San Leon Energy, which is owned by Oisín Fanning, is a specialist oil and gas exploration company. It is one of the biggest shale gas explorers in Europe. The oil and gas contractor has revealed that it has signed confidentiality agreements from three interested parties pertaining to a potential takeover.
These three offers are in addition to an offer that San Leon received in December 2016 from a Chinese oil and gas company. San Leon announced at the time that the Chinese company was associated with Geron Energy Investment, and the bid was made at an indicative price of 80p per share. As a result, the company was valued at £360 million.
A San Leon spokesperson said that after it had revealed that the company had received a bid from a Chinese oil and gas contractor, the other three parties also made a bid. Out of these three companies, one is a Chinese company.
Nearly 60 per cent of San Leon is owned by UK-based hedge fund manager Toscafund. The company has given the responsibility of finding a buyer to a specialised investment bank. The fund stated that its present share price of 49p does not take into account its Nigerian oilfield share, which is at 9.7 per cent.
In 2016, the Nigerian oilfield, called OML 18, produced 40,500 barrels of oil each day, but now the production has increased to 56,000 barrels a day. For this project, San Leon was lent $174.5 million for the project. However, it has not received the total amount from its Nigerian partners as yet due to undisclosed reasons. The company has received merely $5 million. Nonetheless, this is San Leon’s largest asset.
In 2016, the oil and gas contractor sold off two projects in Poland and also settled a dispute over another project in Poland that had been going on for three years with a fund based in Dublin. San Leon paid the Dublin fund manager €23.3 million to settle the dispute.