San Leon Energy PLC on Monday said it noted a recent article in the Nigerian press about the operation of the Oil Mining Licence 18, denying that Nigerian National Petroleum Co Ltd has taken over operations.

Shares in San Leon dropped 14% to 23.00 pence each in London on Monday afternoon.

The Nigeria-focused oil and gas production, development and exploration company said it was aware of an article published in Nigeria on Saturday, responding operator Eroton Exploration & Production Co remained operator of OML18, not Nigerian National.

On Saturday, Eroton itself said it considered the reports to be ‘malicious and false’ and that OML 18 operations is contractually agreed and governed by a joint operating agreement, to which any change can only be made via a clearly defined process ‘which has not followed’.

Therefore, Eroton said any purported change ‘is without any effect whatsoever’, despite citing attempts of forced displacement of some Eroton staff form its Alakiri gas plant on Friday by ‘armed and unknown men’ who claimed to be representatives of one of the two joint venture partners.

San Leon added: ‘Any lack of 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 any production issues suffered by Eroton.’

It also noted this was an ‘industry-wide problem’ due to ‘widespread and well-known crude oil theft and sabotage of pipelines’ in the Niger Delta.

San Leon said Eroton ‘categorically denies’ any fraudulent acts as started in the press, arguing it is committed to transparency and to operate in compliance with all applicable laws and regulations.

San Leon currently holds an initial 11% indirect economic interest in OML 18.

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