Is San Leon’s Finding in Morocco A Message for Possible Buyer?

San Leon Energy announced that the Laayoune-4 well onshore Morocco has encountered gas, adding it intends to apply for a new eight year exploration licence with ONHYM.

“We are very pleased with the results of the Laayoune-4 well. Confirming the presence of gas shows and good reservoir quality is encouraging for the potential of the block” Oisin Fanning, San Leon Executive Chairman, commented in a note released on Wednesday. 

Laayoune-4 is a well on the Tarfaya conventional licence, onshore Morocco in the Sahara region.

‘The well was drilled on time, within budget and with no incidents’ wrote the company.

San Leon reported a €8.26m loss for the first six months of the year, over 20% higher than the loss registered in 2014.

It seems clear that the company wants to send a message to its possible buyer. In its interim results, it indeed confirmed it has been approached for a possible buyout. 

‘On 24 August 2015 the Company confirmed that it had received an approach from a possible offeror, that may or may not lead to an offer being made for San Leon. There can be no certainty that an offer will be made or as to the terms on which any offer might be made. As a result, the Board has decided not to make any forward-looking statements’ reads the separate statement.