San Leon Energy Share Discussion Threads

[echoridge] 01/9/2020 21:03

BECAUSE! geez, you have to hold these jabba clones by the hand on everything. next thing he'll ask for help going potty

[witheco] 01/9/2020 19:40

------------------During the period when Shell was the operator, there were two periods of extended production testing from the Oza-1, -2 & -4 wells. The field was never tied into an export facility, nor was it fully developed by Shell and put into commercial production.------------------WHY?

[philby1] 01/9/2020 16:52

Malcy says;

San Leon Energy
San Leon is to provide funding for the development of the Oza field in Nigeria via a funding model that gives it opportunity to provide a repayable loan at an attractive interest rate and with an additional significant equity kicker. This gives SLE the opportunity again to generate a meaningful return from repayments in the coming years as well as looking forward to a longer-term dividend return from the equity shareholding.

The starting point is subscription agreement with Decklar (holder of the Risk Service Agreement to the operator) for a $7.5m loan at 10% p.a. coupon as well as the opportunity for a 15% interest in the company. In addition the agreement allows San Leon to increase the loan notes by another $7.5m and the equity by another 15% to give them 30% of the equity in due course.

Put simply, this is another deal by which San Leon invests with limited risk into an older, marginal field albeit one with plenty of seismic and therefore upside. As it is onshore the wells are relatively cheap and have few if any issues commonly associated with offshore or semi-offshore in the country.

This deal will be decided as to commerciality pretty quickly, the first well will give the option to scale up the investment, following receipt of the result of the new drill proof-of-concept well after, say, c.90 days. Obviously the way the option is structured it would be possible for SLE to walk away if things don’t go according to plan. With wells producing 2,000-4,000 b/d it is possible that a 20,000 b/d total might not be ruled out for the investment.

So for a relatively modest outlay and very limited risk, San Leon has outlined another potential investment with high rewards. Returns should come from the coupon on the loan note but also from what might be a 30% investment at extraordinarily low outlay in Decklar. The shares have more than doubled from the lows but at 27p the shares still offer exceptional upside particularly when the management do deals like this.

[ceteris paribus] 01/9/2020 12:33

Great news this morning - more money to go to money heaven.

[1kempton] 01/9/2020 08:41

hxxp://asianmineralres.com/en/projects/oza-oil-field-nigeria/

[echoridge] 01/9/2020 07:22

Nice on first read. Hope to learn more about the field and how short a time to production the project will be, but it's an impressive extension of the type of lower-risk funding deals sle is fast becoming associated with and a trend in the industry. A secondary positive is more confirmation of (relatively) available credit for hydrocarbon development in this part of the world and the positive information effect that conveys. Right now it is becoming increasingly evident that you would rather be working to nurture an oil business in Nigeria than the Bakken.

[1kempton] 01/9/2020 07:18

Fantastic opportunity here.

[1kempton] 31/8/2020 15:01

hxxps://www.energymixreport.com/nigeria-to-reduce-taxes-on-onshore-shallow-water-licences-in-new-pib/

[1kempton] 31/8/2020 09:27

Nigeria: NNPC Remittance to Federation Account Hits N1.87trn in One Year

30 AUGUST 2020

This Day (Lagos)

By Tobi Soniyi and Emmanuel Addeh

The Nigerian National Petroleum Corporation (NNPC) remitted a total of N1.87 trillion to the Federation Account Allocation Committee (FAAC) between June 2019 and June 2020, the latest report from the national oil company has indicated. The full financial report for June also showed that compared to May, NNPC's operating revenue increased by 32 per cent, but that was wiped out by the corporation's cumulative expenditure, which equally went up by 32.8 per cent.

Payments are made to the Federation Account by NNPC after the adjustment of crude and product losses as well as pipeline repairs and management cost incurred during the period.

According to the corporation, for the month under consideration, all its Strategic Business Units (SBUs) suffered various levels of losses, except four, with operating deficit on the non-functional refineries standing at over N10 billion.

The corporation disclosed, "In June 2020, NNPC remitted the sum of N68.42 billion to the Federation Account Allocation Committee (FAAC). From June 2019 to June 2020, total NNPC remittances to FAAC is N1.870.13 trillion. Out of this, Federation and JV (Joint Venture) with government priority projects received the sum of N845.42 billion and N1.024 trillion, respectively.

"June 2020, group operating revenue as compared to May 2020, increased by 32.05 per cent or N76.39 billion to stand at N314.72 billion.

"In the same trend, expenditure for the month increased by 32.80 per cent or N77.30 billion, at N312.95 billion. This month (June) expenditure as a proportion of revenue is marginally below par at 0.99; just as was recorded in the previous month."

NNPC further said it experienced a lower trading surplus of N2.12 billion compared to the N2.68 billion surplus in May 2020, when the world began a fragile recovery from the impact of the COVID-19 pandemic.

However, it noted that there was a 21 per cent net increase in performance, which it attributed primarily to the 166 per cent rise in surplus posted by the Nigerian Petroleum Development Company (NPDC), one of its subsidiaries. The corporation noted that this was a reflection of the on-going global rise in market fundamentals for the second consecutive month, explaining that in addition, the Pipelines and Products Marketing Company (PPMC) continued to enjoy a drop in average product landing cost as profit increased by 22 per cent.

According to the corporation, takings from the Nigerian Gas Company (NGC), Nigerian Gas Marketing Company (NGMC), and Duke Oil Incorporated grew by 16 per cent, one per cent, and 127 per cent, respectively.

