Could be interesting!




Good find by bluerill on lse as this take over of elland makes a mockery of our sp etc etc…


Posts: 396

Price: 25.20

No Opinion

can’t hurtToday 07:41





The move highlights increasing instability in the Middle East amid months of attacks on tankers and oil sites in and around the oil-exporting Gulf region.

Prices could yet get a boost this week as investors are expecting a drawdown in crude inventories in the United States.

“This week … markets are expecting to see a draw (on) U.S. stockpiles and possibly further escalations in the Middle East,” said Edward Moya, senior market analyst at OANDA.

The next weekly U.S. oil inventory reports are due out from industry group the American Petroleum Institute and the U.S. Energy Information Administration on Oct. 16.
– Reuters


Timipre Sylva has instructed oil firms to reduce production. For most of them, the cut will happen mostly from their largest producing fields.



Hardly a mockery …

“a premium of approximately 28.5 per cent. to the Closing Price per Eland Share of 129.2 pence on 14 October 2019 (being the latest practicable date prior to this Announcement);”

That would price SLE under @35p, which actually makes a mockery of the last placement price!

I’d make a loss at that on my current holding.


This might answer your post eadwig or maybe not!..from bluerill yesterday lse


Posts: 399

Price: 25.00

No Opinion

RE: can’t hurtTue 11:53

Not sure I get your point red. There are ‘corporate actions’ and then there are cash bids for neighbouring businesses. Eland, which is only producing net around 10k bbls/day, is as close to a pure comp for SanLeon as you’re going to get, so the premium paid is far less important than the imputed valuation for its core business and how that reflects on ours, which I am working on now. However, a back of the fag-packet estimate shows that at 166p, Ela is going out at right around a market cap of £350m and an enterprise value of over £400m fully diluted, which includes over £30m in net debt. Meantime, sle have $40m in net cash, with roughly 140m more due and a market cap of just £116m (effectively a negative enterprise value and therefore no imputed value for the operating business), so a bid which values the operating business at even a tiny fraction of (less than 20% say) of Eland’s would already get you to above 60p. But again, that’s very quick and dirty…


Well it all sounds good until you look at current market valuations.

You can’t fight the tape at the end of the day.


I should have added that I wouldn’t expect Tosca to accept such a bid as one assumes it would mean them realising very large losses.


Tosca eadwig are fine at present as they know value will come to them and in turn us… in time …and if that wasnt so what are they doing here backing sle every step!..something is in the mix!!!.


I wish the markets were showing your confidence in Tosca and SLE


Like tosca eadwig patients is a vertue!!.


Not a virtue Tosca are traditionally known for … plus we’re all getting older.


Traditionally not no! what do they see or know that keeps them here?..nigeria has massive potential not just oil but gas …they have also abundant agriculture land, minerals and of course solar…nigeria if they get it right may/might be a growth story waiting to happen. And we are in the mix!


I honestly don’t know. It has been bizarre, frankly.

It doesn’t matter to SLE. They are involved with oil and gas production. The gas goes straight to a fertilizer plant which exists already and is not dependant on Nigerian growth and the oil is exported.

Nigerian growth or lack thereof is not going to be a factor in the future status of SLE except, as we know, if Nigeria gets into trouble the government will delay payments - I don’t see that happening again anytime soon. I.e. the ultra low oil price that caused it wont repeat as U.S. frackers have learnt their lesson.


Tosca see a bigger picture eadwig I’m sure


Wish they’d share it.