San Leon Energy Share Discussion Threads

[o1lman] 03/1/2017 20:32

o1lman - 18 Nov 2016 - 15:52:33 - 28445 of 29443 San Leon Energy - The New Positive Thread - SLE
07:00 28 Aug 2016
There is a bit of an oily feel to this week’s review of the small-caps.
oil well sunset by a lake
Oil in focus
There is a bit of an oily feel to this week’s review of the small-caps with San Leon Energy Plc (LON:SLE) leading risers -gushing 71% higher on the day it effectively came back from the dead.

Suspended since January, the shares were re-admitted to trading after it concluded a £170mln fundraiser at a more than 50% premium to the last quoted price for AIM-listed group.

Backed by Martin Hughes’ Toscafund the cash call will allow San Leon to buy a 9.72% interest in a Nigerian oil field producing around 50,000 barrels of crude a day.

The dividend stream from that production is worth £77mln (US$102mln) even at todays depressed prices for the blacks stuff.

âThis is a great looking deal in our view offering investors the opportunity to receive a healthy dividend yield from a mature production asset whilst also benefiting from revenue associated with oilfield services,� said Panmure Gordon analyst Jamie Campbell.

This puts San Leon in a unique position in my view and I look forward to seeing what the potential cash flows and associated yield will look like.
........


crikey, another analyst who lacks basic reading skills.

[triple seven] 03/1/2017 20:31

Go to bed oddman,more lies to come our way tomorrow

[o1lman] 03/1/2017 20:29

do u want to be linksdean ? it's understandable why no one wants to be linksdean, go figa tee hee.

[o1lman] 03/1/2017 20:28

u fail to understand they can only take payments from new production, oh dear there's your problem again in what u read and what reaches your brain.

[o1lman] 03/1/2017 20:22

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

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

not going to be anytime soon according to SLE, of course if u know different ask SLE to update.

[o1lman] 03/1/2017 20:15

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.

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

the part to concentrate on, I know there are a lot of words there but do your best.

[o1lman] 03/1/2017 20:14

Cash Flow Receipts

In accordance with the terms of the $173.05 million loan note instruments held by San Leon pursuant to the OML 18 assets, approximately $20 million of loan principal and interest repayments became payable on 1 October 2016, and an additional quantum of approximately $19 million becomes payable on 1 January 2017. Amounts will be payable by Midwestern Leon Petroleum Limited ("Midwestern Leon"), which is 40 per cent. owned by the San Leon group, and has a 50 per cent shareholding and an initial effective 90 per cent. economic interest in Eroton.

The Company's Admission Document, published in August 2016, provided details on the mechanism for dividends from Eroton to be made via Midwestern Leon. The conditions required to be met prior to dividends commencing were set out in paragraph 2.11 "Satisfaction of the conditions to approve distributions by Eroton" on page 59 and the Company is today providing an update on which of those conditions have been met.

The Company has been informed by Eroton that the following conditions have been met:
(i) the issue of a competent person's report

(ii) compliance with all financial covenants and ratios stipulated in the Reserve Bank Lending ("RBL") facility agreement

(iii) undertaking from Eroton to commence discussions on an optimal hedging strategy from 1 January 2018 to final maturity date of the RBL facility agreement and has to be in place by September 2017.

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.

[o1lman] 03/1/2017 20:12

u do live in the past the next thing is u will imagine u are linksdean.

[o1lman] 03/1/2017 20:11

Eroton have to pay from their production

50% of all new production costs (they have to pay NNPC's share and claim back later)
50% of the current costs of daily production (they have to pay NNPC's share and claim back later)
the costs of the RBL loan interest and capital repayments
pay all taxes

they then can pay a dividend to Bidco, of course when they get permission to do so.

[o1lman] 03/1/2017 20:04

current gross OML 18 production is around 53,000 barrels of oil a day.
SLE
..................

the parts to concentrate on OML18 production and 53,000 barrels of oil a day.

u obviously need some help, so today's quiz is

a. how much of OML18's production belongs to Eroton
b, how much is 'lost' before it is sold

[o1lman] 03/1/2017 20:00

here are the figures for the oil sold (total lifting) after NNPC have deducted their share, the actual amount deducted by the NNPC varies greatly by the month but I guess by the end of the year they will balance.

Jan 263,880
Feb 1065,970
Mar 582,701
Apr 473,445
May 562,757

guess the NNPC have it wrong, after all this is Nigeria and SLE where nothing is ever is as it seems.

[o1lman] 03/1/2017 19:45

here are the figures for the oil sold (total lifting) after NNPC have deducted their share, the actual amount deducted by the NNPC varies greatly by the month but I guess by the end of the year they will balance.

Jan 263,880
Feb 1065,970
Mar 582,701
Apr 473,445
May 562,757

it appears the shortfall in liftings in Jan was remedied in Feb.
if we take an average production figure for each month 550k barrels.
Eroton has the right to 23% of total production, lets say 50% of remaining production, so their oil sold for the month is 275k divided by 30 = 9.1k bopd.
Sle have the rights over nearly 50% of that, looks like a major task for the operator to increase production to make up for natural depletion whilst free carrying the NNPC and paying back their various interest and capital on their loans.

[o1lman] 03/1/2017 19:42

do u want to be linksdean there is a vacancy available ?

[o1lman] 03/1/2017 19:41

NNPC stated that back payments and any new payments owed will have to be taken from INCREASED production so that's not going to happen before April even with your wonderful imagination.

[o1lman] 03/1/2017 19:39

SLE has no production, they have no revenues, even with your wonderful imagination they still have no production or revenues, go figa that one.

[o1lman] 03/1/2017 18:20

it would cost TOSCA around £90 mill to take SLE private, less if anyone decided to hang to their shares, a possibility if the bid fails.

[o1lman] 03/1/2017 18:08

if the takeover goes thru what do u intend to spend your 750 quid on ?
I note another year but still no one wants to be linksdean, oh dear.

[o1lman] 03/1/2017 18:06

anyway look on the bright side u could have been posting here, like sl1nky, since it was £40.00, that is some out performance.
if u had bought 9k worth of shares it would be worth after nearly 4 years £450
if u get 17% yield on that, u will not but let's fantasise for a moment, £76.50, going to take a while to get back to 9k !!!!!
now if the share value rises the yield falls so u will still receive £76.50, u should be able to buy some ' stuff ' with that.
looking at the figures I understand why u never comment on SLE but follow me around like a dog with rabies.
having supported the share for 4 years, how many cheap warrants were u offered ?
TOSCA got there's at 25p.