San Leon Energy Plc has sold its Polish assets to its partner Palomar Natural Resources.
The sale comes as the company continues to focus on its recently acquired Nigerian business.
It sold the 35% interest in the assets, which primarily comprises the Rawicz gas field, for a cash consideration of US$9mln and the release of its liabilities to the assets – namely US$3mln of loans advanced by Palomar to cover costs of drilling and testing of two wells.
The company’s Poznan assets, 35% owned, are sold for a nominal fee and a royalty.
San Leon receives US$2.2mln upon closing, a further US$2.3mln is to follow before the end of this month and the remaining US$4.5mln by the end of October 2017.
Oisin Fanning, San Leon chief executive, said: “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.
“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 licence fees or overheads on the assets sold.”
By Jamie Ashcroft
Source: Proactive Investors
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