San Leon Energy Share Discussion Threads

[o1lman] 21/11/2016 12:12

now my understanding is that the interest will only be paid and the capital should be repaid in 2020, the interest payments can be delayed a year without any penatly.
guess even for SLE it will be difficult to take BIDCO to court for not paying the interest as they own 40% but who knows with SLE.
It looks as the NOMAD has his rose tinted spectacles on and has pencilled in an early capital repayment, the only guy who knows is Zac and he is not allowed to discuss his research with mere peasants.
a cosy arrangement, if u think u are being spun, u most probably have been.

[o1lman] 21/11/2016 12:03

callasjunkie20 Nov '16 - 17:51 - 28488 of 28506 0 0
Curious re Angel. The production figues equate to 70kbd in 2016, 93kbd in 2017 and 98kbd in 2018. Yet net income approximates to 3% return on equity for 2016/17, rising to 10% in 2018. This despite the Shell crude hedge applying only until end 2017. Why the spike in 2018 income


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

2016 isn't a direct comparison as the company will still have outstanding debts.

[o1lman] 21/11/2016 11:47

according to our NOMAD that's the monetary value to the company. remember the NOMAD is paid by SLE so any research will be carried out wearing rose tinted spectacles, so reading between the lines expect losses for the next couple of years.

[triple seven] 21/11/2016 11:40

All the non holder's, out in one go,how very strange. Unless their all the same troll.

[witheco] 21/11/2016 11:25

Think czar is part of the LSD show as well. The only individual left is probably stockriser - who shows up from time to time to see how his dismal investments are performing when he once thought he was going to be a successful trader.

[triple seven] 21/11/2016 10:50

Unbelievable trolling. Get a life loser. How did you lose 90 thousand pounds?

[o1lman] 21/11/2016 10:17

need a clue, even links worked out that it's not worth reading his posts.

[o1lman] 21/11/2016 10:16

another quiz, it's your lucky day, if someone's complete posting history was on a share bboard, was posting about another poster, no names but would u could consider that person to be

a. insane
b. must have a must deprived life to want to waste his time
c. insane and needs urgent medical help
d. just normal behaviour for a bb moron

[o1lman] 21/11/2016 10:03

the good news is without carrying out any work between Jan and June the licences were worth 20 mill more in just six months, crikey they could worth 50 miil more by xmas.


Additions 2. Exploration and evaluation assets


Cost and net book value Un-audited
30/06/16
EUR'000

Additions ....................Additions 20,473

the Spanish licences are worth 8 mill euros and Morocco 27 mill.

So for today's quiz
relative to the value placed on the Polish assets do u think the assets above are

a. overvalued
b. undervalued
c. at fair value

[o1lman] 21/11/2016 10:02

December 2015 which are available on the Group's website www.sanleonenergy.com.

The interim consolidated financial statements are presented in Euro ("EUR").
2. Exploration and evaluation assets


Cost and net book value Un-audited
30/06/16
EUR'000

At 1 January 2015 163,375
Additions 20,473
Currency translation adjustment (2,632)
Impairment of exploration
assets (123,659)
Proceeds from farm out
arrangement (2,000)
Transfer to equity accounted
investments (8,025)
-------------
At 31 December 2015 47,532
Additions 717
Exchange rate adjustment (488)

At 30 June 2016 47,761
-------------


An analysis of exploration assets by geographical area is set out below:

30/06/2016
EUR'000

Poland 12,372
Morocco 27,184
Spain 8,205
-----------
Total 47,761

[o1lman] 21/11/2016 09:24

honestsid
Posts: 1,309
Research
Opinion: No Opinion
Price: 44.00
RE: ToscaSun 20:16Of course SLE will be worth more than nowt when the RBL is paid back. That will be great news. Any ideas how long it will take? Any idea how much it is?

Come on Osin let us know please.

"Eroton continues to accrue cash from OML 18 operations into the Debt Service Reserves Account (“DSRA”) attached to the existing Reserves Based Lending (“RBL”) facility. Cash flow to San Leon will begin once sufficient funds have accrued in that account"

[o1lman] 21/11/2016 09:15

crikey, even though links has proved the saying 'u can fool some of the people all of the time' he has realised it's not worth posting here or at LSE. I wonder if he has got some new medication ?

[o1lman] 21/11/2016 09:14

Stories by Adewale Sanyaolu

Operators in Nigeria’s oil and gas sector have lamented the impact of the continuous slide in crude oil prices and its negative toll on their businesses. Currently, Brent crude is trading at less than $50 a barrel.
But beyond the slide in crude oil prices, the inability of the Federal Government to fund its various Joint Venture (JV) operations is also giving stakeholders a nightmare, as they are worried that unless something urgent was done by government to settle the about $8.5 billion in JV cash call arrears, the sector may stagnate further.
It was in an attempt to address this issue that the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mr. Maikanti Baru, did not mince words at the 34th Nigerian Association of Petroleum Explorationists (NAPE) International Conference and Exhibition, which ended in Lagos recently, when he disclosed that for 2016, the corporation had accumulated about $2.5 billion in cash call arrears.