[1kempton] 31/8/2020 09:24

allafrica.com

Nigeria Earns $378.42 Million From Crude Oil, Gas Despite Virus Effects

30 AUGUST 2020

Abuja — Nigeria's oil revenues rose by more than a 100 per cent between May and June, despite the height of the Covid-19 pandemic.

Figures from the Nigerian National Petroleum Corporation (NNPC) showed Abuja's total crude oil and gas export earnings reached $378.42 million in June, more than the $133.16 million it posted for May 2020.

The corporation's Monthly Financial and Operations Report (MFOR) for June, released in Abuja on Monday, indicated that the rise followed easing of the lockdown imposed to curb the virus, which increased the demand and prices for the black gold in the international market.

[wayo] 31/8/2020 08:41

red lion special, things aren't always as they are portrayed.

Eroton Board

Oisin Fanning
Non-Executive Director


A non-executive director (abbreviated to non-exec, NED or NXD) or external director is a member of the board of directors of a company or organisation who does not form part of the executive management team.

[alaric7] 30/8/2020 22:43

Here's that article again from oilprice.com hxxps://oilprice.com/Energy/Energy-General/Heres-How-Oil-Could-Skyrocket-By-138.html

[wayo] 30/8/2020 09:02

yee, facts are harder to stomach than fiction.
posting rubbish about a share will not increase
the price one penny, I thought u would u have
already reached that conclusion.

[1kempton] 29/8/2020 16:02

1st class post echoridge and spot on as pvr would say!!.

[echoridge] 29/8/2020 15:45

So the secret is out.... I hadn't seen that particular article, Alaric, but that's precisely the argument I was referring to in my previous post. The death of shale is a central investment theme of mine but much more importantly, its starting to get some serious professional interest as well. Through the material recovery in the oil price complex since March, there has been a big increase in open short futures and put positions; in other words, pros have been opposing this recovery rally - particularly since Brent breached $40 - and the reason is simple: despite some pockets of recovery in the world economy - particularly in China - there hasn't been anywhere near a sufficient increase in general oil demand (yet) to address what these bears think is the gorilla in the room: the huge oil stockpiles that were built up around the world during the worst of the price crash. In fact, storage capacity - in every form from onshore tanks to tankers - remains surprisingly tight and storage rates commensurately high. The expectation had been, as short positions began to build up around mid May/June between $35 and $40 - that even as the world economy picked up a bit - for some, ESPECIALLY as the economy recovered - the oil market would necessarily get flooded by all this supply held in relatively expensive storage, by professional investors and not oil experts. Yet despite much of that stockpile being held in relatively weak hands, that hasn't happened (yet), at least to the extent that it has impacted market prices. Instead of course, the price action has been on a slow grind higher (I hate chart analysis, but the 30% rally since end of May has been notable for its unusually slow, steady rise particularly as it followed one of the most volatile periods in the market's history), with the outer forward months into next year for Brent approaching $50, no longer very far from its 5year average, seemingly against all the odds.

Now, one reason for this is the massive liquidity-drenched recovery in equities and gold prices as well as the far-less discussed, but far more important for oil prices, simultaneous collapse in the dollar. All 3 of these have, in different ways, brought mainly speculative buyers into oil who are almost entirely buying financial instruments, unlike their peers earlier in the year who got long physical oil, thus pushing the oil forward months into contango and adding to the upward pressure on prices generally. This recent buying will almost certainly reverse - as it always does, often suddenly - since these funds are punting oil bc they've basically run out of other things to buy, and when it does we may see a material correction in Brent, possibly back to the low 40s, though that now seems less likely. However, I am convinced it won't last and the reason is the article you posted, Alaric.

In fact, I think this thesis arguing for higher prices in the coming years, regardless of economic conditions, is the final, largely under-explored, almost stealth reason for the stubbornly higher CURRENT prices. What I believe the market is waking up to - and frankly, is causing some even more painful short covering that is undergirding prices - is that the undeniable demand destruction that is coming as the world moves to renewables, etc is (and I know, I have written about this before, but it bears repeating and highlighting) now seen as inevitable, unstoppable. However, as oil bears are learning to their embarrassment, the ultimate irony is that the market crash in March may have had a bigger impact on supply than on demand, and that that impact is not being equally shared across the industry, either product-wise or geographically.

In short, if you're a heavily leveraged shale producer or worse, want to become one, and you turn to the credit markets for help, you're kinda foooked, PARTICULARLY in the US. In a year or 2, this fast evolving view may well turn out to be wrong, but for now, shale oil production in the US is toxic, and since the generally accepted macro view is that getting to some 8 million+ bbls/day made the US the world's marginal producer and that that status was built on shale growth, if that growth is about to turn negative, then commodity prices may well remain structurally well bid and may even push materially higher. In other words, there may well be some fundamental method behind the higher price madness. In a final irony, and of course a final blow to yet another 'end of days' scenario jabba or one of his surrogates gleefully present when they get tired of trying to slime sle directly, the ability to exploit this, until now, unforeseen development of relatively buoyant prices and a credit market boycott of shale, and an overall declining investment environment for exploration, is and will open up increasingly to well-funded, conventional legacy producers in the developing world, particularly geographies with critical mass like Nigeria. And that means companies like San Leon Energy. Drop mic

[wayo] 29/8/2020 13:58

turned out nice again. xx

[1kempton] 29/8/2020 13:56

hxxps://sweetcrudereports.com/nigerias-oil-earnings-rise-by-9-to-n2-05trn-in-four-months/

 Nigeria earned N2.048 trillion from the petroleum industry in four months, from January to April 2020, rising by 8.59 per cent from N1.886 trillion recorded in the same period in 2019, according to data obtained.

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