Last checked at 31 Jan 2013 07:00
31 January 2013
San Leon Energy Plc
("San Leon" or the "Company")
Completion of Foum Draa Farm-Out
Highlights
·; San Leon Finalises farm-out to Cairn Energy PLC (Cairn)_of Foum Draa Block, Offshore Morocco
·; Exploration well targeted for Q4 2013
Following the Company's announcement of the farm-out agreement with Cairn Energy Plc ("Cairn") on 28 August 2012, San Leon is pleased to announce that all parties have now received full Moroccan Authorities approval of the assignment of interest in the Foum Draa farm-out agreement..
Cairn has now assumed operatorship of the Foum Draa block, offshore Morocco ("Foum Draa" or "Block") and plans to drill an exploration well targeting a Lower Cretaceous objective in Q4 2013.
Cairn has acquired a net 50% operated equity interest in Foum Draa, pro rata from each of San Leon, Serica Energy plc ("Serica") and Longreach Oil and Gas Ventures Limited ("Longreach") (together the "Partners"). In return, Cairn will now pay its equity interest share of past costs, being US$1.5 million (US$850,000 net to San Leon) and pay the first US$60 million towards the drilling of the commitment exploration well.
San Leon Energy now holds a net operated interest of 14.17%, Serica holds 8.33% and Longreach holds 2.5% in the Foum Draa Block. ONHYM, the National Bureau of Petroleum and Mines will continue to hold 25%.
Executive Chairman, Oisin Fanning commented:
"We would like to thank the Moroccan Authorities for their approval of this transaction which now clears the way for the drilling of our first exploration well offshore Morocco. Depending on rig availability the current target is to drill the well this year. This Block contains mapped prospects and the farm-out agreement reduces our financial exposure but keeps our interest at a level which still offers attractive upside for our shareholders."
For further information contact:
San Leon Energy Plc | Tel: +353 1291 6292 |
Oisin Fanning, Executive Chairman | |
John Buggenhagen, Exploration Director | |
Macquarie Capital (Europe) Limited | Tel: +44 (0) 20 3037 2000 |
John Dwyer | |
Fox Davies Capital | Tel: +44 (0) 20 3463 5000 |
Daniel Fox-Davies | |
Richard Hail | |
FirstEnergy Capital LLP | Tel: +44 (0) 20 7448 0200 |
Hugh R. Sanderson | |
David van Erp | |
Westhouse Securities (Nominated Advisor) | Tel: +44 (0) 20 7601 6100 |
Richard Johnson | |
Antonio Bossi | |
College Hill Associates | Tel: +44 (0) 20 7457 2020 |
Rupert Trefgarne | |
Alexandra Roper |
www.sanleonenergy.com
Qualified person
John Buggenhagen, who has reviewed this update, has over 15 years experience in the oil & gas industry. He has a Ph.D. and M.Sc. in Geophysics from the University of Wyoming and a B.Sc. in Geophysics from the University of Arizona. He is currently the Director of Exploration for the San Leon Energy Group and based in San Leon's Warsaw office in Poland.