Oil and gas exploration minnow San Leon Energy is to acquire fellow explorer Aurelian in an-all share merger.
Aurelian shareholders will receive 1.3 new San Leon shares for each Aurelian share, which will mean that following the merger existing Aurelian shareholders will hold approximately, 34% of the enlarged company, with existing San Leon shareholders holding 66%.
The stated strategic rationale behind the move appears to be that the enlarged company has "the potential to become a leading exploration and production company across Europe and North Africa".
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Both San Leon and Aurelian hold significant acreage positions in Poland, and the merger will make the enlarged group the largest foreign acreage holder in that country. It is hoped that the merger of the asset base and experienced management teams will quicken the path to production.
In a joint statement the companies said: "The boards of San Leon and Aurelian believe the enlarged group offers near term cash flow potential in Poland, while it will also possess high impact growth potential in a well-balanced conventional and unconventional exploration portfolio, particularly in Poland, Morocco and Albania."
Following implementation of the merger, the enlarged company will be led by a management team comprising Oisin Fanning as Executive Chairman, Paul Sullivan as Managing Director and John Buggenhagen as Exploration Director.
The board will also include John Conlin (the current Chairman of Aurelian), John Matthews (the acting Finance Director of Aurelian), Piotr Rozwadowski (a current Non-Executive Director of Aurelian), Ray King (the current Company Secretary of San Leon), Con Casey (a current Non-Executive Director of San Leon), Daniel Martin (a current Non-Executive Director of San Leon) and Dr. Jeremy Boak (a current Non-Executive Director of San Leon).
Rowen Bainbridge, John Smallwood, David Prior, Dariusz Mioduski and David Walker have agreed to step down as Directors of Aurelian.
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