News and Press Releases Rsssanleonenergy.com6/25/2019 8:42:50 PMumbraco v4News feed of San Leon EnergyenAkaso-15 Well Test and Update on OML 18 Drilling/media-centre/news-releases/2019/june/25/akaso-15-well-test-and-update-on-oml-18-drilling.aspx2019-06-25T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2019/june/25/akaso-15-well-test-and-update-on-oml-18-drilling.aspx

San Leon Energy plc announced on 28 February 2019 that Eroton, the operator of the OML 18 licence, onshore Nigeria, was preparing to perform a well test on the first of its newly-drilled wells, Akaso-15. The well test took longer to test than anticipated due to various operational factors including downtime on the export pipeline.

Akaso-15 has a dual completion (a separate production tubing for two different reservoirs, which can therefore be produced simultaneously). The combined well test rate on a 32/64” choke is 4800 bopd, and the well has now been put on production.

The Akaso PMMO-1 well (which will be known as Akaso-16 after completion) is awaiting completion using a hydraulic workover unit. Eroton expects to perform future well completions using this unit in order to save rig time. The drilling rig is moving to the next well location, Akaso MTMY-1.

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 7000)
Rick Thompson
(+44 207 894 7000)

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
(+44 207 390 0236)
Simon Woods
(+44 207 390 0236)

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

San Leon Energy plc announced on 28 February 2019 that Eroton, the operator of the OML 18 licence, onshore Nigeria, was preparing to perform a well test on the first of its newly-drilled wells, Akaso-15. The well test took longer to test than anticipated due to various operational factors including downtime on the export pipeline.

Akaso-15 has a dual completion (a separate production tubing for two different reservoirs, which can therefore be produced simultaneously). The combined well test rate on a 32/64” choke is 4800 bopd, and the well has now been put on production.

The Akaso PMMO-1 well (which will be known as Akaso-16 after completion) is awaiting completion using a hydraulic workover unit. Eroton expects to perform future well completions using this unit in order to save rig time. The drilling rig is moving to the next well location, Akaso MTMY-1.

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 7000)
Rick Thompson
(+44 207 894 7000)

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
(+44 207 390 0236)
Simon Woods
(+44 207 390 0236)

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

Directorate change/media-centre/news-releases/2019/may/17/directorate-change.aspx2019-05-17T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2019/may/17/directorate-change.aspx

San Leon Energy plc, the AIM listed company focused on oil and gas development and appraisal in Africa, announces that it has accepted the resignation of its Finance Director, Ewen Ainsworth, which will be effective on 30 June 2019. Ewen will step down from that position and from the Board on that date.

Lisa Mitchell will join the Company on 30 June 2019 as Chief Financial Officer and Executive Director. Lisa is currently Chief Financial Officer and Executive Director of Lekoil, served previously as Chief Financial Officer of Ophir Energy plc, and has held senior financial and Company Secretary positions with various other companies both in natural resources and other industries.

Oisin Fanning, Chief Executive Officer, commented:
“On behalf of the Company I would like to thank Ewen for his contribution since San Leon’s readmission in 2016, and wish him well in his future endeavours.

We welcome Lisa to the role of Chief Financial Officer and Executive Director. She brings extensive and varied financial expertise and local Nigerian experience to the Company, as we continue to seek growth in San Leon’s value in Africa.”

AIM Disclosures:

Lisa Gaye Mitchell, aged 51, currently holds or has held over the last five years the following directorships. There is no further information required to be disclosed in respect to Lisa Gaye Mitchell, pursuant to Schedule Two, paragraph g of the AIM Rules for Companies.

Current:

Lekoil Limited 
Lekoil Nigeria Limited

 

Past:

Fastjet Air Tz (BVI)
Fastjet Leasing UK Limited
Fastjet SPV UK One Limited UK
Fastjet Travel Limited UK
Fastjet Holdings (Guernsey) Limited
Fastjet Kenya Limited
Fastjet Leasing PCC Limited
Fastjet South Africa Proprietary
Fastjet SPV SA Two Limited
Fastjet Airlines Limited (Tz)
Fastjet Zimbabwe Limited
Ophir Energy plc
Dominion Kenya Holdings Ltd
Dominion Petroleum Administrative Services Ltd
Ophir Ventures (Jersey) Ltd
Ophir Ventures (Jersey) No 2 Limited
Dominion Oil and Gas Limited
Dominion Petroleum Acquisitions Limited

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 7000)
Rick Thompson (+44 207 894 7000)

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)
Patrick d’Ancona (+44 207 390 0236)
Simon Woods (+44 207 390 0236)

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, announces that it has accepted the resignation of its Finance Director, Ewen Ainsworth, which will be effective on 30 June 2019. Ewen will step down from that position and from the Board on that date.

Lisa Mitchell will join the Company on 30 June 2019 as Chief Financial Officer and Executive Director. Lisa is currently Chief Financial Officer and Executive Director of Lekoil, served previously as Chief Financial Officer of Ophir Energy plc, and has held senior financial and Company Secretary positions with various other companies both in natural resources and other industries.

Oisin Fanning, Chief Executive Officer, commented:
“On behalf of the Company I would like to thank Ewen for his contribution since San Leon’s readmission in 2016, and wish him well in his future endeavours.

We welcome Lisa to the role of Chief Financial Officer and Executive Director. She brings extensive and varied financial expertise and local Nigerian experience to the Company, as we continue to seek growth in San Leon’s value in Africa.”

AIM Disclosures:

Lisa Gaye Mitchell, aged 51, currently holds or has held over the last five years the following directorships. There is no further information required to be disclosed in respect to Lisa Gaye Mitchell, pursuant to Schedule Two, paragraph g of the AIM Rules for Companies.

Current:

Lekoil Limited 
Lekoil Nigeria Limited

 

Past:

Fastjet Air Tz (BVI)
Fastjet Leasing UK Limited
Fastjet SPV UK One Limited UK
Fastjet Travel Limited UK
Fastjet Holdings (Guernsey) Limited
Fastjet Kenya Limited
Fastjet Leasing PCC Limited
Fastjet South Africa Proprietary
Fastjet SPV SA Two Limited
Fastjet Airlines Limited (Tz)
Fastjet Zimbabwe Limited
Ophir Energy plc
Dominion Kenya Holdings Ltd
Dominion Petroleum Administrative Services Ltd
Ophir Ventures (Jersey) Ltd
Ophir Ventures (Jersey) No 2 Limited
Dominion Oil and Gas Limited
Dominion Petroleum Acquisitions Limited

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 7000)
Rick Thompson (+44 207 894 7000)

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)
Patrick d’Ancona (+44 207 390 0236)
Simon Woods (+44 207 390 0236)

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

 

Result of Tender Offer/media-centre/news-releases/2019/march/22/result-of-tender-offer.aspx2019-03-22T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2019/march/22/result-of-tender-offer.aspx

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, INTO ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION CERTAIN INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSE OF THE MARKET ABUSE REGULATION EU (NO) 596/2014. UPON PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

San Leon Energy plc
(“San Leon”, the “Group” or the “Company”)

Result of Tender Offer

San Leon today announces the result of the Tender Offer set out in the shareholder circular published by the Company on 20 February 2019 (the "Circular"). The Tender Offer closed at 1.00 p.m. on 20 March 2019.

The maximum number of Ordinary Shares authorised by shareholders under the Tender Offer, being 50,475,000 Ordinary Shares, will be acquired for a total cost of £23.2 million. This represents approximately 9.97% of the issued ordinary share capital of the Company, as at the date of this announcement.

