San Leon Energy PLC Arbitration Award and Appeal (1674O)
May 26 2015 - 2:01AM
UK Regulatory
TIDMSLE
RNS Number : 1674O
San Leon Energy PLC
26 May 2015
26 May 2015
San Leon Energy PLC
("San Leon" or "the Company")
Arbitration Award and Appeal
San Leon Energy plc ("the Company" or "San Leon"), the AIM
listed company focused on oil and gas exploration in Europe and
North Africa, provides an update on the proceedings in the
International Court of Arbitration of the International Chamber of
Commerce, regarding the assets of Energia Zachód Sp. z
o.o.("EZ").
As announced on 11 April 2013, the Company received notice from
the Secretariat of the International Court of Arbitration of the
International Chamber of Commerce ('ICC') confirming the submission
of a Request for Arbitration ("Request") by Avobone N.V. and
Avobone Poland B.V. (together, "Avobone") in relation to the
purchase by Aurelian Oil & Gas, San Leon's subsidiary, of
Avobone's 10% shares and loans in Energia Zachód Sp. z o.o. - the
titleholder of the Siekierki asset.
At the time San Leon reviewed the Request with counsel and
believed the claims to be substantially without merit. San Leon
contested these claims robustly at the hearing of the Court of
Arbitration and believed it had a material advantage in the
case.
The findings of the Court of Arbitration were received by the
Company on Saturday 23rd May 2015, and provide for a total payment
by Aurelian Oil & Gas (a subsidiary of San Leon plc) of
approximately GBP13 million including costs. Two-thirds of the main
award relates to the repayment of a loan provided by Avobone to
Aurelian. In Aurelian's view, this loan was a standard
industry-practice mechanism that was used to fund Avobone's share
of the drilling and other field-related costs in a tax-efficient
manner, and should only have been repayable had Avobone exited
after the field had generated sufficient cashflow to repay the
loan. As of the timing of Avobone's exit in early 2013, the field
had yet to generate cashflow.
Following consultation with counsel, the Company remains
convinced that Avobone's case is substantially without merit, and
that the findings of the Court of Arbitration constitute a "serious
procedural irregularity", as set forth by the UK Arbitration Act
1996 for challenging an arbitral award, and therefore provides
grounds for appeal. The Company is thus filing an immediate appeal
with the UK Commercial Court and will defend its position
vigorously. The Company understands that such an appeal would
likely take at least nine months.
The Company will provide a further update in due course.
For further information contact:
San Leon Energy plc
Oisin Fanning, Executive
Chairman +353 1291 6292
finnCap Ltd
Corporate Finance
Matt Goode
Christopher Raggett
Corporate Broking +44 (0) 20
Joanna Weaving 7220 0500
Brandon Hill Capital
Oliver Stansfield +44 (0) 20
Jonathan Evans 3463 5000
Macquarie Capital
(Europe) Limited
Jon Fitzpatrick +44 (0) 20
Nicholas Harland 3037 2000
Westhouse Securities
Ltd
Nominated Adviser
Richard Johnson +44 (0) 20
Antonio Bossi 7601 6100
Vigo Communications
Financial Public
Relations
Chris McMahon +44 (0) 20
Alexandra Roper 7016 9572
Plunkett Public Relations +353 (0) 1
Sharon Plunkett 280 7873
www.sanleonenergy.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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