San Leon Sells 2 Polish Onshore Assets

San Leon Energy has signed and completed sales agreements for its interests in two Polish onshore assets with Palomar Natural Resources.

The company sold its 35 percent interest in the Rawicz gas field for a cash consideration of S$9 million, and the release of certain San Leon liabilities.  These liabilities include loans which were advanced by Palomar to the company as a temporary carry of the drilling and testing costs of the Rawicz-12 and Rawicz-15 wells, and amount to approximately $3 million.

San Leon has also sold its 35 percent interest in the Poznan assets (largely the Siekierki field) for a consideration of $1.06, plus a 10 percent net profit interest. The NPI removes any further cost exposure to San Leon, while providing an interest in any future profits made by Palomar on the Poznan assets.

The first $2.2 million will be payable on closing, the next $2.3 million by Nov. 30 and the remaining $4.5 million is due to be paid to San Leon on or before Oct. 1, 2017. 

“The sale of certain Polish assets is a natural further step in focusing the company’s financial and management resources on the world-class OML 18 asset in Nigeria, as per the company’s stated strategy,” Chief Executive Officer, Oisin Fanning, said.

“The sale price achieved is very similar to the carrying value of those assets in the latest audited financial statement, after the liabilities release is applied, and is considered by the board to be full and fair. It also reduces overheads costs through a downsizing of the Polish office, and no further license fees or overheads on the assets sold,” he added.