REG - San Leon Energy PLC - Comment on operatorship of OML 18

San Leon EnergyAnnouncement

07/03/2023 08:15

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RNS Number : 1299S  San Leon Energy PLC  07 March 2023

 

 

7 March 2023

San Leon Energy plc

("San Leon" or the "Company")

 

Comment on operatorship of OML 18

 

San Leon, the independent oil and gas production, development and exploration
company focused on Nigeria, notes the statement published in Nigeria on 6
March 2023 about the operation of the Oil Mining License (OML) 18 ("OML
18").

 

The Company has been made aware of a statement on the Nigerian Petroleum
Development Company Ltd
(https://www.google.com/search?rlz=1C1ONGR_en-GBGB947GB947&sxsrf=AJOqlzUdM7R-AO8JebyUL2UtPCDsdxsOPw:1678171466675&q=Nigerian+Petroleum+Development+Company+Ltd&si=AEcPFx7eHRJU0tWbjC5cc2C2rVygfPuoetC2JDc0IDqLp89f-MOKpWSvRIqICGijn1L2ToP4lKY4FezFOyCCaEpuFbzRFEdz36dxKd-JrTqS1TKRbU9lOb8BKwcq-4gabeidtG1ABRke4uwd_N7fkaRgf1EH_qcF8lK54Jl3czjCPWXfcO8ZzHO09b8jMDIVmmzsaca2KvfxT9GefnWzJwgAoUEaQ7Pqs1LQkQQEpqf000a5nLY8rSnOhrQmukWG15bnZqV-Em3YDowj45RR02rEJ_s1om2G0v3FRNjA6crdHdMMm6IWD8twI4vxOCJKS8gvbm5OwNK8qWYicKyOYhzrWmvOnH3yjQ%3D%3D&sa=X&ved=2ahUKEwidupLxm8n9AhVim1wKHUemBNMQmxMoAXoECF8QAw)
("NNPC") website that indicates that the non-operating partners of OML 18,
NNPC and OML 18 Energy Limited have removed Eroton Exploration &
Production Company Limited ("Eroton") as operator of OML 18 on the basis of,
amongst other things, zero production from the field at present.

 

San Leon has contacted Eroton who has advised the Company that this purported
takeover of operatorship was done without any legal or contractual basis and,
furthermore, that Eroton considers that the action is without any legal
effect, through both a lack of due process and a breach of the rule of law.
Eroton is currently taking advice on its legal rights to address the matter
expeditiously and considers that it remains the operator of OML 18.

 

Furthermore, as previously announced, the lack of production from OML 18
alluded to in the press has been primarily due to the unavailability of Nembe
Creek Trunk Line in the last two years and not to production issues suffered
by Eroton.  This is an industrywide problem due to widespread and well known
crude oil theft and sabotage of pipelines in the Niger Delta.

 

San Leon currently holds an initial 10.58% indirect economic interest in OML
18 which is unaffected by the identity of the operator. Further announcements
will be made as and when appropriate.

 

Enquiries:

 

 San Leon Energy plc                                +353 1291 6292
 Oisin Fanning, Chief Executive

 Julian Tedder, Chief Financial Officer
 Allenby Capital Limited                            +44 20 3328 5656

 (Nominated adviser and joint broker to San Leon)
 Nick Naylor

 Alex Brearley

 Vivek Bhardwaj
 Panmure Gordon & Co                                +44 20 7886 2500

 (Joint broker to San Leon)
 James Sinclair-Ford

 John Prior
 Tavistock                                          +44 20 7920 3150

 (Financial Public Relations)
 Nick Elwes

 Simon Hudson
 Plunkett Public Relations                          +353 1 230 3781
 Sharon Plunkett

 

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