Independent oil and gas production, development and exploration company focused on Nigeria, San Leon Energy Plc, has provided its latest operational update.

San Leon Energy is Europe’s leading shale gas company by acreage, with a portfolio of assets in Nigeria, Morocco, Poland, Western Sahara, Albania, Ireland, Spain and Italy.

The Operational Updates:

On OML 18 situated in the Niger Delta: The Company said operational activity remains low as OPEC quota restrictions on oil production are still in place. The operator of OML 18, Nigerian Independent Oil and Gas Exploration Company, Eroton, is anticipating the start-up of the Alternative Crude Oil Evacuation System (“ACOES”) project.

The project is expected to significantly reduce the pipeline losses and downtime currently applicable to OML 18 production.

Under the Loan Note instrument which governs the loan that was made at the time of its investment in OML 18, San Leon is due to receive its final payments of over $98 million in three equal instalments; to commence in July 2021 and complete by December 2021.

The progress that has been made since San Leon invested in the ACOES project are:

• ELI Akaso is currently undergoing preparatory maintenance in Ghana ahead of its expected arrival in Nigeria in the coming months.
• Several oil producers in the region have made enquiries to ELI with regards to using the ELI Akaso for storage and export operations. Some of these enquiries are based on delivering crude oil to the oil terminal by barge.
• Construction of the pipeline continues to progress and hook up with ELI Akaso is expected to take place in the summer of 2021.

On Oza Oil Field: The final report by the independent technical consultant contracted to review reserve and production data and financial projection have been issued. The definitive loan documents and formal legal agreements continue to be finalised and are nearing a conclusion with the arranged Nigerian bank.

On Barryroe: San Leon acknowledges the announcement by Providence Resources Plc earlier this month of the extension to the farm-out agreement for the Barryroe licence, pending the finalisation of the financing structure.

San Leon retains a 4.5% Net Profit Interest over the Barryroe Field, one of the largest undeveloped discoveries in Western Europe, with independently audited 2C resources of 346 MMboe and significant further resource potential in additional reservoirs. The Company continues to follow these negotiations with interest.

Barryroe is an undeveloped oil and gas field discovered in the Atlantic Ocean due south of Cork, Ireland. It is close to the exhausted Kinsale Head gas field, and it is as close as 3 kilometres to the Kinsale Head existing pipeline.

On Board Appointments: In line with its announcement towards the end of last year of the appointment of a consultant to identify suitable non-executive director candidates, the process is now well advanced with a shortlist of candidates identified and final discussions already underway.

The Chief Executive Officer, Oisin Fanning, said: “The ACOES project is expected to provide significant material benefits both to the Company’s OML 18 investment, and through returns from its equity stake in ELI. I also anticipate near-term operational activity on the Oza oil field, once the investment paperwork from all parties is complete.

“I look forward to providing further updates on our operations as they progress.”