  • 20% production downtime in 2017, primarily caused by third party terminal and gathering system issues, has impacted annual production. This issue is being addressed by the planned implementation of the new export pipeline and FSO project, and is also expected to improve overall well performance by removing the requirement to restart wells following any shut downs.
  • 35% pipeline losses allocated to all operators by the Bonny Terminal operator are much higher than was anticipated in the 2016 Admission Document. Allocated losses are being disputed by Eroton Exploration and Production Company Limited (“Eroton”), the operator of OML 18. In the short term, this issue is being partially addressed by the installation of Lease Automatic Custody Transfer (“LACT”) units to make sure that the OML 18 partners have fiscal metering of the oil prior to export into the gathering system. In the longer term, the export pipeline and FSO system mentioned above will provide additional control.
  • The Nigerian National Petroleum Corporation (“NNPC”) has made substantial repayments to Eroton for 2015 and 2016 joint venture cash call arrears. However, significant outstanding arrears still remain unpaid, which if received would provide capital for further investment in OML 18. NNPC has been paying its 2017 and 2018 cash calls and it is hoped that the improved business climate and outlook will enable settlement of remaining arrears to Eroton.
  • Removing the challenges will enable greater capital allocation to production growth and support future dividends from Eroton to the Company via its initial indirect 9.72% economic interest in OML 18.

Corporate Highlights

  • The Company spent much of 2017 in a formal offer period. San Leon confirmed in January 2018 that such offer talks ceased.
  • In November 2017, San Leon confirmed that it had received a letter from Midwestern Oil and Gas Company Limited (“Midwestern”) with an indicative proposal that included San Leon acquiring Midwestern’s 60% shareholding in MLPL (the “Proposal”). San Leon holds the remaining 40% of MLPL. Since the Proposal could have resulted in a transaction being characterised as a “reverse takeover”, the Company’s shares were temporarily suspended. In late April 2018, the Company announced that its board had elected not to accept Midwestern’s proposal, and the Company’s shares recommenced trading.
  • In December 2017, San Leon paid the final instalment of amounts owing to Avobone N.V. and Avobone Poland B.V. (together “Avobone”) in relation to Avobone’s exit from the Siekierki project in Poland. This was aided by the provision to the Company of a £11,000,000 convertible loan facility by funds managed by Toscafund Asset Management LLP (“Toscafund”), which was subsequently converted into shares of the Company.
  • The receipt of the MLPL Loan Notes payments and the conversion of the loan facility from Toscafund into shares has put the Company in the financial position whereby many creditors at the year-end have now been settled. The Company is therefore able to progress with the planned capital reorganisation, which upon completion is anticipated to allow returns to shareholders.
  • Following on from the resignation of Nick Butler as a non-executive director in September 2017, the Company subsequently appointed Linda Beal as a non-executive director and chair of the Audit Committee in January 2018. In May 2018, the Company appointed Bill Higgs as a non-executive director.
  • The Company continued its policy of reducing costs outside Nigeria and focussing on its Nigerian assets. Agreements were entered into in September 2017 for the sale of the majority of the Company’s Polish assets, subject to certain conditions. A decision was also made to relinquish Sidi Moussa, offshore Morocco, and to fully impair its other Moroccan assets due to a lack of expected activity on those other assets. As a result of these decisions, impairments and provisions of €55.5 million have been recognised.
  • Oisin Fanning (Chief Executive Officer) has drawn only 20% of his salary in cash with the balance paid or accruing in San Leon shares.

Financial

  • Total comprehensive loss for the year of €87.1 million (2016: profit of €10.7 million).
  • Total assets of €255.8 million at 31 December 2017 (2016: €345.7 million).
  • At year end the Group had cash and cash equivalents of €8.1 million (2016: €1.5 million).
  • In 2017 the Company received a total of $39.6 million (€34.3 million) of Loan Note payments under the Loan Notes agreements entered into in September 2016 with MLPL, with a further $30.0 million being received in H1 2018 up to 28 June 2018. This leaves $165.4 million of principal and interest outstanding and payable as of 28 June 2018. Such receipts to date have been paid on behalf of MLPL due to the existence of guarantees to the Company under the Loan Note instruments, as dividends have yet to be received by MLPL. The Company anticipates continued payment receipts of an average of $18.1 million per quarter in H2 2018 and $16.6 million per quarter in 2019 until the Loan Notes are repaid in full following similar payments in 2020. San Leon has various guarantees and a share pledge is in place which provide security for payments due to the Company under the Loan Notes.
  • San Leon income from its initial 9.72% indirect economic interest in OML 18 has been delayed because asset performance has not been as expected. As mentioned above, efforts are underway to address underlying issues.
  • Other potential future income streams comprise the Master Services Agreement (entitling San Leon to provide rigs and related services to the OML 18 operator, Eroton), and the Barryroe Net Profit Interest, offshore Ireland.
  • A facility is available as contingency to enable the Company to fulfil its cash flow requirements. This facility comprises up to £10 million available for a 2 year period from 08 June 2018 which can be drawn down in quarterly amounts of £1.25 million from Shard Capital Limited and Shard Capital Management Limited at the discretion of the lender.

Outlook
The Company is now in a far stronger financial position compared with the same time last year, with the benefit of an expected regular future income stream from its ongoing quarterly Loan Notes repayments. The Company continues to believe in its Nigerian asset and, as issues outlined above are addressed, anticipates future cash flows from both San Leon’s indirect economic interest in OML 18, and from providing services under the MSA in due course.

The Annual Report and Accounts are available on the Company’s website at www.sanleonenergy.com and will be posted to shareholders.

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

To view the full press release, please click here.

CHAIRMAN'S STATEMENT
OVERVIEW

2017 was the first full year of the Company's involvement in OML 18, onshore Nigeria, and the year under review was the first year of cash flow from the Company's entry into Nigeria.

The Company's cash position has significantly strengthened compared with this time last year, enabling management to focus further on yielding value from OML 18. We have exited or are exiting non-core assets and we anticipate future cash flow from:

  1. Repayment of the Loan Notes.
  2. Dividend payments as a consequence of holding an initial indirect 9.72% economic interest in OML 18.
  3. Income from the provision of rig-based drilling and workover (and associated) services, and production services, under a Master Services Agreement ("MSA") with Eroton Exploration and Production Company Ltd ("Eroton"), the operator of OML 18.
  4. 4.5% Barryroe Net Profit Interest (through potential income or a potential sale).

CORPORATE
San Leon's board took the view in 2015 that the Company needed to change its strategy, moving away from pure exploration and appraisal, and focussing on development, production and cash flow. The business climate in the industry had changed, partly as a result of lower commodity prices. It was against this background that San Leon sourced and completed its OML 18 transaction in September 2016.

1) Loan Notes repayment and interest
The Company entered into a Loan Notes agreement in September 2016 with Midwestern Leon Petroleum Limited ("MLPL"), whereby, once certain conditions have been met and using an agreed distribution mechanism, San Leon would be repaid the principal of $174.5 million (€165.6 million) plus an annual coupon of 17% through to 2020. By 31 December 2017, San Leon had received a total of $39.6 million (€34.3 million) of Loan Notes payments in order to avoid a default under the Loan Notes instruments, the start of such payments having been delayed due to the OML18 operational and external issues described in the Chief Operating Officer's report. During H1 2018, a further payment of $30.0 million was received, bringing total receipts to date to $69.6 million and leaving $165.4 million of principal and interest outstanding and payable as of 28 June 2018. Such receipts to date have been paid on behalf of MLPL due to the existence of guarantees to the Company under the Loan Notes instruments, as dividends have yet to be received by MLPL. The Company has a future receivable profile of an average of $18.1 million for H2 2018 and $16.6 million for 2019, with final quarterly payments during 2020, and the board anticipates that MLPL will continue to make these payments. San Leon has various guarantees and a share pledge in place which provide security for payments due to the Company under the Loan Notes.

2) Indirect equity interest
Eroton is the Operator of OML 18 while San Leon has a defined partner role through its shareholding in MLPL. San Leon has appointed a senior operational consultant into Eroton to assist in the development of the OML 18 asset.

The strategy for the asset is dividend growth from the indirect equity interest, as reserves are converted into production and cash flow. No dividend has been paid by Eroton in 2017 because asset performance has not been as hoped due to funding constraints caused mainly by external factors, although there have also been some delays caused by operational issues. These operational issues are summarised below, and explained in more detail in the Chief Operating Officer's Statement.

Firstly, while underlying production from the assets has been steady at approximately 50,000 bopd, substantial production downtime, caused by problems in the third party terminal and gathering system, resulted in the majority of the approximately 20% downtime in 2017 (reducing field production effectively to 40,000 bopd). This issue is being addressed by the planned implementation of the new export pipeline and Floating Storage and Offloading ("FSO") project, and is also expected to improve overall well performance by removing the requirement to restart wells following any shut downs.

Secondly, substantial pipeline losses have been allocated to all operators by the Bonny Terminal operator. The 35% pipeline losses (reducing field oil sales further to approximately 26,000 bopd) are much larger than the 9% assumed in the Admission Document and are being disputed by Eroton, who have asked the relevant authorities to investigate. In the short term, this issue is being partially addressed by the installation of Lease Automatic Custody Transfer ("LACT") units to make sure that the OML 18 partners have fiscal metering of the oil prior to export into the gathering system. In the longer term, the export pipeline and FSO system mentioned above will provide additional control.

Finally, the Nigerian National Petroleum Corporation ("NNPC") still has significant outstanding payments due to Eroton, settlement of which would provide capital for further investment in the asset. NNPC have been paying their cash calls through 2017 and it is hoped that the improved business climate and outlook will enable settlement of the outstanding payments.

Removing the above challenges will enable greater capital allocation to production growth and support future dividends from Eroton to the Company via its initial indirect 9.72% economic interest in OML 18.

The Reserves Based Lending ("RBL") conditions required for the payment of dividends by Eroton have now been met, with the exception of satisfying the amount payable to the Debt Service Reserve Account ("DSRA") and thereafter submitting audited accounts. As announced on 7 September 2017, depositing three future quarterly RBL repayments into the DSRA attached to Eroton's existing RBL facility, is one of the conditions that needs to be met before the RBL lenders will allow distribution of dividends from Eroton to its shareholders. The cumulative amount required to fill the DSRA varies according to the RBL amortisation schedule and is approximately $90m for much of 2018. The DSRA balance however fluctuates according to operational needs and due to some of the funding challenges experienced.

Any future payments of dividends by Eroton to Martwestern and from Martwestern to MLPL, after settlement of MLPL's Loan Notes obligations, will enable MLPL to pay dividends to its shareholders including San Leon. Given the delays in operational activity, downtime and pipeline losses, dividend payments by Eroton are not expected until the impact of the alternative export pipeline and/or the rig-based well activity have materially increased sales volumes of oil.

3) Services revenue
San Leon expects to provide the majority of the services for heavy well workovers and new well drilling on OML 18, through a new service entity under its control. The budget for doubling production from OML 18 via such operations is hundreds of millions of dollars, illustrating the potential for services income under the MSA.

4) Barryroe Net Profit Interest
The Company's 4.5% Net Profit Interest in Barryroe oil field, offshore Ireland, provides a zero cost potential future cash stream that has a carrying value of €42.6 million. Providence Resources Plc, the operator of Barryroe, has made recent progress with the announcement of a farm-out to drill three wells and is at the initial stages of development.

OTHER OPERATIONS
The Company continued its policy of reducing costs outside Nigeria and focussing on its Nigerian assets. As announced in September 2017, agreements were entered into for the sale of the majority of the Company's Polish assets, subject to certain conditions. Subject to closing of those transactions, the Company will retain material profit interests for no additional outlay to the Company. A decision was also made to relinquish Sidi Moussa, offshore Morocco, and to fully impair its other Moroccan assets due to a lack of expected activity.

The Company has applied for entry into the appraisal period of its offshore Duressi asset in Albania, for which a farm out is sought.

As a result of these decisions, impairments, write offs and provisions of €55.5 million have been recognised as set out in the financial review contained in the Chief Executive Officer's Statement. The total comprehensive loss for the year of €87.1 million is predominantly such impairment/write offs and provisions of non-Nigerian assets, and foreign exchange loss.

CORPORATE TRANSACTION ACTIVITY
The Company spent much of 2017 in a formal offer period, although in early January 2018 San Leon confirmed that such offer talks had ceased.

In November 2017 San Leon confirmed that it had received a letter from Midwestern Oil and Gas Company Limited ("Midwestern") with an indicative proposal that included San Leon acquiring Midwestern's 60% shareholding in MLPL (the "Proposal"). Through MLPL, Midwestern and San Leon are both indirect shareholders in Eroton, the operator of OML 18. Since the Proposal could have resulted in a transaction being characterised as a "reverse takeover", the Company's shares were temporarily suspended. In late April 2018, the Company announced that its Board had elected not to accept Midwestern's proposal, as it was not in the best interests of San Leon's shareholders since it did not provide a sufficient balance of added value for shareholders and certainty of near-term cash flow, and the Company's shares recommenced trading.

Settlement of outstanding obligations
In December 2017, San Leon paid the final instalment of amounts owing to Avobone N.V. and Avobone Poland B.V. (together "Avobone") in relation to Avobone's exit from the Siekierki project in Poland. This was aided by the provision to the company of a £11,000,000 convertible loan facility by funds managed by ToscaFund Asset Management LLP, which was subsequently converted into shares of the Company.

The receipt of the MLPL Loan Notes payments and the conversion of the loan facility from Toscafund into shares has put the Company in the financial position whereby many creditors at the year end have now been settled.

The Company is therefore able to progress with the planned capital reorganisation. This capital reorganisation, which has already been approved by the shareholders, requires legal work to be completed by the Company, and is subject to the confirmation of the High Court in Ireland, and will allow returns to shareholders.

Appointments of non-executive Directors
Following on from the resignation of Nick Butler as a non-executive Director in September 2017, the Company subsequently appointed Linda Beal as a non-executive Director and chair of the Audit Committee in January 2018. Linda brings extensive experience of working with African oil and gas groups, African-based advisers, and corporate and asset transactions.

