San Leon hereby provides an update on the publication of its accounts for the year ended 31 December 2016. The Company announced on 3 July 2017 that it had not been able to publish the Accounts by 30 June 2017 as required by Rule 19 of the AIM Rules for Companies. Therefore dealings in San Leon’s ordinary shares were temporarily suspended under AIM Rule 40 until such time as the Accounts have been duly published in compliance with AIM Rule 19.
The Company’s main asset is an indirect interest in the OML 18 block, onshore Nigeria, together with the expected receipt of loan principal and interest repayments from the OML 18 transaction completed in September 2016.
The delay in publication of the Accounts has been for procedural reasons due to the need for San Leon to incorporate the consolidated financial statements of Midwestern Leon Petroleum Limited, to include the results of both Martwestern Energy Limited and Eroton Exploration & Production Company Limited (the operator of OML 18). San Leon will account for its share of that consolidation using the equity method of accounting.
The consolidation process involves several jurisdictions, and has taken longer than expected for what is the first such consolidation and equity accounted investment in Nigeria for San Leon. When this process is completed, it will be followed by a number of normal audit confirmatory and technical review matters, which when completed will then put the company in a position to finalise and publish its financial statements.
Dealings in San Leon’s ordinary shares will remain temporarily suspended until such time as the Accounts have been duly published.
Notwithstanding the temporary suspension of trading in the Ordinary Shares, the Company will continue to make announcements as and when there are any developments that require announcement under the AIM Rules.
