San Leon Energy Drops Polish Licenses to Cut Costs
San Leon Energy announced Tuesday that it is removing a number of Polish licenses from its portfolio, in order to reduce costs.
The license reduction operation is part of the company’s new long term strategy, announced in June 2015, which will see San Leon reduce the exploration component of its portfolio and focus on appraisal, development and production. This will secure near-term operational cash flow, according to the company. As part of the Polish license reduction operation, San Leon is dropping the Czersk, Budzów, Ilawa and Praszka licenses, as well as the Bieszczady area, which contains Blocks 437, 438, 456, 457, 458 and the company’s interest in partial Blocks 416, 417 and 436.
Oisin Fanning, San Leon executive chairman, commented in a company statement:
"As part of the company’s new strategy to focus on development and production, enabling San Leon to transform into a near-term cash-generating producer, the company has made the decision to remove some of its Polish acreage. The decision is also required as a result of the introduction of significant yearly license fees in Poland over the past couple of years. The company remains committed to its remaining acreage in Poland, which includes the Baltic Basin shale licenses and the recently announced gas discovery at the Rawicz field.
"This portfolio adjustment is just one of a number of actions the company will be taking over the coming months to execute the new strategy and we look forward to updating shareholders in due course."
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