San Leon Energy Share Discussion Threads

[triple seven] 04/2/2017 09:21

Posting on a weekend with nothing positive to say. Why and for what gain? Very very strange Tony

[o1lman] 04/2/2017 08:06

I would question whether people will totally trust the BOD after the recent shenanigans – perhaps Ed, and directors of other companies, should learn to keep their mouths shut and get on with running their businesses, rather than spouting off on podcasts and ending up in this situation!

[o1lman] 04/2/2017 08:05

Prospex assures investors it is funded for 2017 - then carries out a placing two weeks later!
By Gary Newman | Friday 3 February 2017


Investors in Prospex Oil and Gas (PXOG) must have been left feeling a little confused and angry yesterday when an RNS landed stating that a placing at a huge discount was taking place.

Especially given the recent assurances by CEO Ed Dawson in a much vaunted podcast ( with Justin the Clown) that the company was funded for the coming year, and didn’t need to raise further funds, which at the time I was very surprised to hear give my own reading of the figures.

Back in early December I covered the company as a sell at 2.7p as I couldn’t really see where the value was, and was far less bullish on the possible success of the Boleshaw-1 drill on the Kolo licence in Poland than the directors of the company seemed to be – I didn’t like the fact that they were using higher figures for the Chance of Success than those in the official CPR that had been independently carried out by AGR Tracs. This view was met with much derision at the time, and although I obviously couldn’t predict the outcome of the drill – which subsequently failed to find any moveable hydrocarbons – the statistical likelihood was always that it was going to be a duster.

That I can sort of forgive the BOD for, as the reality is that more far more exploration drills fail than succeed, and all they can do is identify possible ‘sweet spots’ within the licence area and then drill them to see what is there. Although at the same time I would question raising the hopes of PIs with inflated figures, even if the directors truly believe them to be more accurate than the official ones.

But what I can’t forgive is the subsequent actions of the CEO, who appeared as a guest of a particular popular podcast provider on January 18 and stated the following when asked about the cash position of the company going forwards and potential of having to raise more money: “Prospex has always run on low overheads and as a result our monthly cash burn is relatively low. We therefore have sufficient cash to fund our working capital for 2017.”

So just when the latest RNS came just two weeks later stating that the company had raised £850,000 gross by way of an oversubscribed placing of 170 million shares at 0.5p, representing over 50% dilution, many people would have been surprised, especially those who previously trusted Ed Dawson.

The issue of the new shares is subject to a general meeting as a share capital re-organisation is required, given that the nominal value of its shares currently is 1p, so it can’t raise more funds at below that price, but I would expect it to be voted through.

The RNS states that: “Net proceeds of the conditional placing will go towards the company’s ongoing evaluation of a number of potential projects, in line with its strategy to build a portfolio of investments in the European oil and gas sector, and be used for general working capital purposes.”

So Ed, I take it that would be the same working capital that you stated was funded for the whole of 2017 without the need to raise any more money?

I would also argue that the net proceeds – maybe as little as £750,000 as there is no mention of a share based payment for the broker who is raising the money, so can only assume they’re making a fair bit from the shares – also aren’t going to be enough to build much by way of a portfolio of oil and gas assets, especially once you’ve taken out a chunk for working capital.

The RNS also mentions that the placing was over-subscribed, but if that was the case then why did the company carry out the placing at more than a 30% discount to the closing price of the previous day, if there was more interest than what was available? To me it smacks of desperation to raise money via whatever deal was on the table, and having to accept whatever was offered.

Aside from that, and just happening to coincide with the podcast, pure coincidence of course, private investors got very excited about the fact that someone called Jasvir Rai released a TR1 holding notification that he’d taken 5.6% of the company, having not been a notifiable holder previously, then a few days later he’d moved up to 8.7%, announced via RNS the day before the podcast.

There was all sorts of speculation as to what he was up to, so it must have come as a shock when on January 23 there was another holdings RNS – but this time he’d dumped all of his stock and was back below 3% (probably having sold the lot). To me this looks incredibly suspect as you don’t take a position of that size in a company that is generally fairly illiquid, just for a trade, and I would suspect that the TR1 notifications were used to try and pump the share price up.

