Cash is king at present and small caps with funding hurdles ahead of them – are struggling as future cash/ lending looks very hard to come by.
The sale of circa £8mln is close to 10% of San Leon’s market cap and not surprisingly – the market had not added very much value in for this minor asset. As seen by the Barryroe deal struck in January – SLE are keen to move away from oil assets as they seek to focus on their growing shale interests in Poland and Germany.
A smart move by San leon.
27 June 2012, San Leon Energy Plc
Acceptance of €9.9m Cash Offer for Amstel Field Overriding Royalty
San Leon Energy is pleased to announce that it has accepted a cash offer of €9.9 million (approx. US$ 13 million) (“the Offer”) for its 2.5% overriding royalty interest (ORRI) in the Amstel Field production licence (Block Q13a), offshore Netherlands from GDF Suez E&P, the operator of the Amstel Field. The Offer will complete by 20 July 2012.
Oisin Fanning, Chairman of San Leon, commented:
“We are pleased to accept this offer from GDF Suez. Considering the international risks facing oil prices, we consider the offer to represent fair value. These resources can now be applied to San Leon’s other core exploration activities, such as in Poland, where we are planning further exploration on the back of the Siciny-2 well success.”