San Leon Energy Share Discussion Threads

[1kempton] 15/2/2022 10:44

Great news that fso will be up and running 3rd quarter, taken a while but these things do on the high sea, massive revenue base to come with every barrel from eroton to whoever uses the facility paid for in advance..

[1kempton] 14/2/2022 14:20

hxxps://www.digitaljournal.com/pr/decklar-resources-inc-provides-development-and-progress-update-on-nigerian-operations

Are they using our fso?

"barging from the Oza field to an offshore floating storage facility. Negotiations with local firms are in advanced stages to secure exports through both alternatives"

[hpcg] 10/2/2022 14:22

Pejaten - sorry, you are quite correct I must have missed a zero and then not bothered to sanity check vs the market cap as most providers aren't showing it with the share suspended this long. I understand the structure, I was just using 10% as a discount rate, not some ongoing source of income.

[pejaten] 10/2/2022 05:04

hpcg, in the announcement on 24 Dec they said they would issue $40m worth of redeemable preference shares to existing shareholders. There are currently 450m shares in issue, so surely that means that the value of the preference share to existing holders is 40/450 = 8.9 cents per share = 6.5p, not 65p? The statements says that once the 40m has been paid the preference shares will have zero value. Interest only accrues on the balance on any balance not paid after 3 years.

[alaric7] 05/2/2022 15:31

thanks both kaos and kempton. and very interesting point from hpcg, which I hope you don't mind i've cut and posted on the other forum. meanwhile i see bonny light hit $95 yesterday

[hpcg] 05/2/2022 09:25

We can't even begin to calculate at what it trades at until the details are made public. However assuming the preference shares are 1-1 then at current exchange rates they will return 65p in dividends over 3 years, or potentially some longer time frame. Using the same 10% discount applied to late payment as a buyer might want then the preference shares alone have a fair value of 49p.

EDIT - IGNORE, WRONG BY A FACTOR OF 10.

[1kempton] 04/2/2022 19:40

Great Post alaric, so eroton get their 45% and if rto goes ahead sle % in eroton goes to 90%, fantastic, bonny light over $90pb only makes to great revenue base with being the largest shareholder in aceos

[kaos3] 04/2/2022 13:50

thank you and as you say - this financing would not have happened without full knowledge of the final structure outcome being a sure thing

[alaric7] 04/2/2022 13:35

hxxps://hawilti.com/finance/afreximbank-signs-1-79-billion-deal-with-nigerias-nnpc/

most informative piece this - various key points arise:

1.Eroton has reduced its senior debt to $196m, which gets refinanced in the new facility;
2. Sahara and Bilton (combined 18%) to be bought out of OML18;
3. the new $750m facility from Afreximbank is 'secured reserve based';
4.Shell Supply and Trading are part of the deal.

readers will note firstly that it doesn't really look like Jite's going bust (a mischievous calumny put about by trolls here over time). also Shell being part of the deal will be to secure their agreement to take off the production from OML18. moreover that this is a 'secured reserve based facility' indicates that the bank is happy with its diligence (ie. that it will get paid the interest and the principal is secure, which is a fancy way of saying that they believe a lot of oil will flow and that it will be worth a lot of money).
be under no illusion here - this is a seriously big piece of financing by any standards but for a regional operator of an underperforming marginal field in the Niger Delta, it is remarkable. if as i imagine to be the case, it paves the way for the rto, then the whole structure here will have involved a large number of parties in a complex contractual matrix and the legals will run to voluminous and multiple documentation.

[pjj71] 04/2/2022 12:36

when will this trade again? any thoughts on opening bid?

[dogwalker] 31/1/2022 16:01

Thanks philby1.

[philby1] 31/1/2022 15:27

The Bucket List is Malcom Graham _Woods preferred 'picks' from listed Oil and Gas companies. He generally does a list at the start of each year.

[dogwalker] 31/1/2022 15:01

What does that last sentence mean please?! 'with the shares suspended in the Bucket List rewards etc'....

