Expansion of Gas Acreage (7090E)

TIDMSLE

RNS Number : 7090E

San Leon Energy PLC

06 June 2012

6 June 2012

San Leon Energy Plc

("San Leon" or the "Company")

Expansion of Unconventional Gas Acreage in Poland

San Leon is pleased to announce the purchase of 75% working interests of certain Polish assets held by Hutton Energy Plc ("Hutton") with a view to jointly developing the assets.

The concession areas to be jointly developed include:

 
 Baltic Basin    Prabuty Po udniowe   118,611 acres 
 
 Carboniferous   Wielun               219,430 acres 
                 Olesnica             286,642 acres

San Leon will acquire a 75% working interest in the three Polish concessions for USD 15 million payable in San Leon shares at an agreed price of 11.24 pence per San Leon share and based on an exchange rate of approximately 1.55 US$ per GBP. Hutton have agreed that its San Leon shares will be held in escrow for 12 months from the date of issuance of the shares. Hutton will be carried on all seismic work and associated G&A which will be performed by NovaSeis, San Leon's seismic acquisition subsidiary. Upon completion of the transaction San Leon will become the operator of the Concessions. A further announcement will be made following completion of the transaction which is expected within four weeks at which point the new San Leon shares will be issued to Hutton and then held in escrow by San Leon.

Hutton's 25% working interest would be reduced by 5% if it did not participate in the first exploration well on each concession and would be further reduced by an additional 5% if it did not participate in the second exploration well on each concession.

This acquisition further expands San Leon's Polish unconventional gas acreage by an additional 468,512 net acres in two highly prospective basins. The addition of these new concessions increases San Leon's position in the Baltic Basin to 900,255 net acres; and in the Carboniferous Basin to 1,588,147 net acres.

Oisin Fanning, Chairman of San Leon, commented:

"We are very excited to continue to expand and diversify our prospective acreage position in Poland. We see this partnership with Hutton Energy Plc as being a very positive one in that they also bring significant north American unconventional gas experience to the venture. Our focus on the huge upside potential of the Baltic and Carboniferous Basins follows the company's strategy of building a portfolio of high potential assets. We see this agreement with Hutton as a real positive for San Leon as the addition of this acreage gives us an unprecedented acreage position in Poland."

For further information contact:

 
 San Leon Energy Plc                  Tel: + 353 1291 6292 
 Oisin Fanning, Executive Chairman 
 John Buggenhagen, Exploration 
  Director 
 Macquarie Capital (Europe) Limited   Tel: +44 (0) 20 3037 2000 
 Paul Connolly 
 John Dwyer 
 Westhouse Securities                 Tel: +44 (0) 20 7601 6100 
  Richard Johnson 
 Antonio Bossi 
 College Hill                         Tel: +44 (0) 20 7457 2020 
 Nick Elwes

www.sanleonenergy.com

This information is provided by RNS

The company news service from the London Stock Exchange

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