What was also very noticeable at the time was the amount of DMA (Direct Market Access) activity on the orderbook of this SETS traded company at the time, especially given that the larger CFD providers (where many PIs access DMA) weren’t even offering Prospex for longs or shorts.

Often it is just the market makers sat on the book, but during this period of time you could see the price being manipulated and moved around, often by orders which were placed without any intention of having them filled.

Who knows if that was linked to the holdings RNSs, but it certainly looked very dodgy and it would be interesting to see what the FCA found if they looked into it – not that they would do of course!

Moving forwards, the company may well carry out another drill at Kolo once it has fully analysed the results with its partners and potentially identified other ‘sweet spots’ to drill, but I would question whether people will totally trust the BOD after the recent shenanigans – perhaps Ed, and directors of other companies, should learn to keep their mouths shut and get on with running their businesses, rather than spouting off on podcasts and ending up in this situation!

- See more at: hxxp://www.shareprophets.com/views/26953/prospex-assures-investors-it-is-funded-for-2017-then-carries-out-a-placing-two-weeks-later#sthash.xIqU6gqZ.dpuf

[o1lman] 03/2/2017 19:20

yes doesn't change the fact u agreed with him that it's a honey trap.

[o1lman] 03/2/2017 18:35

oh dear, oh dear but good to see u agree with Witheco.

[witheco] 03/2/2017 12:05

It's probably in the company's interest to drag this on for as long as possible. There may even be an attempt to suspend the share again. Very rarely do shares last long after they have been suspended. This company isn't going to around for long I think.

[witheco] 03/2/2017 12:02

I reckon if it weren't for the price distortion applied by Tosca to keep the negotiating price of 80p or more on the table, the price should be somewhere around 40p. I appreciate that internal guidance price (which is obviously a pro-SLE price) is somewhere in the region of a 100p - but this was 4 months ago, I don't think things are going to plan with this new venture, no evidence of payments, so, all looks like this level is weakly supported and could crash quite quickly and abruptly if the offeror officially withdraws.

[o1lman] 03/2/2017 11:04

The Loan Note has a term of four
years and expires on 22 March 2020. The repayments have been guaranteed by Midwestern and Mart (a wholly-owned subsidiary of Midwestern), and the Loan Notes are secured via the Pledge, subordinate to the RBL.

[o1lman] 03/2/2017 10:47

Oisin Fanning, Chief Executive of San Leon, said:

"We are encouraged by the performance of the OML 18 field to date, including the approximate doubling of production over what was expected when the RBL was first put in place. We are confident, and fully supportive of Eroton in its attempts to satisfy all the conditions of the RBL facility in order to declare dividends in order for San Leon to receive its first cashflow from OML 18."

[o1lman] 03/2/2017 08:37

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.

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

tick tock, tick tock.

[o1lman] 03/2/2017 08:34

first thing to consider if the company is going to be taken over/go private.
the second is how much has been accrued by Eroton in the RBL account I guess u can take it the news isn't good otherwise the company would have released the figure.

[o1lman] 03/2/2017 07:45

Agip records 2,418 oil spills
Published February 2, 2017


The Ministry of Petroleum Resources on Thursday said 2, 418 oil spills were recorded in Nigerian Agip Oil Company’s operations between 2010 and 2016.

The Director, Petroleum Resources in the ministry, Mr Mordecai Ladan, made this known at the public hearing on “Despoliation of the Niger Delta and Activities of Nigeria Agip Oil Company” by the House of Representatives in Abuja.

Giving details of the incidents, Ladan said 10 spills each were recorded in 2010 and 2011; 2012, 575 spills; 2014, 788 spills; 2015, 498 spills and 332 in 2016.

He said, “Most of the spills in 2012 to 2016 are attributed to sabotage due to the agitations in Niger Delta and given that the locations of most NAOC’s operational areas are on land and swamp.”

Ladan, who was represented by Dr Musa Zagi, an Assistant Director, said that the department was researching into the environmental impact of the continued discharges from various terminals.

He added that several aspects of the study had commenced.