In May 2018 the Company appointed Bill Higgs as a non-executive Director. Bill brings considerable operational experience, including in Africa, with companies ranging from a major to smaller independents.

OUTLOOK
The Company is now in a strong financial position, with the benefit of an expected regular future income stream from its ongoing quarterly Loan Notes repayments. The Company continues to believe in its Nigerian interests, as cash flows from San Leon's indirect equity interest in OML 18, and from its service offering under the MSA, are expected in due course as the issues outlined are addressed. I look forward to updating shareholders as OML 18 developments unfold.

Mr Mutiu Sunmonu
Non-Executive Chairman

CHIEF EXECUTIVE OFFICER'S STATEMENT
YEAR OVERVIEW

2017 was the year when the Company faced significant challenges - both financial and operational - and emerged positively in respect of the former, and with plans in place to address the latter.

FINANCIAL REVIEW

Income statement
Revenue for the twelve months to 31 December 2017 was €0.3 million compared with €0.3 million for the twelve months to 31 December 2016. San Leon generated a loss before tax of €71.3 million for the twelve months to 31 December 2017, compared with a profit before tax of €3.5 million in the twelve months to 31 December 2016. The tax charge to 31 December 2017 was €2.2 million (2016: credit of €2.2 million). The loss after tax to 31 December 2017 was €73.5 million (2016: profit of €5.7 million). Loss per share for the period is 16.18 cent per share (2016: profit of 3.42 cent per share).

Administration and Other Costs
Administration costs decreased for the 12 month period to €17.0 million (2016: €26.4 million). There were also some residual costs to finalise outstanding obligations to Avobone of €1.9 million (2016: €3.6 million) and some minor income to reduce operating costs along with a reduction in the decommissioning costs estimate amounting to €0.2 million.

Impairments/write offs and Provisions
During 2017 the Directors decided to make impairments/write offs totalling €49.1 million (2016: €9.3 million). These impairments/write offs partly relate to the intangible exploration and evaluation assets as detailed in Note 12 to the accounts being Albania €6.0 million (2016: €Nil), Morocco €28.9 million (2016:€6.4 million) and Poland €7.9 million (2016:€2.9 million). In addition, as explained in Note 22 to the accounts, due to the protracted nature of approval from the Polish authorities the Directors concluded that it is prudent to fully write off the Polish assets held for sale of €3.1 million.

Similarly, given the length of time to obtain approval for the Ardilaun transaction, as detailed in Note 17, and the 15% of Ardilaun shares still to be issued to San Leon, and the valuation of those shares when compared to other similar entities that are listed on a stock exchange, the Directors felt it prudent to carry a lower value of €2.2 million. Consequently, €3.2 million has been charged to the Income Statement in 2017.

During 2017, the directors, with regard to a fee due on the Ardilaun transaction, due to the protracted nature of government approval, and the potential length of time to receive such payment in the event of approval of up to 36 months, and a debtor which is in dispute, and VAT deemed to be potentially irrecoverable in an overseas jurisdiction, in order to be prudent, fully provided for €5.3 million.

As detailed in Note 20 to the accounts €1.2 million has been provided for in the event that a bank guarantee cannot be recovered.

The directors continue to vigorously pursue the value in many of the items detailed above which have either been impaired, written-off or provided for, and expect that in due course some amounts will be collected.

Finance Income and Expense and Equity Investments
Finance expense for the 12 months to 31 December 2017 was €25.5 million (2016: €13.0 million). This is made up of €4.2 million of interest expense (2016: €4.8 million), finance arrangement fees of €2.2 million (2016: €7.9 million), foreign exchange loss of €18.9 million (2016: gain of €8.0 million) on the Loan Notes, and a fair value charge on the issue of options and warrants €0.2 million (2016: €0.3 million).

Finance income for the 12 months to 31 December 2017 was €35.1 million (2016: €16.8 million). This is made up of €34.6 million of interest income (2016: €8.8 million) on the Loan Notes and other minor interest receivable and finance extension fees €0.5 million (2016: €nil).

The loss on equity investments during 2017 was €7.1 million (2016 profit of €12.2 million) and represents the Group's 40% share in the loss of MLPL.

Balance Sheet
As set out in the Chairman's Statement the receipt of Loan Notes proceeds by San Leon and the settlement of the obligation to Avobone significantly strengthened the cash position of the Group. The cash and cash equivalents including restricted cash at 31 December 2017 amounted to €8.1 million (31 December 2016: €1.5 million). In addition the San Leon balance sheet is now focused on the principal investments being the Loan Notes, the 40% equity investment in MLPL and the net profit interest in Barryroe.

COMPANY POSITION AND MARKET OVERVIEW
Our financial position has evolved since discussions with any of the various potential offerors or Midwestern commenced. With the first three quarterly payments in respect of Loan Notes received by 01 April 2018, we look forward to continued quarterly Loan Notes payments until the Loan Notes are fully repaid. Consequently, San Leon is now on a solid financial footing with a cash balance of €17 million at 28 June 2018 and all material issues with creditors and litigation behind us. I thank all shareholders, and in particular, our largest supporter, ToscaFund Asset Management LLP for their patience and support during the past year, which included a period of shares suspension arising as a consequence of our discussions with Midwestern.

I have been pleased to note the efforts made by the Nigerian administration with regard to supporting Nigerian National Petroleum Corporation ("NNPC") to become up-to-date with its historical and current financial commitments, as we approach the country's general election in February 2019. Of course, the improvement in the oil price during 2017 and into 2018 has been a boost to the country and to all those operating in it.

Finally, it was encouraging to note the passing of the first part of the Petroleum Industry Bill ("PIB"), being the Petroleum Industry Government Bill ("PIGB") through the National Assembly and Senate in 2018. We now look forward to the President signing the PIGB into law, which will help underpin investment into Nigeria. Of course we would also like to see progress of the remaining three parts of the PIB through Government.

STRATEGY
Our strategy is to deliver value to shareholders as we mature our interests in Nigeria. We shall continue to strive to monetise our existing assets outside Nigeria, allowing focus on our OML 18 core area via our indirect economic interest, Loan Notes, and MSA.

Oisín Fanning
Chief Executive Officer

CHIEF OPERATING OFFICER'S STATEMENT
OML 18

OML 18 is a world-class asset with substantial reserves and a CPR target gross production rate of over 100,000 bopd. From a subsurface technical perspective, the steps to achieve that are not particularly onerous - involving relatively simple workovers of existing wells, and the drilling of new wells in a prolific region with multiple stacked reservoir layers. That begs the question: why is OML 18 not yet generating more cash flow from operations?

To date, the operational cash flow on OML 18 has been affected by:

  1. Slower-than-expected workover/drilling progress
  2. Production downtime
  3. Pipeline losses

Each factor is described below, together with the actions being taken to address them.

1. Workover/drilling progress
Non-rig workovers performed during 2017 continued to proceed less quickly than expected due primarily to downhole challenges. Undocumented debris ("fish") in the wells has been the main issue, albeit one which is expected to be overcome - and this is one of the focus areas for San Leon's senior operational manager now seconded into Eroton.

There were some challenges in execution due to the process of approvals with JV partners. Given the positive improvement in the prompt settlement of ongoing partner cash calls as described in the Chairman's Statement, Eroton expects the JV approvals process to continue to improve.

Following the 2018 budgetary planning process, the Company now expects that rig-based workovers, previously anticipated to commence in Q4 2017, will commence in Q3 2018, and new wells will be drilled commencing Q4 2018. This type of drilling activity has yielded material production gains in similar fields elsewhere in Nigeria and the Company remains confident the work will add materially to Eroton's production base. Such activity was the basis for the production gains reflected in the Company's admission document.

2. Production downtime
Tank tops and cargo shipping delays at the Bonny Terminal, as well as intermittent upstream outages on the Nembe Creek Trunk Line ("NCTL"), have resulted in material production downtime at OML 18. This accounted for the vast majority of the approximately 20% of downtime during 2017.

The proposed new export pipeline, described below, is expected to remove most of the production downtime.

3. Pipeline losses
First some definitions. The majority of operational income on OML 18 is derived from oil sales (although there is a ten-fold gas sales potential increase above the current 50 mmscf/d rate which Eroton plans to develop). Gross oil production is the volume of oil produced at the wellhead before it enters the export pipeline. Net oil production is the volume of oil deemed to be received at the Bonny terminal at the downstream end of the NCTL, the current export pipeline used to transport oil to the Bonny Terminal (and is therefore the volume actually sold). The difference between gross and net oil production is known as a "pipeline loss", and accounts for metering inaccuracies and deemed theft of oil - and is applied by the operator of the Bonny terminal as a blanket percentage adjustment to all users of the NCTL.

Following the installation of new Lease Automatic Custody Transfer ("LACT") units on the NCTL line in 2016, the Bonny Terminal operator allocated an average of approximately 35% pipeline losses to all operators using NCTL for 2017 (compared with 9% assumed and documented in the Admission Document). Eroton disputes the allocation and has requested that the relevant regulatory authorities investigate the allocation of such excessive losses with a view to reallocating losses in Eroton's favour (thereby boosting the sales numbers). Those discussions are ongoing.

LACT units for OML 18 are now in Nigeria and, following commissioning and regulatory sign off, are anticipated by Eroton to be operational by the end of Q3 2018. The use of these units is expected to provide accurate measurements at the transfer point and therefore reduce the pipeline losses allocated to Eroton.

The idea for a new export pipeline for OML 18 mentioned in last year's annual report, has now become a planned development. This pipeline would be dedicated to OML 18 and run to an offshore Floating Storage and Offloading ("FSO") system. Eroton would then not have to contend with metering issues or theft attributable to third parties, nor NCTL downtime (which is often caused by issues further upstream on that pipeline). It is therefore anticipated to realise significant advantages with respect to pipeline loss allocation and production up-time, coinciding with the expected timing of the production increases from rig-based activity.

It is clear to the Company, therefore, that the issues encountered are being dealt with. Additionally, there has been progress across the asset as detailed below.

  • Production at OML18 has continued uninterrupted by any on-block security issues in 2017. During January 2018 illegal bunkering activity caused a fire on a non-operational well on the Buguma field. This did not affect production, and there were no casualties. The fire was swiftly brought under control by Eroton without a reportable spill.
  • The Krakama field was brought into production in January 2017 on schedule. Further well activity on the field has yet to commence. Current oil production from Krakama is approximately 4,500 bopd.
  • The Buguma Creek field is expected online during H2 2018.
  • Field development plans ("FDPs") for Akaso, Cawthorne Channel and Alakiri have been submitted for approval to the NNPC.
  • Eroton is working on an updated reserves report, with an expectation of adding material oil and condensate volumes. A summary of the finalised reserves report will be communicated to shareholders once it is available and after review by the Company.
  • Gas lift installation in the near-term across a number of wells is expected to provide a production boost, as well as improving the ability of those wells to restart production after any field downtime.

I look forward to updating shareholders on the continued work to boost both gross and net oil production, and unlocking OML 18's value.

IRELAND
San Leon's 4.5% Net Profit Interest (NPI) on the Barryroe oil field provides access to potential future revenue streams with no additional capital required. A CPR was produced by the operator, Providence Resources Plc ("Providence") in 2013, and in March 2018 Providence announced a farm-out agreement with a privately-owned Chinese company to drill three wells and move the field towards development. Should this farm-out agreement complete, San Leon looks forward to this development work on an asset which has a 2013 CPR 2C resource of more than 260 mmbbl.

MOROCCO
San Leon announced during 2017 its exit from Sidi Moussa (offshore). Also during 2017, L'Office Nationale des Hydrocarbures et des Mines ("ONHYM") contacted San Leon to take control of the bank guarantee on Zag and to request a further payment for work not performed. The Company is in ongoing discussions with ONHYM regarding the area, which it believes should be subject to Force Majeure due to the security situation. No activity is currently planned on any other Moroccan assets, and consequently carrying values have been written to zero in the accounts.

The assets still held by San Leon comprise:

  • onshore gas appraisal (Tarfaya conventional area, with a well drilled in 2015) - onshore oil shale (Tarfaya oil shale)
  • onshore exploration (Zag).

POLAND
The Company has done what it set out to do last year, monetising Polish assets on the back of increased transaction interest. Subject to the closing of two separate transactions, San Leon will retain net profit interests in a number of assets in different geological settings, which will be operated by other companies. Other Polish assets have been relinquished, or are in such process.

ALBANIA
The Durresi block is an extensive offshore area (4,200 km2) gas Albania containing the A4-1X discovery well drilled by Agip and Chevron in 1993.

San Leon acquired 840 km2 of modern 3D seismic data in 2011, and continues to work on the technical side of the block while looking for a partner to take the asset through the appraisal phase by drilling a new well. Application has been made to enter the appraisal period on the asset.

Joel Price
Chief Operating Officer

To view the full press release, please click here.

Update on dispute with SunTrust Oil/media-centre/news-releases/2018/may/24/update-on-dispute-with-suntrust-oil.aspx2018-05-24T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/may/24/update-on-dispute-with-suntrust-oil.aspx

San Leon Energy plc, the AIM listed company, focused on oil and gas development and appraisal in Africa and Europe, has been provided with a copy of correspondence between SunTrust Oil ("SunTrust") and the Nigerian Department of Petroleum Resources (“DPR”). The correspondence relates to a requirement under Nigerian law for the Minister of Petroleum Resources to consent to any assignment of interests in oil and gas assets in Nigeria and the fact that such consent was not obtained prior to the purchase by the Company of its indirect interest in OML 18.

San Leon obtained legal advice prior to the purchase which confirmed that, owing to the way that the transaction was structured (and specifically the nature of its indirect interest in OML 18), it was not necessary for Eroton to obtain prior consent from the Minister. Furthermore, San Leon and its partners have today re-confirmed with their legal advisers that this position is correct and the DPR will be notified accordingly.

As previously announced, the Company remains of the view that the purported allegations by SunTrust are without any foundation or merit. The Company will provide further updates in due course.

