San Leon Energy is paying up to £31 million in shares for services from Norway’s Petroleum Geo-Services (PGS) and raising £6.3 million.

San Leon Energy is paying up to £31 million in shares for services from Norway’s Petroleum Geo-Services (PGS) and raising £6.3 million.

The Dublin-based oil and gas concern, with exploration and production interests in North America, Morocco and Holland, has agreed to obtain a range of seismic and reservoir services from PGS, including acquisition, processing, interpretation and field evaluation.

AIM-quoted San Leon must take a minimum amount of work from PGS, which owns ‘the world’s most extensive multi-client data library’, in exchange for £12.5 million in shares and will give PGS the right to subscribe for shares up to the value of £31 million — or convertible loan notes if further shares would take the Norwegian group’s holding above 29.9 per cent and trigger a mandatory bid.

Meanwhile, San Leon, chaired by Oisin Fanning, is raising £6.3 million at 15p through Arbuthnot Securities and Fox-Davies Capital.