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10 Mar 2011 07:00
SAN LEON ENERGY
("San Leon" or the "Company")
Government approves assignment of OMV interest in Rockall Licence to San Leon Energy
OMV pays San Leon GBP3 million on completion of transaction
Further to an announcement made on 12 January San Leon Energy P.l.c., ("San Leon" or the "Company") is pleased to announce that the Irish government has granted formal approval for the transfer of the OMV (Ireland) Killala Exploration GmbH ("OMV") interest in Irish Continental Shelf Petroleum Exploration Licence No: 3/05 (the "Rockall Licence") to San Leon.
An Addendum to the Rockall Licence was executed between San Leon, OMV and the Irish government. OMV has paid the Company GBP3 million cash and assigned its 50% beneficial interest to San Leon, thereby giving the Company a 100% interest in the licence, effective immediately.
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 licenses, including the Rockall Licence which comprises the Killala and Kingfisher prospects.
Oisin Fanning, Executive Chairman of San Leon, commented:
"The Rockall Licence offers two prospects with significant exploration upside and we are excited by the potential to bring in new partners seeking interests in the Atlantic Margin. We are now in a position to farm out this asset on a 100% basis. Coupled with the near completed interpretation of our 2010 3D seismic data over the Slyne area, San Leon continues to enhance the value of its Atlantic Margin portfolio."
10 March 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.
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