NNPC JV structure
A Joint Venture (JV) operation is a standard practice in the ownership of assets in Nigeria. It usually takes the form of an agreement between the national oil company, in this instance, the NNPC, International Oil Companies (IOCs) and sometimes, indigenous oil companies.
Under the arrangement, all parties contribute to funding oil exploration and production operations in the proportion of their JV equity holdings and receive crude oil produced earnings in the same ratio. Some of the joint venture partners include the Royal Dutch Shell Plc in Shell Pe­troleum Development Com­pany (SPDC), where the corporation has 55 per cent interest, while Shell, Total and Agip have 45 per cent.
In the NNPC/Chevron joint venture, the NNPC has 60 per cent, while the IOCs have 40 per cent. Under its joint venture arrangement in Mobil Producing Nigeria Unlimited, the NNPC has 60 per cent, while the other partners led by ExxonMobil have 40 per cent. Similarly, the NNPC has 60 per cent in the Nigerian Agip Oil Company (NAOC), while Italy’s Agip and other partners have 40 per cent.
Pan Ocean Corporation has a joint venture ar­rangement with the NNPC, with the latter controlling 60 per cent and the former, 40 per cent.

The Constraints/Implications
Despite having several joint venture agreements with IOCs, NNPC has consistently been challenged meeting its funding obligation.
It is believed that if the NNPC can faith­fully meet its obligations in the various joint ventures, the nation might reap bountifully from them through increased crude oil production considering its lion’s share in equity of the various JVs.
But so far, the major constraint facing NNPC and the IOCs is the inability of Nigeria’s oil firm to pro­vide its own share of funding for the joint venture projects.
With majority stake in these projects, the failure of the corporation to meet its cash calls obligation has not only stalled ongoing projects but also affected several other investment decisions in the industry, especially those related to gas projects.
Baru explained that the chronic JV funding shortfalls being experienced in the industry have resulted in declining JV oil production from about 1 million barrels of oil per day (bpd) three to five years ago to about 800,000 bpd.
‘‘This is coupled with the vandalisation of critical production infrastructure that have to be repaired as emergency cases at exorbitant costs, at most times, which further compounds the utilisation of available funds.
“The truth is that it is difficult to deliver the volumes without adequate funding. With average JV cash call requirement of about $600 million a month coupled with flat low budget levels over the past years, this has led to underfunding of the industry by government, which has stymied production growth. Consequently, managing these funding issues is part of our most immediate challenge,’217; he admitted.
In contrast, he noted that production from the Production Sharing Contracts (PSCs) arrangements where NNPC does not provide the funding for the production has increased almost proportionately to the JV production decline over the same period, thereby making the national oil production relatively flat.
‘‘Unfortunately, unlike the PSC arrangements, the JV system provides more revenue to the government through equity liftings and higher royalties and taxes due to the higher fiscal take from onshore and shallow waters fiscal terms. The low crude oil price regime further amplifies this anomaly,’̵7; he said.

Unlocking the bottlenecks
Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, recently said that the Federal Government has reached an “outline settlement” worth $5 billion with five IOCs to cover outstanding payments for joint exploration and production.
Kachikwu said Royal Dutch Shell, Exxon Mobil, Italy’s ENI, Chevron and France’s Total had “accepted̶1; the $5 billion deal.
He disclosed that the payments would be made in the form of new oil production, adding that there would also be a one-off cash payment.
According to him, the agreement would hopefully be finalised by the end of the year and cover the period from 2010 to 2015, adding that delay in payments has hindered oil and gas investment and worsened a budget crisis as the government seeks to increase spending to get the economy out of recession.
But the outline settlement of $5 billion covering 2010 to 2015 would still leave the country with a debt overhang of $2.5 billion for 2016. How would the country settle this and ensure that there is no carry over of liabilities to 2017 and subsequent years.
But Group Coordinator for Corporate Planning and Strategy and Director of Transformation at NNPC, Mr. Tim Okon, seems to have a permanent solution to the funding challenges. Okon had explained that Independent Joint Venture (IJV) is the way to go.
He disclosed that IJV is a venture which requires creation of a new legal entity in a specific country and allows two or more companies to collaborate and carry out a common activity requiring legal instruments such as by-laws, articles of incorporation and shareholders’ agreement.
He argued that incorporation will allow NNPC to finance its share of JV operations through a balance sheet as against the current JV option where NNPC’s only means of financing its share of investment was through Federal Government cash calls.
He argued that the difference between incorporation and status-quo was NNPC’s ability to raise debt, while the government can still maintain same share of ownership in JV via NNPC share.
Okon further explained that IJV solves funding prob­lem and creates self-sufficient entity by removing the need for cash call and annual fund­ing strategy through a one-off equity injection, adding that JV incorporation raises debt financing by providing a solid balance sheet to be used to raise funds.
To address these funding challenges, he stated that the Petroleum Industry Bill (PIB) has proposed the incorporation of the joint ventures.

[linksdean2] 20/11/2016 19:35

increased production!! cj.. oops I mean ct/ct2/oddman/smithy91 etc etc!!.go figa!

[triple seven] 20/11/2016 18:27

They don't have clue Links.

[callasjunkie] 20/11/2016 17:51

Curious re Angel. The production figues equate to 70kbd in 2016, 93kbd in 2017 and 98kbd in 2018. Yet net income approximates to 3% return on equity for 2016/17, rising to 10% in 2018. This despite the Shell crude hedge applying only until end 2017. Why the spike in 2018 income

[o1lman] 20/11/2016 16:57

according to our NOMAD that's the monetary value to the company. remember the NOMAD is paid by SLE so any research will be carried out wearing rose tinted spectacles, so reading between the lines expect losses for the next couple of years.