Very interesting as this could stop the rot in oil price!!..we will see.
this snippet is interesting!!
“The government also indicated through its 2018 budget plans to restructure its ownership (equity) in joint venture oil assets to reduce the joint venture costs to the Nigerian government. It is not clear how much progress has been made on this front,” added the report.
looks like a cut is on the cards…
“There is no final decision on volumes, but together with Saudi Arabia we will do it,” Putin told reporters about extending the agreement in Buenos Aires. “And whatever number there will be based on this joint decision, we agreed that we will monitor the market situation and react to it quickly.”
Although Nigerian non-oil exporters express optimism of recovery in 2019, latest data from the United Nations Conference on Trade and Development (UNCTAD), has shown that global merchandise exports could grow by 10.4 per cent this year, hitting almost $19.6 trillion.
Great news… and very confident too!
from todays rns…
Eroton has confirmed that a rig has now been fully positioned at the well site, and is expected to commence drilling in the next few days. Well OSMU-1 is expected to take up to 60 days to drill to around 11,900 ftMDBRT (measured depth below rotary table) and complete, targeting the E4500 and E3000 formations, and is then expected to be connected to the OML 18 production system.
No mention of SLE undertaking the services work. Wonder why?
I don’t either tp…but as redeyemines says on lse…Im sure sle are earning money from it!!..
in the meantime here is some info on the Akaso field
Akaso field has 24 pay zones between 6800 to 12,600 feet; sands in the field have been divided into seven main series coded as B, C, D, E, F, G and H sands, forming a total of about 42 pools. The series are separated by thick shale’s while the individual cycles are further subdivided into smaller sand units by intercalating shale’s that are regionally very extensive allowing for easy correlation of the various sand bodies. The reservoirs sands range from fluvio-deltaic to shallow marine sediments
" Out of the 42 reservoir pools in Akaso field, only 17 have been produced to date by a total of 14 wells (of which most are dually completed in different sands). Total production from Akaso field as at Dec-2015 is about 113 MMstb & 157 Bscf. Some of the strings are part of the ongoing QWP2 well restoration programme by Eroton between 2015 and 2016 and are either currently in production or have produced recently. Several sand control measures have been adopted in the Akaso field. "
…loads of info on wells etc…here!!
hey!! we’ve been “palmed off”…he hee…
“The OPEC decision to cut the output of members affects only Nigeria’s regular oil production, and not condensate,” Mr Kyari, who is also the general manager, Crude Oil Marketing Division of the Nigerian National Petroleum Corporation (NNPC), said.
Condensates are gas hydrocarbons, often classified as ultra-light oil, extracted in liquid form during the oil drilling process.
Although the exact volume of condensates Nigeria produces remains unknown, NNPC data seen by PREMIUM TIMES revealed it could be as high as 500,000 barrels per day.
The data showed the volume was as high as 511,000 barrels per day in 2011, before dropping to about 398,000 barrels in 2017.
Friday, December 14, 2018 Oilprice…
IEA: OPEC+ puts floor beneath oil. The OPEC+ deal put “a floor” beneath oil prices, according to the IEA’s latest Oil Market Report. The agency said that non-OPEC supply could still outgrow demand next year, expanding by 1.5 mb/d while demand may only soak up 1.4 mb/d of that additional supply. As such, OPEC+ might be forced to maintain the cuts through the end of the year. However, there are plenty of uncertainties, including the extent of losses from Iran and Venezuela, while additional outages could come from Libya or elsewhere. For now, the IEA says the production cut deal will keep prices from falling further, but it is still too early to tell if the agreement will significantly boost prices.
Barclays: Brent at $72 in 2019. Barclays expects Brent to rise to $71 per barrel as early as the first quarter of 2019, which is much more optimistic than a raft of other forecasts that have come out lately. For the full year, Barclays sees Brent averaging $72 and WTI averaging $65. “Brent and WTI prices are poised to rebound in 1H19,” Barclays said in a note. “The inventory situation is far better than the last time cuts started in early 2017, and the cuts have already begun, as shown in December data.”
…we will see!!
Great news buy back is on!!!
Update on Share Buyback and Expected Completion of SunTrust Exit
18 December 2018
San Leon Energy plc , the AIM-listed company focused on oil and gas development and appraisal in Africa, is pleased to provide an update on its plans for a share buyback of at least US$10,000,000 and also on the expected completion of the Midwestern Oil & Gas Ltd (“Midwestern”) purchase of the remaining San Leon shares held by SunTrust Oil Company Nigeria Limited (“SunTrust”).
