LONDON (ShareCast) - (ShareCast News) - San Leon Energy, the AIM-listed company focused on oil and gas development and appraisal in Africa and Europe, said it had signed and completed sales agreements for its interests in two Polish onshore assets, principally the Rawicz and Siekierki fields in the Permian Basin, to Palomar Natural Resources.
San Leon has sold its 35% interest in the Rawicz gas field $9m in cash and the release of certain San Leon liabilities, including loans which were advanced by Palomar to the Company as a temporary carry of the drilling and testing costs of the Rawicz-12 and Rawicz-15 wells, and amount to approximately $3m.

The company sold its 35% stake in the Poznan assets (largely the Siekierki field) for €1 plus a 10% net profit interest (NPI) in the Poznan assets.

The NPI removes any further cost exposure to San Leon, while providing an interest in any future profits made by Palomar on the Poznan assets, the company said.

The first $2.2m will be payable on closing, and the next $2.3m by 30 November 2016 and the remaining $4.5m is due to paid to San Leon on or before 01 October 2017. An interest charge of LIBOR plus 5% will be applied to any sum not paid by February 1 2017.

The current book value of the assets being disposed of is approximately €12.1m, San Leon said. The losses attributable to the assets in the last financial year were €0.

Chief executive Oisin Fanning said the sale of the Polish assets was 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," he said.

"It also reduces overheads costs through a downsizing of the Polish office, and no further licence fees or overheads on the assets sold."

Shares in San Leon were down 0.7% to 44p at 1054 GMT.

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