San Leon Energy Share Discussion Threads

[1kempton] 27/2/2021 07:10

Eroton are named as one of the companies duped out of its oil…

 allAfrica.com – 26 Feb 21 1

Nigeria: Court Issues Criminal Summons Against Shell, Seven Others Over Alleged...

A judge of an Upper Area Court in Abuja, Justice Gambo Garba, yesterday issued a criminal summons against Shell Petroleum Development Company (SPDC) of Nigeria and seven of its top Executives over alleged stealing of 16 million barrels of crude oil...

[1kempton] 27/2/2021 07:09

SPDC should return the missing crude amounting to over 2 million barrels to the affected local oil companies including Aiteo, Eroton, Newcross and Belema Oil."

 THISDAYLIVE – 21 Feb 21

Untangling Aiteo, SPDC Oil Theft Saga

Business/ ENERGY For a while, insinuations that certain oil companies operating in Nigeria engage in underhand activities in the process of carrying out their businesses had been rife. Emmanuel Add…

 allAfrica.com – 26 Feb 21 1

Nigeria: With Over 22 Million Barrels Lost, Nigeria Moves to Checkmate Crude Oil...

Nigeria is one of the globally acclaimed oil producers, priding itself mostly in the Bonny Light brand in the petroleum market governed by the Organisation of Petroleum Exporting Countries (OPEC).

I think this is about the nctl pipeline not tnp!, so maybe eroton will get their share of this 2mboe…

Another issue is reconciliation of oil production figures between operators and the government. This was re-echoed last week when the Department of Petroleum Resources (DPR) in a move to stem the negative trend, pushed that Shell Petroleum Development Company of Nigeria Limited (SPDC), a subsidiary of Royal Dutch Shell, would have to refund about 2.1 million barrels of crude oil from the Trans Niger Pipeline (TNP).
The oil industry regulator said it found out that there were faults in the reconciliation process of oil production by the transnational oil company.
According to a court order seen by Daily Trust, a federal high court sitting in Lagos had blocked the company’s account in January pending the hearing of the case this month.

The company had been indicted by DPR, for allegedly under declaring 2,081,678 barrels of oil between June 2016 and July 2018 through an unapproved metering system, which it used to misappropriate crude and to short-change local operators.

Shell’s spokesman, Bamidele Odugbesan, noted that the company did not under-report crude export from its terminal. However, in a Shell letter referenced DMR/CTO/COA/COM/V.5/045 on January 28, 2021 to DPR, it said it will refund the disputed oil volume.

[1kempton] 25/2/2021 14:11

Wow!!

This means that with 350 million barrels recoverable, the profit on the field could be of the order of $12bn,

Sle have 4.5%npi on the whole field that’s gas production as well as oil of the the 350mbo, this includes the undrilled lower Wealden and jurasic lower prospects that have not been tested. .plus the licence extension…

If the $12billion profit the article plays out sle could stand to make 100s of millions and a 50% return to shareholder would be a bonanza indeed…

[1kempton] 25/2/2021 14:10

From Phoenix magazine today on pvr blog..

www.thephoenix.ie/article/providence-shareholders-prepare-for-bond-boost/

Providence shareholders prepare for bond boost
IT WAS reported in the Business Post recently that Providence Resources’ farm-out partner, SpotOn Energy, had approached the Irish exploration company about a potential merger. This was not too surprising as Providence’s chairman, Pat Plunkett, and CEO Alan Linn had previously outsourced the job of finding farm-in partners to SpotOn rather than doing it themselves. The good news for investors is that the expected €50m bond placement at the end of next month could set a fire under the shares. This would not be surprising given that the company is currently valued at about 1% of its potential €5bn share of the profit from any successful development of the Barryroe oilfield.
SpotOn injected £0.5m into Providence last year courtesy of two placings and, in response to press speculation about a merger, Linn issued something of a nondenial denial earlier this month: “We are not currently involved in any merger discussions with any party.” He went on to add, however, that “we will continue to work closely with SpotOn Energy to deliver the necessary funding to develop the world-class Barryroe asset”. Linn did not say Providence has not been approached by SpotOn, simply that he is not involved in any merger discussions. Reading between the lines, if SpotOn can deliver the “necessary funding” for the agreed early development programme (EDP), then it might see little purpose in having Providence just sitting there as a sleeping partner. Rather, it would make sense to merge with Providence and run the whole show. At that stage, Linn would have no obvious central role to play despite being on a generous salary. Linn finds himself tied into SpotOn, much like Tony O’Reilly Jnr and John O’Sullivan were to Apec three years ago, which was supposed to come up with $200m funding for a five-well drilling programme, instead failing to pay even the initial $5m. Plunkett eventually pulled the plug. Why Plunkett chose Alan Linn as the new CEO remains something of a mystery. He is a chemical engineer by training, rather than a geologist or geophysicist. While he did work for major operators like Exxon, Lasmo and Cairn, it was not at a really senior level. In 2008, Linn joined Roc Oil as COO and rose to CEO in 2010 but in 2014 Roc Oil lost €31m and was subsequently suspended from the Australian Stock Exchange.
Linn then opted to jump ship and became CEO of the distressed African oil and gas company, Afren, which went into administration in July 2015 and was delisted from the London Stock Exchange. In 2017, Linn moved to Third Energy as COO but “following a strategic review of the business, the decision was made to divest the offshore business and focus on the onshore”. Linn ended up as CEO of the offshore business in July 2019 but exited six months later to join Providence in January 2020.

