News

Completion of Draa Farm-out

31 January 2013

San Leon Energy Plc
("San Leon" or the "Company")

Completion of Foum Draa Farm-Out

Highlights

  • San Leon Finalises farm-out to Cairn Energy PLC (Cairn)_of Foum Draa Block, Offshore Morocco
  • Exploration well targeted for Q4 2013

Following the Company's announcement of the farm-out agreement with Cairn Energy Plc ("Cairn") on 28 August 2012, San Leon is pleased to announce that all parties have now received full Moroccan Authorities approval of the assignment of interest in the Foum Draa farm-out agreement.

Cairn has now assumed operatorship of the Foum Draa block, offshore Morocco ("Foum Draa" or "Block") and plans to drill an exploration well targeting a Lower Cretaceous objective in Q4 2013. 

Cairn has acquired a net 50% operated equity interest in Foum Draa, pro rata from each of San Leon, Serica Energy plc ("Serica") and Longreach Oil and Gas Ventures Limited ("Longreach") (together the "Partners"). In return, Cairn will now pay its equity interest share of past costs, being US$1.5 million (US$850,000 net to San Leon) and pay the first US$60 million towards the drilling of the commitment exploration well.

San Leon Energy now holds a net operated interest of 14.17%, Serica holds 8.33% and Longreach holds 2.5% in the Foum Draa Block. ONHYM, the National Bureau of Petroleum and Mines will continue to hold 25%.

Executive Chairman, Oisin Fanning commented:

"We would like to thank the Moroccan Authorities for their approval of this transaction which now clears the way for the drilling of our first exploration well offshore Morocco. Depending on rig availability the current target is to drill the well this year. This Block contains mapped prospects and the farm-out agreement reduces our financial exposure but keeps our interest at a level which still offers attractive upside for our shareholders."

For further information contact:

San Leon Energy Plc

Tel: +353 1291 6292

Oisin Fanning, Executive Chairman


John Buggenhagen, Exploration Director




Macquarie Capital (Europe) Limited

Tel: +44 (0) 20 3037 2000

John Dwyer




Fox Davies Capital

Tel: +44 (0) 20 3463 5000

Daniel Fox-Davies


Richard Hail




FirstEnergy Capital LLP

Tel: +44 (0) 20 7448 0200

Hugh R. Sanderson


David van Erp




Westhouse Securities (Nominated Advisor)

Tel: +44 (0) 20 7601 6100

Richard Johnson


Antonio Bossi




College Hill Associates

Tel: +44 (0) 20 7457 2020

Rupert Trefgarne


Alexandra Roper


 

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