San Leon regains ownership of Baltic Basin concessions from Talisman Energy

AIM-listed oil and gas producer San Leon has regained 100 per cent ownership of the Gdansk W and Braniewo S concessions, and increased its interest to 50 per cent in the Szczawno concession in Poland's Baltic Basin, an update from the company has shown.

AIM-listed oil and gas producer San Leon has regained 100 per cent ownership of the Gdansk W and Braniewo S concessions, and increased its interest to 50 per cent in the Szczawno concession in Poland's Baltic Basin, an update from the company has shown.

In February 2010, the company reported that Talisman Energy had signed a farm-in agreement to earn a 30% working interest in the concessions in return for certain commitments, including drilling one well in each concession, with the option to increase its interest to 60% by drilling a further well in each concession.

San Leon added that it and Talisman Energy has now signed an agreement whereby San Leon acquired 100% of the shares of Talisman's subsidiary in Poland, Talisman Polska.

In consideration, San Leon said it had assumed all assets and obligations of Talisman Polska. In addition to the interests in the three concessions, Talisman Polska's assets were valued at an estimated $10m, and included cash and drilling equipment. The company said that Talisman Polska has no debt.

Oisin Fanning, Executive Chairman of San Leon Energy, commented: "Talisman's Poland exit has been inevitable since the company altered its strategy to concentrate on two core areas, the Americas and Asia-Pacific. It became clear to us that we had to regain control of the drilling programme as soon as possible to ensure the Baltic Basin work programme continued."

He added: "The board believe that the deal is beneficial to our shareholders and we look forward to executing a fraccing programme in our Gdansk W Concession. There is still significant and continued industry interest in the Baltic Basin shale gas play, and we expect the results of our fraccing programme to attract further interest from potential farm-in partners."

San Leon's share price was up 11.61% to 7.69p at 14:56 on Wednesday.

MF

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

A simple way to profit from the next big trend change in the markets
Investment strategy

A simple way to profit from the next big trend change in the markets

Change is coming to the markets as the tech-stock bull market of the 2010s is replaced by a new cycle of rising commodity prices. John Stepek explains…
14 Jan 2021
Forget austerity – governments and central banks have no intention of cutting back
Global Economy

Forget austerity – governments and central banks have no intention of cutting back

Once the pandemic is over will we return to an era of austerity to pay for all the stimulus? Not likely, says John Stepek. The money will continue to …
15 Jan 2021
Here’s why markets have shrugged off the US political turmoil
Investment strategy

Here’s why markets have shrugged off the US political turmoil

Despite all the current political shenanigans in the US, markets couldn’t seem to care less. John Stepek explains why, and what it means for your mone…
7 Jan 2021
Free 6 issue trial then continue to