Enquiries:
San Leon Energy plc
Oisin Fanning, Chief Executive (+ 353 1291 6292)

Cantor Fitzgerald Europe (Nominated adviser, financial adviser and joint broker to the Company)
Nick Tulloch (+44 131 257 4634)
David Porter (+44 207 894 8896)

Whitman Howard Limited (Financial adviser and joint broker to the Company)
Nick Lovering (+44 20 7659 1234)
Francis North (+44 20 7659 1234)

Brandon Hill Capital Limited (Joint broker to the Company)
Oliver Stansfield (+44 203 463 5000)
Jonathan Evans (+44 203 463 5016)

Vigo Communications (Financial Public Relations)
Chris McMahon (+44 207 830 9700)
Kate Rogucheva (+44 207 830 9705)

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

San Leon Energy plc, the AIM listed company, focused on oil and gas development and appraisal in Africa and Europe, has been provided with a copy of correspondence between SunTrust Oil ("SunTrust") and the Nigerian Department of Petroleum Resources (“DPR”). The correspondence relates to a requirement under Nigerian law for the Minister of Petroleum Resources to consent to any assignment of interests in oil and gas assets in Nigeria and the fact that such consent was not obtained prior to the purchase by the Company of its indirect interest in OML 18.

San Leon obtained legal advice prior to the purchase which confirmed that, owing to the way that the transaction was structured (and specifically the nature of its indirect interest in OML 18), it was not necessary for Eroton to obtain prior consent from the Minister. Furthermore, San Leon and its partners have today re-confirmed with their legal advisers that this position is correct and the DPR will be notified accordingly.

As previously announced, the Company remains of the view that the purported allegations by SunTrust are without any foundation or merit. The Company will provide further updates in due course.

Enquiries:
San Leon Energy plc
Oisin Fanning, Chief Executive (+ 353 1291 6292)

Cantor Fitzgerald Europe (Nominated adviser, financial adviser and joint broker to the Company)
Nick Tulloch (+44 131 257 4634)
David Porter (+44 207 894 8896)

Whitman Howard Limited (Financial adviser and joint broker to the Company)
Nick Lovering (+44 20 7659 1234)
Francis North (+44 20 7659 1234)

Brandon Hill Capital Limited (Joint broker to the Company)
Oliver Stansfield (+44 203 463 5000)
Jonathan Evans (+44 203 463 5016)

Vigo Communications (Financial Public Relations)
Chris McMahon (+44 207 830 9700)
Kate Rogucheva (+44 207 830 9705)

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

Appointment of Non-Executive Director/media-centre/news-releases/2018/may/24/appointment-of-non-executive-director.aspx2018-05-24T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/may/24/appointment-of-non-executive-director.aspx

San Leon Energy plc, the AIM listed company, focused on oil and gas development and appraisal in Africa and Europe, is pleased to announce the appointment of Bill Higgs as Non-Executive Director of the Company with immediate effect.

Bill Higgs (53) has nearly 30 years of global exploration, development and operations experience, including over five years in executive roles for independent Exploration and Production companies. He is a qualified geologist with extensive expertise in all engineering and other technical and commercial aspects of hydrocarbon development and production.

Bill has been COO of Genel Energy plc since November 2017 where he is responsible for managing the global exploration and production portfolio. Prior to that he was Executive Director and COO for Ophir Energy plc and before Ophir, he was CEO of Mediterranean Oil and Gas, overseeing the successful sale of the company in 2014. Bill also spent 23 years at Chevron across a number of global roles, including responsibility for reservoir management of the giant Tengiz oil and sour gas field in Kazakhstan and asset manager of the BBLT development in Block 14 while resident in Angola.

Oisin Fanning, CEO of San Leon, commented:
“It gives me great pleasure to welcome Bill onto the board of the Company. His extensive career in the oil & gas industry and particularly his senior operational roles at other listed companies will provide valuable expertise to us as we continue to work with the operator, Eroton, in developing our core asset of OML 18 in Nigeria.”

Enquiries:
San Leon Energy plc
Oisin Fanning, Chief Executive (+ 353 1291 6292)

Cantor Fitzgerald Europe (Nominated adviser, financial adviser and joint broker to the Company)
Nick Tulloch (+44 131 257 4634)
David Porter (+44 207 894 8896)

Whitman Howard Limited (Financial adviser and joint broker to the Company)
Nick Lovering (+44 20 7659 1234)
Francis North (+44 20 7659 1234)

Brandon Hill Capital Limited (Joint broker to the Company)
Oliver Stansfield (+44 203 463 5000)
Jonathan Evans (+44 203 463 5016)

Vigo Communications (Financial Public Relations)
Chris McMahon (+44 207 830 9700)
Kate Rogucheva (+44 207 830 9705)

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

Regulatory Disclosures
The following disclosures are required regarding Bill Higgs’s appointment pursuant to Rule 17 and Schedule Two paragraph (g) of the AIM Rules for Companies:

Current directorships and partnerships:

Genel Energy Africa Exploration Limited
Genel Energy Gas Company Limited
Genel Energy Miran Bina Bawi Limited
Taq Taq Drilling Company Limited
Taq Taq Operating Company Limited

Past directorships and partnerships held over the last 5 years:

Taq Taq Petroleum Refining Company Limited
Mediterranean Oil & Gas plc
Ophir Energy plc
Ophir Energy Indonesia Limited
Ophir (Indonesia South East Sangatta) Limited
Ophir Indonesia (Bontang II) Limited
Ophir Indonesia (Kutai) Limited
Ophir Indonesia (South Sokang) Limited
Ophir Thailand (E&P) Limited
Salamander Energy (Bualuang Holdings) Limited
Salamander Energy (Holdco) Limited
Salamander Energy (JS) Limited
Salamander Energy (S.E. Asia) Limited
Salamander Energy Group Limited
Salamander Energy plc
Ophir Holdings & Services (UK) Limited
Ophir Holdings & Ventures Limited
Ophir Mexico Limited
Ophir Global New Ventures Limited
Ophir Asia Limited
Ophir East Africa Holdings Limited
Ophir East Africa Ventures Limited
Ophir Equatorial Guinea (Block R) Limited
Ophir Equatorial Guinea Holdings Limited
Ophir Gabon (Manga) Limited
Ophir Gabon (Mbeli) Limited
Ophir Gabon (Ntsina) Limited
Ophir Gas Marketing Limited
Ophir Holdings Limited
Ophir LNG Limited
Ophir Mexico Holdings Limited
Ophir Myanmar (Block AD-3) Limited
Ophir Pipeline Limited
Ophir Seychelles (Areas 1, 2 and 3) Limited
Ophir Tanzania (Block 1) Limited
Ophir Tanzania (Block 3) Limited
Ophir Tanzania (Block 4) Limited
Ophir Gabon (Nkawa) Limited
Ophir Gabon (Nkouere) Limited
Ophir Indonesia (Bangkanai) Limited
Ophir Indonesia (North East Bangkanai) Limited
Ophir Indonesia (West Bangkanai) Limited
Ophir Thailand (Bualuang) Limited
Salamander Energy (Glagah Kambuna) Limited
Salamander Energy (Malaysia) Limited
Salamander Energy (North Sumatra) Limited
Dominion Oil & Gas Limited
Ophir Malaysia (Block 2A) Limited
Ophir Cote d’Ivoire (CI-513) Limited
Ophir Energy Indonesia (Aru) Limited
Ophir Energy Indonesia (Kofiau) 1 Limited
Ophir Energy Indonesia (North Ganal) Limited
Ophir Energy Indonesia (West Papua IV) 1 Limited
Ophir Indonesia (Kofiau) 2 LLC
Ophir Indonesia (West Papua IV) 2 LLC
Ophir Indonesia (Central Kalimantan) Limited
Salamander Energy (Canada) Limited
Dominion Acquisitions Limited
Dominion Uganda Limited
Dominion Somaliland Limited
Salamander Energy (Bengara) Limited
Salamander Energy (Glagah Kambuna Holdings) Limited
Salamander Energy (Philippines) Limited
Ophir Indonesia (Simenggaris) Limited
Salamander Energy (Vietnam) Limited
Ophir Ventures (Jersey) Limited
Ophir Ventures (Jersey) No.2 Limited
Ophir Congo (Marine IX) Limited
Ophir JDZ Limited
Ophir AGC (Profond) Limited
Ophir Somaliland (Berbera) Limited
Ophir Indonesia (North Makasar Strait) Limited
Ophir Ghana (Accra) Limited
Salamander Bualuang & Kambuna Limited

Bill has no direct or indirect interest in the Company’s ordinary shares.

No further disclosure is required pursuant to AIM Rule 17 and paragraph (g) to Schedule Two of the AIM Rules for Companies.

San Leon Energy plc, the AIM listed company, focused on oil and gas development and appraisal in Africa and Europe, is pleased to announce the appointment of Bill Higgs as Non-Executive Director of the Company with immediate effect.

Bill Higgs (53) has nearly 30 years of global exploration, development and operations experience, including over five years in executive roles for independent Exploration and Production companies. He is a qualified geologist with extensive expertise in all engineering and other technical and commercial aspects of hydrocarbon development and production.

Bill has been COO of Genel Energy plc since November 2017 where he is responsible for managing the global exploration and production portfolio. Prior to that he was Executive Director and COO for Ophir Energy plc and before Ophir, he was CEO of Mediterranean Oil and Gas, overseeing the successful sale of the company in 2014. Bill also spent 23 years at Chevron across a number of global roles, including responsibility for reservoir management of the giant Tengiz oil and sour gas field in Kazakhstan and asset manager of the BBLT development in Block 14 while resident in Angola.

Oisin Fanning, CEO of San Leon, commented:
“It gives me great pleasure to welcome Bill onto the board of the Company. His extensive career in the oil & gas industry and particularly his senior operational roles at other listed companies will provide valuable expertise to us as we continue to work with the operator, Eroton, in developing our core asset of OML 18 in Nigeria.”

Enquiries:
San Leon Energy plc
Oisin Fanning, Chief Executive (+ 353 1291 6292)

Cantor Fitzgerald Europe (Nominated adviser, financial adviser and joint broker to the Company)
Nick Tulloch (+44 131 257 4634)
David Porter (+44 207 894 8896)

Whitman Howard Limited (Financial adviser and joint broker to the Company)
Nick Lovering (+44 20 7659 1234)
Francis North (+44 20 7659 1234)

Brandon Hill Capital Limited (Joint broker to the Company)
Oliver Stansfield (+44 203 463 5000)
Jonathan Evans (+44 203 463 5016)

Vigo Communications (Financial Public Relations)
Chris McMahon (+44 207 830 9700)
Kate Rogucheva (+44 207 830 9705)

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

Regulatory Disclosures
The following disclosures are required regarding Bill Higgs’s appointment pursuant to Rule 17 and Schedule Two paragraph (g) of the AIM Rules for Companies:

Current directorships and partnerships:

Genel Energy Africa Exploration Limited
Genel Energy Gas Company Limited
Genel Energy Miran Bina Bawi Limited
Taq Taq Drilling Company Limited
Taq Taq Operating Company Limited

Past directorships and partnerships held over the last 5 years:

Taq Taq Petroleum Refining Company Limited
Mediterranean Oil & Gas plc
Ophir Energy plc
Ophir Energy Indonesia Limited
Ophir (Indonesia South East Sangatta) Limited
Ophir Indonesia (Bontang II) Limited
Ophir Indonesia (Kutai) Limited
Ophir Indonesia (South Sokang) Limited
Ophir Thailand (E&P) Limited
Salamander Energy (Bualuang Holdings) Limited
Salamander Energy (Holdco) Limited
Salamander Energy (JS) Limited
Salamander Energy (S.E. Asia) Limited
Salamander Energy Group Limited
Salamander Energy plc
Ophir Holdings & Services (UK) Limited
Ophir Holdings & Ventures Limited
Ophir Mexico Limited
Ophir Global New Ventures Limited
Ophir Asia Limited
Ophir East Africa Holdings Limited
Ophir East Africa Ventures Limited
Ophir Equatorial Guinea (Block R) Limited
Ophir Equatorial Guinea Holdings Limited
Ophir Gabon (Manga) Limited
Ophir Gabon (Mbeli) Limited
Ophir Gabon (Ntsina) Limited
Ophir Gas Marketing Limited
Ophir Holdings Limited
Ophir LNG Limited
Ophir Mexico Holdings Limited
Ophir Myanmar (Block AD-3) Limited
Ophir Pipeline Limited
Ophir Seychelles (Areas 1, 2 and 3) Limited
Ophir Tanzania (Block 1) Limited
Ophir Tanzania (Block 3) Limited
Ophir Tanzania (Block 4) Limited
Ophir Gabon (Nkawa) Limited
Ophir Gabon (Nkouere) Limited
Ophir Indonesia (Bangkanai) Limited
Ophir Indonesia (North East Bangkanai) Limited
Ophir Indonesia (West Bangkanai) Limited
Ophir Thailand (Bualuang) Limited
Salamander Energy (Glagah Kambuna) Limited
Salamander Energy (Malaysia) Limited
Salamander Energy (North Sumatra) Limited
Dominion Oil & Gas Limited
Ophir Malaysia (Block 2A) Limited
Ophir Cote d’Ivoire (CI-513) Limited
Ophir Energy Indonesia (Aru) Limited
Ophir Energy Indonesia (Kofiau) 1 Limited
Ophir Energy Indonesia (North Ganal) Limited
Ophir Energy Indonesia (West Papua IV) 1 Limited
Ophir Indonesia (Kofiau) 2 LLC
Ophir Indonesia (West Papua IV) 2 LLC
Ophir Indonesia (Central Kalimantan) Limited
Salamander Energy (Canada) Limited
Dominion Acquisitions Limited
Dominion Uganda Limited
Dominion Somaliland Limited
Salamander Energy (Bengara) Limited
Salamander Energy (Glagah Kambuna Holdings) Limited
Salamander Energy (Philippines) Limited
Ophir Indonesia (Simenggaris) Limited
Salamander Energy (Vietnam) Limited
Ophir Ventures (Jersey) Limited
Ophir Ventures (Jersey) No.2 Limited
Ophir Congo (Marine IX) Limited
Ophir JDZ Limited
Ophir AGC (Profond) Limited
Ophir Somaliland (Berbera) Limited
Ophir Indonesia (North Makasar Strait) Limited
Ophir Ghana (Accra) Limited
Salamander Bualuang & Kambuna Limited

Bill has no direct or indirect interest in the Company’s ordinary shares.

