San Leon Energy Share Discussion Threads

[o1lman] 10/1/2017 19:47

NovaSeis, the Company's state-of-the-art seismic acquisition company, has largely completed its work for the Company for the time being. In Q4 2013 a commercial manager was hired to market NovaSeis externally. A number of external tenders are now in progress and marketing continues very actively. A reasonable uptime of external seismic work by NovaSeis has the potential to cover all San Leon group operating costs.

............

oh dear

[o1lman] 10/1/2017 19:46

("San Leon" or the "Company")

Alpay Energi and Corporate Update

In a continued effort to streamline operations and move San Leon towards near-term production and cash flow in Poland, and following continued due diligence and on-going technical analysis of the existing assets owned by Alpay Energi A.S. ("Alpay"), the Company has decided to modify the investment approach in Turkey, to evaluating specific project farm-ins. Consequently, the decision has been made not to proceed with the Share Purchase Agreement ("SPA") between San Leon and Alpay / Server Fatih Alpay relating to 75 per cent. of Alpay in Turkey, originally announced on 25 September 2013. The Company has determined that its capital will be better spent in Poland, particularly in the Baltic Basin where San Leon's Lewino-1G2 well shows great promise for shale gas production in the northern Baltic Basin of Poland. This decision has been made following a new round of successful deal making in Poland where Baker Hughes will be developing the Siekierki gas field and TransAtlantic will be developing the Rawicz gas field and continuing to appraise the upside of the Carboniferous Basin.

The decision on Alpay was further predicated on several critical factors including:

1. The expiry of the SPA longstop date requiring Turkish Government approval of the transfer of the Alpay licences to San Leon by 31 March 2014;

2. A significant amount of formation water brought into the well at Hamman-1 following a ramp-up of the existing production, which has negatively impacted the production potential from the well;

3. A significant loss of customer base on the existing CNG plant owned and operated by Alpay as a result of the Hamam-1 well issues;

4. The material devaluation of the Turkish Lira against the US Dollar since the signing of the SPA.

The SPA provided for a period ending in late March 2014 for the transfer of licences from ARAR Petrol Ve Gaz Arama Uretim Pazarlama AS to Alpay, after which if such transfer had not taken place either party to the SPA could withdraw and a $4.5m payment from the Company, being held in escrow, has been returned to San Leon. The Company has chosen not to extend the period allowed for the licence transfer, and the SPA has therefore been allowed to lapse. The Company will, however, continue to evaluate the assets of Alpay for specific project farm-ins on a case-by-case basis.

Updated Targeting of Positive Cash Flow

Much has changed since September 2013 for San Leon.

-- Further to the announcement of 12 February 2014, the Company is pleased to announce significant progress has been made towards finalising commercial terms with Baker Hughes Poland Sp. z o.o. ("Baker") on the Siekierki gas field development in Poland and a joint press release is expected to be issued shortly. In parallel, technical and operational plans are being designed to enable first work-overs on the Trzek wells carried out in the summer. The Company now has permission for water disposal wells at Siekieki, further enhancing the commercial upside of the field.

-- In March 2014, TransAtlantic Petroleum Ltd. ("TransAtlantic") signed an LOI ("Letter of Intent") on various Permian/SW Carboniferous Basin assets in Poland. The work programme involves operations on six wells, at no cost to San Leon. Of immediate interest to the Company, from a cash perspective, is the $5m up-front payment and the near-term production expected from the targeted Q3 2014 spud of a production well on the Rawicz field. Rawicz has the benefit of numerous previously tested wells. Further details on the TransAtlantic agreement are set out in the Company's announcement of 27 March 2014.

-- In January 2014, we announced the results of what we regard as the most successful single vertical frack in a shale well in Europe. A horizontal well with multiple fractures is now being engineered and permitted. Considerable interest from a number of major companies has been received following these results, aided by the strong support for shale development from the Polish government, and the proposed tax holiday on shale production until 2020. The Company is in active talks regarding its concessions in the Baltic Basin.

-- The Company continues to implement cost saving measures, reducing overhead costs significantly as new partners carry operations forward on specific projects. The acquisition of Aurelian Oil & Gas brought with it personnel and office overlap. While ensuring the retention and transfer of knowledge, the Krakow and Poznan offices have now been closed, and staff numbers have been reduced. Farm out activity is expected further to dilute overhead costs.

-- NovaSeis, the Company's state-of-the-art seismic acquisition company, has largely completed its work for the Company for the time being. In Q4 2013 a commercial manager was hired to market NovaSeis externally. A number of external tenders are now in progress and marketing continues very actively. A reasonable uptime of external seismic work by NovaSeis has the potential to cover all San Leon group operating costs.

Oisin Fanning, San Leon Executive Chairman, commented:

"The main rationale for the Alpay transaction was to provide cash flow to the Company. However, subsequent deals in Poland, the Company's core operating area, have positioned Poland to deliver cash flow and production more efficiently, enabling the Group to reach its target of becoming at least break-even on a cashflow basis during 2014. Given the increased risk to achieving the projected Alpay production targets and cash flows envisaged at the signing of the SPA, the Board has taken the decision to allow the SPA to lapse. The Board no longer felt the Alpay deal was to be in the best interest of shareholders in its agreed form.