The Tender Offer was oversubscribed, with a total of 81,177,508 Ordinary Shares validly tendered by Qualifying Shareholders. Qualifying Shareholders who tendered Ordinary Shares equal to or less than their Individual Basic Entitlement will have their tender accepted in full. Qualifying Shareholders who validly tendered in excess of their Individual Basic Entitlement will have their tender accepted in respect of their Individual Basic Entitlement (being approximately 9.97% of their shareholding) plus approximately 50.23% of the number of Ordinary Shares in excess of their Individual Basic Entitlement that they validly tendered.

It is anticipated that the proceeds payable under the Tender Offer to the Company's shareholders who hold their Ordinary Shares in certificated form will be despatched no later than 29 March 2019 in the form of a cheque. Those shareholders who hold their Ordinary Shares in uncertificated form will have their CREST accounts credited no later than 29 March 2019.

As set out in the Circular, the Ordinary Shares will be purchased by Cantor Fitzgerald Europe pursuant to the Tender Offer and the Company will purchase such Ordinary Shares from Cantor Fitzgerald Europe under the terms of the Repurchase Agreement described in the Circular.

San Leon also announces that, pursuant to the exercise of warrants, an application has been made for an additional 250,000 ordinary shares in the Company to be admitted to trading on AIM ("Admission"). Admission is expected to take place on 26 March 2019. Following the issue of the new Ordinary Shares, the Company will have 506,097,127 ordinary shares in issue (at the time of the Circular there were 505,847,127 Ordinary Shares in issue). No ordinary shares are held in treasury.

The Company intends to cancel the Ordinary Shares purchased by it under the Repurchase Agreement, reducing the number of Ordinary Shares in issue from 506,097,127 Ordinary Shares to 455,622,127 Ordinary Shares (the "Cancellation"). Accordingly, following the Cancellation, which is expected to take place on or before 1 April 2019, 455,622,127 Ordinary Shares 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 interests in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

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 and manager and broker to the Tender Offer)
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 (+44 207 390 0232)
Simon Woods (+44 207 390 0236)

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

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, INTO ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION CERTAIN INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSE OF THE MARKET ABUSE REGULATION EU (NO) 596/2014. UPON PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

San Leon Energy plc
(“San Leon”, the “Group” or the “Company”)

Result of Tender Offer

San Leon today announces the result of the Tender Offer set out in the shareholder circular published by the Company on 20 February 2019 (the "Circular"). The Tender Offer closed at 1.00 p.m. on 20 March 2019.

The maximum number of Ordinary Shares authorised by shareholders under the Tender Offer, being 50,475,000 Ordinary Shares, will be acquired for a total cost of £23.2 million. This represents approximately 9.97% of the issued ordinary share capital of the Company, as at the date of this announcement.

The Tender Offer was oversubscribed, with a total of 81,177,508 Ordinary Shares validly tendered by Qualifying Shareholders. Qualifying Shareholders who tendered Ordinary Shares equal to or less than their Individual Basic Entitlement will have their tender accepted in full. Qualifying Shareholders who validly tendered in excess of their Individual Basic Entitlement will have their tender accepted in respect of their Individual Basic Entitlement (being approximately 9.97% of their shareholding) plus approximately 50.23% of the number of Ordinary Shares in excess of their Individual Basic Entitlement that they validly tendered.

It is anticipated that the proceeds payable under the Tender Offer to the Company's shareholders who hold their Ordinary Shares in certificated form will be despatched no later than 29 March 2019 in the form of a cheque. Those shareholders who hold their Ordinary Shares in uncertificated form will have their CREST accounts credited no later than 29 March 2019.

As set out in the Circular, the Ordinary Shares will be purchased by Cantor Fitzgerald Europe pursuant to the Tender Offer and the Company will purchase such Ordinary Shares from Cantor Fitzgerald Europe under the terms of the Repurchase Agreement described in the Circular.

San Leon also announces that, pursuant to the exercise of warrants, an application has been made for an additional 250,000 ordinary shares in the Company to be admitted to trading on AIM ("Admission"). Admission is expected to take place on 26 March 2019. Following the issue of the new Ordinary Shares, the Company will have 506,097,127 ordinary shares in issue (at the time of the Circular there were 505,847,127 Ordinary Shares in issue). No ordinary shares are held in treasury.

The Company intends to cancel the Ordinary Shares purchased by it under the Repurchase Agreement, reducing the number of Ordinary Shares in issue from 506,097,127 Ordinary Shares to 455,622,127 Ordinary Shares (the "Cancellation"). Accordingly, following the Cancellation, which is expected to take place on or before 1 April 2019, 455,622,127 Ordinary Shares 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 interests in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

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 and manager and broker to the Tender Offer)
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 (+44 207 390 0232)
Simon Woods (+44 207 390 0236)

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

 

Result of Extraordinary General Meeting/media-centre/news-releases/2019/march/15/result-of-extraordinary-general-meeting.aspx2019-03-15T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2019/march/15/result-of-extraordinary-general-meeting.aspx

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, INTO ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

CERTAIN INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSE OF THE MARKET ABUSE REGULATION EU (NO) 596/2014. UPON PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Result of Extraordinary General Meeting

San Leon is pleased to announce that the resolution put to Shareholders of the Company at the Extraordinary General Meeting held earlier today was duly passed. Details of the proxy voting will be posted on the Company's website later today.

The Tender Offer will close at 1.00 p.m. on 20 March 2019. The Tender Offer will only be available to Qualifying Shareholders on the Register at 6.00 p.m. on 20 March 2019. The terms and conditions of the Tender Offer are contained in the shareholder circular published by the Company on 20 February 2019 (the "Circular").

Qualifying Shareholders who do not wish to sell any Ordinary Shares under the Tender Offer do not need to take any action, either in relation to the Tender Form or the sending of a TTE Instruction. Qualifying Shareholders are reminded that the Tender Offer is not being made to certain Overseas Shareholders. The procedure for tendering your Ordinary Shares depends on whether your Ordinary Shares are held in certificated form or uncertificated form and is summarised in the Circular.

Results of the Tender Offer are expected to be announced by 7.00 a.m. on 22 March 2019.

Capitalised terms used but not otherwise defined in this announcement shall have the same meanings given to them in the Circular. The dates and times given in this announcement are based on the Company's current expectations and may be subject to change. Any changes to the expected timetable will be announced via a regulatory information service.

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 and manager and broker to the Tender Offer)
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 (+44 207 390 0232)
Simon Woods (+44 207 390 0236)

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

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, INTO ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

CERTAIN INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSE OF THE MARKET ABUSE REGULATION EU (NO) 596/2014. UPON PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Result of Extraordinary General Meeting

San Leon is pleased to announce that the resolution put to Shareholders of the Company at the Extraordinary General Meeting held earlier today was duly passed. Details of the proxy voting will be posted on the Company's website later today.

The Tender Offer will close at 1.00 p.m. on 20 March 2019. The Tender Offer will only be available to Qualifying Shareholders on the Register at 6.00 p.m. on 20 March 2019. The terms and conditions of the Tender Offer are contained in the shareholder circular published by the Company on 20 February 2019 (the "Circular").

Qualifying Shareholders who do not wish to sell any Ordinary Shares under the Tender Offer do not need to take any action, either in relation to the Tender Form or the sending of a TTE Instruction. Qualifying Shareholders are reminded that the Tender Offer is not being made to certain Overseas Shareholders. The procedure for tendering your Ordinary Shares depends on whether your Ordinary Shares are held in certificated form or uncertificated form and is summarised in the Circular.

Results of the Tender Offer are expected to be announced by 7.00 a.m. on 22 March 2019.

Capitalised terms used but not otherwise defined in this announcement shall have the same meanings given to them in the Circular. The dates and times given in this announcement are based on the Company's current expectations and may be subject to change. Any changes to the expected timetable will be announced via a regulatory information service.