No further disclosure is required pursuant to AIM Rule 17 and paragraph (g) to Schedule Two of the AIM Rules for Companies.

Comment on News Article/media-centre/news-releases/2018/may/22/comment-on-news-article.aspx2018-05-22T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/may/22/comment-on-news-article.aspx

San Leon Energy plc, the AIM listed company, focused on oil and gas development and appraisal in Africa and Europe, notes a media article in the Nigerian press which makes reference to a summons having been served on the Company and certain other entities by SunTrust Oil (“SunTrust”) in relation to a purported claim by SunTrust over the purchase by the Company of an indirect interest in OML 18.

San Leon can confirm that none of the Company, its subsidiaries or legal counsel have received any such summons to date and neither are they aware of the existence of any such summons.

Having taken legal advice, the Company is of the view that the purported allegations by SunTrust are without any foundation or merit whatsoever, the 2016 OML 18 transactions having undergone extensive due diligence and documentation. The Company will provide updates as and when appropriate in due course, and will vigorously defend any such claim received.

Enquiries:
San Leon Energy plc
Oisin Fanning, Chief Executive (+ 353 1291 6292)

Cantor Fitzgerald Europe (Nominated adviser, financial adviser and joint broker to the Company)
David Porter (+44 207 894 8896)
Nicholas Tulloch (+44 131 257 4634)

Whitman Howard Limited (Financial adviser and joint broker to the Company)
Nick Lovering (+44 20 7659 1234)
Francis North (+44 20 7659 1234)

Brandon Hill Capital Limited (Joint broker to the Company)
Oliver Stansfield (+44 203 463 5000)
Jonathan Evans (+44 203 463 5016)

Vigo Communications (Financial Public Relations)
Chris McMahon (+44 207 830 9700)
Kate Rogucheva (+44 207 830 9705)

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

 

San Leon Energy plc, the AIM listed company, focused on oil and gas development and appraisal in Africa and Europe, notes a media article in the Nigerian press which makes reference to a summons having been served on the Company and certain other entities by SunTrust Oil (“SunTrust”) in relation to a purported claim by SunTrust over the purchase by the Company of an indirect interest in OML 18.

San Leon can confirm that none of the Company, its subsidiaries or legal counsel have received any such summons to date and neither are they aware of the existence of any such summons.

Having taken legal advice, the Company is of the view that the purported allegations by SunTrust are without any foundation or merit whatsoever, the 2016 OML 18 transactions having undergone extensive due diligence and documentation. The Company will provide updates as and when appropriate in due course, and will vigorously defend any such claim received.

Enquiries:
San Leon Energy plc
Oisin Fanning, Chief Executive (+ 353 1291 6292)

Cantor Fitzgerald Europe (Nominated adviser, financial adviser and joint broker to the Company)
David Porter (+44 207 894 8896)
Nicholas Tulloch (+44 131 257 4634)

Whitman Howard Limited (Financial adviser and joint broker to the Company)
Nick Lovering (+44 20 7659 1234)
Francis North (+44 20 7659 1234)

Brandon Hill Capital Limited (Joint broker to the Company)
Oliver Stansfield (+44 203 463 5000)
Jonathan Evans (+44 203 463 5016)

Vigo Communications (Financial Public Relations)
Chris McMahon (+44 207 830 9700)
Kate Rogucheva (+44 207 830 9705)

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

 

Comment on News Article/media-centre/news-releases/2018/may/9/comment-on-news-article.aspx2018-05-09T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/may/9/comment-on-news-article.aspx

San Leon Energy plc, the AIM listed company, focused on oil and gas development and appraisal in Africa and Europe, notes a media article in the Nigerian press relating to a claim by SunTrust Oil (“SunTrust”) in respect of alleged payments due for the sale of their shares in Martwestern. The Company confirms it has received an application from SunTrust seeking leave (asking for permission) from the High Court Nigeria Holden to serve a petition outside the jurisdiction of Nigeria in respect of alleged amounts due.

Having taken legal advice, the Company believes the claim has no foundation (there being no outstanding liabilities to SunTrust from San Leon following the issue of San Leon shares to SunTrust in September 2016), and additionally the Nigerian courts lack jurisdiction for any such claim. The Company confirms it has instructed its Nigerian solicitors to file objections restraining the applications of SunTrust. This would have the effect of striking out the applications.

Enquiries:
San Leon Energy plc
Oisin Fanning, Chief Executive (+ 353 1291 6292)

Cantor Fitzgerald Europe (Nominated adviser, financial adviser and joint broker to the Company)
David Porter (+44 207 894 8896)
Nicholas Tulloch (+44 131 257 4634)

Whitman Howard Limited (Financial adviser and joint broker to the Company)
Nick Lovering (+44 20 7659 1234)
Francis North (+44 20 7659 1234)

Brandon Hill Capital Limited (Joint broker to the Company)
Oliver Stansfield (+44 203 463 5000)
Jonathan Evans (+44 203 463 5016)

Vigo Communications (Financial Public Relations)
Chris McMahon (+44 207 830 9700)
Kate Rogucheva (+44 207 830 9705)

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

San Leon Energy plc, the AIM listed company, focused on oil and gas development and appraisal in Africa and Europe, notes a media article in the Nigerian press relating to a claim by SunTrust Oil (“SunTrust”) in respect of alleged payments due for the sale of their shares in Martwestern. The Company confirms it has received an application from SunTrust seeking leave (asking for permission) from the High Court Nigeria Holden to serve a petition outside the jurisdiction of Nigeria in respect of alleged amounts due.

Having taken legal advice, the Company believes the claim has no foundation (there being no outstanding liabilities to SunTrust from San Leon following the issue of San Leon shares to SunTrust in September 2016), and additionally the Nigerian courts lack jurisdiction for any such claim. The Company confirms it has instructed its Nigerian solicitors to file objections restraining the applications of SunTrust. This would have the effect of striking out the applications.

Enquiries:
San Leon Energy plc
Oisin Fanning, Chief Executive (+ 353 1291 6292)

Cantor Fitzgerald Europe (Nominated adviser, financial adviser and joint broker to the Company)
David Porter (+44 207 894 8896)
Nicholas Tulloch (+44 131 257 4634)

Whitman Howard Limited (Financial adviser and joint broker to the Company)
Nick Lovering (+44 20 7659 1234)
Francis North (+44 20 7659 1234)

Brandon Hill Capital Limited (Joint broker to the Company)
Oliver Stansfield (+44 203 463 5000)
Jonathan Evans (+44 203 463 5016)

Vigo Communications (Financial Public Relations)
Chris McMahon (+44 207 830 9700)
Kate Rogucheva (+44 207 830 9705)

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

Appointment of Nomad, Financial Adviser and Broker/media-centre/news-releases/2018/april/24/appointment-of-nomad-financial-adviser-and-broker.aspx2018-04-24T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/april/24/appointment-of-nomad-financial-adviser-and-broker.aspx

San Leon Energy plc, the AIM listed company, focused on oil and gas development and appraisal in Africa and Europe, is pleased to announce the appointment of Cantor Fitzgerald Europe ("Cantor Fitzgerald") as the Company's Nominated Adviser, financial adviser and broker with immediate effect.

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.   

Enquiries:

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

Cantor Fitzgerald Europe (Nominated adviser, financial adviser and joint broker to the Company)

David Porter (+44 207 894 7000)

Nicholas Tulloch (+44 131 257 4634)

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering 
Francis North

Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans


Vigo Communications (Financial Public Relations) +44 20 7830 9700 
Chris McMahon 
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873

San Leon Energy plc, the AIM listed company, focused on oil and gas development and appraisal in Africa and Europe, is pleased to announce the appointment of Cantor Fitzgerald Europe ("Cantor Fitzgerald") as the Company's Nominated Adviser, financial adviser and broker with immediate effect.

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.   

Enquiries:

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

Cantor Fitzgerald Europe (Nominated adviser, financial adviser and joint broker to the Company)

David Porter (+44 207 894 7000)

Nicholas Tulloch (+44 131 257 4634)

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering 
Francis North

Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans


Vigo Communications (Financial Public Relations) +44 20 7830 9700 
Chris McMahon 
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873

Resumption of Trading/media-centre/news-releases/2018/april/23/resumption-of-trading.aspx2018-04-23T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/april/23/resumption-of-trading.aspx

San Leon, the AIM listed company focused on oil and gas development and appraisal in Africa and Europe, received an indicative proposal from Midwestern Oil and Gas (“Midwestern”) on 11 September 2017 for San Leon to acquire Midwestern’s shares in Midwestern Leon Petroleum Limited (“MLPL”). Such an acquisition could have constituted a reverse takeover under AIM Rules for Companies (the “AIM Rules”) and accordingly, following press speculation on 03 No- vember 2017 concerning these discussions, the Company's ordinary shares (“Shares”) were suspended from trading.

Discussions with Midwestern have continued since that date and, whilst there were some clear attractions of increasing San Leon’s indirect ownership in OML 18, after careful consid- eration the board of San Leon (the “Board”) has determined that a combination with MLPL is not in the best interests of San Leon’s shareholders at this time as it does not provide a suffi- cient balance of added value for San Leon shareholders and certainty of near-term cash flow. The Company has therefore notified Midwestern of its decision to terminate discussions re- garding a potential merger and has requested the lifting of the suspension of trading of its Shares on AIM. Trading in its Shares will recommence on AIM with effect from 07.30 on 23 April 2018.

The Company continues to have a good relationship with Midwestern. The Board believes that the discussions have themselves strengthened the working relationship between the two com- panies and looks forward to working with Midwestern, as its partner, and jointly advancing production at OML 18.

San Leon has now received $58.6 million in quarterly payments, and since its Shares were suspended in November 2017 has settled its dispute with Avobone and repaid material out- standing liabilities. As at 19 April 2018, San Leon had a cash balance of approximately $13.5 million. The Company is now in a strong financial position, with the benefit of an expected regular future income stream from its ongoing quarterly loan note repayments (of approxi- mately US$19 million).

Accordingly, the Company is now able to progress with the capital reduction, subject to the confirmation of the High Court in Ireland, which has already been approved by the sharehold- ers, to allow capital returns to shareholders.

Oisin Fanning, CEO of San Leon, commented:
“The Company has worked hard with Midwestern over the recent months to see if there was a transaction that would be beneficial to existing San Leon shareholders. Whilst the Company received an interesting proposal from Midwestern, the Board does not feel the structure of the combination (which would have included the Loan Notes being deemed to have been re- paid) reflected the true value of the Company’s portfolio. Accordingly, we have elected to terminate discussions with Midwestern.

Our financial position is much stronger than when discussions with Midwestern commenced. We are pleased to report that the first three quarterly payments have been received. Conse- quently, San Leon is now on a solid financial footing with a cash balance of $13.5 million and all material problems with creditors and litigation are behind us. I am therefore pleased to say that the Company is progressing its capital reorganisation in order to allow shareholder distributions. I thank all shareholders, and in particular, our largest shareholder, Toscafund for their patience and support during this period.

The Company has experienced a number of positive developments across its business over the last few months (as described below), whilst the backdrop of improving oil prices is encourag- ing. I look forward to updating shareholders with continued progress.”

Notable Additional Developments during the period of temporary suspension

A number of important events occurred during the period of suspension, each of which has been already announced.

Repayment of Midwestern Leon Petroleum Limited Loan Notes
As previously stated, San Leon entered into an arrangement in September 2016 with MLPL, whereby SLE would be repaid $174.5 million plus an annual coupon of 17% through to 2020. The Instrument had an inbuilt grace period as historically explained (see the Half year results announced on 29 September 2017). This grace period has now lapsed and, as announced on 03 April 2018, a payment of US$19 million was received, being the third such quarterly payment of the outstanding Loan Notes, with payments received now totalling $58.6 million. A further $168.6 million of principal and interest remains outstanding and payable, along with future interest, in similar quarterly instalments to those received to date.

In the event of default of any of the future quarterly payments, SLE may demand immediate repayment of the full outstanding principal amount of the Loan Notes, all unpaid accrued in- terest and any other sum then payable from MLPL. SLE also has the benefit of a security package including guarantees from Midwestern Oil & Gas Company Limited (60% shareholder in MLPL) and Mart Resources Limited to guarantee the obligations of MLPL under the Instru- ment, as well as a share pledge.

Settlement of Outstanding Material Creditors
At the time of suspension, San Leon was involved in a legal dispute with Avobone N.V. over outstanding payments and their timing to Avobone N.V. The Company announced on 19 De- cember 2018 that all outstanding payments to Avobone (totalling €11.53 million) had been settled.

Barryroe Farm Out
On 28 March 2018, Providence Resources Plc announced it had entered into a farm out agree- ment on the Barryroe Field, offshore Ireland, with a Chinese consortium who would fund the cost of drilling three wells and associated side-tracks. San Leon regards this as a positive de- velopment in a material asset in which the Company holds a 4.5% Net Profit Interest across the whole field and is not required to pay any further appraisal or development costs on the licence.

To download the press release, please click here.

Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

SP Angel Corporate Finance LLP (Nominated Adviser)
+44 20 3470 0470
Richard Morrison
Ewan Leggat

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering

Francis North
Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans

Vigo Communications (Financial Public Relations)
+44 20 7830 9700
Chris McMahon
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett

San Leon, the AIM listed company focused on oil and gas development and appraisal in Africa and Europe, received an indicative proposal from Midwestern Oil and Gas (“Midwestern”) on 11 September 2017 for San Leon to acquire Midwestern’s shares in Midwestern Leon Petroleum Limited (“MLPL”). Such an acquisition could have constituted a reverse takeover under AIM Rules for Companies (the “AIM Rules”) and accordingly, following press speculation on 03 No- vember 2017 concerning these discussions, the Company's ordinary shares (“Shares”) were suspended from trading.

