Final Results for the year ending 31 December 2008

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Final Results for  the year ending 31 December 2008

San Leon Energy, the AiM listed  international oil and gas company with assets in Morocco,  Italy, Poland, the Netherlands  and the USA  is pleased to announce its maiden financial results as a listed company.
  The  full report and accounts together with the notice of AGM are available on the Group’s  website at www.sanleonenergy.com/sanleon/investor/ and will be posted to shareholders  today.

Highlights:

• Creation of a portfolio of exploration and development assets in Morocco, USA and Netherlands     

• Best estimate prospective resource volume of 195.6 million barrels of oil estimated by  Netherland Sewell & Associates (Competent Person)
  
• Estimated up to 1.053 billion barrels of oil of prospective resources, net to San Leon  by Netherland Sewell & Associates
  

• Admission to AiM: flexibility to create value for current and new shareholders 

Post balance sheet  highlights: 

• Continued value adding transactions 
• Award of a portfolio of Italian assets, total area of 1,820.2 km2 or 449,781 acres: 
  
• Three successful offshore permit applications off the coast of Sicily 
  
• Previously discovered and produced 800,000 barrels of oil on one licence
  
• 7 million  barrels of oil mean case estimated by CPR Fugro Robinson – valued at  $350m
  
• Two successful onshore permit applications in the Po Valley
  
• Highly  prospective exploration licences, adjacent to producing fields
  

• Significant success in Morocco 
  
• New oil shale project: proven oil producing shale and exclusive new technology  
  
• Completion of aeromagnetic survey on Zag reconnaissance paves way for upgrade of licence

• Acquisition of Gold Point Energy: new development and exploration  assets 
  

• All share deal preserves cash
• New assets bring both development and exploration upside
  
• Poland: development of proven reserves, field rehabilitation and exploration  
  
• USA: field rehabilitation of previous producer

Oisin  Fanning, Chairman of San Leon commented:

“It has been an  exciting year for San Leon. We have created and then significantly improved on  an exciting portfolio of assets which we believe are easily monetiseable  through intelligent development

We also have an  excellent team on board, with regional, geological, engineering and financial  expertise.

With oil prices at  their current and predicted levels, and a fair wind behind us, I have every  reason to be confident that the next twelve months will be just as positive for  San Leon and its shareholders.”

30  June 2009

For further  information contact:

San Leon Energy Plc                                       Tel: +  353 1291 6292
    Oisin  Fanning, Chairman
  Philip  Thompson, Chief Executive Officer

Arbuthnot Securities                                       Tel: +44  (0) 20 7012 2000
    Nick  Tulloch
  Andrew Fairclough

Fox Davis Capital                                           Tel:  +44 (0) 20 7936 5230
    Jason  Bahnsen
  Oliver  Stanfield

College Hill  Associates                                   Tel:  +44 (0) 207 457 2020
    Paddy  Blewer
  Nick  Elwes

 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.

Chairman’s  Statement

Two years ago we set  out to build a strong and vibrant company. Our first priority was to achieve a  balanced portfolio of valuable assets and list on the London stock exchange. I'm pleased, that  despite turbulent times, we have succeeded and achieved these goals.

Our focus now is to  aggressively exploit these assets and create revenue and wealth on behalf of  our shareholders.

We floated the  company on the Alternative Investment Market (AIM) on September 29th  2008 at a cost exceeding one million pounds (due to the high cost of multi  jurisdiction due diligence and a comprehensive Netherland Sewell petroleum  engineers report). This was not an insignificant feat considering the economics  of the day, but with our portfolio and plans we were confident that we would be  able to create value for our shareholders on a broader stage.

Our licences are  diverse and valuable and were strategically planned from our inception. We have  been very active in Morocco,  Italy, Poland and the USA. Our assets now cover a wide  range of opportunities from the small easily accessible prospects in the USA to the multi billion unconventional oil  shale reserves in Morocco.

We were successful  in a very competitive environment in acquiring five superb permits in Italy beating two established US  organisations. These assets include the famous Narciso well abandoned in the  80’s due to collapsed oil prices and now estimated to be worth in excess of  $350 million dollars by Fugro Robertson.

We completed our  Aeromagnetic surveys and converted a reconnaissance licence in Zag, Morocco.  We also made a presentation to the Moroccan authorities demonstrating the In-Situ  technical capability of extracting oil from oil shale rock and were rewarded by  an opportunity to convert 6,000 Km2.  of prime oil shale territory in Tarfaya. Our  board of directors has been further improved with the welcome addition of Dr  Jeremy Boak, a respected expert – in every sense of the word – in the global  oil and gas exploration industry and a mentor on oil shale productivity.

Market turbulence  also created opportunity for San Leon Energy. The occasion arose to acquire  another Oil and Gas company with superb assets. We completed the acquisition of  Gold Point Energy in June 2009 on a share for share basis giving one San Leon share  for six GPE shares. Since the beginning of 2009 we supported GPE financially to  acquire valuable concessions in Poland.  These are now secure and our portfolio hugely enhanced.

The Board has been  focussed and prudent expenditure has allowed us to expand, strengthen and  create value. While our accounts (see later in the report) show a deficit for  the year it not unusual or unexpected at this developmental phase.

The future looks  good and I am pleased to report that the company is in a healthy position and  very much looking forward to the year to come.

