San Leon Energy PLC Settlement with Avobone (5531O)
November 08 2016 - 2:00AM
UK Regulatory
TIDMSLE
RNS Number : 5531O
San Leon Energy PLC
08 November 2016
08 November 2016
San Leon Energy plc
Settlement with Avobone
On 7 November 2016, Avobone N.V. and Avobone Poland B.V.
("Avobone") (together, "Avobone") and San Leon Energy Plc ("San
Leon") settled a number of ongoing disputes between them and
between Avobone and certain of San Leon's subsidiaries, including
Aurelian Oil & Gas Limited, Aurelian Oil & Gas Poland Sp.
z.o.o, Energia Zachod Holdings Sp. z.o.o and AOG Finance Limited,
in Poland, Netherlands, Ireland, England & Wales in respect of
various matters including a final award in an ICC arbitration dated
21 May 2015. The total settlement of EUR23.3 million plus interest
to be paid to Avobone by San Leon will be paid as follows, with
EUR2.0 million being paid by 21 November 2016, EUR8.0 million by 28
April 2017, EUR8.0 million by 16 October 2017 and EUR5.3 million by
30 December 2017. Interest will accrue at a rate of 5% per annum on
instalments until paid.
The provision made in the 2015 audited accounts for the Avobone
dispute was approximately EUR20.6 million. The difference been the
settlement figure and the provision is due to interest, exchange
rate fluctuations, and further legal costs.
San Leon is confident that this settlement will not affect the
previously-announced capital distribution policy, whereby 50% of
free cash flow from San Leon's interest in the OML 18 asset will be
returned to shareholders via either share buybacks or dividends for
five years.
Enquiries:
San Leon Energy plc
Oisin Fanning, Executive
Chairman +353 1291 6292
Brandon Hill Capital
Limited
Joint Broker
Oliver Stansfield +44 (0) 20
Jonathan Evans 3463 5000
SP Angel Corporate Finance
LLP
Nominated Adviser and
Joint Broker
Ewan Leggat +44 (0) 20
Richard Morrison 3470 0470
Whitman Howard Limited
Joint Broker
Nick Lovering +44 (0) 20
Francis North 7659 1234
Vigo Communications
Financial Public Relations
Chris McMahon +44 (0) 20
Alexandra Roper 7830 9700
Plunkett Public Relations +353 (0) 1
Sharon Plunkett 280 7873
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCAKODNDBDBNDK
(END) Dow Jones Newswires
November 08, 2016 02:00 ET (07:00 GMT)