Discussions with Midwestern have continued since that date and, whilst there were some clear attractions of increasing San Leon’s indirect ownership in OML 18, after careful consid- eration the board of San Leon (the “Board”) has determined that a combination with MLPL is not in the best interests of San Leon’s shareholders at this time as it does not provide a suffi- cient balance of added value for San Leon shareholders and certainty of near-term cash flow. The Company has therefore notified Midwestern of its decision to terminate discussions re- garding a potential merger and has requested the lifting of the suspension of trading of its Shares on AIM. Trading in its Shares will recommence on AIM with effect from 07.30 on 23 April 2018.

The Company continues to have a good relationship with Midwestern. The Board believes that the discussions have themselves strengthened the working relationship between the two com- panies and looks forward to working with Midwestern, as its partner, and jointly advancing production at OML 18.

San Leon has now received $58.6 million in quarterly payments, and since its Shares were suspended in November 2017 has settled its dispute with Avobone and repaid material out- standing liabilities. As at 19 April 2018, San Leon had a cash balance of approximately $13.5 million. The Company is now in a strong financial position, with the benefit of an expected regular future income stream from its ongoing quarterly loan note repayments (of approxi- mately US$19 million).

Accordingly, the Company is now able to progress with the capital reduction, subject to the confirmation of the High Court in Ireland, which has already been approved by the sharehold- ers, to allow capital returns to shareholders.

Oisin Fanning, CEO of San Leon, commented:
“The Company has worked hard with Midwestern over the recent months to see if there was a transaction that would be beneficial to existing San Leon shareholders. Whilst the Company received an interesting proposal from Midwestern, the Board does not feel the structure of the combination (which would have included the Loan Notes being deemed to have been re- paid) reflected the true value of the Company’s portfolio. Accordingly, we have elected to terminate discussions with Midwestern.

Our financial position is much stronger than when discussions with Midwestern commenced. We are pleased to report that the first three quarterly payments have been received. Conse- quently, San Leon is now on a solid financial footing with a cash balance of $13.5 million and all material problems with creditors and litigation are behind us. I am therefore pleased to say that the Company is progressing its capital reorganisation in order to allow shareholder distributions. I thank all shareholders, and in particular, our largest shareholder, Toscafund for their patience and support during this period.

The Company has experienced a number of positive developments across its business over the last few months (as described below), whilst the backdrop of improving oil prices is encourag- ing. I look forward to updating shareholders with continued progress.”

Notable Additional Developments during the period of temporary suspension

A number of important events occurred during the period of suspension, each of which has been already announced.

Repayment of Midwestern Leon Petroleum Limited Loan Notes
As previously stated, San Leon entered into an arrangement in September 2016 with MLPL, whereby SLE would be repaid $174.5 million plus an annual coupon of 17% through to 2020. The Instrument had an inbuilt grace period as historically explained (see the Half year results announced on 29 September 2017). This grace period has now lapsed and, as announced on 03 April 2018, a payment of US$19 million was received, being the third such quarterly payment of the outstanding Loan Notes, with payments received now totalling $58.6 million. A further $168.6 million of principal and interest remains outstanding and payable, along with future interest, in similar quarterly instalments to those received to date.

In the event of default of any of the future quarterly payments, SLE may demand immediate repayment of the full outstanding principal amount of the Loan Notes, all unpaid accrued in- terest and any other sum then payable from MLPL. SLE also has the benefit of a security package including guarantees from Midwestern Oil & Gas Company Limited (60% shareholder in MLPL) and Mart Resources Limited to guarantee the obligations of MLPL under the Instru- ment, as well as a share pledge.

Settlement of Outstanding Material Creditors
At the time of suspension, San Leon was involved in a legal dispute with Avobone N.V. over outstanding payments and their timing to Avobone N.V. The Company announced on 19 De- cember 2018 that all outstanding payments to Avobone (totalling €11.53 million) had been settled.

Barryroe Farm Out
On 28 March 2018, Providence Resources Plc announced it had entered into a farm out agree- ment on the Barryroe Field, offshore Ireland, with a Chinese consortium who would fund the cost of drilling three wells and associated side-tracks. San Leon regards this as a positive de- velopment in a material asset in which the Company holds a 4.5% Net Profit Interest across the whole field and is not required to pay any further appraisal or development costs on the licence.

To download the press release, please click here.

Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

SP Angel Corporate Finance LLP (Nominated Adviser)
+44 20 3470 0470
Richard Morrison
Ewan Leggat

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering

Francis North
Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans

Vigo Communications (Financial Public Relations)
+44 20 7830 9700
Chris McMahon
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett

Payment Received Against MLPL Loan Notes/media-centre/news-releases/2018/april/3/payment-received-against-mlpl-loan-notes.aspx2018-04-03T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/april/3/payment-received-against-mlpl-loan-notes.aspx

Repayment of Midwestern Leon Petroleum Limited ("MLPL") Loan Notes (the "Loan Notes")

San Leon Energy plc (the "Company"), the AIM listed company focused on oil and gas development and appraisal in Africa and Europe, is scheduled to be paid approximately US$19 million per quarter by MLPL in respect of the Loan Notes. San Leon can now confirm that it has received approximately $19 million in full satisfaction of MLPL's obligations for Q1 2018 in respect of the Loan Notes.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

SP Angel Corporate Finance LLP (Nominated Adviser)
+44 20 3470 0470
Richard Morrison
Ewan Leggat
Soltan Tagiev

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering
Francis North

Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans

Vigo Communications (Financial Public Relations)
+44 20 7830 9700
Chris McMahon
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett

Repayment of Midwestern Leon Petroleum Limited ("MLPL") Loan Notes (the "Loan Notes")

San Leon Energy plc (the "Company"), the AIM listed company focused on oil and gas development and appraisal in Africa and Europe, is scheduled to be paid approximately US$19 million per quarter by MLPL in respect of the Loan Notes. San Leon can now confirm that it has received approximately $19 million in full satisfaction of MLPL's obligations for Q1 2018 in respect of the Loan Notes.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

SP Angel Corporate Finance LLP (Nominated Adviser)
+44 20 3470 0470
Richard Morrison
Ewan Leggat
Soltan Tagiev

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering
Francis North

Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans

Vigo Communications (Financial Public Relations)
+44 20 7830 9700
Chris McMahon
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett

Barryroe Farm-Out Update Agreement/media-centre/news-releases/2018/march/28/barryroe-farm-out-update-agreement.aspx2018-03-28T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/march/28/barryroe-farm-out-update-agreement.aspx

San Leon notes the announcement today from Providence Resources Plc ("Providence") regarding the Barryroe Field, offshore Ireland, in which San Leon holds a 4.5% Net Profit Interest. San Leon Energy is not required to pay any further appraisal or development costs on the Licence. The main text of Providence's announcement is set out below for reference.

The Company wishes Providence a successful completion to the farm-out.

Start of text from Providence's announcement:

  • PROVIDENCE & LANSDOWNE AGREE TO FARM-OUT A 50% WORKING INTEREST IN BARRYROE TO A CHINESE CONSORTIUM ("THE CONSORTIUM") LED BY APEC ENERGY ENTERPRISE LIMITED ("APEC")
  • THE CONSORTIUM TO FUND 100% OF DRILLING COSTS FOR 3 WELLS AND ASSOCIATED SIDE-TRACKS
  • THE CONSORTIUM TO FINANCE PROVIDENCE & LANSDOWNE'S 50% SHARE OF DRILLING PROGRAMME COSTS BY WAY OF A NON-RECOURSE LOAN WHICH IS SECURED AGAINST FUTURE BARRYROE PRODUCTION CASHFLOW
  • APEC TO BE GRANTED WARRANTS WITH THE RIGHT TO SUBSCRIBE FOR 59.2 MILLION PROVIDENCE SHARES AT GBP0.12 PER SHARE POST COMPLETION OF THE DRILLING PROGRAMME

Dublin and London - March 28, 2018 - Providence Resources P.l.c. (PVR LN, PRP ID), the Irish based Oil & Gas Exploration Company ("Providence" or the "Company"), today provides a commercial update on Standard Exploration Licence ("SEL") 1/11 that contains the Barryroe oil accumulation. SEL 1/11 is operated by EXOLA DAC ("EXOLA")(80%), a wholly-owned Providence subsidiary, on behalf of its partner Lansdowne Celtic Sea Limited ("Lansdowne")(20%), collectively referred to as the "Barryroe Partners". The area lies in c. 100 metre water depth in the North Celtic Sea Basin and is located c. 50 km off the south coast of Ireland.

Standard Exploration Licence ("SEL") 1/11 Farm-Out

The Company is pleased to announce that the Barryroe Partners have signed a Farm-Out Agreement ("FOA") with APEC in relation to SEL 1/11. APEC is a privately owned Chinese company which has a strategic partnership with China Oilfield Services Co., Ltd ("COSL") and JIC Capital Management Limited ("JIC") for the investment and development of offshore oil and gas opportunities worldwide utilising Chinese drilling units, services and equipment.

Under the terms of the FOA, in consideration for APEC being assigned a 50% working interest in SEL 1/11:

Commercial Terms

  • APEC will be directly responsible for paying 50% of all the cost obligations associated with the drilling of 3 vertical wells, plus any associated side-tracks and well testing (hereinafter referred to as the "Drilling Programme");
  • APEC will provide a drilling unit and related operational services for the Drilling Programme;
  • APEC will finance, by way of a non-recourse loan facility (the "Loan"), the remaining 50% of all costs of the Barryroe Partners in respect of the Drilling Programme;
  • The Loan, drawable against the budget for the Drilling Programme, will incur an annual interest rate of LIBOR +5% and will be repayable from production cashflow from SEL 1/11 with APEC being entitled to 80% of production cashflow from SEL 1/11 until the Loan is repaid in full;
  • Following repayment of the Loan, APEC will be entitled to 50% of production cashflow from SEL 1/11 with EXOLA and Lansdowne being entitled to 40% and 10% of production cashflow, respectively.

Operational Terms

  • EXOLA will act as Operator for the Drilling Programme with technical assistance being provided by the APEC Consortium; and,
  • After the completion of the Drilling Programme, APEC will have the right to become Operator for the development/production phase.

Issuance of Warrants to APEC

  • Upon completion of the Drilling Programme, APEC will be able to subscribe for warrants over 59.2 million shares in Providence at a strike price of GBP0.12 per share (the "Warrants").
  • The Warrants, representing circa 9.9% of the current issued share capital of Providence, are exercisable for a period of 6 months following the completion of the Drilling Programme.

 

Closing

The Closing of the Farm-Out ("Closing"), which is expected to occur in Q3 2018, is conditional on completion of all ancillary legal documentation required to implement the terms of the FOA, and is subject to the approval of the Minister of State at the Department of Communications, Climate Action and Environment and the approval of the Chinese government. In addition, the details of and schedule for the Drilling Programme are subject to further ongoing technical discussions between the Consortium, Exola and Lansdowne. Subject to Closing, the revised equity in SEL 1/11 will be EXOLA (Operator, 40%), APEC (50%) & Lansdowne (10%).

Further announcements on the transaction will be made in due course.

Speaking today, Tony O'Reilly, Chief Executive of Providence said:

"This is a significant transaction for Providence and Lansdowne which will deliver multiple new penetrations of the areally extensive Barryroe field. In addition, it also provides for the acquisition of modern dynamic well test data that should assist in advancing the field to production. Over the coming months, we will be working with the APEC Consortium to close the transaction and finalise the specific timeline and the precise details of the drilling programme. We are very pleased to have agreed this deal, which will allow us to avail of 'state of the art' drilling units and technical capabilities in order to advance Barryroe to first oil."

Mr. Colin Lui , Chairman of APEC Energy Enterprise Limited commented:

"APEC, supported by Jianyin Investment Company and China Offshore Services Ltd, are very pleased to have strategically joined forces with Providence and Lansdowne to develop the Barryroe field. This field has significant recoverable resources and we look forward to jointly developing this opportunity. Whilst the Farm-Out Agreement has been agreed specifically for Barryroe, the parties have also agreed to jointly investigate further opportunities in other licensed blocks offshore Ireland in the future."    

End of text from Providence's announcement

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

SP Angel Corporate Finance LLP (Nominated Adviser)
+44 20 3470 0470
Richard Morrison
Ewan Leggat
Soltan Tagiev

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering
Francis North

Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans

Vigo Communications (Financial Public Relations)
+44 20 7830 9700
Chris McMahon
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett

San Leon notes the announcement today from Providence Resources Plc ("Providence") regarding the Barryroe Field, offshore Ireland, in which San Leon holds a 4.5% Net Profit Interest. San Leon Energy is not required to pay any further appraisal or development costs on the Licence. The main text of Providence's announcement is set out below for reference.

The Company wishes Providence a successful completion to the farm-out.

Start of text from Providence's announcement:

  • PROVIDENCE & LANSDOWNE AGREE TO FARM-OUT A 50% WORKING INTEREST IN BARRYROE TO A CHINESE CONSORTIUM ("THE CONSORTIUM") LED BY APEC ENERGY ENTERPRISE LIMITED ("APEC")
  • THE CONSORTIUM TO FUND 100% OF DRILLING COSTS FOR 3 WELLS AND ASSOCIATED SIDE-TRACKS
  • THE CONSORTIUM TO FINANCE PROVIDENCE & LANSDOWNE'S 50% SHARE OF DRILLING PROGRAMME COSTS BY WAY OF A NON-RECOURSE LOAN WHICH IS SECURED AGAINST FUTURE BARRYROE PRODUCTION CASHFLOW
  • APEC TO BE GRANTED WARRANTS WITH THE RIGHT TO SUBSCRIBE FOR 59.2 MILLION PROVIDENCE SHARES AT GBP0.12 PER SHARE POST COMPLETION OF THE DRILLING PROGRAMME

Dublin and London - March 28, 2018 - Providence Resources P.l.c. (PVR LN, PRP ID), the Irish based Oil & Gas Exploration Company ("Providence" or the "Company"), today provides a commercial update on Standard Exploration Licence ("SEL") 1/11 that contains the Barryroe oil accumulation. SEL 1/11 is operated by EXOLA DAC ("EXOLA")(80%), a wholly-owned Providence subsidiary, on behalf of its partner Lansdowne Celtic Sea Limited ("Lansdowne")(20%), collectively referred to as the "Barryroe Partners". The area lies in c. 100 metre water depth in the North Celtic Sea Basin and is located c. 50 km off the south coast of Ireland.

