Completion of Gold Point Energy Acquisition

Email this article
Printer friendly page

  As  a result of the Transaction, the GPE international oil and gas portfolio will  be added to San Leon’s portfolio of properties, further enhancing its asset  base.

Poland: Development of discovered fields  plus exploration potential on trend with producing assets Development  and exploration programmes planned, starting with seismic reinterpretation. 

• Block  106, Szczecinek (50% owner) northwest Poland, operated by Gas Plus.  Targeting the previously discovered Czarne gas field, in addition to 11.3  million barrels and 15 BCF of  potential oil and gas reserves. Estimated recoverable P50 reserves at the  Czarne field 12.4 BCF. The field  tested 10.1 MMCFGD from the Rotleigend sandstone at a depth of 3,100m (10,200  ft), but remains to be produced.    
• Nowa Sol  block (100%) 1,167 km2 (288,372 acres), located in western Poland, east of the city of Zielona Gora. Contains a  potentially prolific oil trend within the underexplored Main Dolomite of the  Zechstein formation. Smaller accumulations have already been discovered within  this concession including several fields which are believed as having remaining  recoverable reserves.   
• Wschowa  block,  (100%) 1,078 km2 (266,380 acres), located in western Poland, to the north of the city of  Glogow.

United States: Field Rehabilitation 

• Hettinger County, North Dakota, 480 acres.       Field rehabilitation aimed at targeting stranded reserves. The Urlacher       #1-24 well previously produced 227,000 barrels of 40° API oil, 309,000 MCF       of gas. 2-D seismic reinterpretation and shooting new 3-D seismic surveys       are designed to further evaluate the field and design a drilling programme

Argentina: Minimal production / field development  

• Flor de Roca. 12.5% interest in existing and future production from the Flor de Roca oil field in the Rio Negro  Province

The  compnany has a 12.5% working interest earned via farm-in from Petrolera del  Comahue in two producing wells in the Flor de Roca field, Rio Negro Province.  Also ownership of an exclusive database of geologic and geophysical information  pertaining to Argentina and an exclusive seismic study of the General Roca and  Blanco de los Olivos blocks in Rio Negro Province which involved reprocessing  and reinterpration of 3D seismic data over the blocks and surrounding areas.

Transaction  details:

The entire issued  share capital of GPE has been acquired by San Leon (the “Transaction”) pursuant  to an agreement dated February   12, 2009 (the “Agreement”) which was completed on June 5th 2009 (the  “Effective Date”). The Transaction was completed as a plan of arrangement under  the British Columbia Business Corporations Act.

Under the  Transaction six (6) GPE shares are exchanged for one (1) SLE share (the “SLE  Shares”) at 16.5p per share, valuing GPE at £1.4m (in a fully diluted basis). GPE  shareholders as of the Effective Date and pursuant to the terms of the  Agreement were entitled to receive SLE  Shares in two tranches of approximately 50% each. The first tranche of  3,804,208 SLE Shares (the  “Consideration Shares”) was issued on the Effective Date and are subject to a lock-in  period of 12 months. The second tranche of the SLE  Shares shall be issued on the first anniversary of the Effective Date, provided  that all or a portion of the second tranche of SLE  Shares may be cancelled in the event of a material breach of any  representations, warranties or covenants of GPE under the Agreement.

A finders fee was agreed  between GPE, SLE and Green Corporate Finance Limited, the total consideration  for which is equivalent to the issue of 965,763 new San Leon ordinary shares  (the “Finders Fee Shares”).

Accordingly,  application for admission to trading on AIM  has been made today for 4,769,971 ordinary shares of €0.05 each in SLE (being the aggregate amount of Consideration  Shares and Finders Fee Shares). Admission is expected to take effect on 12 June 2009.

Following  the issue the Company has 278,599,338 ordinary shares in issue.

For  the purposes of the Financial Services Authority’s Disclosure and Transparency  Rules, the company’s total issued voting share capital at the date of this  announcement, and following the above issue, consists of 278,599,338 ordinary  shares of €0.05 each, each carrying the right to one vote.

There  are no shares held in Treasury. The total number of voting rights in the  Company is therefore 278,599,338.

The directors and  officers of GPE have resigned and are being replaced by Oisin Fanning, the  Chairman of San Leon. The GPE shares will be de-listed from TSXV.

Oisin  Fanning, Chairman of San Leon commented:

We are delighted to  have completed our first public transaction, and look forward to getting down  to work, developing these assets towards monetisation, where a concrete value  will become transparent.

This acquisition has  given us geographical and asset diversity; we now own assets in Morocco, Netherlands, Poland, the US and Argentina. More  importantly, we are not dealing with pure exploration here: many of these  assets have proven production histories. As this takes us a long way up the  development chain, we believe that this transaction has materially enhanced San  Leon’s asset portfolio.

June 8th   2009

For further  information, please contact:                                                                                                           

In accordance with the guidelines of the  AIM Market of the London Stock Exchange, Phil Thompson, M.Sc. in Geophysics and  B.Sc. in Geophysics, Chief Executive Officer of San Leon Energy Plc, who has  been involved in the Oil & Gas industry for over 25 years, is the qualified  person that has reviewed the technical information in this press release.

• Click to download the attached file(s):
• San_Leon_Energy_Completes_Acquisition_of_GPE.pdf