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 and manager and broker to the Tender Offer)
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 (+44 207 390 0232)
Simon Woods (+44 207 390 0236)

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

Akaso-15 Well Completed, Rig Moving to Drill New Well Akaso PMMO-1/media-centre/news-releases/2019/february/28/akaso-15-well-completed-rig-moving-to-drill-new-well-akaso-pmmo-1.aspx2019-02-28T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2019/february/28/akaso-15-well-completed-rig-moving-to-drill-new-well-akaso-pmmo-1.aspx

San Leon Energy plc, the AIM listed company focused on oil and gas development and appraisal in Africa, announced on 10 December 2018 that Eroton, the operator of the OML 18 licence, onshore Nigeria, was preparing to spud the new well OSMU-1 in the Akaso field. The Company is pleased to announce that the Akaso-15 well (known as OSMU-1 prior to completion) has been drilled and completed, and connection of the well to the pipeline system is anticipated by Eroton to finish this week. The well is expected to be brought onto production during the first half of March 2019, and awell test will be performed once the well has achieved stable production.

The rig will now move to drill the next new well, Akaso PMMO-1.

Oisin Fanning, CEO, commented:
“I have previously stressed the importance of increasing oil production at the wellhead, which is what Eroton is doing with its drilling campaign. I look forward to providing an update on the second new well in due course in addition to advising on the production rate from Akaso-15.”

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 (+44 207 390 0232)
Simon Woods (+44 207 390 0236)

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, announced on 10 December 2018 that Eroton, the operator of the OML 18 licence, onshore Nigeria, was preparing to spud the new well OSMU-1 in the Akaso field. The Company is pleased to announce that the Akaso-15 well (known as OSMU-1 prior to completion) has been drilled and completed, and connection of the well to the pipeline system is anticipated by Eroton to finish this week. The well is expected to be brought onto production during the first half of March 2019, and awell test will be performed once the well has achieved stable production.

The rig will now move to drill the next new well, Akaso PMMO-1.

Oisin Fanning, CEO, commented:
“I have previously stressed the importance of increasing oil production at the wellhead, which is what Eroton is doing with its drilling campaign. I look forward to providing an update on the second new well in due course in addition to advising on the production rate from Akaso-15.”

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 (+44 207 390 0232)
Simon Woods (+44 207 390 0236)

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

Proposed $30m Tender offer at 46p per share/media-centre/news-releases/2019/march/6/proposed-30m-tender-offer-at-46p-per-share.aspx2019-02-20T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2019/march/6/proposed-30m-tender-offer-at-46p-per-share.aspx

Proposed Return of up to $30 million by way of Tender Offer at 46 pence per Ordinary Share

To view the full press release, please click here (PDF download).

San Leon is proposing to purchase up to 50,475,000 Ordinary Shares through a tender offer at a price of 46 pence per Ordinary Share (the “Tender Offer”).

Highlights of the Tender Offer

  • The Tender Price represents a premium of 50% to the closing mid-market price on 19 February 2019 (being the latest practicable date prior to the release of this announcement); and
  • The maximum number of Ordinary Shares that may be acquired under the Tender Offer is 50,475,000, representing approximately 10% of San Leon's Issued Ordinary Share Capital on 19 February 2019 (being the latest practicable date prior to the release of this announcement).
  • Qualifying Shareholders will be entitled to have accepted in the Tender Offer valid tenders of their Basic Entitlement of approximately 10% of their shareholding and may also tender Ordinary Shares in excess of this amount.
  • The Tender Offer opens today and will close at 1.00 pm on 20 March 2019 with cash payments expected by no later than 29 March 2019.
  • Completion of the Tender Offer will be conditional on Shareholder approval of the Tender Offer at the Extraordinary General Meeting on 15 March 2019.

The preceding summary should be read in conjunction with the full text below, as well as the shareholder circular (the "Circular"), which the Company is posting to Shareholders today and which also includes notice of San Leon's Extraordinary General Meeting. A summary expected timetable of principal events is set out at the end of this announcement.

Oisin Fanning, CEO of San Leon, commented:
“We are delighted to be able to announce this tender offer, which is considerably larger than previously announced. The scale of the Tender Offer reflects our strong financial position, our confidence in the Company’s future prospects and commensurate cashflow, and our view that the current share price does not reflect fully the potential value of our business. We will continue to seek opportunities to return capital to Shareholders through either further share buyback tenders or dividends, as the business continues to grow and we execute our strategy on the ground in Nigeria.”

San Leon Energy plc

Proposed Return of up to $30 million by way of Tender Offer at 46 pence per Ordinary Share Notice of Extraordinary General Meeting

San Leon is proposing to purchase up to 50,475,000 Ordinary Shares in the capital of the Company through a Tender Offer at a price of 46 pence per Ordinary Share.

The Company is today posting a circular to Shareholders outlining the Tender Offer and including a notice of Extraordinary General Meeting convened for 11.00 a.m. on 15 March 2019.

The Tender Offer is being made available to all Qualifying Shareholders who are on the Register at 6.00 p.m. on 20 March 2019. Qualifying Shareholders can decide whether they want to tender any, some or all of their Ordinary Shares in the Tender Offer. The maximum aggregate number of Ordinary Shares to be purchased under the Tender Offer is 50,475,000 Ordinary Shares, being approximately 10 per cent. of the current Issued Ordinary Share Capital of the Company. The Tender Price will be 46 pence per Ordinary Share which is a premium of 50 per cent. to the closing mid-market price on 19 February 2019, being the last practicable date to prior the release of this announcement.

The Tender Offer is being made by Cantor Fitzgerald Europe, as principal, on the basis that all Ordinary Shares that it buys under the Tender Offer will be purchased from it by the Company at the Tender Price. The Board is making no recommendation to Shareholders in relation to participation in the Tender Offer.

Shareholders are not obliged to tender any of their Ordinary Shares if they do not wish to do so. The Circular contains details on the procedure that should be followed by those Qualifying Shareholders wishing to participate in the Tender Offer.

Background to the Tender Offer

In September 2016, the Company secured an indirect economic interest in Oil Mining Lease 18 (“OML 18”), onshore Nigeria.

The Company undertook a number of steps to effect this purchase. Midwestern Leon Petroleum Limited ("MLPL"), a company incorporated in Mauritius of which San Leon Nigeria B.V. has a 40 per cent. shareholding, was established as a special purpose vehicle to complete the transaction by purchasing all of the shares in Martwestern Energy Limited (“Martwestern”), a company incorporated in Nigeria. Martwestern holds a 50 per cent. shareholding in Eroton Exploration and Production Company Limited (“Eroton”), a company incorporated in Nigeria and the operator of the OML 18, and it also holds an initial 98 per cent. economic interest in Eroton.

To partly fund the purchase of 100 per cent. of the shares of Martwestern, MLPL borrowed €156.6 million (US$174.5 million) in incremental amounts by issuing loan notes with a coupon of 17 per cent. (“Loan Notes”). Midwestern Oil and Gas Company Limited is the 60 per cent. shareholder of MLPL and transferred its shares in Martwestern to MLPL as part of the full transaction. Following its placing in September 2016, San Leon became beneficiary and holder of all Loan Notes issued by MLPL. San Leon is also a beneficiary of any dividends that will be paid by MLPL as a 40 per cent. shareholder in MLPL but the Loan Notes repayments take priority over any dividend payments made to the MLPL shareholders.

The economic effect of this structure is that San Leon has an initial indirect economic interest of 10.584 per cent. in OML 18. Shareholders will note this is higher than the percentage interest anticipated by San Leon at the time of the acquisition in 2016. There have been no further purchases or payments by San Leon but this revised percentage is based on a reassessment and recalculation of the various parties’ interests in OML 18 which has resulted in Martwestern’s economic interest in Eroton now standing at 98 per cent..

