Settlement with Avobone

RNS Number : 5531O

San Leon Energy PLC

08 November 2016

 

08 November 2016

San Leon Energy plc

Settlement with Avobone

On 7 November 2016, Avobone N.V. and Avobone Poland B.V. ("Avobone") (together, "Avobone") and San Leon Energy Plc ("San Leon") settled a number of ongoing disputes between them and between Avobone and certain of San Leon's subsidiaries, including Aurelian Oil & Gas Limited, Aurelian Oil & Gas Poland Sp. z.o.o, Energia Zachod Holdings Sp. z.o.o and AOG Finance Limited, in Poland, Netherlands, Ireland, England & Wales in respect of various matters including a final award in an ICC arbitration dated 21 May 2015. The total settlement of €23.3 million plus interest to be paid to Avobone by San Leon will be paid as follows, with €2.0 million being paid by 21 November 2016, €8.0 million by 28 April 2017, €8.0 million by 16 October 2017 and €5.3 million by 30 December 2017.  Interest will accrue at a rate of 5% per annum on instalments until paid.

The provision made in the 2015 audited accounts for the Avobone dispute was approximately €20.6 million.  The difference been the settlement figure and the provision is due to interest, exchange rate fluctuations, and further legal costs.

San Leon is confident that this settlement will not affect the previously-announced capital distribution policy, whereby 50% of free cash flow from San Leon's interest in the OML 18 asset will be returned to shareholders via either share buybacks or dividends for five years.

Enquiries:

San Leon Energy plc Oisin Fanning, Executive Chairman	[phone]
Brandon Hill Capital Limited Joint Broker Oliver Stansfield Jonathan Evans	[phone]
SP Angel Corporate Finance LLP Nominated Adviser and Joint Broker Ewan Leggat Richard Morrison	[phone]
Whitman Howard Limited Joint Broker Nick Lovering Francis North	[phone]
Vigo Communications Financial Public Relations Chris McMahon Alexandra Roper	[phone]
Plunkett Public Relations Sharon Plunkett	[phone]

 

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