Providence has one significant asset – its now 40% stake in the Barryroe oilfield, which has 350 million barrels recoverable and has flowed on oil on test the five times that it was drilled, most recently in 2012. While Linn is right to focus on Barryroe, it is hard to justify the dumping of all Providence’s deep water Atlantic margin licences simply in order to save money. Linn has no experience or background in the Irish offshore resource sector and as a chemical engineer does not have the academic training to fully understand the rather complex Barryroe field. This helps explain the decision to farm out the development of this field to a third party with more knowledge and experience. It was, of course, Plunkett who was in situ as chairman when Providence raised €70m in a share placing back in June 2016 at a price of 16c and then signed off on the disastrous farm-out agreement with the Chinese Apec consortium. A more obvious choice for Plunkett to have picked as CEO is Steve Boldy, the current CEO of Lansdowne Oil & Gas, Providence’s 10% minority partner in the Barryroe consortium. Boldy worked as a petroleum geologist in the Department of Energy and then spent 19 years with Amerada Hess (now Hess Corporation) as its UK and international explorations manager. In 2013 Boldy joined Ramco, which developed the Seven Heads gas field off Co Cork, just above Barryroe, before moving to Lansdowne in 2006 where, for the last 14 years, he has been studying the Barryroe oilfield. Presumably he could have been poached from Lansdowne, where he is on a salary of only €70,000. SpotOn’s own website asks if you are “looking to sell or farmout your off-shore oil and gas field for development?”. The Norwegian entity claims to have “a new approach to cost-effective offshore oil and gas field development”, whatever that means. CONSORTIUM SpotOn boasts of working with “a consortium of world leading service providers”. One of them we now know to be Schlumberger, an American oil service company that works with an array of operators so the tie-in is far from interesting. SpotOn also claims to be working with the Norwegian oil services investment company, Akastor.

OTHER PLAYERS
SpotOn does have interests in providing well design and drilling project management, reservoir and field management services, as well as having an interest in the Odfjell Drilling company and Awilco Drilling, which owns some semisubmersible rigs. These are all minority investments

. SpotOn also notes an association with the Norwegian engineering firm, Aker Solutions, which specialises in low-carbon emission designs, but again works with a lot of other players. The agreement Linn drew up with SpotOn in April last year offered it “exclusivity until October 31, 2020” to assess the potential of the Barryroe field and agree farm-out terms. The key to this, obviously, was funding, which would make it easy to find a service company and drillers to do the job. By the end of October, however, SpotOn had failed to deliver so Linn allowed a further one-month extension but even by then thegoods had not been delivered. Despite this, Linn went ahead and agreed a 50% farm-out deal with SpotOn, which presumably provided evidence that it was close to securing funding. This reduces Providence’s stake in the field from 80% to 40%. What is understood is that Pareto Securities, a Norwegian investment bank, has agreed to lead but not underwrite the raising of a $50m 10-year bond to partfund the project. On foot of this, the big French bank, Société Générale, is considering a $35m 10-year loan and the Norwegian government will provide a $45m export credit guarantee on the basis of using Norwegian drilling and service companies.

DEFERRED FEES
On top of this, SpotOn says that its consortium partners will defer part of their fees to the tune of $35m. This appears to bring the total inferred funding to the $165m that SpotOn signed up to. What investors need to ensure is that the key initial $50m bond is in place at the end of next month. With oil prices recovering to $60 a barrel, prompted by the rollout of vaccines worldwide and the predicted economic recovery expected to follow, the odds of this bond being put in place have decreased. What is exciting about this is that according to SpotOn’s feasibility study, the estimated breakeven point for Barryroe is $25 a barrel. This means that with 350 million barrels recoverable, the profit on the field could be of the order of $12bn, leaving the value of Providence’s potential profit share here at close to $5bn. Providence shares are currently trading at 7c, which is 99% off the €7 they traded at back in 2012 when the exploration company had just completed its last successful drilling. The current price values Providence at €50m, which is about 1% of its potential profit share from a successful development on Barryroe. This makes Providence shares look like the most underrated share on the market and they are likely to fly on the back of any confirmation that the $50m bond is actually in place.

