San Leon Energy Share Discussion Threads

[porsche888] 11/8/2022 09:06

We need news on this pipeline.

[1kempton] 08/8/2022 22:32

All moving ahead news soon by malcys article..

[philby1] 08/8/2022 14:25

Malcy on san Leon today.

This vote at the EGM announced on Friday confirms the restructuring in which SLE will now increase its stake in OML 18 and ELI and therefore the pipeline link. This will in time virtually eradicate ullage problems and be incredibly profitable for San Leon and given its policy of distribution, its shareholders as well.

[alaric7] 08/8/2022 10:19

and that of course means the RTO and all that entails, including the proposed $750m syndicated facility led by Afreximbank as well as the 50% ownership of the new pipeline and FSO has now been approved by San Leon’s shareholders. and that of course includes Jite Okoloko and Midwestern, who are already significant shareholders in San Leon.

[plasybryn] 05/8/2022 13:09

EGM 11.30 today.The Company is pleased to confirm that all of the resolutions proposed at the AGM and the EGM were successfully passed by way of poll without amendment .

[porsche888] 04/8/2022 10:14

I have set a realisation price at 80p, based on net cash flows from the increased holding in OML18. The ACOES pipeline is the key news flow we need IMO

[alaric7] 04/8/2022 07:35

outsize 'it can only be a matter of time before we take off'. i couldn't agree with you more. when this whole reorganisation completes before the end of the year, san leon will own 4x more of OML18 and 50% of the new pipeline and FSO. this should allow it to sell 50,000 bopd net of minimal losses, with the potential through workovers and further field development to double that production. difficult to see then what will keep the share price below 80p then with loads of potential to grow.

[outsizeclothes.com] 03/8/2022 19:44

The shareprice seems happy at around 40p, but surely, with oil north of $100, it can only be a matter of time before we take off.

[1kempton] 31/7/2022 22:27

Cheers Alaric very nice write up

[porsche888] 29/7/2022 13:49

Nice lift today alright

[alaric7] 29/7/2022 13:47

the vote at the EGM is a formality. over 87% of the company is owned by Tosca, Midwestern and Oisin Fanning. it is unimaginable that the Admission Document could have published without the full support of these parties.

[porsche888] 29/7/2022 11:59

Yes... I think if the deal is approved in my opinion at least, it should lift the share price

[pastyman3851] 29/7/2022 10:58

Just had this through from HardgreavesSan Leon Energy Plc are proposing a capital restructuring and issue of preference shares following a series of agreements the company entered into with Midwestern Oil & Gas Company Limited to consolidate Midwestern's holdings in San Leon, Midwesten Leon Petroleum Ltd and Energy Link Infrastructure Ltd into a single holding in San Leon Energy.The impact on your shareholdingIf approved at the meetings being held on 5 August 2022, San Leon Energy shareholders will receive 1 new San Leon Energy ordinary share and 1 preference share in place of every existing ordinary share held.Following completion of the reorganisation, it is proposed that the company's new shares will be traded on the London Stock Exchange, allowing you to buy and sell them as normal. If approved, the reorganisation is expected to complete in the third quarter of 2022. Don't think there's anything new on there

[alaric7] 29/7/2022 10:07

porsche - assume you are referring to the EGM on 5 August...

[porsche888] 29/7/2022 09:09

The key here is this bloody ACOES pipelineI would imagine when that gets up and running it's game on. I would also think the share price will get a boost after April 5th AGM. Interesting analysis in Investors Chronicle. https://www.investorschronicle.co.uk/ideas/2022/07/19/slick-operators/

[philby1] 25/7/2022 14:47

Duncan Blount, CEO of Decklar Resources, said “The resumption of production from the Oza-1 well is the first step to get Decklar back on track with plans to continue delivering oil and working to improve logistics and increase oil deliveries in the near future. Delays were experienced obtaining permits needed to restart the Oza-1 well, but operations have now resumed, and oil is being produced into onsite storage tanks. Decklar looks forward positively to future development and drilling activities at the Oza Field and continued progress on development activities at the Company’s other fields.”

[1kempton] 25/7/2022 14:31

Nice little update from the oza field.

[alaric7] 22/7/2022 05:42

IC - Simon Thompson - 'Slick Operators' - 19 July 2022
These are significant sums for a £282mn market capitalisation company (using the enlarged share count). Moreover, the board intends to return 50 per cent of free cash flow back to shareholders by way of dividends, and proposes to issue existing shareholders with $40mn of preference shares to be redeemed 42 months after the major capital reorganisation completes.