He said, “The outcome of the study will determine the magnitude of impact on the Brass canal caused by NAOC’s operations and the appropriate remediation options to adopt.

“The department has also designed a special sanction regime for companies and facilities that persist in the prohibited discharges.

“This Progressive Discharge Deterrent Charge shall be imposed on NAOC with your approval, to serve as a deterrent to further project delays and incentivise the company towards compliance.”

Agip in a document submitted to the committee and signed by General Manager (District), Mr Paolo Carrievale, said that the pipeline where the incidents occurred was vandalised by suspected oil thieves.

He said that the suspected vandals illegally installed a valve on the pipeline for the purpose of stealing oil.

Carrievale further stated that a joint inspection visit conducted by the National Oil Spill Detection and Response Agency and the Bayelsa Ministry of Environment established that the spill on the section of the pipeline was caused by third party interference.

Speaker of the house, Mr. Yakubu Dogara, in his speech, condemned the activities of economic saboteurs in the oil producing communities across the Niger Delta.

He expressed regrets over the death of 14 people in Azuzuama community in Bayelsa as result of the spills.

The speaker, who was represented by Rep. Chukwuma Onyema, Deputy Minority Leader, reiterated Federal Government’s commitment towards promotion of citizens’ participation in law-making process and governance.

According to him, the Joint Task Force was set up by the Federal Government as a stop gap to check breakdown of law and order in the Niger Delta due to militancy.

Dogara said that illegal refineries were spill-over of the activities of militancy in the Niger Delta allegedly due to joblessness, poverty and hunger.

He added that the illegal refineries thrived on illegal oil bunkering, stolen crude oil, and vandalism of oil pipelines and other installations.

He said, “Without a doubt, these illegal oil operations are reprehensible and should not be condoned for a number of reasons.

“Firstly, it is improper for citizens to destroy oil installations in their bid to steal crude oil as feedstock for illegal refineries.

“Secondly, it is most inappropriate for anybody, Nigerians or foreigners, to steal crude oil belonging to the Nigerian State with impunity.

“Thirdly, there are serious environmental issues involved, regardless of whether they dump the residue from the crude oil distillation process into the river or simply incinerate it.”

The Chairman, Ad hoc Committee on Joint Task Force in Niger Delta, Rep. Nasiru Garo, said that as part of the activities of the committee, members conducted on-the-spot assessment of the affected Niger Delta parts between Sept. 25 and Sept. 28, 2015.

He said, “This visit afforded the committee first-hand information on the extent of environmental degradation of the Niger Delta due to activities of illegal refineries operators and oil spillages.

“The committee also visited NAOC facility to assess the integrity of their equipment as mandated.”

[o1lman] 02/2/2017 18:30

inability of the Nigerian National Petroleum Corporation to meet its cash-call obligations to its joint venture partners, and growing security problems facing operators on land and in shallow waters.

........

oh dear, tick tock, tick tock.

[o1lman] 02/2/2017 18:29

Nigeria’s oil rig count drops by 32% in December
BY EDITOR ON FEB 2, 2017 UPSTREAM

Data from the Organisation of Petroleum Exporting Countries (OPEC) showed that the number of active oil rigs in Nigeria extended its decline last year, as it dropped to 23 in December, down from 38 in January 2015, The Punch reports.

The reduction in the rig count was mostly triggered by the slump in global crude oil prices since mid-June 2014 as oil companies were forced to slash their capital budgets and suspend some projects. Rig count is largely a reflection of the level of exploration, development and production activities occurring in the oil and gas sector. Nigeria, Africa’s top oil producer, saw the fourth-largest drop in rig count among its peers in OPEC last year. The number of rigs in the country averaged 25 in 2016, down from 30 in 2015 and 34 in 2014.

Industry experts have attributed the decline in rig count to the general fall in crude oil prices in the international market; inability of the Nigerian National Petroleum Corporation to meet its cash-call obligations to its joint venture partners, and growing security problems facing operators on land and in shallow waters. They also said some operators had decided to scale back their activities and investment due to the regulatory uncertainty in the industry occasioned by the delay in the passage of the Petroleum Industry Bill.