Quarterly payments to San Leon under the Loan Notes commenced during 2017 and have continued since. To date, San Leon has received aggregate payments under the Loan Notes totalling US$108.8 million. The payments received represent interest and principal on the Loan Notes. As such, the Company has a significant balance of cash. A further US$167.1 million of principal plus additional interest remains outstanding under the Loan Notes through to October 2020.

Although the Company’s recent share price performance has been positive, the Directors believe that the full potential of the Company (including the future Loan Notes repayments) is not reflected in the current share price. Consequently, the Company confirmed during 2018 that it intended to return not less than US$10 million to shareholders following completion of a court approved capital reduction which was required to enable the Company to return capital to its shareholders. This
capital reduction was finalised on 12 February 2019.

Further Loan Notes repayments have been received by San Leon since commencing the capital reduction process and, recognising that, the Directors have determined to increase the capital to be returned to US$30 million, being the maximum amount of the Tender Offer. In making this determination, the Directors have had regard to the Company’s existing cash balances, future financial commitments and the interests of Shareholders. In setting the Tender Price, the Directors have had regard to the placing carried out in September 2016, by reference to which the Tender Price is at a small premium.

Details of the Tender Offer

The Tender Offer is being made by Cantor Fitzgerald Europe to all Qualifying Shareholders. Full details of the Tender Offer, including the terms and conditions on which it is being made, are set out in Part III of the Circular and, in relation to Shareholders holding Ordinary Shares in a certificated form, on the Tender Form to be sent to Shareholders who hold their Ordinary Shares in certificated form.

The Tender Offer is open to Qualifying Shareholders on the Company’s Register as at 6.00 p.m. on the Record Date (20 March 2019).

Qualifying Shareholders are invited to tender any or all of their Ordinary Shares for purchase by the Company at the tender price of 46 pence per Ordinary Share (the “Tender Price”) and:

  • all Ordinary Shares under the Tender Offer will be purchased at the Tender Price;
  • the maximum number of Ordinary Shares that may be purchased is 50,475,000; and
  • tenders may be scaled back pro rata to the respective numbers of Ordinary Shares tendered if the number of Ordinary Shares tendered for purchase exceeds 50,475,000.

Subject to the satisfaction of the Company’s obligations under the relevant laws (which the Directors believe will be satisfied), and subject to the Resolution becoming effective, the purchase of Ordinary Shares by the Company under the Tender Offer will be funded from the Company’s existing cash resources. Ordinary Shares not validly tendered may not be purchased.

Ordinary Shares will be purchased from Qualifying Shareholders free of commissions and dealing charges.

Ordinary Shares validly tendered and purchased by the Company in accordance with the terms of the Tender Offer will be cancelled and will not rank for any dividends declared after, or whose record date is after, the date on which the Ordinary Shares are purchased by the Company (expected to be on 22 March 2019).

The costs (excluding stamp duty) relating to the Tender Offer, assuming the Tender Offer is fully subscribed, are expected to be approximately £185,000 excluding VAT.

The terms and conditions of the Tender Offer are set out in Part III of the Circular. Shareholders do not have to tender any Ordinary Shares if they do not wish to do so.

Any rights of Shareholders who choose not to tender their Ordinary Shares will be unaffected. However, the reduction in the Company’s issued share capital may result in a reduction in the liquidity of the Ordinary Shares in the secondary market.

Benefits of the Tender Offer to Shareholders

When originally announced, it had been the Directors’ intention to return capital to Shareholders through a share buyback. However, noting in particular the increased amount of the capital return, the benefits of the Tender Offer are that it:

(a) allows Qualifying Shareholders who may not be able to sell Ordinary Shares through a buyback in the market to participate;

(b) is available to all Qualifying Shareholders regardless of the size of their shareholding (subject to rounding);

(c) means tendering Qualifying Shareholders will receive a premium of 50 per cent. to the closing price of 30.6 pence per Ordinary Share on 19 February 2019 (being the Latest Practicable Date);

(d) provides Qualifying Shareholders who wish to sell Ordinary Shares the opportunity to do so on an equivalent basis to all Qualifying Shareholders;

(e) enables those Qualifying Shareholders who so wish to participate in the Tender Offer in excess of their otherwise pro rata entitlement, up to their maximum shareholding in the Company (subject to the maximum aggregate number of Ordinary Shares to be purchased under the Tender Offer of 50,475,000 Ordinary Shares), to the extent that other Shareholders do not wish to participate fully in the Tender Offer; and

(f) enables those Qualifying Shareholders who do not wish to realise their investment in Ordinary Shares at this time to maintain their current investment in San Leon.

Overseas Shareholders

Shareholders with registered or mailing addresses outside Ireland or the UK, or who are citizens or nationals of, or resident in, a jurisdiction other than Ireland or the UK, should read paragraph 8 of Part III of the Circular and the relevant provisions of the Tender Form. It is the responsibility of all Overseas Shareholders to satisfy themselves as to the observance of any legal requirements in their jurisdiction, including, without limitation, any relevant requirements in relation to the ability of such holders to complete and return a Tender Form.

Terms of the Tender Offer

The Tender Offer is conditional upon the following Tender Conditions:

(i) the Repurchase Agreement not having been terminated in accordance with its terms;

(ii) the Company being satisfied that it has available to it sufficient distributable profits (in accordance with section 117 of the Act) to effect the purchase of all tendered Ordinary Shares in accordance with the Repurchase Agreement;

(iii) Cantor Fitzgerald Europe being satisfied that the Company has procured payment of an amount equal to the Tender Price multiplied by the number of Ordinary Share successfully tendered into an interest bearing client bank account of the Receiving Agent in accordance with the Repurchase Agreement;

(iv) the Tender Offer not having been terminated in accordance with paragraph 7 of Part III of the Circular on or prior to 30 April 2019 (or such later time and date as the Company and Cantor Fitzgerald Europe may agree) prior to the fulfilment of the Tender Conditions referred to above;

(v) the aggregate consideration to be paid by Cantor Fitzgerald Europe in respect of the Tender Offer being no more than $30 million;

(vi) the total number of Ordinary Shares purchased pursuant to the Tender Price being not more than 50,475,000, representing approximately 10 per cent. of the Company’s issued share capital; and

(vii) the approval by the Shareholders of the Resolution at the Extraordinary General Meeting.

Company share options and management remuneration

As at the Latest Practicable Date, the Directors held options as further detailed in the Circular over a total of 13,590,000 Ordinary Shares. As at the Latest Practicable Date, other options and warrants
had been awarded over a total of 26,443,525 Ordinary Shares. The proportion of Issued Ordinary Share Capital that all awards or options represent as at the Latest Practicable Date is 7.91 per cent.. The proportion of Issued Ordinary Share Capital that all awards or option holders would represent if the maximum number of Ordinary Shares that may be purchased under the Tender Offer are acquired by San Leon and cancelled is 8.79 per cent., assuming no change to the number of options as described in the following paragraph.

In line with the Company’s commitment to staff incentivisation and retention, the remuneration committee of the Company (the “Remuneration Committee”) proposed to the Board that all existing Company share options which have an exercise price above 45 pence per Ordinary Share, are repriced with an exercise price of 45 pence, being a premium of 47 per cent to the closing mid-market price on the Latest Practicable Date and equivalent to the Tender Price. All other terms remain unchanged. In making this proposal, independent third party advice was obtained. The Board has accepted the proposal, and has implemented the repricing. The number of share options affected by these arrangements is 9,474,822 and the total number of all share options and warrants that are currently outstanding is 40,033,525.

New long term incentive arrangements

In addition to the above and following approval by the Remuneration Committee, the Company has put in place new long term incentive arrangements for the executive Directors of the Company. The long term incentive arrangements have been established in recognition of San Leon’s strategy to develop and grow its assets in Africa and it is intended that awards will first be made following any significant acquisition or investment that the Company may make. The long term incentive arrangements will be administered by the Remuneration Committee.

