Not the most straight-forward of buybacks, is it?
but far more than you thought eadwig and sle has been paid over $100m…sle now in a far better place than last year!..we await news of an update… but this news today is a fantastic start…
forgot to add…once sle has been paid back their loan notes…this deal will have cost them nowt…great business eh!!..for shareholders.
pps eadwig well done on your buying of your tranche of sle…your in profit!
Well thank you. Not the first tranche in SLE I’ve made profit on. Not that I’m counting my chickens, it hasn’t been traded yet.
Are you happy with your situation? It seems to me that this buyback is absolutely minimal, price-wise, given the way it is done and the last placement price. It also seems likely to control the market price at an artificially low level all else being equal.
I know you say, ‘ah! But it is at no cost’ … I don’t quite see that. Surely the only winners here are those who bought beneath the last placement price and you still have to SELL to get your money back?
Or are you hoping the shares will be cancelled and that will then raise the share price? I have to say the LONG TERM incentive scheme for the board with the maximum achieved if they manage a share price of @75p seems surprisingly unambitious.
I may well have missed a lot or misunderstood somewhere, I haven’t begun to plough through all the documentation. To be honest, with my original holding written off long ago and the single tranche I’m holding only 1% or so of my portfolio value, I’m not sure I can be bothered.
I’ll mull it over a while, there’s no hurry.
all very valid points linksdean. unmitigated good news all round. there will always be some who pretend otherwise but that’s their problem i guess. you and i have been consistently right about this stock and its story/direction since we did the OML18 deal with Okoloko. much more to come of course as we end up, correctly as you pointed out again, with a 10.5% interest in a world class oil field, which we got for nowt. i dont see that or Barryroe priced in our SP yet.
Ok, I’ve been thick on this over on LSE, maybe it got washed up in all the other repayments, but weren’t SLE due 17m from MLPL on 31st Jan; previous payment was announced Nov 1 (for 31 Oct). These payments had a further 2 year run, it’s still outstanding isn’t it? It was suggested on LSE that it might be noted with the news that has come out today, but no sign. Maybe it’s now such small fry they’ll send out the RNS just before they switch the lights out at head office tonight.
Puzzled (as ever)
my understanding is that all payments due from 2017 and 2018 have been paid. There is still a relatively small amount outstanding from 2016.
Unless I’m much mistaken every payment made doesn’t have an RNS announcement so the latest you refer to isn’t necessarily outstanding. Receiving the payments is now very much business as usual, hopefully, so you wouldn’t really expect a specific announcement except in a trading update issued at the normal time(s).
Thanks Eadwig. I’ve been expecting an RNS, but as you say it’s probably not needed. I’d like to think previous RNSs were keeping investors in the loop, but seeing as Toscafund effectively owns the company, a text message would suffice (everyone else is small fish). Speaking of small fish, assuming Toscafund doesn’t move on this deal, and SLE get near enough 100% take up, the Toscafund’s holding then becomes about 67% (assuming 60% currently). Leaves us little fish in a very precarious position; I get the feeling that small investors are being given an exit opportunity. This being AIM, it’s tantamount to a gift horse (from the BOD’s point of view); from my point of view, giving my own track record of holding AIM shares by their sell by date, I’m worried. The potential returns are obviously huge, but this being AIM, the potential for the small holder getting shafted are many.
Less confused, but now apprehensive.
eadwig…eroton are owed cash call payments of $20m from 2016 not sle…Ian was posting about loan payments from mlpl…the latest instalment was paid as mentioned in the tender pdf…
the Company confirmed during 2018 that it intended to return not less than US$10 million to shareholders following completion of a court approved capital reduction which was required to enable the Company to return capital to its shareholders. This capital reduction was finalised on 12 February 2019.
“Further Loan Notes repayments have been received by San Leon since commencing the capital reduction process” and, recognising that, the Directors have determined to increase the capital to be returned to US$30 million,
“Further Loan Notes repayments have been received by San Leon since commencing the capital reduction process”
sle still owed $167.1m with final payment of this October 2020… so sle should be receiving each quarter in the region of over $20m+…plus they are owed dividends since 2016 from eroton where the price of oil went from $29pb to over $60pb+…when eroton start these dividends which they will do as their restructuring of their rbl is now cheaper and over a longer payback sle bank balance will be paying out dividends/buybacks for years…
then we have a nice service contract worth millions to sle…
San Leon expects to provide the majority of the services for heavy well workovers and new well drilling on OML 18, through a new service entity under its control. The budget for doubling production from OML 18 via such operations is hundreds of millions of dollars, illustrating the potential for services income under the MSA.
I stand corrected, although I think it is probably the case to say that on-going expected payments wont trigger RNSs in their own right.
I would say your correct eadwig regarding loan payments and issuing an rns each quarter…cheers links
haha. I must say it is pleasant to ‘feel’ your excitement, linksdean. I do hope it all works out for you. You certainly deserve it if loyalty and patience count for anything in the investing world.
usual snarky condescension from unohu, links, which is probably best ignored. in the face of the best news investors have had in this stock and a now approaching 100% rise in the SP over recent months with further exciting news in the pipeline, i suppose it is understandable that some will be disappointed. particularly those who have been predicting gloom and spinning negativity over time. well done on your patience and your predictions which are now proving so correct.
just brilliant linksdean. great spot. what great news for san leon shareholders.
Great read Alaric… makes you wonder if the big boys are not going to tender and pi"s don’t do so either will sle give a dividend instead!.. an informative article too with production to increase by a third… might mean the new well is a hit and a producing one also…plus OF"s mentioning cash coming into sle many times…as I say great news.