Could be interesting!





SLE Net Attributable OML 18 Reserves… gas reserves stand at present at 247Bcf contributed to sle…nice when you see how much it could be worth in this article regarding flaring (not all on oml18 I may add)…275Bcf is worth a staggering $1.150billion!!..wowzer! …

SLE Net Attributable OML 18 Reserves 2P Reserves. Contingent Resources. Prospective Resources*
Oil + condensate (mmbbls) 39. 17. 46
Gas (Bcf) 247. 121. 116
*Based on twenty risked exploration prospects


I was playing War Wings the other day and saw a pilot on the opposing side called Barryroe! I blew him out of the sky! Very satisfying.


great news in the interims…

San Leon generated a profit after tax from continuing operations of €3.8 million, for the 6 months to 30 June 2018

This has enabled the Company to settle, both during and after the reporting period, outstanding loans and is now debt free. Cash and cash equivalents as at 30 June 2018 were €22.6 million, (30 June 2017: €0.3 million,).

All loans provided to San Leon have been fully settled.

The Company’s Irish counsel is progressing a capital reorganisation which is required to enable the Company to return capital to its shareholders. This is expected to complete in October/November 2018. On completion of the capital reorganisation, the Company intends initially to return not less than $10 million to shareholders through a share buy-back Programme.

The Company intends initially to return not less than $10 million to shareholders through a share buy-back programme (the “Programme”), once it has completed its capital reorganisation (expected to complete in October/November 2018).

Finance income of €16.2 million, (30 June 2017: €16.5 million,) is substantially interest income on the US$174.5 million, Loan Notes. The Loan Notes which are denominated in US$ also benefited from a strengthening dollar against the Euro in 2018 leading to a foreign exchange gain of €3.0 million, (30 June 2017: a loss of €11.3 million,).

The proposed new dedicated export system for OML 18 (which is expected materially to reduce downtime and pipeline losses) is forecast by Eroton to be online during 2019.


Am I interpreting the numbers right re OML18?
Our share of the MLPL loss is E8m, making the total loss made by MLPL circa E80m (we get about 1/10th) That makes an E64m loss excluding the interest it pays SLE. That is quite a loss to be made up before we start to get non-interest benefit from the investment.


The share of loss on equity accounted investments comprises administrative costs of €0.6 million, net finance costs of €1.9 million, loss on investment of €4.3 million and a tax charge of €1.2 million…totalling 8m

This loss reflects the operational challenges encountered by OML 18 (as described elsewhere) along with the financing arrangements which enabled the Company to acquire its indirect interest.

This share of loss on equity accounted investments needs to be viewed in the context of the Loan Notes which enabled the acquisition of the indirect interest in OML 18. and generated finance income on the Loan Notes during the period of €16.1 million.

(and generated finance income on the Loan Notes during the period of €16.1 million.)

…sle have repaid all outstanding loans and are now debt free…so I cant see the losses you post about!..


Those figures all add up to E8m. They are just SLE’s share of the losses, so I assume they are just under 10% of the total loss.

I’m probably making an incorrect assumption re the 10% as that is the percentage economic interest in OML18. Maybe I should have assumed a 40% as I think that is SLE’s percentage of the share capital?

That would mean total losses are E20m, somewhat less frightening.


Struggling to see the good news referred to here.

As I predicted 2 years ago the ‘return of equity to shareholders’ sounded like a buyback was being planned. Predictable but still disappointing. I thought that maybe there would be a split between dividends and a buyback, or if we were lucky it might all be dividend of around 2p per share I calculated. I seem to remember much scoffing from the cheerleaders.

$10m buyback represents about 2 cents per share, so I was over-optimistic. I also thought it might be due before the end of 2018, but that clearly isn’t going to happen in terms of any dividend paid to shareholders.

I can’t find any details on the buyback, but what is the betting that the shares are NOT cancelled but instead put into treasury and then paid out to O.F. and friends as performance bonuses?

My best hope now is that the interest in Barryroe is sold and the proceeds passed directly to shareholders as a special dividend because I also see nothing to indicate that any further profits are not going to be used for buybacks.

My second best hope is that current market cap is around £125m so $10m (approx £7.5m) represents a significant percentage, possibly enough to move the share price upwards. That will mean diminishing returns as the programme goes forward, so lets hope whoever is handling it is very aggressive early on and then holds off to time purchases for maximum advantage over the programme period. Dunno how long that is, as I said I can’t find any detail on it.

What we don’t need is some plodding bank prepared to take their fees and automatically purchase the same amount of stock day in day out. That kind of buyback can often pass you by without ever moving the needle on the share price so far as anyone can tell. Not that you can ever be completely sure whether a buyback is ‘working’ or not.

Eadwig. Spot on predicting SLE’s future once again.


pretty good reaction yesterday on our news and likewise pro coverage. sp angel considers that this supports our growing confidence in the future, especially as for the first time ever, we have sufficient cash resources to utilise. although they disagree with the principle of share buybacks per se, they acknowledge that’s a luxury problem for us to have and reckon that supply side imbalances in the oil market will lead to aggressive appreciation in the oil price over coming months (nb.bonny light finished at $81.30) cantors, though, reckon that the share buyback will be well received, see the company on a solid footing and are positive on our news, acknowledging that much work lies ahead getting OML18 into proper shape. brandon hill seem very positive on the barryroe news as well as on news coming through on our nigerian interest.
perhaps the most important takeaway here is that we can see that 3 important small cap brokers are following the exciting, if belated, developments at San Leon with great (read: bullish) interest. fresh buyers and improved liquidity should likely (read: finally!) follow as production continues to improve, capital return(s) are permissioned and a simpler, more substantial corporate structure is agreed…


sle has in fact mentioned both dividend or buybacks a time ago and buybacks have been choosen!..

as for timimg well it could be in a month or so time!