The Remuneration Committee has discretion to make awards under the long term incentive arrangements in the form of options over Ordinary Shares at an exercise price of 45 pence per share. The number of shares that may be granted under an award to any given participant in any financial year may not exceed such number of Ordinary Shares that has an award value equal to 3x the participant's salary.

At the time of making an award the Board will set challenging performance targets in order to align the interests of employees with shareholders and which must be satisfied before an award vests. Performance targets will be tested over a minimum three year period and will be structured:

(a) As to 50 per cent. of the award, an evaluation by the Remuneration Committee of the participant's personal contribution to the Company’s operations and performance; and
(b) As to 50 per cent. of the award, based on the achievement of certain share price targets with a share price level of 75 pence being required for the maximum award to vest (with partial vesting on the attainment of prescribed share price thresholds in the range of 45 – 75 pence).

In addition to the above, and as previously announced, each of Linda Beal and Bill Higgs have been issued with share options over 1,000,000 Ordinary Shares at an exercise price of 45 pence. Both Linda and Bill received these share options as a result of their appointment as non-executive directors of the Company.

To view the full press release, please click here (PDF download).

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 and manager and broker to the Tender Offer)
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 (+44 207 390 0232)
Simon Woods (+44 207 390 0236)

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

Proposed Return of up to $30 million by way of Tender Offer at 46 pence per Ordinary Share

To view the full press release, please click here (PDF download).

San Leon is proposing to purchase up to 50,475,000 Ordinary Shares through a tender offer at a price of 46 pence per Ordinary Share (the “Tender Offer”).

Highlights of the Tender Offer

  • The Tender Price represents a premium of 50% to the closing mid-market price on 19 February 2019 (being the latest practicable date prior to the release of this announcement); and
  • The maximum number of Ordinary Shares that may be acquired under the Tender Offer is 50,475,000, representing approximately 10% of San Leon's Issued Ordinary Share Capital on 19 February 2019 (being the latest practicable date prior to the release of this announcement).
  • Qualifying Shareholders will be entitled to have accepted in the Tender Offer valid tenders of their Basic Entitlement of approximately 10% of their shareholding and may also tender Ordinary Shares in excess of this amount.
  • The Tender Offer opens today and will close at 1.00 pm on 20 March 2019 with cash payments expected by no later than 29 March 2019.
  • Completion of the Tender Offer will be conditional on Shareholder approval of the Tender Offer at the Extraordinary General Meeting on 15 March 2019.

The preceding summary should be read in conjunction with the full text below, as well as the shareholder circular (the "Circular"), which the Company is posting to Shareholders today and which also includes notice of San Leon's Extraordinary General Meeting. A summary expected timetable of principal events is set out at the end of this announcement.

Oisin Fanning, CEO of San Leon, commented:
“We are delighted to be able to announce this tender offer, which is considerably larger than previously announced. The scale of the Tender Offer reflects our strong financial position, our confidence in the Company’s future prospects and commensurate cashflow, and our view that the current share price does not reflect fully the potential value of our business. We will continue to seek opportunities to return capital to Shareholders through either further share buyback tenders or dividends, as the business continues to grow and we execute our strategy on the ground in Nigeria.”

San Leon Energy plc

Proposed Return of up to $30 million by way of Tender Offer at 46 pence per Ordinary Share Notice of Extraordinary General Meeting

San Leon is proposing to purchase up to 50,475,000 Ordinary Shares in the capital of the Company through a Tender Offer at a price of 46 pence per Ordinary Share.

The Company is today posting a circular to Shareholders outlining the Tender Offer and including a notice of Extraordinary General Meeting convened for 11.00 a.m. on 15 March 2019.

The Tender Offer is being made available to all Qualifying Shareholders who are on the Register at 6.00 p.m. on 20 March 2019. Qualifying Shareholders can decide whether they want to tender any, some or all of their Ordinary Shares in the Tender Offer. The maximum aggregate number of Ordinary Shares to be purchased under the Tender Offer is 50,475,000 Ordinary Shares, being approximately 10 per cent. of the current Issued Ordinary Share Capital of the Company. The Tender Price will be 46 pence per Ordinary Share which is a premium of 50 per cent. to the closing mid-market price on 19 February 2019, being the last practicable date to prior the release of this announcement.

The Tender Offer is being made by Cantor Fitzgerald Europe, as principal, on the basis that all Ordinary Shares that it buys under the Tender Offer will be purchased from it by the Company at the Tender Price. The Board is making no recommendation to Shareholders in relation to participation in the Tender Offer.

Shareholders are not obliged to tender any of their Ordinary Shares if they do not wish to do so. The Circular contains details on the procedure that should be followed by those Qualifying Shareholders wishing to participate in the Tender Offer.

Background to the Tender Offer

In September 2016, the Company secured an indirect economic interest in Oil Mining Lease 18 (“OML 18”), onshore Nigeria.

The Company undertook a number of steps to effect this purchase. Midwestern Leon Petroleum Limited ("MLPL"), a company incorporated in Mauritius of which San Leon Nigeria B.V. has a 40 per cent. shareholding, was established as a special purpose vehicle to complete the transaction by purchasing all of the shares in Martwestern Energy Limited (“Martwestern”), a company incorporated in Nigeria. Martwestern holds a 50 per cent. shareholding in Eroton Exploration and Production Company Limited (“Eroton”), a company incorporated in Nigeria and the operator of the OML 18, and it also holds an initial 98 per cent. economic interest in Eroton.

To partly fund the purchase of 100 per cent. of the shares of Martwestern, MLPL borrowed €156.6 million (US$174.5 million) in incremental amounts by issuing loan notes with a coupon of 17 per cent. (“Loan Notes”). Midwestern Oil and Gas Company Limited is the 60 per cent. shareholder of MLPL and transferred its shares in Martwestern to MLPL as part of the full transaction. Following its placing in September 2016, San Leon became beneficiary and holder of all Loan Notes issued by MLPL. San Leon is also a beneficiary of any dividends that will be paid by MLPL as a 40 per cent. shareholder in MLPL but the Loan Notes repayments take priority over any dividend payments made to the MLPL shareholders.

The economic effect of this structure is that San Leon has an initial indirect economic interest of 10.584 per cent. in OML 18. Shareholders will note this is higher than the percentage interest anticipated by San Leon at the time of the acquisition in 2016. There have been no further purchases or payments by San Leon but this revised percentage is based on a reassessment and recalculation of the various parties’ interests in OML 18 which has resulted in Martwestern’s economic interest in Eroton now standing at 98 per cent..

Quarterly payments to San Leon under the Loan Notes commenced during 2017 and have continued since. To date, San Leon has received aggregate payments under the Loan Notes totalling US$108.8 million. The payments received represent interest and principal on the Loan Notes. As such, the Company has a significant balance of cash. A further US$167.1 million of principal plus additional interest remains outstanding under the Loan Notes through to October 2020.

Although the Company’s recent share price performance has been positive, the Directors believe that the full potential of the Company (including the future Loan Notes repayments) is not reflected in the current share price. Consequently, the Company confirmed during 2018 that it intended to return not less than US$10 million to shareholders following completion of a court approved capital reduction which was required to enable the Company to return capital to its shareholders. This
capital reduction was finalised on 12 February 2019.

Further Loan Notes repayments have been received by San Leon since commencing the capital reduction process and, recognising that, the Directors have determined to increase the capital to be returned to US$30 million, being the maximum amount of the Tender Offer. In making this determination, the Directors have had regard to the Company’s existing cash balances, future financial commitments and the interests of Shareholders. In setting the Tender Price, the Directors have had regard to the placing carried out in September 2016, by reference to which the Tender Price is at a small premium.

