San Leon Energy Share Discussion Threads

[mervin4] 30/4/2018 21:03

- SLE issued MLPL a loan for $174.5m at 17% pa interest.
- SLE is scheduled to be re-paid approximately US$19 million per quarter by MLPL.
- SLE has said it will return at least 50% of the repayment cash to shareholders via dividends and/or share buy-backs, after repaying debts, etc.
- At 3/4/2018, SLE had received a total of $58.6 from MLPL, relating to repayment of the principal sum borrowed + some interest (SLE, 23/4/2018).
- SLE are now debt free, with cash to spare going forward for return to shareholders.

- "As at 19 April 2018, San Leon had a cash balance of approximately $13.5 million. The Company is now in a strong financial position, with the benefit of an expected regular future income stream from its ongoing quarterly loan note repayments (of approximately US $19 million)...

...A further $168.6 million of principal and interest remains outstanding and payable, along with future interest, in similar quarterly instalments to those received to date." (SLE, 23/4/2018)

- Repayment dates for the outstanding $168.6m owed to SLE, are presumably as follows:

1 Jul 2018 = $19m, 1 Oct 2018 = $19m, 1 Jan 2019 = $19m, 1 Apr 2019 = $19m, 1 Jul 2019 = $19m, 1 Oct 2019 = $19m, 1 Jan 2020 = $19m, 1 Apr 2010 = $19m, 1 Jul 2020 = $16.6m

- So there should be a regular return of cash to SLE shareholders for the forseeable future.

[city chappy] 30/4/2018 20:17

I think it will be a couple of quid this year.

[city chappy] 30/4/2018 20:05

Many reasons to be cheerful about the new SLE not least the $19 million per quarter money coming in, free carry on Barryroe with drilling next year, and the stated intention to begin paying dividends and do a 10% share buy back.

[mervin4] 30/4/2018 19:27

SLE also have an exclusive right to provide oilfield services on a >$1 billion work programme covering OML 18 which in itself will bring in more revenues regardless of the outcomes. Almost like hedging their bets.

[mervin4] 30/4/2018 19:23

charttrader2000 please would you omit the silly message images.

[city chappy] 30/4/2018 19:20

But then I look at a company like 88E which closed down today yet still with a market capitalisation of £113m inspite of zero revenues and recent drilling producing water instead of oil. I then contrast that with SLE who have £19 million per Quarter coming in just from the loan notes, zero debt, 9% economic interest in OML 18 and 4.5% interest and free carry in Barryroe to be drilled next year.

Then I see SLE are intending to return cash to shareholders via dividends and a share buyback, which can only be good for the share price. You would have to be "stupid" to be out of SLE at this point but each to their own.

[city chappy] 30/4/2018 19:04

I think it will be a couple of quid this year. Lets see.