San Leon Energy PLC Genel Energy to farm-in to Sidi Moussa Block (6014K)
August 23 2012 - 2:00AM
UK Regulatory
TIDMSLE
RNS Number : 6014K
San Leon Energy PLC
23 August 2012
23 August 2012
San Leon Energy Plc
("San Leon" or the "Company")
Genel Energy to farm-in to San Leon's Sidi Moussa Block,
offshore Morocco
San Leon is pleased to announce that it has signed a farm-in
agreement with Genel Energy Plc ("Genel") under which Genel has
committed to drilling an exploration well in the Sidi Moussa Block,
offshore Morocco ("Sidi Moussa" or "Block").
Under the agreement, Genel will acquire a 60% equity interest in
Sidi Moussa, pro rata from each of San Leon, Serica Energy plc
("Serica") and Longreach Oil and Gas Ventures Limited ("Longreach")
(together the "Partners"). In return, Genel will pay its equity
interest share of past costs, being US$1.3 million (US$736,667 net
to San Leon) and pay for the drilling and exploration well up to a
cap of US$50 million. The agreement is subject to necessary
Moroccan Authorities approvals.
Genel has also committed to providing the $16.5 million bank
guarantee required by the Moroccan Authorities to enter the First
Extension Period.
Pre completion of the farm-in agreement, San Leon Energy held a
42.5% net operated interest in the block, Serica held 25% and
Longreach held 7.5%. ONYHM, the National Bureau of Petroleum and
Mines holds Morocco (25%).
Post farm-in, Genel will hold a 60% net operated interest, San
Leon Energy will hold 8.5%, Serica will hold 5% and Longreach will
hold 1.5%. ONYHM, the National Bureau of Petroleum and Mines will
continue to hold 25%.
The Partners have already informed the Moroccan authorities of
their intention to proceed into the First Extension Period, which
contains a commitment to drill an exploration well.
Executive Chairman, Oisin Fanning commented:
"We are delighted to welcome Genel Energy into this Block. San
Leon committed itself to carrying out extensive work offshore
Morocco in the past two and a half years and this farm-in agreement
is the next step up. Sidi Moussa, while underexplored, contains
very large mapped prospects and we look forward to drilling an
exploration well, which will most likely be in 2014 as per the
licence commitments.
This is deep water exploration and this deal reduces our
financial exposure but keeps our interest at a level which still
offers attractive upside for our shareholders."
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
Fox Davies Capital Tel: +44 (0) 20 3463 5000
Daniel Fox-Davies
Oliver Stansfield
FirstEnergy Capital LLP Tel: +44 (0) 20 7448 0200
Hugh R. Sanderson
David Van Erp
Westhouse Securities (Nominated Tel: +44 (0) 20 7601 6100
Advisor)
Richard Johnson
Antonio Bossi
College Hill Associates Tel: +44 (0) 20 7457 2020
Nick Elwes
Alexandra Roper
www.sanleonenergy.com
Qualified person
John Buggenhagen, who has reviewed this update, has over 15
years' experience in the oil & gas industry. He has a Ph.D. and
M.Sc. in Geophysics from the University of Wyoming and a B.Sc. in
Geophysics from the University of Arizona. He is currently the
Director of Exploration for the San Leon Energy Group and based in
San Leon's Warsaw office in Poland.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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