Interim results for the six months ended 30 June 2017

29 September 2017

San Leon Energy, the AIM listed company focused on oil and gas development and appraisal in Africa and Europe, today announces its interim results for the six months ended 30 June 2017, 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.



  • US$20.6 million has been received to date in relation to the US$174.5 million Loan Notes. The Company is scheduled to be repaid approximately US$19 million per quarter from Q4 2017
  • The Company previously reached agreement with Avobone in November 2016, which was subsequently revised in June 2017, regarding payment for Avobone’s exit from the Siekierki project in Poland. The remaining amount to be paid is approximately €14.7 million during October and November 2017
  • In December 2016, the Company announced the receipt of an approach from a possible offeror. In April 2017, we announced that we had signed confidentiality agreements and were in discussions with a further three entities, and in June 2017 we announced an offer, conditional on completing final due diligence, from China Great United Petroleum (Holding) Limited (“China Great”). China Great has remained in a dialogue with the Company and has advised that the delay in its due diligence has been due to it now being in discussions to bring in a large EPC partner to add value in midstream projects on OML 18. China Great will update the Company regarding progress in due course. There can be no certainty that any of these discussions will lead to a firm intention to make an offer
  • Nick Butler resigned as a Non-Executive Director from the Board effective on 6 September 2017. An executive search has been launched to appoint two new Non-Executive Directors


  • Contract is in place for San Leon’s senior operational appointee into Eroton, with his arrival in Nigeria imminent
  • Eroton is the Operator of OML 18 while San Leon has a defined partner role under the Master Services Agreement. Plans from the 2016 Competent Persons Report (by Petrovision Energy Services Limited) (the “CPR”) are being executed to optimise production using coiled tubing, electric line, and slickline. Challenges regarding pipeline loss allocation, downtime and slower-than-anticipated well work mean that current production is below the production and sales forecasts set out in the CPR, and those challenges are being addressed as they arise.
  • The Orubiri Field came online in late 2016, and the Krakama Field was brought onto production in early 2017. The Buguma Field is expected to follow in Q4 2017 and will now be brought on by direct tie-back to the Krakama Field
  • Commencement of heavy workover and new well drilling on various OML 18 fields to boost production expected in Q4 2017
  • Eroton is near to completing an updated reserves report on OML 18


  • Loss for the period ended 30 June 2017 was €5.24m (2016: loss of €6.23m), of which €11.3m relates to a foreign exchange loss on the loan notes
  • Cash and cash equivalents as at 30 June 2017 of €0.3m (30 June 2016: €0.7m)
  • As at 27 September 2017:
    o US$20.6m has been received in relation to payments due to San Leon under the US$174.5m Loan Notes
    o €4.3m received from loans provided to San Leon
    o €8.175m has been paid to Avobone during 2017
    o €1.7m cash and cash equivalents
  • Under an agreement with Yorkville, as announced on the 22 June 2017, San Leon issued 6,254,905 new ordinary shares at a price per share of 32 pence with a value of US$2.6m
  • As announced on 19 September 2017, agreements were entered into for the sale of a majority of the Company’s Polish assets, subject to certain conditions
  • Decision made to relinquish Sidi Moussa, offshore Morocco

Chief Executive Officer, Oisin Fanning, commented:
“The Company has three targeted cash flow streams from Nigeria: Loan Note repayments, dividends from production via the indirect equity interest in OML 18, and from the provision of drilling and workover rig services to Eroton under the Master Services Agreement. While well activity and dividends from production have been delayed for the reasons set out in the final results for the year ended 31 December 2016, the security package held by San Leon over Loan Note repayments have resulted in $20.6 million being received by the Company to date, and approximately $19 million expected on a quarterly basis as a minimum from Q4 2017 onwards, until the Loan Notes are repaid in full.

San Leon continues to work with Eroton to target the commencement of dividend payments, and I look forward to updating shareholders on progress in that regard in due course.”

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. References within this announcement to China Great and its ongoing discussions with the Company are being made with the approval of China Great, being the Offeror in relation to the conditional offer for San Leon referenced in this announcement.

To view the full press release, please click here.

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

SP Angel Corporate Finance LLP (Nominated adviser to the Company)
+44 20 3470 0470
Richard Morrison
Ewan Leggat
Soltan Tagiev

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

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

Vigo Communications (Financial Public Relations)
+44 207 830 9700
Chris McMahon
Alexandra Roper

Plunkett Public Relations
+353 1 280 7873
Sharon Plunkett


  • Share
  • Email
  • Print
  • Twitter
  • linkedIn