San Leon Energy Share Discussion Threads

[o1lman] 31/12/2016 11:31

xpensive business being an oil company, apparently, I wonder how much the admin would have been if they had actually drilled any wells, what do they all do to pass the time of day ?
that of course doesn't apply to the accounts department where the phone must be red hot with suppliers asking to be paid.

[o1lman] 31/12/2016 11:28

the part to concentrate on is the provision of geological services, oh dear.

[triple seven] 31/12/2016 11:25

Move on mug. Your lose will be in my pocket soon.Happy Day's

[o1lman] 31/12/2016 11:12

Settlement with Avobone

On 7 November 2016, Avobone N.V. and Avobone Poland B.V. ("Avobone") (together, "Avobone") and San Leon Energy Plc ("San Leon") settled a number of ongoing disputes between them and between Avobone and certain of San Leon's subsidiaries, including Aurelian Oil & Gas Limited, Aurelian Oil & Gas Poland Sp. z.o.o, Energia Zachod Holdings Sp. z.o.o and AOG Finance Limited, in Poland, Netherlands, Ireland, England & Wales in respect of various matters including a final award in an ICC arbitration dated 21 May 2015. The total settlement of EUR23.3 million plus interest to be paid to Avobone by San Leon will be paid as follows, with EUR2.0 million being paid by 21 November 2016, EUR8.0 million by 28 April 2017

.......

tick tock, tick tock.

[o1lman] 31/12/2016 11:02

FG, Oil Companies End JVC Agreement
on: December 15, 2016In: Business, Energy, Highlights

The Nigerian National Petroleum Company (NNPC) on Friday signed an agreement to exit the Joint Venture Cash Call (JVC) with some international oil companies.

The agreement was signed in Abuja at the Ministry of Petroleum Resources between the Federal Government and Shell, Chevron, Agip, Total, Oando.

Nigeria owes an estimated 6.8 billion dollars accumulated over 14 years but got a discount of 1.7 billion dollars, leaving a debt of 5.1 billion dollars to be repaid.

The Minister had, at another forum, explained that the agreement stated that the payment from incremental oil production would not affect Nigeria’s budget production benchmark of 2.2 million barrels per day (mbpd).

The Minister of State for Petroleum, Dr Ibe Kachikwu who signed on behalf of the Federal Government, expressed joy that the signage would bring more investments into the country.

He said lots of work and political determination had gone into the nation’s exit from the JVC debt.

”If we continue to focus on things that haven’t worked in a long while, we’ll get this industry on its way to competing favorably with other counterparts.

”I challenge the oil companies to put their monies where their mouth is because they said once this is done investments would begin to come into the country.

”I must also appreciate President Muhammadu Buhari for supporting the effort and for his willingness to steer the cause,” Kachikwu said.

Dr Maikanti Baru, Group Managing Director of the NNPC, said the agreement was aimed at addressing long standing issues of unpaid cash call arrears, under-funding the joint venture and the burden of monthly payments by the Nigerian government.

He said inability of the NNPC to regain technical costs had been a major reason for the accumulation of the arrears over time.

Baru said under the new funding model, government would continue to receive royalties, taxes and profit from its equity share of Joint Venture oil and gas production.

[o1lman] 31/12/2016 10:56

there are not going to be any NNPC payments the company has to increase production and take the back payments from this production so no hope of the dividend being paid from the NNPC.

[linksdean2] 31/12/2016 10:12

From panmure Gordon
. Whilst investors will disappointed that the lack of NNPC payments is holding up distributions from Eroton, the fact that this is the only main issue is mildly encouraging and the Nigerian government has been relatively vocal about their intentions to clear debts with partners in general, potentially using production barrels to settle debts. Should this apply to Eroton the strength of the oil price and higher production levels from the field could speed up the repayment process. I remain confident a 1Q17 distribution from Eroton is still likely

[linksdean2] 31/12/2016 10:09

From panmure Gordon.....

Whilst investors will disappointed that the lack of NNPC payments is holding up distributions from Eroton, the fact that this is the only main issue is mildly encouraging and the Nigerian government has been relatively vocal about their intentions to clear debts with partners in general, potentially using production barrels to settle debts. Should this apply to Eroton the strength of the oil price and higher production levels from the field could speed up the repayment process. I remain confident a 1Q17 distribution from Eroton is still likely

Sorts of farts in the infected face of Oi mun the non holder who is just wasting his time here as sle are in business producers of oil and gas and await $39 mill..go figa!

[o1lman] 31/12/2016 09:42

Achievements thus far
Started by Brotherseven, 31 Dec 2016 09:29 0 replies
31 Dec 2016 09:29 Go to Thread
BrothersevenToday 09:29

I have listed below all of the achievements of Sle over the past six years.






