News

Proposed OML 18 Production Arrangement and Placing

26 August 2016

San Leon is pleased to announce today it has conditionally raised approximately £170.3 million (US$221.4 million) through an issue of 378,400,000 new ordinary shares (“Ordinary Shares”) at a placing price of 45 pence per Ordinary Share (“Placing Price”) with institutional and other investors. The net proceeds are being used to complete the OML 18 Production Agreement, which will result in the Company securing an initial 9.72 per cent. indirect economic interest in OML 18, the world-class Nigerian onshore oil and gas asset, and for general corporate purposes.

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Highlights

PLACING:

  • Conditionally raised approximately £170.3 million (US$221.4 million) through an issue of 378,400,000 new ordinary shares by way of a placing at a placing price of 45 pence per Ordinary Share, a 54.5% premium to the last traded price of 29.125p on 21 January 2016.

OML 18 PRODUCTION ARRANGEMENT:

  • The OML 18 Production Arrangement represents the entry by the Company into the Nigerian onshore oil and gas production industry, one of the largest oil producing countries in the world.
  • San Leon will secure an initial 9.72 per cent. indirect economic interest in OML 18, a world-class onshore producing asset.
  • OML 18’s estimated gross 2P reserves are approximately 576 MMbbl of oil and approximately
  • 4.2 Tcf of gas and its gross 2C contingent resources are approximately 203 MMbbls of oil and approximately 1.6 Tcf of gas. 
  • As of June 2016 OML 18 was producing at approximately 50,000 bopd of oil and approximately 50 MMscfpd of gas.
  • Eroton, the Operator of OML 18, has entered into an Offtake Agreement at a gross price of US$95 (US$91.5 net) for approximately 35% of the expected 2P production to the end of 2017. 
  • San Leon has the right to provide oilfield services to Eroton.

The Placing and the OML 18 Production Arrangement are conditional on the passing of various resolutions, which are being put to Shareholders at an Extraordinary General Meeting.

Enquiries:

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

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

SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker
Ewan Leggat
Richard Morrison
+44 (0) 20 3470 0470

Whitman Howard Limited
Joint Broker
Nick Lovering
Francis North
+44 (0) 20 7659 1234

Vigo Communications
Financial Public Relations
Chris McMahon
+44 (0) 20 7830 9700
Alexandra Roper

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

The following information is extracted from the Chairman’s statement contained in Part One of the

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