San Leon Energy is in talks with the Moroccan authorities over a stalled onshore licence.
The AIM-listed company is being reprimanded by the North African country’s government over the “non-performance” of the work programme for its Zag licence.
Quango the Office National des Hydrocarbures et des Mines has assumed control of the existing bank guarantee – San Leon’s share being $1.4million.
This money was listed in the company’s accounts as restricted cash. The government may also push for a penalty of the same amount again to be paid.
In a statement, San Leon confirmed it was in talks regarding the future of the licence, including the work programme.
The firm claims the Zag licence is in a geographical area which justifies a declaration of force majeure due to the regional security situation.