San Leon Energy PLC (AIM:SLE, AQSE:SLE, OTC:SLGYF) has acknowledged an emerging story in Nigeria where it is claimed the company’s associate Eroton Exploration & Petroleum has been removed as the operator of the OML 18 asset.
The company told investors that it has been made aware of a statement on the website of the Nigerian Petroleum Development Company which indicates that the non-operating partners of OML 18, NNPC and OML 18 Energy Limited have removed Eroton as operator of OML 18 on the basis of, amongst other things, zero production from the field at present.
San Leon, meanwhile, noted that it holds a 10.58% indirect economic interest in OML 18 which is unaffected by the identity of the operator.
In its statement, the AIM-quoted firm said: “San Leon has contacted Eroton who has advised the company that this purported takeover of operatorship was done without any legal or contractual basis and, furthermore, that Eroton considers that the action is without any legal effect, through both a lack of due process and a breach of the rule of law.
“Eroton is currently taking advice on its legal rights to address the matter expeditiously and considers that it remains the operator of OML 18.
“Furthermore, as previously announced, the lack of production from OML 18 alluded to in the press has been primarily due to the unavailability of Nembe Creek Trunk Line in the last two years and not to production issues suffered by Eroton.
“This is an industrywide problem due to widespread and well-known crude oil theft and sabotage of pipelines in the Niger Delta.”
In London, San Leon shares were down 3.59p or 12.4%, at 25.41p.