 Oisín  Fanning

Chairman

Mission Statement

"To exploit our  portfolio of assets to create revenue and wealth"

Group income statement
  year ended 31 December 2008 

Group balance sheet

  year ended 31 December 2008

Company balance sheet

Group Cash Flow  Statement
    year  ended 31 December 2008

Paul Sullivan                                       Philip  Thompson
    Director                                                 Director
    Notes to the Financial Statements

General

San Leon Energy Plc (“the Company”) is a company  incorporated in Ireland.  The Group financial statements consolidate those of the Company with those of  its subsidiaries (together referred to as “the Group”). These consolidated  financial statements were authorised for issue by the Board of Directors on 30 June 2009.
    These results are extracted from the full annual  report which is available on the Company’s website www.sanleonenergy.com   
    The audited accounts are being posted to shareholders  today and the full audited accounts including all the notes to the accounts are  available at the Company’s website
    The notice of AGM has today been sent to shareholders  and been posted to the Company’s website.

Independent  Auditors’ Report

On behalf of the  Board

We have audited the Group and Company financial  statements of San Leon Energy Plc for the year ended 31 December 2008 which  comprise of the Group Income Statement, Group Balance Sheet, Company Balance  Sheet, Group Cash Flow, Company Cash Flow, Group Statement of Changes in  Equity, Company Statement of Changes in Equity and Notes thereon. These financial  statements have been prepared under the accounting policies set out on page 30  - 31.

This report is made solely to the Company's members as a  body in accordance with Section 193 of the Companies Act, 1990. Our audit work  has been undertaken so that we might state to the Company's members those  matters that we are required to state to them in the audit report and for no  other purpose.  To the fullest extent  permitted by law, we do not accept or assume responsibility to anyone other  than the Company or the Company's members as a body for our audit work, for  this report, or for the opinions we have formed.

Respective  Responsibilities of directors and Auditors
  The Directors' responsibilities for preparing the Annual  Report and the financial statements in accordance with applicable law and  International Financial Reporting Standards as adopted by the European Union  ("IFRS") are set out in the Statement of Directors' Responsibilities  on page 22.

Our responsibility is to audit the financial statements  in accordance with relevant legal and regulatory requirements and International  Standards on Auditing (UK  and Ireland).

We report to you our opinion as to whether the Group  financial statements give a true and fair view in accordance with IFRS as  adopted by the European Union and are properly prepared in accordance with the  Companies Acts 1963 to 2006. We also report to you to whether, in our opinion;  proper books of account have been kept by the Company; whether at the balance  sheet date, there exists a financial situation requiring the convening of an  extraordinary general meeting of the Company; and whether the information given  in the Directors' Report is consistent with the financial statements. In  addition, we state whether we have obtained all the information and  explanations necessary for the purposes of our audit and whether the company's  balance sheet is in agreement with the books of account.

We report to the shareholders if, in our opinion, any  information specified by law or the listing rules of AIM and IEX regarding  Directors' remuneration and Directors' transactions is not given and, where  practicable, include such information in our report.

We read the other information contained in the Annual  Report and consider whether it is consistent with the audited financial  statements. This other information comprises only the Directors' Report,  Chairman's Review and the Review of Activities. We consider the implications  for our audit report if we become aware of any apparent misstatement or  material inconsistencies with the financial statements. Our responsibilities do  not extend to any other information.

Basis of opinion
  We conducted our audit in accordance with International  Standards on Auditing (UK  and Ireland)  issued by the Auditing Practices Board. An audit includes examination, on a  test basis, of evidence relevant to the amounts and disclosures in the  financial statements. It also includes an assessment of the significant  estimates and judgements made by the directors in the preparation of the financial  statements, and whether the accounting policies are appropriate to the  Company's circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all  the information and explanations which we considered necessary in order to  provide us with sufficient evidence to give reasonable assurance that the  financial statements are free from material misstatement, whether caused by  fraud or other irregularity or error. In forming our opinion we also evaluated  the overall adequacy of the presentation of information in the financial  statements.

Opinion
  In our opinion 

 
• the Group financial statements give a true  and fair view, in accordance with IFRSs as adopted by the EU, of the state of  the Group's affairs as at 31 December 2008 and of its loss for the year then  ended; 
 
• the Company financial statements give a true  and fair view, in accordance with IFRSs as adopted by the EU and as applied in  accordance with the provisions of the Companies Acts, 1963 to 2006, of the  state of the Company's affairs as at 31 December 2008; and 
 
• the financial statements have been properly  prepared in accordance with the Companies Acts, 1963 to 2006.

We have obtained all the information and explanations we  consider necessary for the purposes of our audit. In our opinion proper books  of account have been kept by the Company. The balance sheet is in agreement  with the books of account.

In our opinion the information given in the Directors'  Report is consistent with the financial statements.

The net assets of the Company, as stated in the Balance  Sheet on page 28, are more than half of the amount of its called up share  capital and, in our opinion, on that basis there did not exist at 31 December  2008 a financial situation which under Section 40(1) of the Companies  (Amendment) Act 1983 may require the convening of an extraordinary meeting of  the Company.

Emphasis of Matter
    In forming our opinion, which is not qualified, we have  considered the adequacy of disclosures made in Note 9 to the financial  statements in relation to the Directors' assessment of the carrying value of  the Group's deferred exploration costs amounting to €30,570,840. The  realisation of the intangible assets is dependent on the successful development  or disposal of oil and gas in the Group's licence areas. The financial  statements do not include adjustments that would result to the financial statements  if the group could not recover the full carrying value of its deferred  exploration costs.

Barr Pomeroy
    Chartered  Accountants and
    Registered Auditors
    21    Herbert Place
    Dublin 2
  Ireland

Date: 26 June 2009

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• San_Leon_Final_results.pdf