San Leon Energy has signed Binding Heads of Agreement in respect of the sale of Island Oil & Gas Limited (Island Oil & Gas) to Ardilaun Energy Limited (the "Purchaser" or "Ardilaun"), (the "Proposed Transaction").
Island Oil & Gas is a wholly owned subsidiary of San Leon Energy. The Proposed Transaction includes the sale of the Company's working interests in the Atlantic Margin, namely FEL 1/04 (North Porcupine), FEL 3/05 (Rockall), FEL 3/08 (South Porcupine), FEL 4/06 (Slyne) and Licencing Option 11/13 (Slyne Option). The Proposed Transaction also includes the sale of the Company's working interests in the Celtic Sea, namely the Seven Heads Gas Field, SEL 4/05 (Old Head of Kinsale) and SEL 5/05 (Schull). San Leon Energy's Net Profit Interest (NPI) in the Barryroe Licence, located in the North Celtic Sea, will be excluded from the Proposed Transaction and retained by San Leon Energy.
Under the terms of the Proposed Transaction, Ardilaun has agreed to pay San Leon Energy US$3 million, with US$1 million payable immediately and the balance of US$2 million payable within twelve months of the completion of the Proposed Transaction.