OMV set to withdraw from Rockall license

OMV (Ireland) Killala Exploration has agreed to pay San Leon Energy £3 million ($4.7 million) to be allowed to exit a permit offshore western Ireland.

Offshore staff

DUBLIN, Ireland -- OMV (Ireland) Killala Exploration has agreed to pay San Leon Energy £3 million ($4.7 million) to be allowed to exit a permit offshore western Ireland. The transaction is subject to approval from the Irish government.

Currently OMV and San Leon each hold an undivided legal interest and 50% beneficial interest in the Rockall Exploration License No: 3/05. Following OMV’s withdrawal, San Leon will hold 100% ownership.

However, San Leon is open to further farm-in offers to this and its other licenses across the Irish Atlantic margin. The Rockall permit includes the Killala and Kingfisher prospects.

Oisin Fanning, executive chairman of San Leon Energy, said: "In line with our strategy of farming-out our Atlantic margin assets, we are now in a position to farm out this asset on a 100% basis. The upcoming results of the 3D seismic over the Slyne field should further help to de-risk and enhance the value of these assets.”

01/12/2011

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