Details of the Tender Offer

The Tender Offer is being made by Cantor Fitzgerald Europe to all Qualifying Shareholders. Full details of the Tender Offer, including the terms and conditions on which it is being made, are set out in Part III of the Circular and, in relation to Shareholders holding Ordinary Shares in a certificated form, on the Tender Form to be sent to Shareholders who hold their Ordinary Shares in certificated form.

The Tender Offer is open to Qualifying Shareholders on the Company’s Register as at 6.00 p.m. on the Record Date (20 March 2019).

Qualifying Shareholders are invited to tender any or all of their Ordinary Shares for purchase by the Company at the tender price of 46 pence per Ordinary Share (the “Tender Price”) and:

  • all Ordinary Shares under the Tender Offer will be purchased at the Tender Price;
  • the maximum number of Ordinary Shares that may be purchased is 50,475,000; and
  • tenders may be scaled back pro rata to the respective numbers of Ordinary Shares tendered if the number of Ordinary Shares tendered for purchase exceeds 50,475,000.

Subject to the satisfaction of the Company’s obligations under the relevant laws (which the Directors believe will be satisfied), and subject to the Resolution becoming effective, the purchase of Ordinary Shares by the Company under the Tender Offer will be funded from the Company’s existing cash resources. Ordinary Shares not validly tendered may not be purchased.

Ordinary Shares will be purchased from Qualifying Shareholders free of commissions and dealing charges.

Ordinary Shares validly tendered and purchased by the Company in accordance with the terms of the Tender Offer will be cancelled and will not rank for any dividends declared after, or whose record date is after, the date on which the Ordinary Shares are purchased by the Company (expected to be on 22 March 2019).

The costs (excluding stamp duty) relating to the Tender Offer, assuming the Tender Offer is fully subscribed, are expected to be approximately £185,000 excluding VAT.

The terms and conditions of the Tender Offer are set out in Part III of the Circular. Shareholders do not have to tender any Ordinary Shares if they do not wish to do so.

Any rights of Shareholders who choose not to tender their Ordinary Shares will be unaffected. However, the reduction in the Company’s issued share capital may result in a reduction in the liquidity of the Ordinary Shares in the secondary market.

Benefits of the Tender Offer to Shareholders

When originally announced, it had been the Directors’ intention to return capital to Shareholders through a share buyback. However, noting in particular the increased amount of the capital return, the benefits of the Tender Offer are that it:

(a) allows Qualifying Shareholders who may not be able to sell Ordinary Shares through a buyback in the market to participate;

(b) is available to all Qualifying Shareholders regardless of the size of their shareholding (subject to rounding);

(c) means tendering Qualifying Shareholders will receive a premium of 50 per cent. to the closing price of 30.6 pence per Ordinary Share on 19 February 2019 (being the Latest Practicable Date);

(d) provides Qualifying Shareholders who wish to sell Ordinary Shares the opportunity to do so on an equivalent basis to all Qualifying Shareholders;

(e) enables those Qualifying Shareholders who so wish to participate in the Tender Offer in excess of their otherwise pro rata entitlement, up to their maximum shareholding in the Company (subject to the maximum aggregate number of Ordinary Shares to be purchased under the Tender Offer of 50,475,000 Ordinary Shares), to the extent that other Shareholders do not wish to participate fully in the Tender Offer; and

(f) enables those Qualifying Shareholders who do not wish to realise their investment in Ordinary Shares at this time to maintain their current investment in San Leon.

Overseas Shareholders

Shareholders with registered or mailing addresses outside Ireland or the UK, or who are citizens or nationals of, or resident in, a jurisdiction other than Ireland or the UK, should read paragraph 8 of Part III of the Circular and the relevant provisions of the Tender Form. It is the responsibility of all Overseas Shareholders to satisfy themselves as to the observance of any legal requirements in their jurisdiction, including, without limitation, any relevant requirements in relation to the ability of such holders to complete and return a Tender Form.

Terms of the Tender Offer

The Tender Offer is conditional upon the following Tender Conditions:

(i) the Repurchase Agreement not having been terminated in accordance with its terms;

(ii) the Company being satisfied that it has available to it sufficient distributable profits (in accordance with section 117 of the Act) to effect the purchase of all tendered Ordinary Shares in accordance with the Repurchase Agreement;

(iii) Cantor Fitzgerald Europe being satisfied that the Company has procured payment of an amount equal to the Tender Price multiplied by the number of Ordinary Share successfully tendered into an interest bearing client bank account of the Receiving Agent in accordance with the Repurchase Agreement;

(iv) the Tender Offer not having been terminated in accordance with paragraph 7 of Part III of the Circular on or prior to 30 April 2019 (or such later time and date as the Company and Cantor Fitzgerald Europe may agree) prior to the fulfilment of the Tender Conditions referred to above;

(v) the aggregate consideration to be paid by Cantor Fitzgerald Europe in respect of the Tender Offer being no more than $30 million;

(vi) the total number of Ordinary Shares purchased pursuant to the Tender Price being not more than 50,475,000, representing approximately 10 per cent. of the Company’s issued share capital; and

(vii) the approval by the Shareholders of the Resolution at the Extraordinary General Meeting.

Company share options and management remuneration

As at the Latest Practicable Date, the Directors held options as further detailed in the Circular over a total of 13,590,000 Ordinary Shares. As at the Latest Practicable Date, other options and warrants
had been awarded over a total of 26,443,525 Ordinary Shares. The proportion of Issued Ordinary Share Capital that all awards or options represent as at the Latest Practicable Date is 7.91 per cent.. The proportion of Issued Ordinary Share Capital that all awards or option holders would represent if the maximum number of Ordinary Shares that may be purchased under the Tender Offer are acquired by San Leon and cancelled is 8.79 per cent., assuming no change to the number of options as described in the following paragraph.

In line with the Company’s commitment to staff incentivisation and retention, the remuneration committee of the Company (the “Remuneration Committee”) proposed to the Board that all existing Company share options which have an exercise price above 45 pence per Ordinary Share, are repriced with an exercise price of 45 pence, being a premium of 47 per cent to the closing mid-market price on the Latest Practicable Date and equivalent to the Tender Price. All other terms remain unchanged. In making this proposal, independent third party advice was obtained. The Board has accepted the proposal, and has implemented the repricing. The number of share options affected by these arrangements is 9,474,822 and the total number of all share options and warrants that are currently outstanding is 40,033,525.

New long term incentive arrangements

In addition to the above and following approval by the Remuneration Committee, the Company has put in place new long term incentive arrangements for the executive Directors of the Company. The long term incentive arrangements have been established in recognition of San Leon’s strategy to develop and grow its assets in Africa and it is intended that awards will first be made following any significant acquisition or investment that the Company may make. The long term incentive arrangements will be administered by the Remuneration Committee.

The Remuneration Committee has discretion to make awards under the long term incentive arrangements in the form of options over Ordinary Shares at an exercise price of 45 pence per share. The number of shares that may be granted under an award to any given participant in any financial year may not exceed such number of Ordinary Shares that has an award value equal to 3x the participant's salary.

At the time of making an award the Board will set challenging performance targets in order to align the interests of employees with shareholders and which must be satisfied before an award vests. Performance targets will be tested over a minimum three year period and will be structured:

(a) As to 50 per cent. of the award, an evaluation by the Remuneration Committee of the participant's personal contribution to the Company’s operations and performance; and
(b) As to 50 per cent. of the award, based on the achievement of certain share price targets with a share price level of 75 pence being required for the maximum award to vest (with partial vesting on the attainment of prescribed share price thresholds in the range of 45 – 75 pence).

In addition to the above, and as previously announced, each of Linda Beal and Bill Higgs have been issued with share options over 1,000,000 Ordinary Shares at an exercise price of 45 pence. Both Linda and Bill received these share options as a result of their appointment as non-executive directors of the Company.

