San Leon Energy Confirms Bid Approach

San Leon Energy plc’s board confirmed Monday that it has received a bid approach that could lead to an offer being made for the company.

In a statement on San Leon’s website, the company said:

“The board of San Leon confirms that it has received an approach from a possible party that may or may not lead to an offer being made for San Leon. This announcement does not constitute an announcement of a firm intention to make an offer under Rule 2.5 of the Takeover Rules. There can be no certainty that an offer will be made or as to the terms on which any offer might be made. A further announcement will be made, as appropriate, in due course.”

The news follows the company’s June 1 announcement in which it conditionally agreed to raise $44.1 million from existing and new shareholders, which will be used to fund the firm’s development. The proposed funds would enable San Leon to retain the Barryroe NPI (Net Profits Interest) rather than monetizing it to fund operations, according to the company. Barryroe, which is operated by Providence, is located in the North Celtic Sea basin and was discovered by Esso in 1973. San Leon expects cash flow in excess of $700 million dollars to arise out of the NPI, based on internal economic calculation.

San Leon Energy manages oil and gas projects in a number of countries, including Poland, Albania, Morocco, Spain, Ireland, France and Romania. According to the company’s website, its current main focus is on Poland, Albania and Morocco.