Interim results

25 September 2018

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.



  • 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).


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.


  • 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.


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)


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