I view the transactions as favourable for San Leon's shareholders and expect them to be approved at the general meeting on 5 August. Having included the shares, at 27.5p, in my market beating 2021 Bargain Shares Portfolio, I see fair value around 80p. Buy.

[alaric7] 22/7/2022 05:39

IC - Simon Thompson - 'Slick Operators' - 19 July 2022 -
SLE, a Nigeria-focused exploration and production company, has announced a major capital reorganisation that will see the company quadruple its interest to 44.1 per cent in the Eroton-operated 1,035 sq km Niger Delta licence, OML 18. Located 500 km from Lagos, OML 18’s other shareholder is Nigeria state oil company NNPC.

As part of the incredibly complex transaction, the Aim Admission Document runs to 380 pages, San Leon’s current 13.18 per cent shareholder Midwestern Oil & Gas will become the majority shareholder, holding 50.8 per cent of the enlarged shares in issue. Toscafund Asset Management’s stake reduces from 72.6 per cent to 37.6 per cent.

In addition, San Leon is taking a majority interest (50.6 per cent) in ELI, a midstream infrastructure group and the operator of a new subsea 100,000 bopd capacity Alternative Crude Oil Evacuation System (ACOES) export pipeline within the OML 18 acreage that runs to an offshore Floating Storage and Offloading (FSO) vessel which has capacity of 2mn barrels of oil. The export pipeline is expected to become fully operational in the fourth quarter of 2022. It is a real game changer, too.

That’s because the existing Nembe Creek Tunnel line from OML 18 to the Bonny Terminal suffers from high levels of downtime and eye-watering pipeline losses (due to vandalism) which averaged 73 per cent in 2021. The ACOES export pipeline is expected to reduce pipeline losses to 5 per cent, a major positive for cash flow given that only 2,300 barrels of oil per day (bopd) was delivered from OML 18 to the Bonny Terminal in the first quarter this year, or 90 per cent below the average for 2020.

Getting ACOES up and running as quickly as possible is therefore crucial, hence why San Leon is making a new $16mn loan to ELI to help part fund the outstanding $42mn of development costs. Following a complex reorganisation with other associated parties (including Midwestern’s indirect 13.7 per cent interest in ELI), San Leon’s interest in ELI will increase five-fold to 50.6 per cent and the company will also hold $48.3mn of high interest loans made to ELI. San Leon has entered a $50mn loan facility with MM Capital to fund its ELI investments and provide working capital requirements.

Key for San Leon’s shareholders is for Eroton to not only return OML 18 deliveries back to normal levels, but to generate further shareholder value by embarking on a $2.9bn development programme funded from internal cash flow. Based on 1P reserves alone, a competent person’s report indicates that the net present value (NPV) of San Leon’s interest in the nine OML 18 fields is worth $0.9bn using a 10 per cent discount rate. 2P resources of 323mn barrels of oil equivalent (net to San Leon) have a NPV of $1.1bn.

Financial modelling indicates that San Leon could be earning $131mn of cash flow from OML 18 by 2025 based on an unhedged oil price of $70, doubling the year after.

[1kempton] 20/7/2022 19:08

Eli akaso capacity holds 2 million barrels, so on each barrel of oil that flows into her sle get paid in advance..from any user inc eroton, and there are companies lining up to use her..Great business.

[alaric7] 20/7/2022 13:27

to remind from the Admission Document on 8 July, which describes the set of agreements which result in San Leon’s economic interest in the asset increasing fourfold to 44.1%. at the same time it will own 50% of ELI, which is advancing the ACOES pipeline project that will connect OML 18 to a new secure export route.

OML 18 has, meanwhile, been reassessed through a new competent person's report (CPR) which details some 323mln barrels of proved and probable (2P) reserves, net attributable to San Leon’s stake, which the company said would be valued at around US$1.1bn.

It has also entered into a US$50mln loan facility with MM Capital and San Leon has granted further waivers to Midwestern against payments owed to San Leon.

[philby1] 20/7/2022 13:17

Malcy says:

Confirmation of the ELI loan documents having been signed is further good news for San Leon as the loan brings a sensible coupon as well as an investment in ELI. Final approvals just waited on now and in due course the SLE share price will rise significantly.