Netherlands

San Leon is the ultimate beneficiary of a 1% royalty interest in relation to the Block Q13A (the Amstel Oil Field), offshore Netherlands, pursuant to an Overriding Royalty Agreement entered into with Encore Oil as part of a sale and purchase agreement signed in 2007. Taqa subsequently purchased the interest from Encore Oil.

Production from the Amstel Field started in 2014 but no royalties have yet been received as Taqa has stated they are not liable for the royalty and it is not due and payable to San Leon. The matter is currently the subject of legal proceedings. The royalty would be payable from the date revenues exceeded capital and operating expenditure.