(MENAFN- ProactiveInvestors)A City banker who recently helped fund San Leon Energy (LON:SLE) says he is not surprised that someone's interested in buying the junior oil and gas company. News of an approach sent San Leon shares about 16% higher on Monday morning rising 8.5p to 62p in what was an otherwise dreadful morning across the rest of the stock exchange. A brief stock exchange statement confirmed speculation in Ireland's weekend newspapers that a bid approach had been received. 'I do not know who is preparing a bid but it hardly surprises me' Oliver Stansfield chief executive of Brandon Hill Capital lead banker in June's £29mln capital raise told Proactive Investors. Stansfield does however think that investors would need to see a premium before they agree to sell. 'I would think that any bidder would have to pay at least 80p a share for the company' he added. Oisin Fanning executive chairman of Dublin-based San Leon was unavailable for comment. But a spokesman said: 'Yes an approach has been made. 'However there is no certainty that an offer may be made or as to the terms on which an offer may be made'. Stansfield meanwhile highlighted that Toscafund - which invested £16mln as part of the recent funding - owns 41.47% of the company. 'At 60p a share currently the company has a market cap of £33mln. 'Given they have not just most of the cash left but also some very good assets the shares are cheap.' San Leon has a spread of assets in Poland Ireland Morocco and Albania but the immediate value is thought to lie in some acreage in Poland and the Celtic Sea in Ireland. In Poland San Leon Has a 35% interest in the Rawicz field and adjacent acreage where together with its joint venture partner it has made one of the biggest conventional gas discoveries. Mean recoverable reserves (P50) have been put at 100mln cubic feet of gas following a positive drilling result and flow test of 4.5mln standard cubic feet a day (MMscf/d). First production is expected in the first quarter of 2016. The potential cash flow for 2016 is put at US$10-15mln. Fanning has put the value of this asset at US$150mln The other near term value asset assuming a farm-in partner can be found to develop it is the Barryroe discovery in Ireland. There is thought to be 266 mln barrels of recoverable oil in the field. San Leon with a 4.5% net profit interest (NPI) could benefit to the tune US$230mln of the field based on lower oil price assumptions made by the company itself. Obviously the detail of the approach is thus far undisclosed and so shareholders will have to wait but they can do so in the knowledge that they own one of very few shares to see positive territory in London this Monday.
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