Our new joint ventures with Baker and TransAtlantic have further strengthened our projects in Poland and will allow us to realise the true upside that we have been working towards. We are now on the verge of production and cash flow in our core operating area, Poland."

[o1lman] 09/1/2017 20:28

remember u need the bid to succeed, otherwise our NOMAD states it's going to be slim pickings (unless u are a member of the board) for the next couple of years.
u may note he never got the 2016 figure correct as it's going to be a big loss, I wonder if he will be more lucky with his 2017 fcast ?

[o1lman] 09/1/2017 20:26

crikey, even LSD realised the significance of the above that's why he omitted it when he copied the RNS from SLE.

[o1lman] 09/1/2017 20:25

The following conditions are yet to be satisfied:

(iv) reservation of nine months' worth of upcoming debt repayments due in the debt service reserve account; and

(v) submission of audited financial statements by Eroton whereby 60 per cent. of audited net profits can be paid to dividends account.

The Company has been informed by Eroton that the timing for the satisfaction of these conditions is also influenced by the receipt by Eroton of the outstanding balance of historic cash calls from the Nigerian National Petroleum Corporation ("NNPC"), which was expected during 2016 but has yet to occur. Only once all the RBL debt service reserve account conditions have been fulfilled will Eroton be in a position to complete its audited financial statements for the year ended 31 December 2016, whereupon the Eroton Board will be in a position to declare and pay dividend(s) to its shareholders.

....................

as always with SLE, pay close attention to what is omitted tells u all u need to know about the true situation, otherwise it's all just the normal boll*cks.

[o1lman] 09/1/2017 20:18

maybe the loan is going to be paid, maybe the moon is made of marshmallows, can u find linksdean hiding in the above picture ?

[linksdean2] 09/1/2017 19:40

Moany stench..maybe MH knows that loan is going to be paid!!..to the non holder with only sour grapes because of your loss wot wud you expect to hear from a dingbat like yourself..moany stench good eh!!.. Figa..

[o1lman] 09/1/2017 18:20

looks like we are in the end game here, either the bid succeeds, very unlikely considering the loan is not being paid or TOSCA takes complete control and takes it private at 55p a share.

[o1lman] 09/1/2017 18:13

The group said it would bring Nigeria’s oil production to “zero” in its quest to end widespread poverty and environmental degradation across the Niger Delta.

[o1lman] 09/1/2017 18:08

crikey, no one wants to be linksdean or pspeedo, no prizes for guessing why.

[o1lman] 09/1/2017 18:08

Tosca encourages SLE to consider seriously any approach for take over. Meanwhile it accumulates stock.
Scenario #1 Win - Offload company to new buyer and recover some yield.
Scenario #2 Win - Take company private and sell assets and interests.

For most of the other shareholders - Scenario #3 Loose - Your remaining decimated holding will be aquired for next to nothing.

Game over - Thanks for playing.

[witheco] 09/1/2017 17:12

Tosca encourages SLE to consider seriously any approach for take over. Meanwhile it accumulates stock.Scenario #1 Win - Offload company to new buyer and recover some yield.Scenario #2 Win - Take company private and sell assets and interests.For most of the other shareholders - Scenario #3 Loose - Your remaining decimated holding will be aquired for next to nothing.Game over - Thanks for playing.

[czar] 09/1/2017 16:20

Tosca Fund buying again, the message could not be clearer, this stock is undervalued. Either a bid comes in circa 100p or it rerates anyway.

[witheco] 09/1/2017 10:04

Think nice and warm in Nigeria is about to get a hell of alot hotter. Apart from LSD is there anybody still holding shares in SLE. Really tempted to short at 50p, but going to leave it, this time around.

[o1lman] 08/1/2017 19:10

honestsid
Posts: 1,454
Observation
Opinion: No Opinion
Price: 51.50
PR speedoToday 14:15

I post facts, research from the internet. Anyone can see that.

You post lies, hopes, dreams. Anyone can see that.

I wonder why you lie? Are you shorting this? Are you working for someone? I wonder Who?

Pspeedo
Posts: 100
Off Topic
Opinion: No Opinion
Price: 51.50
But brosToday 13:08Don't see what matters to you Sid and the other smear's as remember your another who has nothing here but complains over a company that has nothing to do with you whatsoever.

Bit idiotic of you all really. If sle is that bad and your crowd are constantly circulating it can't be as bad as you make out, as who would want to spend as much time and effort against a company for nothing unless they have an agenda and that is very plain to see your crowd do.

I will let you work that out.

Brotherseven
Posts: 383
Off Topic
Opinion: No Opinion
Price: 51.50
RE: But SidToday 11:39Pspeed continues with his boll.....ology analysis and the usual non holder BS .Welcome to another year of Sle jam courtesy of Fanny the great deal maker,seven years to date of perpetuating promising manna from heaven.GL to all genuine non holders