.........

they have achieved sending literally hundreds of millions of shareholders money to money heaven.

[o1lman] 31/12/2016 09:40

FACT
Started by honestsid, 30 Dec 2016 23:35 0 replies Last post by honestsid
30 Dec 2016 23:35 Go to Thread
honestsidFri 23:35 re; oml 18

SLE has still not received its first cash flow from the project.

[o1lman] 30/12/2016 14:03

Obviously you have the explorers, where on paper the assets look hugely valuable, often many multiples of the market cap, but in reality many of these ‘assets’ never actually reach production stage. They do of course have their uses and are a great way for unscrupulous directors to string along investors for a number of years whilst pocketing a nice salary in the process.

[o1lman] 30/12/2016 14:03

Why it is often difficult to value small resource companies accurately
By Gary Newman | Friday 30 December 2016


Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Valuing small resource companies can be difficult, and often they will appear to be far cheaper than they really are.

The bulletin boards, Twitter, etc are full of people extolling the virtues of the companies that they are invested in and pointing out that they should be worth far more than what the share price currently reflects.

In many cases that is just wishful thinking based upon a load of hype, but in some cases the figures would also seem to support that view, but with many of them the investment case becomes far less clear once you take a more in-depth look.

Obviously you have the explorers, where on paper the assets look hugely valuable, often many multiples of the market cap, but in reality many of these ‘assets’ never actually reach production stage. They do of course have their uses and are a great way for unscrupulous directors to string along investors for a number of years whilst pocketing a nice salary in the process.

You also get producing oil wells and mines that are old, depleted and borderline commercial, and you will often find that these have been passed from one failed outfit to the next. The Trinidad producing oil field that Range Resources (RRL) bought back in 2011 being a good example – especially if you go back to previous owners SOCA Petroleum.

Any company with resources in the ground is very hard to value, which is why they can often be driven so high solely on sentiment, and the risks of them never actually producing anything usually aren’t factored into the valuations that you see being touted around.

Then you have the companies that have what appears to be decent amounts of cash in the bank, and in some cases that exceeds the market cap and makes them look cheap on a net asset value basis.

But the problem here is that the cash is only really of any use if they are actually going to do something with it – in the cases where they don’t, it would be far better if they just returned it to investors and wound up the company!

Global Petroleum (GBP) is a good example of such a company as it had nearly $10.2 million in the bank as at the last accounts up to the end of June 2016, compared to a market cap of just £3.55 million ($4.3 million) currently. That makes it look very cheap indeed as it has no real liabilities and net assets of over $10.3 million.

But the problem with this company is the rate at which it is going through that cash, having made a net loss of over $2.3 million for the year, and having seen its cash drop by over $2.5 million from $12.7 million at the end of June 2015.

So on that basis, unless it is able to actually do something with the money soon, it is going to burn through it all in a few years just on admin expenses and salaries. There are other similar examples out there as well, so it always pays to look at what they are actually doing with their cash and the rate of cash burn.

The third category are those companies which have actually managed to get an asset to the production stage and are actually making a net profit from it – rather than a token operating profit that is vastly exceeded by the costs of running the company, which come under the ‘rubbish-asset-no-one-wants’ category I mentioned earlier.

But even these profitable small producers it can be hard to understand the value of them, and in many cases it would appear that they should be valued higher than the current market cap.

But what many don’t take into account when trying to apply typical PE ratios for the sector, and the like, is the longevity of the assets that the company owns – or in many cases the lack there of.

It is all very well pointing out that some of the big miners trade off of high PE ratios – although less so in recent times following the general commodity price crash we saw – but what people forget is that these companies also have reserves that are going to take many years to extract, and at the same time are replenishing those reserves via exploration to find new ones.

That often isn’t the case with the small resource companies that are reliant on one mine or oil/gas field, and in some cases these can have a lifespan of less than ten years.

If you think about it in terms of the PE ratio, then a ratio of ten means that on a simplified basis it will take ten years of that level of net profit every year, in order for the total earnings during that period to equate to the current market cap.

Now if the asset only has say a lifespan of seven years and the company is trading at a PE of 10, then from that point onwards the asset is never going to make enough to justify the valuation of the company.

So you also need to look at what the company is doing to increase and replace existing reserves. That could be from an entirely different asset, or more often than not via exploration on the existing licence where only a small part of it has been developed so far.

Any such exploration obviously carries some risk, and that is why many of these smaller producers often appear to be priced cheaply.

This applies to two companies that I hold shares in myself, Sylvania Platinum and Orosur Mining (OMI), where many PIs can’t get their heads around why they aren’t trading at multiples of the current share prices, given the net profits that they have been making.

