Beaufort Securities view on San Leon Energy PLC: San Leon’s relinquishment of licenses supports its long-term strategy to focus on development and production. The company is likely to save on the annual license fees on the relinquished Polish license while remaining committed to the remaining acreage in Poland including the Baltic Basin shale licence and the newly found gas at the Rawicz field. Going ahead, the company plans to take different steps apart from portfolio adjustment to achieve its new strategy. Meanwhile, San Leon’s other prospects are gaining momentum following the spudding of the Gierałtowice prospect and the oil discovery at the Sidi Moussa block in Morocco. Therefore, we reiterate a Speculative Buy on the stock.
Yesterday, San Leon Energy announced the removal of Polish licenses from its portfolio, in line with its new long term strategy. San Leon relinquished the Czersk, Budzów, Ilawa and Praszka licences. Meanwhile, its interests in the Bieszczady area having eight license blocks would be taken up by PKN ORLEN.