Standard Exploration Licence ("SEL") 1/11 Farm-Out

The Company is pleased to announce that the Barryroe Partners have signed a Farm-Out Agreement ("FOA") with APEC in relation to SEL 1/11. APEC is a privately owned Chinese company which has a strategic partnership with China Oilfield Services Co., Ltd ("COSL") and JIC Capital Management Limited ("JIC") for the investment and development of offshore oil and gas opportunities worldwide utilising Chinese drilling units, services and equipment.

Under the terms of the FOA, in consideration for APEC being assigned a 50% working interest in SEL 1/11:

Commercial Terms

  • APEC will be directly responsible for paying 50% of all the cost obligations associated with the drilling of 3 vertical wells, plus any associated side-tracks and well testing (hereinafter referred to as the "Drilling Programme");
  • APEC will provide a drilling unit and related operational services for the Drilling Programme;
  • APEC will finance, by way of a non-recourse loan facility (the "Loan"), the remaining 50% of all costs of the Barryroe Partners in respect of the Drilling Programme;
  • The Loan, drawable against the budget for the Drilling Programme, will incur an annual interest rate of LIBOR +5% and will be repayable from production cashflow from SEL 1/11 with APEC being entitled to 80% of production cashflow from SEL 1/11 until the Loan is repaid in full;
  • Following repayment of the Loan, APEC will be entitled to 50% of production cashflow from SEL 1/11 with EXOLA and Lansdowne being entitled to 40% and 10% of production cashflow, respectively.

Operational Terms

  • EXOLA will act as Operator for the Drilling Programme with technical assistance being provided by the APEC Consortium; and,
  • After the completion of the Drilling Programme, APEC will have the right to become Operator for the development/production phase.

Issuance of Warrants to APEC

  • Upon completion of the Drilling Programme, APEC will be able to subscribe for warrants over 59.2 million shares in Providence at a strike price of GBP0.12 per share (the "Warrants").
  • The Warrants, representing circa 9.9% of the current issued share capital of Providence, are exercisable for a period of 6 months following the completion of the Drilling Programme.

 

Closing

The Closing of the Farm-Out ("Closing"), which is expected to occur in Q3 2018, is conditional on completion of all ancillary legal documentation required to implement the terms of the FOA, and is subject to the approval of the Minister of State at the Department of Communications, Climate Action and Environment and the approval of the Chinese government. In addition, the details of and schedule for the Drilling Programme are subject to further ongoing technical discussions between the Consortium, Exola and Lansdowne. Subject to Closing, the revised equity in SEL 1/11 will be EXOLA (Operator, 40%), APEC (50%) & Lansdowne (10%).

Further announcements on the transaction will be made in due course.

Speaking today, Tony O'Reilly, Chief Executive of Providence said:

"This is a significant transaction for Providence and Lansdowne which will deliver multiple new penetrations of the areally extensive Barryroe field. In addition, it also provides for the acquisition of modern dynamic well test data that should assist in advancing the field to production. Over the coming months, we will be working with the APEC Consortium to close the transaction and finalise the specific timeline and the precise details of the drilling programme. We are very pleased to have agreed this deal, which will allow us to avail of 'state of the art' drilling units and technical capabilities in order to advance Barryroe to first oil."

Mr. Colin Lui , Chairman of APEC Energy Enterprise Limited commented:

"APEC, supported by Jianyin Investment Company and China Offshore Services Ltd, are very pleased to have strategically joined forces with Providence and Lansdowne to develop the Barryroe field. This field has significant recoverable resources and we look forward to jointly developing this opportunity. Whilst the Farm-Out Agreement has been agreed specifically for Barryroe, the parties have also agreed to jointly investigate further opportunities in other licensed blocks offshore Ireland in the future."    

End of text from Providence's announcement

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

SP Angel Corporate Finance LLP (Nominated Adviser)
+44 20 3470 0470
Richard Morrison
Ewan Leggat
Soltan Tagiev

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering
Francis North

Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans

Vigo Communications (Financial Public Relations)
+44 20 7830 9700
Chris McMahon
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett

Operating and Corporate Update/media-centre/news-releases/2018/february/21/operating-and-corporate-update.aspx2018-02-21T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/february/21/operating-and-corporate-update.aspx

San Leon Energy plc, the AIM listed company focused on oil and gas development and appraisal in Africa and Europe, is pleased to provide an update on operations and finances related to its initial indirect 9.72 per cent. interest in the OML 18 project, onshore Nigeria. 

OML 18 Operations Overview

  • Current oil production, including 50% of the Awoba field, is approximately 53,000 barrels of oil per day ("bopd") before downtime and pipeline losses, down approximately 3,000 bopd since the operational update of 19 April 2017.
  • In 2017, OML 18, including 50% of the Awoba field, produced 40,360 bopd before pipeline losses, or 50,450 bopd before pipeline losses on a producing day basis.
  • In 2017, average oil sales, including 50% of the Awoba field, (after downtime and disputed pipeline losses) were 26,440 bopd (compared with 30,969 bopd in 2016).
  • The discrepancy between the sales and production numbers, and delays in production increases, continue largely to be attributable to three main factors: (i) workover/drilling progress (ii) production downtime and (iii) estimated pipeline losses. Each of these is being addressed by Eroton, the operator of OML 18, and is explained further below.
  • Current gas sales are approximately 50 million standard cubic feet per day ("mmscf/d"). In 2017 the average gas sales were 45.2mmscf/d, after downtime.
  • Production at OML 18 has continued uninterrupted by any security issues in 2017. During January 2018 illegal bunkering activity caused a fire on a non-operational well on the Buguma field. This did not affect production, and there were no casualties. The fire was swiftly brought under control by Eroton without a reportable spill.
  • The Krakama field was brought into production in January 2017 on schedule. Further well activity on the field has yet to commence. Current oil production from Krakama is approximately 4,500 bopd.
  • The Buguma Creek field, previously expected to go online in Q4 2017 with production transported in bulk to the Krakama facility, is now expected online during Q3 2018.
  • Field development plans ("FDPs") for Akaso, Cawthorne Channel and Alakiri have been submitted to the Nigerian National Petroleum Company ("NNPC"), with approval expected during Q1 2018.
  • Eroton is working on an updated reserves report, with an expectation of adding material oil and condensate volumes. A summary of the finalised reserves report will be communicated to shareholders once it is available and after review by the Company.   

OML 18 2017 Production Summary and Commentary   

Delays in production increases have been as a result of:

(i) Workover/drilling progress

  • Non-rig workovers performed during 2017 continued to proceed less quickly than expected due primarily to downhole challenges.
  • There were some challenges in execution due to the process of approvals with JV partners. Given the positive improvement in the prompt settlement of ongoing partner cash calls, Eroton expects the JV approvals process to continue to improve.
  • San Leon's senior operations manager has now been working as an appointee in Eroton for approximately two months, bringing with him a wealth of downhole operational experience. Together with Eroton's team, this experience is being applied to the ongoing non-rig workovers and will also be used for rig-based workovers and new wells.
  • Following the 2018 budgetary planning process, and assuming the approval of various FDPs, the Company now expects that rig-based workovers, previously anticipated to commence in Q4 2017, will commence in Q3 2018, and new wells will be drilled commencing Q4 2018. As mentioned in previous operational updates, this type of drilling activity has yielded material production gains in similar fields elsewhere in Nigeria and the Company remains confident the work will add materially to Eroton's production base. Such activity was the basis for the production gains reflected in the Admission Document.

(ii) Production downtime

  • Tank tops and cargo shipping delays at the Bonny Terminal, as well as intermittent upstream outages on the Nembe Creek Trunk Line pipeline ("NCTL"), the export pipeline used to transport oil to the Bonny Terminal, has resulted in material production downtime at OML 18.
  • Eroton is evaluating a number of independent alternative oil evacuation routes that will improve consistency of supply to the market. The preferred evacuation route selected by Eroton is a new dedicated pipeline and offshore Floating Storage and Offloading ("FSO") system.

(iii) Pipeline losses

  • Following the installation of new Lease Automatic Custody Transfer ("LACT") units on the NCTL line in 2016, the Bonny Terminal operator allocated an average of approximately 35% pipeline losses to all operators using NCTL for 2017 (compared with 9% assumed and documented in the Company's admission document dated 26 August 2016 ("Admission Document")). Eroton disputes the allocation and has requested that the relevant regulatory authorities investigate the allocation of such excessive losses with a view to reallocating losses in Eroton's favour (thereby boosting the sales numbers). Those discussions are ongoing.
  • LACT units for OML 18 are now in Nigeria and, following commissioning and regulatory sign off, are anticipated by Eroton to be operational in H2 2018. The use of these units is expected to provide accurate measurements at the transfer point and therefore reduced the pipeline losses allocated to Eroton.
  • The proposed alternative crude evacuation (pipeline) and storage facilities are anticipated to realise significant advantages with respect to pipeline loss allocation and production up-time, coinciding with the expected timing of the production increases from rig-based activity. The Company expects tendering and approval by JV partners to occur in the next 6 months.

Nigeria Financial

In accordance with the terms of the $174.5 million loan note instruments held by San Leon pursuant to the OML 18 assets (as described more fully in the Interim Statement dated 29 September 2017), the average quarterly scheduled amount of principal and interest to date is approximately $19 million. To date, $39.6 million has been received by San Leon in order to avoid a default under the loan note instruments. SLE is also due to receive approximately $19 million by 1 April 2018 from or on behalf of Midwestern Leon Petroleum Limited ("MLPL"), and further similar quarterly amounts thereafter, until all Notes have been repaid.

The Reserves Based Lending ("RBL") conditions required for the payment of dividends by Eroton have been met, with the exception of satisfying the amount payable to Debt Service Reserve Account ("DSRA") and the filing of Eroton's 2017 financial accounts. Eroton awaits repayment of the majority of NNPC's historic operational expenditure and capital expenditure cash calls from 2015 and 2016, although encouragingly such repayments began in Q4 2017 and have continued. NNPC has also paid the large majority of it 2017 cash calls promptly and continues to do so in 2018.

The delayed receipt of NNPC 2015/2016 arrears has had two main impacts to date.

  • First, as announced on 7 September 2017, this has been a contributory factor to some work programme delays (such as well workovers and the drilling of new wells). These delays to heavy workovers and new well drilling, which target significant hikes in production rates, in turn impact the cash generated by Eroton.
  •  Secondly, as also announced on 7 September 2017, depositing three future quarterly reserves based lending ("RBL") repayments into the debt service reserve account ("DSRA") attached to Eroton's existing RBL facility, is one of the conditions that needs to be met before the RBL lenders will allow distribution of dividends from Eroton to its shareholders. The cumulative amount required to fill the DSRA varies according to the RBL amortisation schedule and is approximately $90m for much of 2018. The DSRA balance however fluctuates according to operational needs and due to some of the funding challenges experienced.

Any future payment of dividends by Eroton, and receipt by MLPL, will be used to pay the principal and interest due on the loan notes, and to pay dividends to San Leon. Given the delays in operational activity, downtime and pipeline losses, dividend payments by Eroton are not expected until the impact of the alternative export pipeline and/or the rig-based well activity have materially increased sales volumes of oil.

During January 2018, Eroton put in place a new hedge covering its RBL borrowing base. The hedge is a put option at a price of $50/bbl for 10,170 bopd until 30 June 2019.

Nigeria Administrative

As provided for in the shareholders agreement between San Leon Energy Nigeria Limited, Midwestern Oil and Gas Company Limited and MLPL dated 22 March 2016, San Leon has the right to nominate people for appointment to the following positions within Eroton.

  • Two Eroton Board members: Mr. Oisin Fanning and Mr. Mutiu Sunmonu sit on the Eroton Board.
  • The Chair of the Finance Committee: an appointee has been agreed with Eroton, and will formally assume the role at the next Eroton Board meeting.
  • A Senior Technical Manager who has extensive experience in Nigeria and similar environments: Mr. Les Johnson has now been in place for two months. 

Oisin Fanning, San Leon's CEO, commented:

"San Leon has been part of OML 18 for nearly 18 months. The pressure on production levels caused by a scarcity of capital available to OML 18 for investment in well activity, together with securing permissions, has been exacerbated by downtime and pipeline losses caused by external factors. This has resulted in materially lower production and sales volumes compared with those assumed and documented in the Admission Document. We look forward to receiving the new competent person's report which will form a new basis for evaluating the development plans, forward production profile and economics of the OML 18 project.

Most importantly, these issues are not expected to affect, materially, the long-term field performance, whilst in the shorter term San Leon has a number of protections in place for receiving loan note repayments which are expected to be approximately $19 million per quarter.

The Company anticipates a turnaround in OML 18's net production (after downtime and pipeline losses) once several events have occurred.

First, capital needs to be available at Eroton level for well activity. This may include the receipt of NNPC arrears payments, and external finance (for instance).

Secondly, rig-based activity needs to begin, in combination with the non-rig workovers already occurring. This is expected materially to increase gross production.

Thirdly, the alternative crude evacuation and storage facilities must be installed, which the Company expects to bring the combined downtime plus pipeline losses to below 10%. This would provide a large boost to net oil production (sales oil)."

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

SP Angel Corporate Finance LLP (Nominated Adviser)
+44 20 3470 0470
Richard Morrison
Ewan Leggat
Soltan Tagiev

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering
Francis North

Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans

Vigo Communications (Financial Public Relations)
+44 20 7830 9700
Chris McMahon
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett

San Leon Energy plc, the AIM listed company focused on oil and gas development and appraisal in Africa and Europe, is pleased to provide an update on operations and finances related to its initial indirect 9.72 per cent. interest in the OML 18 project, onshore Nigeria. 