To view the full press release, please click here (PDF download).

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 and manager and broker to the Tender Offer)
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 (+44 207 390 0232)
Simon Woods (+44 207 390 0236)

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

Eroton Successful Refinancing/media-centre/news-releases/2019/january/8/eroton-successfully-refinances-oml-18-reserves-based-lending-facility-rbl.aspx2019-01-08T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2019/january/8/eroton-successfully-refinances-oml-18-reserves-based-lending-facility-rbl.aspx

Eroton Successfully Refinances OML 18 Reserves Based Lending Facility (“RBL”)

San Leon Energy plc, the AIM-listed company focused on oil and gas development and appraisal in Africa, is pleased to provide an update with regards to the OML 18 reserves-based lending (“RBL”) facility held by Eroton Exploration and Production Company Limited (“Eroton”), the operator of OML 18.

The Company first highlighted on 7 September 2017, and subsequently since, that depositing three future quarterly RBL repayments into a specified Debt Service Reserve Account (“DSRA”) was one of the conditions needing to be satisfied before the RBL lenders would allow a distribution of dividends from Eroton to its shareholders (of which the Company is an indirect shareholder).

The Company has now been informed by Eroton that the RBL has been successfully refinanced. With a final repayment of $398 million, the RBL has been repaid in full and replaced by a new reservesbased lending facility with Guarantee Trust Bank (the “GT Bank RBL”) for the same principal amount, with the following notable advantages:

  • The original RBL had a repayment date in mid-2021, while the GT Bank RBL has a late-2025 repayment date, consequently reducing quarterly repayments and freeing cashflow (in excess of $80 million per year until mid-2021) for further drilling and development.
  • The DSRA requirement under the GT Bank RBL is reduced to two future quarterly repayments which combined with the lower quarterly repayment amounts means that only approximately $50 million is required in the DSRA compared with more than $100 million previously.

The refinanced interest rate is marginally higher at approximately 11% (versus 10% previously).

Oisin Fanning, CEO of San Leon, commented:
“I am delighted with the terms secured by Eroton for the RBL restructuring, and the impact which Eroton expects this to have, both unlocking substantial additional funds for operational activity, as well as lowering the DSRA hurdle to Eroton paying dividends to its shareholders.

This is a further material step in addressing previously identified operational and financing issues at OML 18 and follows the recent announcements of new well drilling, and of NNPC (the Nigerian National Petroleum Corporation) paying most of their cash call arrears.”

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 (+44 207 390 0232)
Simon Woods (+44 207 390 0236)

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

Eroton Successfully Refinances OML 18 Reserves Based Lending Facility (“RBL”)

San Leon Energy plc, the AIM-listed company focused on oil and gas development and appraisal in Africa, is pleased to provide an update with regards to the OML 18 reserves-based lending (“RBL”) facility held by Eroton Exploration and Production Company Limited (“Eroton”), the operator of OML 18.

The Company first highlighted on 7 September 2017, and subsequently since, that depositing three future quarterly RBL repayments into a specified Debt Service Reserve Account (“DSRA”) was one of the conditions needing to be satisfied before the RBL lenders would allow a distribution of dividends from Eroton to its shareholders (of which the Company is an indirect shareholder).

The Company has now been informed by Eroton that the RBL has been successfully refinanced. With a final repayment of $398 million, the RBL has been repaid in full and replaced by a new reservesbased lending facility with Guarantee Trust Bank (the “GT Bank RBL”) for the same principal amount, with the following notable advantages:

  • The original RBL had a repayment date in mid-2021, while the GT Bank RBL has a late-2025 repayment date, consequently reducing quarterly repayments and freeing cashflow (in excess of $80 million per year until mid-2021) for further drilling and development.
  • The DSRA requirement under the GT Bank RBL is reduced to two future quarterly repayments which combined with the lower quarterly repayment amounts means that only approximately $50 million is required in the DSRA compared with more than $100 million previously.

The refinanced interest rate is marginally higher at approximately 11% (versus 10% previously).

Oisin Fanning, CEO of San Leon, commented:
“I am delighted with the terms secured by Eroton for the RBL restructuring, and the impact which Eroton expects this to have, both unlocking substantial additional funds for operational activity, as well as lowering the DSRA hurdle to Eroton paying dividends to its shareholders.

This is a further material step in addressing previously identified operational and financing issues at OML 18 and follows the recent announcements of new well drilling, and of NNPC (the Nigerian National Petroleum Corporation) paying most of their cash call arrears.”

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 (+44 207 390 0232)
Simon Woods (+44 207 390 0236)

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

Receipt by Eroton of further NNPC Cash Call Arrears/media-centre/news-releases/2018/december/21/receipt-by-eroton-of-further-nnpc-cash-call-arrears.aspx2018-12-21T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/december/21/receipt-by-eroton-of-further-nnpc-cash-call-arrears.aspx

San Leon Energy plc, the AIM-listed company focused on oil and gas development and appraisal in Africa, is pleased to provide an update with regards to the receipt by Eroton of cash call arrears from the Nigerian National Petroleum Corporation (“NNPC”).

The Company announced on 7 September 2017 that NNPC had begun paying its 2015-2016 cash call arrears to Eroton Exploration and Production Company Limited (“Eroton”), the operator of OML 18, onshore Nigeria, but that $93 million remained outstanding. The Company is pleased to announce that it has been informed by Eroton that all of the 2015 NNPC cash call arrears have now been paid to Eroton and only approximately $20 million of arrears remain for 2016. All cash calls have been received for 2017 and are up-to-date for 2018.

Oisin Fanning, CEO of San Leon, commented:
“I consider the payment of the substantial majority of NNPC cash call arrears to be a very positive step in supporting the OML 18 new well drilling activity which began last week and is targeting increased gross oil production.”

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)
Simon Woods (+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, is pleased to provide an update with regards to the receipt by Eroton of cash call arrears from the Nigerian National Petroleum Corporation (“NNPC”).

The Company announced on 7 September 2017 that NNPC had begun paying its 2015-2016 cash call arrears to Eroton Exploration and Production Company Limited (“Eroton”), the operator of OML 18, onshore Nigeria, but that $93 million remained outstanding. The Company is pleased to announce that it has been informed by Eroton that all of the 2015 NNPC cash call arrears have now been paid to Eroton and only approximately $20 million of arrears remain for 2016. All cash calls have been received for 2017 and are up-to-date for 2018.

Oisin Fanning, CEO of San Leon, commented:
“I consider the payment of the substantial majority of NNPC cash call arrears to be a very positive step in supporting the OML 18 new well drilling activity which began last week and is targeting increased gross oil production.”

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)
Simon Woods (+44 207 830 9705)

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

Update on Share Buyback and Expected Completion of SunTrust Exit/media-centre/news-releases/2018/december/18/update-on-share-buyback-and-expected-completion-of-suntrust-exit.aspx2018-12-18T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/december/18/update-on-share-buyback-and-expected-completion-of-suntrust-exit.aspx

San Leon Energy plc , the AIM-listed company focused on oil and gas development and appraisal in Africa, is pleased to provide an update on its plans for a share buyback of at least US$10,000,000 and also on the expected completion of the Midwestern Oil & Gas Ltd (“Midwestern”) purchase of the remaining San Leon shares held by SunTrust Oil Company Nigeria Limited (“SunTrust”).

Share Buyback

On 25 September 2018, the Company announced its intention initially to return not less than $10 million to shareholders through a share buy-back programme (the "Programme"), once it had completed its capital reorganisation. Whilst the reorganisation was expected to complete during October/November 2018, it has been delayed whilst awaiting confirmation from SunTrust that it has no objection to the Company undertaking the required capital reorganisation nor will it in any way seek to impede the process. The Company is pleased to confirm that it has now received such written confirmation from SunTrust.

