San Leon Energy PLC Disposal of certain concessions in Poland (1727R)
September 19 2017 - 6:50AM
UK Regulatory
TIDMSLE
RNS Number : 1727R
San Leon Energy PLC
19 September 2017
19 September 2017
San Leon Energy Plc
("San Leon", "SLE" or the "Company")
San Leon Energy enters into definitive agreements to dispose of
certain concessions in Poland
San Leon Energy Plc, the AIM listed oil and gas exploration and
production company focused on Africa and Europe, today is pleased
to announce that it has entered into a series of definitive
agreements with TSX-Ventures listed Horizon Petroleum Ltd.
("Horizon") (TSXV: HPL) regarding the disposal of, through
wholly-owned subsidiaries and other SLE-controlled entities, 100%
interests in two oil & gas concessions in Poland known as
Cieszyn and Bielsko-Biala (the "Primary Concessions"), plus 100%
working interests in two additional oil & gas concessions in
Poland known as Prusice and Kotlarka, and another concession which
is under application (together the "Secondary Concessions").
Horizon previously paid a non-refundable deposit of US$100,000
and advanced a loan of US$100,000, as part of this transaction.
The consideration for the acquisition of the Primary Concessions
is:
1. US$1,000,000 in cash, less the US$100,000 loan, for a net cash payment of US$900,000.
2. C$1,000,000 worth of common shares in the capital of Horizon
("Horizon Shares") based on Horizon meeting specific issuance
terms. The Horizon Shares are to be issued at the lesser of a)
C$0.20 per share, b) the lowest price per share at which Horizon
completes an equity placement for a minimum of C$1 million, up to
but not including the date of closing of the acquisition (the
"Completion Date"), and c) the volume weighted average price per
Horizon Share for the period of 10 trading days immediately prior
to the Completion Date. If Horizon is unable to meet the specific
issuance terms by the Completion Date, it will be required to pay
San Leon the equivalent value of the Horizon Shares in cash
3. A 6% net profits interest on each concession.
The consideration for the acquisition of the Primary Concessions
is payable on closing of the transaction which is subject to a
number of conditions, including certain approvals by the government
in Poland, as well as the approval of the TSX Venture Exchange.
The consideration for the acquisition of the Secondary
Concessions is 10,000 Euros per concession, plus a 6% net profits
interest on each concession. Closing of the Secondary Concessions
transaction is also subject to a number of conditions including the
closing of the acquisition of the Primary Concessions and the
consent of the Irish Takeover Panel.
Separately, San Leon has entered into definitive agreements with
Gemini Resources Limited, a United Kingdom company, ("Gemini") to
dispose of, through wholly-owned subsidiaries and other
SLE-controlled entities, 100% interests in two further oil &
gas concessions in Poland known as the Gora and Nowa Sol
Concessions.
Gemini shall pay a nominal cash consideration of one euro plus a
5% net profits interest on each concession. Closing of the disposal
to Gemini is subject to certain approvals by the government of
Poland.
The disposal of these six concessions in Poland reduces San
Leon's expenditure on non-core assets whilst retaining future net
profit interests in the case of development success. The disposals
represent a loss of approximately EUR400,000 over the book value of
assets, after adjusting for the reduction in San Leon's
decommissioning liabilities.
Following the disposal, the Company holds the following
unconventional exploration licences in Poland:
Baltic Basin - Gdansk West & Szczawno Concessions.
Enquiries:
+ 353 1291
San Leon Energy plc 6292
Oisin Fanning, Chief Executive
SP Angel Corporate Finance LLP (Nominated +44 20 3470
adviser to the Company) 0470
Richard Morrison
Ewan Leggat
Soltan Tagiev
Whitman Howard Limited (Financial +44 20 7659
adviser to the Company) 1234
Nick Lovering
Brandon Hill Capital Limited (Joint +44 203
broker to the Company) 463 5000
Oliver Stansfield
Jonathan Evans
Vigo Communications (Financial Public +44 207
Relations) 830 9700
Chris McMahon
Alexandra Roper
+353 1 280
Plunkett Public Relations 7873
Sharon Plunkett
This information is provided by RNS
The company news service from the London Stock Exchange
END
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