San Leon Energy PLC (AIM:SLE, AQSE:SLE, OTC:SLGYF) has relayed details from a statement made by Eroton Exploration & Production Company, its associate in Nigeria which operates the OML18 assets in which Eroton refutes allegations made in local media reports.
Eroton said it considers the Nigerian reports to be malicious and false, San Leon noted in its stock market statement.
It added that a lack of production from OML 18 alluded to in the press has been primarily due to the unavailability of the Nembe Creek Trunk Line in the last two years and not to any production issues suffered by Eroton, and it is described by Eroron as “an industrywide problem due to widespread and well known crude oil theft and sabotage of pipelines in the Niger Delta.”
The Nigerian partner added: “Eroton categorically denies any fraudulent acts as stated in the press and confirms that it is committed to transparency, integrity and that it continues to operate in compliance with all applicable laws and regulations.”
Meanwhile, in its statement, Eroton said that: “the operatorship of OML 18 is a contractual agreement and is governed by the Joint Operating Agreement, any change to which can only be made through a clearly defined process which has not been followed. Therefore, any purported change by any other party is without any effect whatsoever. This is despite the attempts of forced displacement of some Eroton staff from its Alakiri Gas Plant on 24 February 2023 by armed and unknown men who claimed to be representatives of one of the other JV partners, OML 18 Energy Resource Limited. These purported actions were outside of the due process of law and in breach of the terms and conditions as stipulated in the Joint Operating Agreement.”
San Leon holds a 10.58% indirect economic interest in OML18.