Chinese Lose Interest in San Leon

UK-listed San Leon Energy said January 5 that talks with both China Great United Petroleum (CGUP), first announced on June 28 2017, and Geron Energy Investment, first announced on December 21 2016, have been terminated with no offer.

In September, when it reported steep first-half losses, it admitted the talks were going more slowly than expected. San Leon once held the largest European shale gas exploration acreage of any independent, chiefly in Poland, but in the past two years has relinquished or sold this - and focused instead on Nigeria. 

CEO Oisin Fanning said: "These discussions have come to a conclusion by mutual agreement, which will allow the company to move on, both with its discussions with Midwestern, and with the delivery of its business plan, which is focussed on cash generation from our oil and gas operations in Nigeria."  San Leon's share price has halved since Chinese interest in the company was disclosed in December 2016.

As announced a month ago, San Leon and Midwestern are discussing what would be a reverse takeover if it went ahead. So San Leon said its shares will remain suspended from trading pending the termination of these discussions or the publication of an Admission Document. San Leon cautioned the talks may or may not lead to a transaction being completed.