San Leon Sells Interest in Irish Assets
- Business & Finance
San Leon Energy, the oil and gas exploration and development company focused on projects in Poland, Morocco and Turkey announces that it has signed Binding Heads of Agreement in respect of the sale of Island Oil & Gas Limited to Ardilaun Energy Limited.
Island Oil & Gas is a wholly owned subsidiary of San Leon Energy. The Proposed Transaction includes the sale of the Company’s working interests in the Atlantic Margin, namely FEL 1/04 (North Porcupine), FEL 3/05 (Rockall), FEL 3/08 (South Porcupine), FEL 4/06 (Slyne) and Licencing Option 11/13 (Slyne Option). The Proposed Transaction also includes the sale of the Company’s working interests in the Celtic Sea, namely the Seven Heads Gas Field, SEL 4/05 (Old Head of Kinsale) and SEL 5/05 (Schull). San Leon Energy’s Net Profit Interest (“NPI”) in the Barryroe Licence, located in the North Celtic Sea, will be excluded from the Proposed Transaction and retained by San Leon Energy.
Under the terms of the Proposed Transaction, Ardilaun has agreed to pay San Leon Energy US$3 million, with US$1 million payable immediately and the balance of US$2 million payable within twelve months of the completion of the Proposed Transaction. The Purchaser has also agreed to issue to San Leon Energy, shares equivalent to 20 per cent of the enlarged issued share capital of Ardilaun post-completion of the Proposed Transaction and prior to its intended listing on an international exchange.
The Proposed Transaction will be subject to any necessary approvals and consents.
Oisin Fanning, Executive Chairman of San Leon Energy, commented:
“The Proposed Transaction will enable San Leon Energy to retain a material carried interest in its Atlantic Margin and North Celtic Sea portfolio through its shareholding in Ardilaun, whose core focus will be on creating value from these Irish assets. San Leon will have no further exposure to abandonment costs on these assets if and when they become due and will also benefit from a cash consideration of US$3 million, further supporting our operational focus in Poland, Morocco and Turkey, where our recently announced transaction is subject to completion and approval from the authorities.”
Press Release, September 26, 2013