[1kempton] 23/2/2021 21:57

Great find by bluerill from lse.

Looks like Panmure snuck out a Price Target increase, 59p to 64pToday 19:22

BUZZ – Oil & Gas: Panmure Gordon remains worried about Tullow Oil; sector outlook improves
23-02-2021 09:30
* Panmure Gordon downgrades British oil producer Tullow Oil to "sell" from "hold" and cuts PT to 27p from 30p
* Brokerage remains concerned about co's falling production levels and slow pace of debt reduction
* Brokerage sees co having very little surplus cash through the next five years to invest into future growth options, making it "little more than a zombie oil company"
* "With co's inherent structural issues too big to fix with the current portfolio... we feel that it is time for investors to move onto more attractive opportunities within the sector" - Panmure Gordon
* Brokerage also downgrades peer Rockhopper Exploration to "hold" from "buy"
* However, brokerage has a positive outlook for British oil & gas cos, especially with the increasing importance of gas in the overall energy mix, but it does not expect demand recovery in the sector until H2 2021
* Brokerage also makes changes to the following PTs:
COMPANY RATING NEW PT OLD PT
ENERGEAN PLC "buy" 1102p 780p
WENTWORTH RESOURCES "buy" 28p 25p
ROCKHOPPER to "hold" from "buy" 9.3p 7.5p
Exploration
SAN LEON ENERGY "buy" 64p 59p
NOSTRUM OIL & GAS "sell" 1p 5p

[echoridge] 23/2/2021 20:19

Looks like we got a nice price target bump from Panmure today from 59p to 64p

[1kempton] 22/2/2021 14:23

getting closer now, then production..

[1kempton] 19/2/2021 11:47

www cnbccom.cdn.ampproject.org/v/s/www.cnbc.com/amp/2021/02/19/jpmorgan-says-two-things-could-push-up-oil-prices-by-another-5-to-10-per-barrel

[pastyman3851] 16/2/2021 13:34

They haven't declared one yet

[bernieboy] 16/2/2021 12:51

When is the divi due?

[apollocreed1] 16/2/2021 02:24

Zak Mir is far from a genius.

[plasybryn] 15/2/2021 08:26

Zak Mir covering it again today on Twitter. Suggests 60p going into April.

[1kempton] 10/2/2021 11:20

Only one in a huff&puff is gravy himself floating around in the brown stuff.eh tone!!..

Sle going great guns,lots happening behind the scenes and with a very nice dividend coming this year, makes it one not to miss

[pastyman3851] 10/2/2021 10:51

Yea, that's why I'm not selling. I just wanted to see what the offer was. Theoretically, this is about my Break Even mark, I've been in for about 9 years (buying along the way) and this is the closest I've come to just walking away. I think 50p and I'll consider selling my holding.

[plasybryn] 10/2/2021 10:38

Don't you want to wait for the dividend announcement?

[pastyman3851] 10/2/2021 09:11

Not that I want to sell, but whilst the shares are at 37.8p, the best offer for my shares is 35.8p

[glavey] 10/2/2021 04:49

All huff and puff.

[1kempton] 09/2/2021 18:20

Lovely jubbly!!.

[plasybryn] 09/2/2021 08:22

Wow opening strongly. Zak Mir says chart is indicating upside of 37p. All looking good.

[1kempton] 08/2/2021 11:40

www.energymixreport.com/nigeria-recorded-2-9bn-in-annual-oil-and-gas-exports-in-november-2020/

[1kempton] 07/2/2021 21:26

Nice find by Alaric today on lse. .


Alaric

Today 07:10

Posts: 787

Price: 29.00

SpotOn Energy, the Norwegian consortium which concluded a farm out deal on Barryroe with Providence last November, is reported now to be in merger talks with Providence. Ireland's Business Post confirmed yesterday that finance for the project is comprised of a combination of consortium members' deferred fees($36m), cheap Norwegian export credit($45m), mezz debt SocGen ($35m)and a bond issuance ($50m). PVR's Alan Linn said that the bond, which has to be in place before the end of this month, has attracted much interest. Details of all financing are expected to be announced shortly. The consortium, which includes Schlumberger and Norwegian engineering giant Aker, has already registered an SPV in Ireland called SpotOn Energy Barryroe Ltd.

[porsche888] 07/2/2021 09:09

The key thing for me is the 6p dividendDividend plays are key for me at the moment