In both of these cases I can still see upside from the current levels, but there is no doubt that both of them need to be able to replenish the reserves that they are currently depleting, or at some point in the next few years profitability will drop off sharply.

- See more at: hxxp://www.shareprophets.com/views/26232/why-it-is-often-difficult-to-value-small-resource-companies-accurately#sthash.oFcYkvfN.dpuf

[o1lman] 30/12/2016 13:32

looking at the production profile, shareholders need to keep everything crossed that the takeover happens.

[o1lman] 30/12/2016 13:27

callas, it's ok to edit posts at advfn, beware of the scum here if u copy any posts as they regularly go back and change their posts.

[callasjunkie] 30/12/2016 11:48

o1lman....meant to say I CANT give you specific MartWestern figures...slip of the finger

[callasjunkie] 30/12/2016 11:46

Hi o1lman, re 29346:

According to the official documents, when SLE bought Mart Resources (Canada), it only purchased the OML18 interest, clean of any other assets/liabilities. SLE must have made a separate agreement to divest itself of all Mart Resources other assets and liabilities to MartWestern Nigeria (SLE's partner in Bidco).
The interesting thing about Martwestern Nigeria is that it must have assumed the rather humungus debt that Mart Resources (Canada)had run up in its buy into Eroton/Martwestern/Sun. It was owed to a Nigerian bank, Guarantee Trust Bank, and as far as I can remember was well in excess of $200m and had an eye-watering coupon. I can give you specitic figures as Mart Resources website was taken down following SLE's purchase.
So not only is Eroton short of dosh, but likely also MartWestern for different reasons, unless Umusadege revenue has kept pace??

Fascinating isnt it? Never in all my years in business have I seen a deal like this!!

[o1lman] 30/12/2016 11:33

PspeedoToday 10:32 Cash coming on stream and nnpc starting to pay quicker all adds up to a good year for sle, production figures look to increase hugely and service agreement works moving nicely into position, brill rns from sle.

[o1lman] 30/12/2016 11:23

the 39mill owed doesn't even cover the cash spent by SLE from the placing, going to be a lot if gnashing and wailing here if the bid fails

[o1lman] 30/12/2016 11:19

Nigeria gets $1.7bn discount on cash call arrears
— 16th December 2016
By Adewale Sanyaolu

International Oil Companies (IOCs), in Joint Venture (JV) operation with the Federal Government, have agreed on $1.7 billion discount on cash call arrears, which has accumulated to $6.8 billion.

With this discount, Nigeria will now have to clear unpaid bills worth $5.1 billion for oil production JV piled up over many years, Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, said in a speech at the signing ceremony held in Abuja, yesterday.

The IOCs that agreed to the discount deal included Shell, Chevron, Total, Eni and ExxonMobil.

According to Kachikwu, the deal would unlock new investment, adding that the repayment would take place over the next five years.

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

only going to take up to five years !! a whole heap of trouble on the horizon if the bid fails. my guess, it's only a guess if they fail to meet the next cash call for the loan repayment TOSCA will take them private but they will not be paying anything like the current price to do so.

[o1lman] 30/12/2016 11:15

Hi,Eroton as a private company can do whatever it wants, guess as it's Nigerian they will.
There is one outstanding item the production they bought from Mart Western from Umusadege, where does it sit within the deal SLE has ?

[callasjunkie] 30/12/2016 11:04

o1lman, thanks for your posts. I totally share your views on this company. To date have done most of my posting on the LSE Board.

There's one aspect of the Nigerian deal that seems to be in limbo but is a vital part of the transaction...that is that SLE reported in the Admission document that it has the right to appoint two directors to the Board of Eroton.

From Page 25 of the Admission doc:
"Through the BidCo Shareholding Agreement and its interest in San Leon Energy Nigeria, the Companyhas the right to appoint two directors to the board of Eroton. The Company has nominated Mr Fanning and Mr Campbell to join the board of Eroton."

Neither Fanning or Campbell are shown as directors on Eroton's website.
hxxp://www.erotonep.com/Board.html
Given that the website hasnt been updated since your granny was a girl, it's possible that their election has happened.....but if so, why has that important step not been reported in an RNS??

As Eroton is an informationally opaque private company, SLE representation on the Board of Eroton is in my opinion vital.
An email I sent to Eroton on this issue went unanswered.

Regarding today's RNS, the statement that Eroton cant complete it's 2016 Accounts without all the RBL debt service conditions completed is total balderdash. (I guess they are going to try any excuse to avoid a formal audit qualification).

How could any NOMAD have approved this RNS??