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

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November 08, 2016 02:00 ET (07:00 GMT)