-----just thought I'd remind everyone that when we were talking about near term production from Turkey the SP was 4.75.-----Now we are talking of the same if not even better production, and the SP is 3p-----I know this production is a few months away, but we are so undervalued at these levels, with a mkt cap of only £75 mill, a move back over 4p (100 mill) should be easy peasy from here. - -----LINKS----well done mate for keeping the faith and taking all the flack.
Highest one day rise for Sle. From rock bottom maybe but rise backed by precise clear forward news and production plans along with extra cash in the bank too.market was looking for both hence high volume and matching rise. More too come. Not selling for a long while£.
seals US$20mln deal to unlock the value of Polish gas assets
By Ian Lyall
---ADDS SHARE PRICE, BROKER AND COO COMMENT---
Shares in San Leon Energy (LON:SLE) soared almost 30% after said it had struck a joint venture agreement in Poland that will see the oil and gas junior receive US$20mln in upfront payments.
Under the terms of the deal, Palomar Natural Resources, founded by John Buggenhagen, former exploration director of San Leon, and Robert Price, will take 65% stakes in the Siekierki and Rawicz gas fields.
Additionally, the AIM listed explorer will be carried “for a defined initial work programme” aimed at bringing the two fields, in the country’s southern and northern Permian basins, into production as soon as possible.
San Leon chairman Oisin Fanning said: "I am delighted to be working again with John Buggenhagen, former exploration director of San Leon, who knows these assets as well as anybody.
“PNR bring a team of US based industry experts who have the expertise to maximise production and ultimate recovery from these significant gas fields.
“The receipt of the up-front cash payments, and the execution of work programmes on Rawicz and Siekierki to target early production, put San Leon on a strong footing and will provide a basis for continued production growth throughout the company's portfolio."
The shares rose 41% to 2.8p in morning trade, although broker Westhouse reckons the stock is worth 7.6p, while finnCap has a 15p price target.
Westhouse analyst Mark Henderson said:“[The company] has had a few false starts over the past 12 months (it did not complete Alpay Enerji deal in Turkey, TransAtlantic farm-in has lapsed) and needs to create some operational momentum in the business.”
The next potential catalyst is the spudding of the Sidi Moussa well, offshore Morocco.
Operated by Genel it is targeting 300mln barrels of oil. San Leon has an 8.5% carried interest.
Joel Price, San Leon’s chief operating officer, told Proactive Investors that deal constituted a number of significant moved forward for the company.
“First, it dispels any issue over cash in one fell swoop.
“Second, we are completing what was previously seen as two separate deals, both targeting production and cash flow in the near term.
“And the third point is that we have not just signed a letter of intent here. This is a completed deal. It adds credibility and confirms we are good at what we do.
“We good are working things up technically, at adding value by attracting partners and selling on, and that we are moving from exploration to production, which is another very important point.“
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