OML 18 Operations Overview

  • Current oil production, including 50% of the Awoba field, is approximately 53,000 barrels of oil per day ("bopd") before downtime and pipeline losses, down approximately 3,000 bopd since the operational update of 19 April 2017.
  • In 2017, OML 18, including 50% of the Awoba field, produced 40,360 bopd before pipeline losses, or 50,450 bopd before pipeline losses on a producing day basis.
  • In 2017, average oil sales, including 50% of the Awoba field, (after downtime and disputed pipeline losses) were 26,440 bopd (compared with 30,969 bopd in 2016).
  • The discrepancy between the sales and production numbers, and delays in production increases, continue largely to be attributable to three main factors: (i) workover/drilling progress (ii) production downtime and (iii) estimated pipeline losses. Each of these is being addressed by Eroton, the operator of OML 18, and is explained further below.
  • Current gas sales are approximately 50 million standard cubic feet per day ("mmscf/d"). In 2017 the average gas sales were 45.2mmscf/d, after downtime.
  • Production at OML 18 has continued uninterrupted by any security issues in 2017. During January 2018 illegal bunkering activity caused a fire on a non-operational well on the Buguma field. This did not affect production, and there were no casualties. The fire was swiftly brought under control by Eroton without a reportable spill.
  • The Krakama field was brought into production in January 2017 on schedule. Further well activity on the field has yet to commence. Current oil production from Krakama is approximately 4,500 bopd.
  • The Buguma Creek field, previously expected to go online in Q4 2017 with production transported in bulk to the Krakama facility, is now expected online during Q3 2018.
  • Field development plans ("FDPs") for Akaso, Cawthorne Channel and Alakiri have been submitted to the Nigerian National Petroleum Company ("NNPC"), with approval expected during Q1 2018.
  • Eroton is working on an updated reserves report, with an expectation of adding material oil and condensate volumes. A summary of the finalised reserves report will be communicated to shareholders once it is available and after review by the Company.   

OML 18 2017 Production Summary and Commentary   

Delays in production increases have been as a result of:

(i) Workover/drilling progress

  • Non-rig workovers performed during 2017 continued to proceed less quickly than expected due primarily to downhole challenges.
  • There were some challenges in execution due to the process of approvals with JV partners. Given the positive improvement in the prompt settlement of ongoing partner cash calls, Eroton expects the JV approvals process to continue to improve.
  • San Leon's senior operations manager has now been working as an appointee in Eroton for approximately two months, bringing with him a wealth of downhole operational experience. Together with Eroton's team, this experience is being applied to the ongoing non-rig workovers and will also be used for rig-based workovers and new wells.
  • Following the 2018 budgetary planning process, and assuming the approval of various FDPs, the Company now expects that rig-based workovers, previously anticipated to commence in Q4 2017, will commence in Q3 2018, and new wells will be drilled commencing Q4 2018. As mentioned in previous operational updates, this type of drilling activity has yielded material production gains in similar fields elsewhere in Nigeria and the Company remains confident the work will add materially to Eroton's production base. Such activity was the basis for the production gains reflected in the Admission Document.

(ii) Production downtime

  • Tank tops and cargo shipping delays at the Bonny Terminal, as well as intermittent upstream outages on the Nembe Creek Trunk Line pipeline ("NCTL"), the export pipeline used to transport oil to the Bonny Terminal, has resulted in material production downtime at OML 18.
  • Eroton is evaluating a number of independent alternative oil evacuation routes that will improve consistency of supply to the market. The preferred evacuation route selected by Eroton is a new dedicated pipeline and offshore Floating Storage and Offloading ("FSO") system.

(iii) Pipeline losses

  • Following the installation of new Lease Automatic Custody Transfer ("LACT") units on the NCTL line in 2016, the Bonny Terminal operator allocated an average of approximately 35% pipeline losses to all operators using NCTL for 2017 (compared with 9% assumed and documented in the Company's admission document dated 26 August 2016 ("Admission Document")). Eroton disputes the allocation and has requested that the relevant regulatory authorities investigate the allocation of such excessive losses with a view to reallocating losses in Eroton's favour (thereby boosting the sales numbers). Those discussions are ongoing.
  • LACT units for OML 18 are now in Nigeria and, following commissioning and regulatory sign off, are anticipated by Eroton to be operational in H2 2018. The use of these units is expected to provide accurate measurements at the transfer point and therefore reduced the pipeline losses allocated to Eroton.
  • The proposed alternative crude evacuation (pipeline) and storage facilities are anticipated to realise significant advantages with respect to pipeline loss allocation and production up-time, coinciding with the expected timing of the production increases from rig-based activity. The Company expects tendering and approval by JV partners to occur in the next 6 months.

Nigeria Financial

In accordance with the terms of the $174.5 million loan note instruments held by San Leon pursuant to the OML 18 assets (as described more fully in the Interim Statement dated 29 September 2017), the average quarterly scheduled amount of principal and interest to date is approximately $19 million. To date, $39.6 million has been received by San Leon in order to avoid a default under the loan note instruments. SLE is also due to receive approximately $19 million by 1 April 2018 from or on behalf of Midwestern Leon Petroleum Limited ("MLPL"), and further similar quarterly amounts thereafter, until all Notes have been repaid.

The Reserves Based Lending ("RBL") conditions required for the payment of dividends by Eroton have been met, with the exception of satisfying the amount payable to Debt Service Reserve Account ("DSRA") and the filing of Eroton's 2017 financial accounts. Eroton awaits repayment of the majority of NNPC's historic operational expenditure and capital expenditure cash calls from 2015 and 2016, although encouragingly such repayments began in Q4 2017 and have continued. NNPC has also paid the large majority of it 2017 cash calls promptly and continues to do so in 2018.

The delayed receipt of NNPC 2015/2016 arrears has had two main impacts to date.

  • First, as announced on 7 September 2017, this has been a contributory factor to some work programme delays (such as well workovers and the drilling of new wells). These delays to heavy workovers and new well drilling, which target significant hikes in production rates, in turn impact the cash generated by Eroton.
  •  Secondly, as also announced on 7 September 2017, depositing three future quarterly reserves based lending ("RBL") repayments into the debt service reserve account ("DSRA") attached to Eroton's existing RBL facility, is one of the conditions that needs to be met before the RBL lenders will allow distribution of dividends from Eroton to its shareholders. The cumulative amount required to fill the DSRA varies according to the RBL amortisation schedule and is approximately $90m for much of 2018. The DSRA balance however fluctuates according to operational needs and due to some of the funding challenges experienced.

Any future payment of dividends by Eroton, and receipt by MLPL, will be used to pay the principal and interest due on the loan notes, and to pay dividends to San Leon. Given the delays in operational activity, downtime and pipeline losses, dividend payments by Eroton are not expected until the impact of the alternative export pipeline and/or the rig-based well activity have materially increased sales volumes of oil.

During January 2018, Eroton put in place a new hedge covering its RBL borrowing base. The hedge is a put option at a price of $50/bbl for 10,170 bopd until 30 June 2019.

Nigeria Administrative

As provided for in the shareholders agreement between San Leon Energy Nigeria Limited, Midwestern Oil and Gas Company Limited and MLPL dated 22 March 2016, San Leon has the right to nominate people for appointment to the following positions within Eroton.

  • Two Eroton Board members: Mr. Oisin Fanning and Mr. Mutiu Sunmonu sit on the Eroton Board.
  • The Chair of the Finance Committee: an appointee has been agreed with Eroton, and will formally assume the role at the next Eroton Board meeting.
  • A Senior Technical Manager who has extensive experience in Nigeria and similar environments: Mr. Les Johnson has now been in place for two months. 

Oisin Fanning, San Leon's CEO, commented:

"San Leon has been part of OML 18 for nearly 18 months. The pressure on production levels caused by a scarcity of capital available to OML 18 for investment in well activity, together with securing permissions, has been exacerbated by downtime and pipeline losses caused by external factors. This has resulted in materially lower production and sales volumes compared with those assumed and documented in the Admission Document. We look forward to receiving the new competent person's report which will form a new basis for evaluating the development plans, forward production profile and economics of the OML 18 project.

Most importantly, these issues are not expected to affect, materially, the long-term field performance, whilst in the shorter term San Leon has a number of protections in place for receiving loan note repayments which are expected to be approximately $19 million per quarter.

The Company anticipates a turnaround in OML 18's net production (after downtime and pipeline losses) once several events have occurred.

First, capital needs to be available at Eroton level for well activity. This may include the receipt of NNPC arrears payments, and external finance (for instance).

Secondly, rig-based activity needs to begin, in combination with the non-rig workovers already occurring. This is expected materially to increase gross production.

Thirdly, the alternative crude evacuation and storage facilities must be installed, which the Company expects to bring the combined downtime plus pipeline losses to below 10%. This would provide a large boost to net oil production (sales oil)."

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

SP Angel Corporate Finance LLP (Nominated Adviser)
+44 20 3470 0470
Richard Morrison
Ewan Leggat
Soltan Tagiev

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering
Francis North

Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans

Vigo Communications (Financial Public Relations)
+44 20 7830 9700
Chris McMahon
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett

Appointment of Non-Executive Director/media-centre/news-releases/2018/january/16/appointment-of-non-executive-director.aspx2018-01-16T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/january/16/appointment-of-non-executive-director.aspx

San Leon Energy plc, the AIM listed company focused on oil and gas development and appraisal in Africa and Europe, is pleased to announce the appointment with immediate effect of Linda Beal (56) as a Non-Executive Director. Linda will chair the Audit Committee, and also be a member of the Remuneration Committee.

Linda is a chartered accountant. She was previously a tax partner at PwC for 16 years focussed on the natural resources sector, and subsequently was global leader for energy and natural resources at Grant Thornton until June 2016.
Linda brings extensive experience of working with African - in particular Nigerian - oil and gas groups, African-based advisers, and corporate and asset transactions.

Linda is Chairman of the Audit Committee of AIM-listed Tax Systems Plc, and also a Director of Auxxilia Limited and a partner in Linda Beal Consulting LLP.

Oisin Fanning, CEO, commented:
“I am delighted to welcome Linda as a Director of the Company. Her wealth of pertinent experience is expected to be a real asset to San Leon, and she will immediately be fully involved with the audit process for the results to 31 December 2017.”

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

SP Angel Corporate Finance LLP (Nominated Adviser)
+44 20 3470 0470
Richard Morrison
Ewan Leggat
Soltan Tagiev

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering
Francis North

Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans

Vigo Communications (Financial Public Relations)
+44 20 7830 9700
Chris McMahon
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett

Appendix:
Linda Janice Beal, aged 56, currently holds or has held the following directorships and partnerships in the last five years:


Current Directorships
Auxxilia Limited
Linda Beal Consulting LLP
Tax Systems Plc

Past Directorships
Grant Thornton UK LLP
Pricewaterhousecoopers LLP

Linda does not currently have an interest in any of the Company’s shares.

This announcement sets out all of the disclosures required pursuant to Schedule 2, paragraph (g) of the AIM Rules for Companies.

San Leon Energy plc, the AIM listed company focused on oil and gas development and appraisal in Africa and Europe, is pleased to announce the appointment with immediate effect of Linda Beal (56) as a Non-Executive Director. Linda will chair the Audit Committee, and also be a member of the Remuneration Committee.

Linda is a chartered accountant. She was previously a tax partner at PwC for 16 years focussed on the natural resources sector, and subsequently was global leader for energy and natural resources at Grant Thornton until June 2016.
Linda brings extensive experience of working with African - in particular Nigerian - oil and gas groups, African-based advisers, and corporate and asset transactions.

Linda is Chairman of the Audit Committee of AIM-listed Tax Systems Plc, and also a Director of Auxxilia Limited and a partner in Linda Beal Consulting LLP.

Oisin Fanning, CEO, commented:
“I am delighted to welcome Linda as a Director of the Company. Her wealth of pertinent experience is expected to be a real asset to San Leon, and she will immediately be fully involved with the audit process for the results to 31 December 2017.”

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

SP Angel Corporate Finance LLP (Nominated Adviser)
+44 20 3470 0470
Richard Morrison
Ewan Leggat
Soltan Tagiev

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering
Francis North

Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans

Vigo Communications (Financial Public Relations)
+44 20 7830 9700
Chris McMahon
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett

Appendix:
Linda Janice Beal, aged 56, currently holds or has held the following directorships and partnerships in the last five years:


Current Directorships
Auxxilia Limited
Linda Beal Consulting LLP
Tax Systems Plc

Past Directorships
Grant Thornton UK LLP
Pricewaterhousecoopers LLP

Linda does not currently have an interest in any of the Company’s shares.

This announcement sets out all of the disclosures required pursuant to Schedule 2, paragraph (g) of the AIM Rules for Companies.

Update on Discussions with Potential Offerors/media-centre/news-releases/2018/january/5/update-on-discussions-with-potential-offerors.aspx2018-01-05T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/january/5/update-on-discussions-with-potential-offerors.aspx

The Directors of San Leon today confirm that discussions with both China Great United Petroleum (Holding) Limited ("CGUP"), originally announced on 28 June 2017, and Geron Energy Investment ("Geron"), originally announced on 21 December 2016, have been terminated. Both CGUP and Geron have confirmed that they do not intend to make an offer for the issued and to be issued share capital of San Leon.

As announced on 8 December 2017, discussions continue between San Leon and Midwestern about a transaction that, if concluded, could constitute a Reverse Takeover under the AIM Rules for Companies. Therefore, the Company's ordinary shares will remain suspended from trading pending the termination of these discussions or the publication of an Admission Document. These discussions may or may not lead to a transaction being completed between San Leon and Midwestern.

The Directors of San Leon accept responsibility for the information contained in this announcement. To the best of their knowledge and belief (having taken all reasonable care to ensure such is the case), the information contained in this announcement is in accordancewith the facts and does not omit anything likely to affect the import of such information.

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Oisin Fanning, Chief Executive of San Leon Energy PLC, commented: "While I thank both CGUP and Geron for their interest in San Leon, I am pleased that we have been able to provide this update to shareholders today. These discussions have come to a conclusion by mutual agreement, which will allow the Company to move on, both with its discussions with Midwestern, and with the delivery of its business plan, which is focussed on cash generation from our oil and gas operations in Nigeria."

Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

SP Angel Corporate Finance LLP (Nominated Adviser)
+44 20 3470 0470
Richard Morrison
Ewan Leggat

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering
Francis North

Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans

Vigo Communications (Financial Public Relations)
+44 20 7830 9700
Chris McMahon
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett

The Directors of San Leon today confirm that discussions with both China Great United Petroleum (Holding) Limited ("CGUP"), originally announced on 28 June 2017, and Geron Energy Investment ("Geron"), originally announced on 21 December 2016, have been terminated. Both CGUP and Geron have confirmed that they do not intend to make an offer for the issued and to be issued share capital of San Leon.

As announced on 8 December 2017, discussions continue between San Leon and Midwestern about a transaction that, if concluded, could constitute a Reverse Takeover under the AIM Rules for Companies. Therefore, the Company's ordinary shares will remain suspended from trading pending the termination of these discussions or the publication of an Admission Document. These discussions may or may not lead to a transaction being completed between San Leon and Midwestern.

The Directors of San Leon accept responsibility for the information contained in this announcement. To the best of their knowledge and belief (having taken all reasonable care to ensure such is the case), the information contained in this announcement is in accordancewith the facts and does not omit anything likely to affect the import of such information.

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Oisin Fanning, Chief Executive of San Leon Energy PLC, commented: "While I thank both CGUP and Geron for their interest in San Leon, I am pleased that we have been able to provide this update to shareholders today. These discussions have come to a conclusion by mutual agreement, which will allow the Company to move on, both with its discussions with Midwestern, and with the delivery of its business plan, which is focussed on cash generation from our oil and gas operations in Nigeria."

Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

SP Angel Corporate Finance LLP (Nominated Adviser)
+44 20 3470 0470
Richard Morrison
Ewan Leggat

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering
Francis North

Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans

Vigo Communications (Financial Public Relations)
+44 20 7830 9700
Chris McMahon
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett

Shares In Issue/media-centre/news-releases/2018/january/2/shares-in-issue.aspx2018-01-02T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/january/2/shares-in-issue.aspx

San Leon Energy plc announces, in accordance with Rule 2.10 of the Takeover Rules, that following the allotment of 43,976,232 ordinary shares to nominees of funds managed by Toscafund Asset Management LLP (together, "Toscafund") as announced previously, at the close of business on 29 December 2017 San Leon had the following relevant securities (within the meaning of the Takeover Rules) in issue: (i) 500,256,857 ordinary shares in the Company (excluding shares held in Treasury), (ii) options issued by the Company which if exercised would result in the issue of 18,417,936 new ordinary shares and (iii) warrants issued by the Company which if exercised would result in the issue of 16,308,703 new ordinary shares.

The ISIN reference number for these securities is IE00BWVFTP56 with SEDOL code BWVFTP5.

The Directors of San Leon accept responsibility for the information contained in this announcement. To the best of their knowledge and belief (having taken all reasonable care to ensure such is the case), the information contained in this announcement is in accordance with the facts and does not omit anything likely to affect the import of such information.

Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

SP Angel Corporate Finance LLP (Nominated Adviser)
+44 20 3470 0470
Richard Morrison
Ewan Leggat

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering
Francis North

Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans

Vigo Communications (Financial Public Relations)
+44 20 7830 9700
Chris McMahon
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett

San Leon Energy plc announces, in accordance with Rule 2.10 of the Takeover Rules, that following the allotment of 43,976,232 ordinary shares to nominees of funds managed by Toscafund Asset Management LLP (together, "Toscafund") as announced previously, at the close of business on 29 December 2017 San Leon had the following relevant securities (within the meaning of the Takeover Rules) in issue: (i) 500,256,857 ordinary shares in the Company (excluding shares held in Treasury), (ii) options issued by the Company which if exercised would result in the issue of 18,417,936 new ordinary shares and (iii) warrants issued by the Company which if exercised would result in the issue of 16,308,703 new ordinary shares.

The ISIN reference number for these securities is IE00BWVFTP56 with SEDOL code BWVFTP5.

The Directors of San Leon accept responsibility for the information contained in this announcement. To the best of their knowledge and belief (having taken all reasonable care to ensure such is the case), the information contained in this announcement is in accordance with the facts and does not omit anything likely to affect the import of such information.

Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

SP Angel Corporate Finance LLP (Nominated Adviser)
+44 20 3470 0470
Richard Morrison
Ewan Leggat

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering
Francis North

Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans

Vigo Communications (Financial Public Relations)
+44 20 7830 9700
Chris McMahon
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett

Update on Convertible Loan Facility and Repayment of Avobone.../media-centre/news-releases/2018/january/2/update-on-convertible-loan-facility-and-repayment-of-avobone-payments-received-against-mlpl-loan-notes-polish-asset-sale-agreement-update.aspx2018-01-02T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/january/2/update-on-convertible-loan-facility-and-repayment-of-avobone-payments-received-against-mlpl-loan-notes-polish-asset-sale-agreement-update.aspx

Update on Convertible Loan Facility and Repayment of Avobone, Payments Received Against MLPL Loan Notes, Polish Asset Sale Agreement Update

Update on Convertible Loan Facility
San Leon Energy plc (the “Company”), the AIM listed company focused on oil and gas development and appraisal in Africa and Europe, announces that it has settled in full the loan facility agreement (“Facility Agreement”) with nominees of funds managed by Toscafund Asset Management LLP (together, "Toscafund") in relation to a £11 million convertible secured loan facility (the "Loan"), including interest and fees. As a result, the security provided to Toscafund by San Leon during the tenure of the Facility Agreement will be released in due course.

Payments to creditors
The Company has paid approximately €11.53 million to Avobone N.V. and Avobone Poland BV (together, "Avobone") which has fully settled all amounts due to Avobone. The Company has also made its agreed Q4 2017 payment to YA II PN Ltd (formerly known as YA Global Master SPV Ltd), an investment fund managed by Yorkville Advisors Global LP ("Yorkville").

Repayment of Midwestern Leon Petroleum Limited (“MLPL”) Loan Notes (the “Loan Notes”)
The Company is scheduled to be paid approximately US$19 million per quarter by MLPL in respect of the Loan Notes from Q4 2017. The Company has previously announced the receipt of US$11million in satisfaction of payment of amounts due for Q4 2017. A further US$7.75 million has also now been received, meaning that MLPL’s obligations for Q4 2017 in respect of the Loan Notes have been met.

Polish Asset Sale Agreement Update
On 17 November 2016, the Company signed a sale and purchase agreement (“SPA”) for the sale of its 35% interest in the Rawicz gas field in the Permian Basin, to Palomar Natural Resources ("Palomar"). The sale was effected through the sale of SLE’s 35% share in TSH Energy Joint Venture BV (“TSH”). The total cash consideration due to the Company was US$9.0 million, of which US$4.5 million was received in November 2016. The balance of US$4.5 million plus accrued interest (the “Amount Due”) was due to paid to San Leon on or before 01 October 2017. Under a novation agreement and extension agreement dated 22 December 2017, the Amount Due is now the full responsibility of NSP Investments Holdings Ltd, a BVI registered company that holds a 35% interest in TSH.

The Company announces that it has now received a further US$1.5 million payment of the Amount Due. The Company is due to receive a further $3.6 million, including an extension fee plus any further accrued interest on or before 01 September 2018.

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

SP Angel Corporate Finance LLP (Nominated Adviser)
+44 20 3470 0470
Richard Morrison
Ewan Leggat

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering
Francis North

Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans

Vigo Communications (Financial Public Relations)
+44 20 7830 9700
Chris McMahon
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett

Update on Convertible Loan Facility and Repayment of Avobone, Payments Received Against MLPL Loan Notes, Polish Asset Sale Agreement Update

Update on Convertible Loan Facility
San Leon Energy plc (the “Company”), the AIM listed company focused on oil and gas development and appraisal in Africa and Europe, announces that it has settled in full the loan facility agreement (“Facility Agreement”) with nominees of funds managed by Toscafund Asset Management LLP (together, "Toscafund") in relation to a £11 million convertible secured loan facility (the "Loan"), including interest and fees. As a result, the security provided to Toscafund by San Leon during the tenure of the Facility Agreement will be released in due course.

Payments to creditors
The Company has paid approximately €11.53 million to Avobone N.V. and Avobone Poland BV (together, "Avobone") which has fully settled all amounts due to Avobone. The Company has also made its agreed Q4 2017 payment to YA II PN Ltd (formerly known as YA Global Master SPV Ltd), an investment fund managed by Yorkville Advisors Global LP ("Yorkville").

Repayment of Midwestern Leon Petroleum Limited (“MLPL”) Loan Notes (the “Loan Notes”)
The Company is scheduled to be paid approximately US$19 million per quarter by MLPL in respect of the Loan Notes from Q4 2017. The Company has previously announced the receipt of US$11million in satisfaction of payment of amounts due for Q4 2017. A further US$7.75 million has also now been received, meaning that MLPL’s obligations for Q4 2017 in respect of the Loan Notes have been met.

Polish Asset Sale Agreement Update
On 17 November 2016, the Company signed a sale and purchase agreement (“SPA”) for the sale of its 35% interest in the Rawicz gas field in the Permian Basin, to Palomar Natural Resources ("Palomar"). The sale was effected through the sale of SLE’s 35% share in TSH Energy Joint Venture BV (“TSH”). The total cash consideration due to the Company was US$9.0 million, of which US$4.5 million was received in November 2016. The balance of US$4.5 million plus accrued interest (the “Amount Due”) was due to paid to San Leon on or before 01 October 2017. Under a novation agreement and extension agreement dated 22 December 2017, the Amount Due is now the full responsibility of NSP Investments Holdings Ltd, a BVI registered company that holds a 35% interest in TSH.

The Company announces that it has now received a further US$1.5 million payment of the Amount Due. The Company is due to receive a further $3.6 million, including an extension fee plus any further accrued interest on or before 01 September 2018.

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

SP Angel Corporate Finance LLP (Nominated Adviser)
+44 20 3470 0470
Richard Morrison
Ewan Leggat

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering
Francis North

Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans

Vigo Communications (Financial Public Relations)
+44 20 7830 9700
Chris McMahon
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett

Replacement: Issue of Equity/media-centre/news-releases/2017/december/21/replacement-issue-of-equity.aspx2017-12-21T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2017/december/21/replacement-issue-of-equity.aspx

Replacement: Issue of Equity
The following announcement replaces the announcement “Issue of Equity” with RNS number 0715A,
released today at 10:47 am.
San Leon Energy plc
(“San Leon” or the “Company”)
Issue of Equity

San Leon announces that, pursuant to the convertible loan facility announced on 19 December 2017, it has conditionally agreed to issue 43,976,232 ordinary shares of EUR 0.01 each in the Company (the “New Ordinary Shares”) to Toscafund Asset Management LLP, Toscafund GP Limited and related entities (together, “Toscafund”) in order to repay amounts drawndown by San Leon pursuant to the convertible loan facility. The conversion price per New Ordinary Share is 25 pence each. The New Ordinary Shares will rank pari passu in all respects with the issued ordinary shares of the Company.

Following the issue and allotment of the New Ordinary Shares (which, subject to satisfaction of the remaining conditions to issue and allotment, is expected to occur on 29 December 2017), Toscafund will hold 311,821,927 ordinary shares of EUR0.01 each (“Ordinary Shares”) in the Company, representing 62.33 per cent of the Company’s enlarged issued share capital.

Application for admission to trading of the New Ordinary Shares will be made to the London Stock Exchange and admission is expected to occur on or after 29 December 2017. Following the issue of the New Ordinary Shares, the total number of Ordinary Shares in issue will be 500,256,857 each with one voting right. No Ordinary Shares are held in treasury.

The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the Disclosure and Transparency Rules.

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement


Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

SP Angel Corporate Finance LLP (Nominated Adviser)
+44 20 3470 0470
Richard Morrison
Ewan Leggat

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering
Francis North

Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans

Vigo Communications (Financial Public Relations) +44 20 7830 9700
Chris McMahon
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett

Replacement: Issue of Equity
The following announcement replaces the announcement “Issue of Equity” with RNS number 0715A,
released today at 10:47 am.
San Leon Energy plc
(“San Leon” or the “Company”)
Issue of Equity

San Leon announces that, pursuant to the convertible loan facility announced on 19 December 2017, it has conditionally agreed to issue 43,976,232 ordinary shares of EUR 0.01 each in the Company (the “New Ordinary Shares”) to Toscafund Asset Management LLP, Toscafund GP Limited and related entities (together, “Toscafund”) in order to repay amounts drawndown by San Leon pursuant to the convertible loan facility. The conversion price per New Ordinary Share is 25 pence each. The New Ordinary Shares will rank pari passu in all respects with the issued ordinary shares of the Company.

Following the issue and allotment of the New Ordinary Shares (which, subject to satisfaction of the remaining conditions to issue and allotment, is expected to occur on 29 December 2017), Toscafund will hold 311,821,927 ordinary shares of EUR0.01 each (“Ordinary Shares”) in the Company, representing 62.33 per cent of the Company’s enlarged issued share capital.

Application for admission to trading of the New Ordinary Shares will be made to the London Stock Exchange and admission is expected to occur on or after 29 December 2017. Following the issue of the New Ordinary Shares, the total number of Ordinary Shares in issue will be 500,256,857 each with one voting right. No Ordinary Shares are held in treasury.

The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the Disclosure and Transparency Rules.

Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement


Enquiries:
San Leon Energy plc
+ 353 1291 6292
Oisin Fanning, Chief Executive

SP Angel Corporate Finance LLP (Nominated Adviser)
+44 20 3470 0470
Richard Morrison
Ewan Leggat

Whitman Howard Limited (Financial adviser and Joint broker)
+44 20 7659 1234
Nick Lovering
Francis North

Brandon Hill Capital Limited (Joint broker to the Company)
+44 20 3463 5000
Oliver Stansfield
Jonathan Evans

Vigo Communications (Financial Public Relations) +44 20 7830 9700
Chris McMahon
Kate Rogucheva

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett