REG - San Leon Energy PLC - Comment on press speculation

San Leon EnergyAnnouncement

27/02/2023 07:45

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RNS Number : 1169R  San Leon Energy PLC  27 February 2023

 

 

27 February 2023

San Leon Energy plc

("San Leon" or the "Company")

 

Comment on press speculation

 

San Leon, the independent oil and gas production, development and exploration
company focused on Nigeria, notes the recent speculation in the Nigerian
press about the operation of the Oil Mining License (OML) 18 ("OML 18").

 

The Company has been made aware of an article published in Nigeria on 25
February 2023 that alleges that the Nigerian National Petroleum Company
Limited has taken over the operatorship of the OML 18.  The article also
alleges various improper actions by Eroton Exploration & Production
Company Limited ("Eroton"), the operator of OML 18.

 

In response to these allegations, Eroton published a press release on 25
February 2023 confirming:

 

1.    Eroton considers the Nigerian reports to be malicious and false.

 

2.    Eroton remains the operator of OML 18.  Specifically the
operatorship of OML 18 is a contractual agreement and is governed by the Joint
Operating Agreement, any change to which can only be made through a clearly
defined process which has not been followed. Therefore, any purported change
by any other party is without any effect whatsoever.  This is despite the
attempts of forced displacement of some Eroton staff from its Alakiri Gas
Plant on 24 February 2023 by armed and unknown men who claimed to be
representatives of one the other JV partners, OML 18 Energy Resource Limited,
("Sahara"). These purported actions were outside of the due process of law and
in breach of the terms and conditions as stipulated in the Joint Operating
Agreement.

 

3.    Any 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 any production issues suffered by Eroton. It also notes that
this is an industrywide problem due to widespread and well known crude oil
theft and sabotage of pipelines in the Niger Delta.

 

4.    Eroton categorically denies any fraudulent acts as stated in the
press and confirms that it is committed to transparency, integrity and that it
continues to operate in compliance with all applicable laws and regulations.

 

San Leon currently holds an initial 10.58% indirect economic interest in OML
18. 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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