San Leon Energy focuses on Nigeria interests
San Leon Energy PLC said on Friday its loss narrowed in the first half of 2017, as it says it is concentrating on its Nigerian interests.
The oil and gas exploration company said its pretax loss narrowed to EUR5.7 million in the six months ended June 30 from EUR6.2 million last year.
San Leon Energy said during the period administrative costs decreased to EUR3.9 million from EUR5.7 million, principally due to fall in spend relating to legal and consultancy fees.
San Leon also booked a finance expense of EUR13.9 million in the recent period, including a EUR11.3 million foreign exchange loss on loan note. Finance expense was just EUR754,000 a year before. However, the company also booked EUR16.5 million in finance income in the recent half-year, versus none a year before.
Revenue remained insubstantial, falling to EUR71,000 from EUR187,000 last year.
Looking forward San Leon Energy said it was "very active in terms of its assets" and said it was "concentrating on its Nigerian interests" including its indirect interest in offshore block OML 18. San Leon noted the Orubiri field came online in late 2016 and the Krakama field followed in early 2017.
San Leon Energy said the Buguma field is expected to come online in the fourth quarter of 2017, a time when a heavy workover programme and new well drilling is scheduled to take place on various OML 18 fields to boost production.
San Leon Energy said following its entry into Nigeria last year its wells had been "performing well, although it noted that operator Eroton had faced certain challenges in relation to operations and permissions which are being tackled it said.
Chief Executive Oisin Fanning said "The company has three targeted cash flow streams from Nigeria: loan note repayments, dividends from production via the indirect equity interest in OML 18, and from the provision of drilling and workover rig services to Eroton under the master services agreement.
"While well activity and dividends from production have been delayed for the reasons set out in the final results for the year ended December 31, the security package held by San Leon over loan note repayments have resulted in USD20.6 million being received by the company to date, and approximately USD19 million expected on a quarterly basis as a minimum from quarter four 2017 onwards, until the loan notes are repaid in full," Fanning added.
Shares In San Leon Energy were up 12% at 21.00 Friday.
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