[philby1] 31/1/2022 14:27

Malcy's Blog today;

San Leon
San Leon, the independent oil and gas production, development and exploration company focused on Nigeria, is pleased to report that two of its wholly owned subsidiaries, San Leon (Netherlands) Limited and San Leon Energy B.V., have successfully concluded their ongoing legal proceedings with TAQA Offshore BV (“TAQA”) in relation to San Leon’s legacy interests in two royalties on Block Q13A , which is located offshore the Netherlands (the “Amstel Oil Field”), including an Overriding Royalty Agreement entered into with Encore Oil as part of a sale and purchase agreement entered into in 2007 (the “Royalty Agreements”).

TAQA had subsequently purchased the interest from Encore Oil. Production from the Amstel Field started in 2014 but no royalties had been received. The Royalty Agreements became the subject of separate legal proceedings in the Netherlands and the UK.

San Leon is pleased to report that it has now received payments totalling more than €5.7 million from the actions taken in both jurisdictions, including an interim payment in respect of its legal costs. The royalties will continue to be payable in accordance with the terms and conditions of the Royalty Agreements. The Royalty Agreements represent legacy interests and any potential net future benefit to the Company going forward from the Amstel Oil Field on a monthly basis is not expected to be particularly material to San Leon.

Good news from San Leon today which effectively finishes this legacy case and leaves them to get on with other pressing matters. I remain confident that with the shares suspended in the Bucket List rewards will come to shareholders.

[pejaten] 31/1/2022 08:16

really cleaning up the odds and ends. Does look like Feb RTO is going to happen

[1kempton] 31/1/2022 07:13

Exceptional news 5.7m euros plus ongoing royalties...Great management..

[hughez87] 27/1/2022 15:46

SYME - News Imminent!! SYME = Unique New Asset Class!!*From my old mate Bull on Twitter...trust his opinions, he got me involved with Amur Minerals from 1p to 4p! :) ignore the lying negative spread bet gimps!?*?@amur_minerals which I tipped from below 1p and now smashing 4p...my next is #SYME @SupplyMECapital. *https://twitter.com/bullinvestor88/status/1486682608121622537?s=21*A new asset class of Inventory Monetisation..a hard year for investors but it has grown massively behind the scenes and game changing news imminent.DYOR?*?Good Luck Genuine Investors!?*?OUR DAY WILL COME.....VERY SOON!

[hpcg] 27/1/2022 15:32

Deklar RNS out:

Decklar Petroleum and San Leon have agreed to new terms on financing arrangements whereby San Leon will advance US$4,750,000 immediately and an additional US$2,000,000 by April 30, 2022 (or San Leon will accept a pro rata reduction in its shareholding in Decklar Petroleum).
Terms of previously announced agreements between Decklar Petroleum and San Leon have been modified in order to complete the transaction.
The Option Agreement that would have entitled San Leon to additional participation in the Oza Oil Field and additional ownership in Decklar Petroleum has been terminated.
San Leon will be involved in planning and location of the first new well to be drilled on the Oza Oil Field.

[alaric7] 26/1/2022 20:50

hah yes, why not? better than troll trash for sure

[dogwalker] 26/1/2022 10:47

Let's hear it for the spivs - hurrah!

[djderry] 26/1/2022 09:41

And that's the reason I don't post regularly on ADVFN,it's full of punters,speculators and spivs.But,as part of my investment process,I am very aware of both the 'silo' effect,where some will only consider information relevant if it confirms their original views and of ( most) people's desire to be proven right.I'm not going to say much more except the following: If it did happen,I would be concerned.I read company reports and will make my own judgement.

[carcosa] 26/1/2022 06:56

Read the 14 page (22 including appendices) judgement rather speculate on a trolls post.

[djderry] 26/1/2022 00:05

Alaric7,I don't understand why my lack of posting is an issue.I am an investor here.I commented because it's material to the company,if accurate.Again,management must act at all times in the shareholders' interests.If,and I stress if,an officer of the company were using the company as his personal bank,then I would be most concerned.I am not alleging that this happened.If such an event did happen,ie,that a personal loan was accounted for as a 'fee',then many other questions would follow.

[alaric7] 25/1/2022 20:57

fiduciary yep,important that. but Oisin's personal tax affairs are his business and not much to do with the company, provided not criminal, n'est-ce pas? for an investor here you don't comment much about San Leon's business case, if you don't mind my saying.