San Leon Energy confirmed the receipt of a takeover approach but the AIM-listed Irish shale gas explorer said there was no guarantee that a deal would be completed.
Shares in the company, which operates on the Continent and in North Africa, surged by more than 15 per cent yesterday after The Sunday Business Post, an Irish newspaper, reported that it was being targeted for a takeover.
The news of an approach follows a company announcement on June 1 in which it agreed to raise £29 million from existing and new shareholders. Jeremy Boak, a company founder and non-executive director, quit the group last month.
San Leon’s main focus is Poland, where it has interests in six licences. It is also part of consortium that is drilling offshore Morocco and it has a net profits interest in the Barryroe licence in the waters off Ireland.
The economics of shale gas production has been undermined by plunging oil prices, which tumbled to $45 yesterday, less than half the level at which they were trading a year ago.
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Shares in San Leon settled back in afternoon trading to close at 59½p, a gain of 6p, or 11 per cent.