San Leon has approved a special dividend of approximately £27 million (US$33 million), or 6 pence per ordinary share. 

As at 24 April 2020, the Company had a cash balance of US$73 million (£59 million) and expects to receive further income from various sources as set out in the RNS of 7 April 2020.

To date, including the proposed special dividend, San Leon has returned approximately US$66 million (£52 million) to shareholders via the repurchase of its ordinary shares and now via dividend, which is in line with its 2016 Capital Distribution Policy. The directors note that the Company's business strategy has reduced costs outside its core area of Nigeria, and that visibility of future cash flow is strong. Such future cash flow is expected to include further Loan Notes receipts, income from the provision of technical services to Eroton, and in due course income from the Company's indirect equity interest in OML 18. The directors expect that the Company will continue to have more than sufficient cash to deliver its strategy and business development activities to grow the Company.

The Company intends to pay the dividend on 29 May 2020 to those shareholders on the register on 11 May 2020. The ex-dividend date will be 7 May 2020. 

Oisin Fanning, Chief Executive Officer, commented:
"This special dividend demonstrates the Company's continued commitment to its Capital Distribution Policy, and fulfils the undertaking we made on 30 September 2019 to pay our first dividend. We are proud to have returned a total of US$66 million (£52 million) to shareholders so far, including the proposed special dividend. We have a very strong cash position with clear visibility on our healthy future income stream. This has enabled us to propose the special dividend whilst continuing to pursue growth opportunities which are prevalent in the current market. I look forward with confidence to updating shareholders on the Company's growth and progress."

KeyFacts Energy: San Leon Nigeria country profile