Seplat Energy Share Discussion Threads

[coxsmn] 14/2/2015 07:59

If Afren's assets are so valuable then tell me why don't they sell some of their portfolio to raise the cash they desperately need?

[wormhole1] 13/2/2015 20:41

Srsp here we come

[riggerbeautz] 13/2/2015 20:34

Not leaving Duke, you lured me over here ;) Just said I didn't plan on sticking around, but having come here for a trade on a distressed AFR asset grab, the acquisitions of OML 53 and 55 look smart moves and I'm inclined to think they are looking to grow prudently. Didn't plan sticking around in our other stock either, 7 years later greed an all that!

[dukedosh] 13/2/2015 20:03

Shame you're leaving SEPL Riggerbeautz. Reckon there's much more to come here. Even before the recent acquisitions RBC had the NAV here at 194p with $60 oil. OK that's only around 50% upside which is measly compared with Mart Resources 120% upside and that's also before the CPR and OML18.

Both these Nigerian's are producing big time and are sitting on huge reserves. The market cannot ignore this forever!

[riggerbeautz] 13/2/2015 18:49

Likewise, Mart resources has been smashed principally by pipeline delays, but laterly by the financial uncertainty of being part of the consortium to take OML 18 from Shell, nobody knows yet whether they have short term overpaid.

Call it what you want, but better to drive a hard bargain and walk away if it's not favourable, cash is king for the time being with low oil and wider economic uncertainty. Didn't plan sticking around here, but also feel these lot could be lining other acquisitions.

Nigeria has always been a casino and indigenous companies or their genuine partners on the inside are best placed to win, just the way it is.

[coxsmn] 13/2/2015 17:51

Afren were foolish declining an extension to Seplat's offer period. Its been estimated Afren require $500m just to stay in business for the next 12mths and they are drowning in debt. Good luck to them with the fund raising! A deals only worth doing at the right price and Seplat are wise not to overpay as there will be plenty more opportunities for aquisitions, might even end up purchasing Afrens assets from the administrators. I have a good feeling about Seplat.

[hvs] 13/2/2015 17:14

Get it while u can.

Its easy and then you always has HSBC Geneva to PARK it.

[riggerbeautz] 13/2/2015 17:00

Absolutely spot on Whisky

Seplat did absolutely the right thing by Seplat, so what if it was a low ball bid and opportunistic, that was their call to make.

Good luck to Afren if they put the defensive barriers up, let them sort themselves out by other means. Meantime Seplat can bed in their acquisition and look elsewhere, reckon this will not be the last distressed opportunity coming up in Nigeria!

[davius] 13/2/2015 16:28

"Seplat had completed extensive due diligence on Afren and made a written proposal to the Board of Afren that provided critical and significant near-term liquidity and value for the stakeholders of Afren."

> SEPL offered less than AFR's total debt - i.e. equity holders got 0p and bond
> holders took a haircut too.

Nothing like what the RNS said sportbilly.

[whiskeyinthejar] 13/2/2015 16:23

Not really. Main thing was to avoid over paying and taking on too much debt. Otherwise Seplat would be getting into situation Afren got themselves into- requiring higher oil prices to survive.

Not really a surprise that Afren turned it down either. It relied on bondholder haircut. But taken into administration, bondholders would think it likely they'd get all their money back. No need for haircut.

[aja5] 13/2/2015 16:01

This lot f..ked it up big time !!! cowboys looking very stupid

[sportbilly1976] 13/2/2015 14:28

SEPL offered less than AFR's total debt - i.e. equity holders got 0p and bond holders took a haircut too.

AFR ended talks on this basis and now will look to recapitalise - huge D4E possibly.

SEPL can now concentrate on merging the newly acquired operations together and development of the on-shore reserves

[leadersoffice] 13/2/2015 14:23

Seprat


Afren doesn't want you,I don't want you either.
New CEO Merger with another party capital re organisation
Thats the way forward for AFREN

[hvs] 13/2/2015 11:19

Lol !!!!!!

Downwards u mean.

lol !!!!!

[sportbilly1976] 13/2/2015 11:14

Now on rising support trendline...time for a bounce :)

[sportbilly1976] 11/2/2015 14:31

Nice pennant forming here now.

AFR falling back as the realisation dawns that any deal could well be bad for equity holders.

[whiskeyinthejar] 10/2/2015 09:00

I guess we're waiting for the reserves report.

The CPR on Barda Rash was of course RNS-ed as part of that review because it came up with shocker, but they said reserves report isn't finished and would be published when it's finished.

I suspect they are going to great length to review reserves to attract a buyer. Important stuff as we are all saying we want to avoid over paying. Anyway, that's my guess.

[htrocka2] 10/2/2015 08:56

I'm on a 'need to know'.....has SEPLAT currently any interests within their portfolio in offshore projects...thanks in advance.

[sportbilly1976] 10/2/2015 08:32

are they going to take it right to the wire then? a further (and last?) extension?

You would have tohught that over the previous 6 weeks or so they could have come to a decision...

[htrocka2] 10/2/2015 07:57

I'm on a 'need to know'.....has SEPLAT currently any interests within their portfolio in offshore projects...thanks in advance.

[coxsmn] 09/2/2015 20:16

Bronislav, you are quite right, it will be test of the management to secure a good deal for the shareholders.

[bronislav] 09/2/2015 20:14

Coxsmn.....quite right but seplat are far more astute than we are.......There is more to all this than seplat combining with afren ....imho

[coxsmn] 09/2/2015 20:11

Seplat need to consider very very carefully any deal with Afren. There has to be a large margin of profit to be made or walk away. In the current climate they need to maintain a strong balance sheet and not put themselves in a position where they are servicing a debt mountain.

[riggerbeautz] 09/2/2015 10:30

Seplat don't have to deal, for me I view it as AFR bond holders get what without a resolution? If they want SEPL in, it's short back and sides time, unless an alternative rescue package comes forward.