San Leon Energy pumps out cash as it looks for next opportunity

San Leon has transitioned from a largely exploration focussed independent to a producing energy company.

It has indirect participation in OML18, a world-class oil and gas block onshore Nigeria, which forms the centrepiece of the company’s portfolio. San Leon also has interests across a number of other assets.

The company is driven by technical expertise, its operational capabilities and industry contacts, and it is secured by close links with governments, partners and the local communities in the territories that it operates in.

(, , ) noted that associate Decklar Resources has begun operations to complete the Oza-1 well re-entry, in Nigeria, and the programme is due to be finished in 7 to 10 days.

It will see the well initially configured for production from the L2.6 zone, which tested at rates up to 2,463 bopd as previously announced.

The company, in a statement, noted that all early production facilities have been installed and function tested including a separator crude oil storage tanks and export pumps.

Earlier this month, San Leon announced positive well results which confirmed the project could be returned to production. The Oza-1 well re-entry programme saw initial gas flows of 10.3mln cubic feet and 1,361 barrels of oil per day.

San Leon Energy PLC (AIM:SLE, AQSE:SLE, FRA:SZX1, OTC:SLGYF) highlighted positive well results for Decklar Resources in the Oza field in Nigeria.

The company, which has an investment agreement with Decklar, noted that the Oza-1 well re-entry programme has now seen initial gas flows of 10.3mln cubic feet and 1,361 barrels of oil per day.

San Leon Energy PLC (AIM:SLE, AQSE:SLE, FRA:SZX1, OTC:SLGYF) chief executive Oisin Fanning says the company is ‘well-positioned’ as the Nigeria focussed oil and gas investor released interim results.

The company is presently the subject of a possible transaction, which would see it consolidate interests among its partnerships – or alternatively, it is due material cash payments for the loan notes it holds.

San Leon Energy PLC‘s (LON:SLE) CEO Oisin Fanning speaks to Proactive London after announcing it’s investing US$15mln in Energy Link Infrastructure, the company which owns the Alternative Crude Oil Evacuation System project. The ACOES is being constructed to provide a dedicated oil export route from the OML 18 asset offshore Nigeria, comprising a new pipeline and a floating storage and offloading vessel.

San Leon Energy PLC‘s (LON:SLE) 2016 acquisition of an interest in OML 18 in Nigeria is starting to generate value for shareholders and provides not only a strong presence in a highly prospective region but also the liquidity with which it can execute a growth strategy optimised in its favour. We have undertaken a sum of the parts (SOP) valuation, which we have “sense checked” against Proactive’s valuation estimates for the principal assets. We estimate the fair value to be between US$459 — 743mln (76 — 121p a share).