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LONDON (Alliance News) - San Leon Energy PLC Tuesday said it is "poised to generate cash flow" from 2016, as it posted a widened pretax loss for 2014 as a result of losses it made on the disposal of subsidiaries.
San Leon Energy is an oil and gas exploration company focused in Europe and North Africa. During the period the company exited Germany and Slovakia, and relinquished all or part of a number of Polish licences. This made up part of its efforts to reduce costs, and as part of these efforts Executive Chairman Oisin Fanning has agreed to take 80% of his salary in shares starting from the beginning of 2015.
The company posted a pretax loss of EUR37.4 million for 2014, widened from a pretax loss of EUR13.7 million in 2013, as revenue was broadly flat at EUR2.9 million compared to EUR3.0 million, mostly as a result of a big jump in administrative expenses and a EUR6.4 million loss on the disposal of subsidiaries.
Following the year end San Leon proposed a placing to raise GBP29 million and a share capital reorganisation, which it said will allow it retain and benefit from its assets and execute activities across its portfolio.
"I believe San Leon now has the critical mass to capitalise on its cash flow and existing assets and to deliver the shareholder value that we have been working towards," Fanning said in a statement.
Shares in San Leon are trading up 2.3% at 0.920 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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