Following this confirmation of no objection from SunTrust, San Leon will apply to the High Court in Ireland to approve the reduction in the Company’s share capital so as to create distributable reserves and thereby permit the Company to make distributions to its shareholders, by way of the Programme. The Company is applying to the Irish High Court as soon as practicable and has been advised that this is a procedural process, having already completed all requisite requirements. Upon court approval, the Company must then advertise to provide an opportunity for any creditors to object to the capital reorganisation.

The Company will keep shareholders informed of the progress of these final steps and also the likely timing for commencing the Programme.

Midwestern Purchase of San Leon Shares From SunTrust

On 1 October 2018, the Company announced that Midwestern had entered into a binding agreement with SunTrust to acquire SunTrust’s entire remaining holding in San Leon, being 71,487,179 ordinary shares (representing 14.29 % of the issued ordinary shares of the Company). As of that date 47,243,590 ordinary shares in San Leon (representing 9.44% of issued ordinary shares) had already been transferred to Midwestern. The Company has been informed by Midwestern that the subsequent balance is expected to be transferred in the near term, with a target date of completing the transfer by mid January 2019.

Oisin Fanning, CEO of San Leon, commented: “I am pleased to advise shareholders of the recent developments, which should enable the Company to commence the previously announced share buyback once legal formalities have been concluded, and subject to meeting regulatory requirements. Whilst this is later than originally envisaged, the Company was keen to ensure any potential obstacles had been removed prior to commencing the legal process of the capital reorganisation. The Company would like to thank shareholders for their patience and understanding and I look forward to providing further corporate and operational updates over the coming months.

The Company also looks forward to Midwestern completing its purchase of the remaining San Leon shares held by SunTrust.”

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)
Simon Woods (+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, is pleased to provide an update on its plans for a share buyback of at least US$10,000,000 and also on the expected completion of the Midwestern Oil & Gas Ltd (“Midwestern”) purchase of the remaining San Leon shares held by SunTrust Oil Company Nigeria Limited (“SunTrust”).

Share Buyback

On 25 September 2018, the Company announced its intention initially to return not less than $10 million to shareholders through a share buy-back programme (the "Programme"), once it had completed its capital reorganisation. Whilst the reorganisation was expected to complete during October/November 2018, it has been delayed whilst awaiting confirmation from SunTrust that it has no objection to the Company undertaking the required capital reorganisation nor will it in any way seek to impede the process. The Company is pleased to confirm that it has now received such written confirmation from SunTrust.

Following this confirmation of no objection from SunTrust, San Leon will apply to the High Court in Ireland to approve the reduction in the Company’s share capital so as to create distributable reserves and thereby permit the Company to make distributions to its shareholders, by way of the Programme. The Company is applying to the Irish High Court as soon as practicable and has been advised that this is a procedural process, having already completed all requisite requirements. Upon court approval, the Company must then advertise to provide an opportunity for any creditors to object to the capital reorganisation.

The Company will keep shareholders informed of the progress of these final steps and also the likely timing for commencing the Programme.

Midwestern Purchase of San Leon Shares From SunTrust

On 1 October 2018, the Company announced that Midwestern had entered into a binding agreement with SunTrust to acquire SunTrust’s entire remaining holding in San Leon, being 71,487,179 ordinary shares (representing 14.29 % of the issued ordinary shares of the Company). As of that date 47,243,590 ordinary shares in San Leon (representing 9.44% of issued ordinary shares) had already been transferred to Midwestern. The Company has been informed by Midwestern that the subsequent balance is expected to be transferred in the near term, with a target date of completing the transfer by mid January 2019.

Oisin Fanning, CEO of San Leon, commented: “I am pleased to advise shareholders of the recent developments, which should enable the Company to commence the previously announced share buyback once legal formalities have been concluded, and subject to meeting regulatory requirements. Whilst this is later than originally envisaged, the Company was keen to ensure any potential obstacles had been removed prior to commencing the legal process of the capital reorganisation. The Company would like to thank shareholders for their patience and understanding and I look forward to providing further corporate and operational updates over the coming months.

The Company also looks forward to Midwestern completing its purchase of the remaining San Leon shares held by SunTrust.”

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)
Simon Woods (+44 207 830 9705)

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

Rig Preparing to Spud OSMU-1 Well on OML 18/media-centre/news-releases/2018/december/10/rig-preparing-to-spud-osmu-1-well-on-oml-18.aspx2018-12-10T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/december/10/rig-preparing-to-spud-osmu-1-well-on-oml-18.aspx

San Leon Energy plc (the "Company"), the AIM listed company focused on oil and gas development and appraisal in Africa, announced on 25 September 2018 that Eroton, the operator of the OML 18 licence, onshore Nigeria, was preparing to mobilise a rig to the Akaso field to drill the first new well under its operatorship.

Eroton has confirmed that a rig has now been fully positioned at the well site, and is expected to commence drilling in the next few days. Well OSMU-1 is expected to take up to 60 days to drill to around 11,900 ftMDBRT (measured depth below rotary table) and complete, targeting the E4500 and E3000 formations, and is then expected to be connected to the OML 18 production system. Oisin Fanning, CEO, commented:

“Drilling the first new well of Eroton’s operatorship marks the start of a new chapter in the development of OML 18. Increasing oil production at the wellhead is an important step in increasing cash flow from the asset, and I look forward to providing shareholders with an update on the performance of this new well in due course, in addition to providing further information on further development activities.”

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)
Simon Woods (+44 207 830 9705)

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

San Leon Energy plc (the "Company"), the AIM listed company focused on oil and gas development and appraisal in Africa, announced on 25 September 2018 that Eroton, the operator of the OML 18 licence, onshore Nigeria, was preparing to mobilise a rig to the Akaso field to drill the first new well under its operatorship.

Eroton has confirmed that a rig has now been fully positioned at the well site, and is expected to commence drilling in the next few days. Well OSMU-1 is expected to take up to 60 days to drill to around 11,900 ftMDBRT (measured depth below rotary table) and complete, targeting the E4500 and E3000 formations, and is then expected to be connected to the OML 18 production system. Oisin Fanning, CEO, commented:

“Drilling the first new well of Eroton’s operatorship marks the start of a new chapter in the development of OML 18. Increasing oil production at the wellhead is an important step in increasing cash flow from the asset, and I look forward to providing shareholders with an update on the performance of this new well in due course, in addition to providing further information on further development activities.”

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)
Simon Woods (+44 207 830 9705)

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

Payment Received Against MLPL Loan Notes/media-centre/news-releases/2018/november/1/payment-received-against-mlpl-loan-notes.aspx2018-11-01T00:00:00San Leon Energysanleonenergy.com/media-centre/news-releases/2018/november/1/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 25 September 2018 that it had been informed by Midwestern Leon Petroleum Limited ("MLPL"), that the quarterly Loan Notes repayment to San Leon which was due on or before 1 October 2018, was expected to be made during October 2018.

The Company confirms that it has now received a total of approximately USD $18.6 million in full satisfaction of payments due for Q3 2018 under the MLPL Loan Notes (details of which have been described in previous Company announcements).

A balance of USD $146.1 million of principal remains outstanding and payable to the Company as of 31 October 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)

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)

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 25 September 2018 that it had been informed by Midwestern Leon Petroleum Limited ("MLPL"), that the quarterly Loan Notes repayment to San Leon which was due on or before 1 October 2018, was expected to be made during October 2018.

The Company confirms that it has now received a total of approximately USD $18.6 million in full satisfaction of payments due for Q3 2018 under the MLPL Loan Notes (details of which have been described in previous Company announcements).

A balance of USD $146.1 million of principal remains outstanding and payable to the Company as of 31 October 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)

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)

Midwestern 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)