26th Sep 2013 08:29
LONDON (Alliance News) - San Leon Energy PLC Thursday said it will sell its Irish assets, Island Oil & Gas Ltd, to Ardilaun Energy Ltd for USD3 million in cash and a 20% stake in Ardilaun.
San Leon Energy will keep its net profit interest in the Barryroe Licence, located in the North Celtic Sea, but all the other assets of Island Oil & Gas are included in the sale.
Ardilaun will pay USD1 million of the cash component immediately and the balance with 12 months of the deal being completed.
"The proposed transaction will enable San Leon Energy to retain a material carried interest in its Atlantic Margin and North Celtic Sea portfolio through its shareholding in Ardilaun, whose core focus will be on creating value from these Irish assets," San Leon Chairman Oisin Fanning said in a statement.
"San Leon will have no further exposure to abandonment costs on these assets if and when they become due and will also benefit from a cash consideration of USD3 million, further supporting our operational focus in Poland, Morocco and Turkey, where our recently announced transaction is subject to completion and approval from the authorities," he added.
San Leon's shares were down 2.6% at 4.95 pence early Thursday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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