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12 Jan 2011 07:00
SAN LEON ENERGY
("San Leon" or the "Company")
OMV pays San Leon Energy £3 million to exit Rockall Licence
San Leon Energy P.l.c., ("San Leon" or the "Company") announces that, subject to Irish governmental approval, OMV (Ireland) Killala Exploration GmbH ("OMV") has agreed to pay £3 million to San Leon to be removed from the Irish Continental Shelf Petroleum Exploration Licence No: 3/05 (the "Rockall Licence") and assign San Leon with 100% interest in the licence.
OMV and San Leon, through a subsidiary, currently each hold an undivided legal interest and 50% beneficial interest in the Rockall Licence. Subject to government approval, OMV will assign its 50% interest to San Leon and pay San Leon £3 million.
The agreement will become effective upon receiving Irish government consent and executing a deed of assignment between the respective parties. San Leon is currently engaged in a farm out process relating to its Irish Atlantic Margin assets with significant equity being made available on all licences, including the Rockall Licence which comprises the Killala and Kingfisher prospects.
Oisin Fanning, Executive Chairman of San Leon Energy, commented:
"In line with our strategy of farming-out our Atlantic Margin assets, we are now in a position to farm out this asset on a 100% basis. The upcoming results of the 3D seismic over the Slyne field should further help to de-risk and enhance the value of these assets."
12 January 2011
ENQUIRIES
San Leon Energy plc |
Oisin Fanning, Executive Chairman | +353 1291 6292 |
John Buggenhagen, Director of Exploration | ||
Macquarie Capital (Europe) Limited | +44 (0) 3037 2000 | |
John Dwyer | ||
Paul Connolly | ||
Ben Colegrave | ||
Fox-Davies Capital Limited | +44 (0) 203 463 5010 | |
Phil Davies | ||
David Porter | ||
Arbuthnot Securities Limited |
Nominated Adviser |
+44 (0) 20 7012 2000 |
Nick Tulloch | ||
Ben Wells | ||
College Hill | Investment Relations Adviser | +44 (0) 20 7457 2020 |
Nick Elwes |
Note to Editors:
Killala is located on the Erris Ridge, a longstanding feature separating the Slyne-Erris and Rockall basins. As such it benefits from dual sourcing potential, with hydrocarbon systems proven on both sides, by the Dooish Gas Condensate discovery on the Rockall side and the Corrib Gas Field on the Slyne-Erris side. The mapped structure at Killala has more than 1000m of closure at the Top Sherwood Sandstone level. The structure at Kingfisher consists of a large tilted fault block with an interpreted 500m of closure at top Sherwood Sandstone level. In addition, Jurassic sandstones are prospective for oil at Kingfisher, a fact highlighted by the 2009 Slyne Basin 27/4-1 oil discovery. San Leon plans to acquire 800 km2 of 3D seismic over the Rockall Licence in 2011
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