" The Company intends initially to return not less than $10 million to shareholders through a share buy-back programme (the “Programme”), once it has completed its capital reorganisation (expected to complete in October/November 2018). "

22m in the bank more to come with the loan payment in October…and even more when nnpc cough up…production up and a new pipeline to increase further in 2019 …new wells…more gas production and all debt/loans all paid…is a great start and better than this time last year!..

I struggle to see what you see wrong eadwig!


good point LD and they haven’t said there wont be dividends. here we are no risk of going under, big money coming in , production issues being addressed, barryroe confirmed to be drilled 2019, and still the usual suspects carp. but let’s face it has been a shocking week newswise if you’re a troll. good news, facts /figures, research, analysis, positive broker coverage, share buyback, money in bank - all the stuff of nightmares for the trolls. how they must yearn for the avobone days when they could wantonly predict our demise but of course that never happened and they have been getting it wrong ever since.


true Alaric…once Irish court accepts sle capital restrictions and they will as sle now have no debt no lenders or loans to pay out…then sle shareholders are in for more good news as another 16m added to the coffers next month and maybe more exciting news to come!!


“They haven’t said there won’t be dividends”. Well, LD said at least three times in his last two posts that the company will do share buy backs. (Doesn’t sound like “they will pay dividends” at all. :joy::joy::joy:


It is better than this time last year, as you say, but that isn’t saying a great deal, is it? They’d have struggled to have come up with something worse. {I shouldn’t tempt fate given the extraordinary talents within SLE]

You can’t see what is wrong? How much better off are you today after this announcement? I don’t see any payment coming my way, or any excitement in the market about the results or buyback whatsoever. Surely you’d rather see a dividend announced than a buyback yourself?

Well, I suppose anything is possible, but if they wanted to pay a dividend they’d surely have announced it with the interim results, at the same time as the buyback. That is the traditional way, after all.

Let’s see the details of the buyback. Presumably they will be announced over the next few weeks if it is to start in Oct/Nov. I have zero confidence that it will be handled in the right way, but you never know. Even a broken clock is right twice a day, then we can all sell our shares to finally get our money back - the only way a P.I. can possibly benefit from a buyback. [Not that a $10m buyback is going to move the needle all that much, not in the first programme, there will have to be sizeable buybacks announced every 6 months for some time to come].

The truth is there’s no dividend until at least mid 2019 now and every chance that if anything is paid then it will only be a portion of what is available because the rest will be used for another buyback. Chances are the whole lot will be another buyback if they see that as the preferred method now, why would it change later? In fact this capital re-organisation is probably an accounting slight of hand that makes buybacks reflect particularly well in the accounts.

I can’t say I’ve ever understood it myself, but accountants assure me that this is really the point of buybacks from the corporate point of view. My own view is that if they’re out of ideas about how to use my cash to generate returns, then give it back to me. Trouble is, so much is owned by institutions who are quite happy for as much value as possible to stay on paper … because it reflects in their yearly figures and thus performance measurements.

Like I say, let’s hope they can get some sucker to pay what they say Barryroe is worth (not a lot) and get some back payments in and then maybe they’ll pay out a special. I mean, OF stands to make a lot of cash even from a 2 cents a share dividend.

Perhaps he’s not so concerned with close to a million coming in p.a. from SLE anyway. God knows what he’ll be taking as a bonus this time around when the disaster that was last year netted him an extra £800k bonus was it? Somewhere in that ballpark.

No. Can’t say I’m particularly happy, LD. Not one thin red cent do we actually see coming our way when we remind ourselves of the bottom line and why we P.I.s invested here in the first place.

In fact, a buyback is pretty insulting when you come to think of it in those terms, especially for someone like you who has been involved, what, 8 or 9 years without seeing any return at all. After all, they say ‘at least $10m’ when they could have said when we know the figure half will be used for a dividend and half for a buyback.

It wouldn’t be a lot, but it would have laid down a marker - signaled their intentions. Except, that’s exactly what they have done, its just gone the wrong way for us P.I.s - as predicted - and they have no intention of letting that cash out of their tight little mitts.


The market will decide what it thinks of a buyback…and for a small aim company like sle to do so and still have a encouraging bank balance with more cash to come and future dividend/buy backs it might surprise you eadwig!!..

We will see!!

This could be interesting a for our production!


Didn’t see anything about Eroton getting paid for any of their oil production. Must’ve missed that bit !


AITEO, Eroton and Newcross, three Nigerian independents which evacuate their crude through the NCTL, lose as much as 40% of the crude routinely to oil theft. They have each been working assiduously on alternatives, with Eroton reportedly being ahead of others, to install alternative pipelines that evacuate their crude to FPSOs on the Atlantic.


strategically for sle right now, i can see the clear logic for deciding on the limited share buyback. even just $10m should make quite a difference. i have no doubt in relative near future there will be a dividends policy, that just makes sense with so much money coming in. 2 things to weigh here though a) the probability (imo) that we will still get a merger with Eroton - as ive argued passim, it just makes so much sense for all ; and b) there will be loads of interesting business opportunities in the delta but for now OML18 has plenty of workover and new potential, some of which undoubtedly requiring further investment.


well you could be right Alaric…Ive been looking on sle pages and Oisin still hasn’t collected his shares etc…so sle must/may/might! still be in a closed period!!..