On 25 September 2018, the Company announced its intention initially to return not less than $10 million to shareholders through a share buy-back programme (the “Programme”), once it had completed its capital reorganisation. Whilst the reorganisation was expected to complete during October/November 2018, it has been delayed whilst awaiting confirmation from SunTrust that it has no objection to the Company undertaking the required capital reorganisation nor will it in any way seek to impede the process. The Company is pleased to confirm that it has now received such written confirmation from SunTrust.
Following this confirmation of no objection from SunTrust, San Leon will apply to the High Court in Ireland to approve the reduction in the Company’s share capital so as to create distributable reserves and thereby permit the Company to make distributions to its shareholders, by way of the Programme. The Company is applying to the Irish High Court as soon as practicable and has been advised that this is a procedural process, having already completed all requisite requirements. Upon court approval, the Company must then advertise to provide an opportunity for any creditors to object to the capital reorganisation.
The Company will keep shareholders informed of the progress of these final steps and also the likely timing for commencing the Programme.
Midwestern Purchase of San Leon Shares From SunTrust
On 1 October 2018, the Company announced that Midwestern had entered into a binding agreement with SunTrust to acquire SunTrust’s entire remaining holding in San Leon, being 71,487,179 ordinary shares (representing 14.29 % of the issued ordinary shares of the Company). As of that date 47,243,590 ordinary shares in San Leon (representing 9.44% of issued ordinary shares) had already been transferred to Midwestern. The Company has been informed by Midwestern that the subsequent balance is expected to be transferred in the near term, with a target date of completing the transfer by mid January 2019.
Oisin Fanning, CEO of San Leon, commented: “I am pleased to advise shareholders of the recent developments, which should enable the Company to commence the previously announced share buyback once legal formalities have been concluded, and subject to meeting regulatory requirements. Whilst this is later than originally envisaged, the Company was keen to ensure any potential obstacles had been removed prior to commencing the legal process of the capital reorganisation. The Company would like to thank shareholders for their patience and understanding and I look forward to providing further corporate and operational updates over the coming months.
The Company also looks forward to Midwestern completing its purchase of the remaining San Leon shares held by
its taken a long time…but the buy back is just the beginning…this info from 2016 is out of date but sle are now nearly ready to start this action!..
HotStockRockets Share Tip of the Month - buy San Leon at 54p offer - target to sell 70p well before Christmas
Oh no, you cry, not that old dog? San Leon Energy (LSE:SLE) has suffered disaster after disaster as an AIM stock over the years and its CEO Oisin Fanning appears to have been well rewarded for failure. Anyhow, everyone hates oil stocks. Yes you are correct on all counts which is why the market has failed to recognise what an amazing deal Mr Fanning has just pulled off. The shares will be re-rated rapidly as that sinks in and as oil prices start to push higher – we expect to see $60 oil by Q1 2017. Therefore buy San Leon today at a 54p offer.
Forget all San Leon’s itty bitty assets in places such as Poland and Albania. The future is Nigeria. On 22 January 2016 it announced that it had agreed to acquire a 9.72% interest in a vast producing field OML 18. The shares were suspended pending an RTO and following a £170.3 million placing at 45p ( in which FIML, a company associated with Tom Winnifrith participated), the deal has been done, subject to the formality of an EGM on 20 September.
Right now OML is producing 50,000 boepd but it has produced at double that rate and output is set to increase again over the next few years as more wells are drilled on the acreage. This field will still be chucking off cash in 20 years time.
Currently a lot of production is hedged at $95 but that will unwind. But on a fairly cautious analysis, San Leon will generate at least $530 million of free cash by 2020 and it will carry on generating cash for many years after that.
San Leon’s Board has committed to distribute 50% of available Nigerian free cash flow back to shareholders for the next 5-year period, in the form of cash dividends or share buy-backs so that works out at around £200 million. If it cannot find anything better to with its cash it may well return more. The current market cap is £230 million. That is clearly far too low.
Analysts at Brandon Hill reckon that at 54p the 2017 yield is 16%.
Of course there could be oil price weakness. But equally there could be strength and these forecasts are based on conservative assumptions. One should accept that San Leon has goofed before but it is not the operator so surely it cannot mess this one up? We accept that the track record and risks inherent in oil merit a premium yield – say 8% but that would imply a doubling of the share price.
We are not that greedy. We assume that a modest increase in the oil proice plus investors starting to forgive past sins and appreciate what a cash cow San Leon is today will drive a pretty quick retaing of the shares.
The trade : buy at 54p with a target to sell of at least 70p before Christmas.
*FIML will not sell until at least 24 hours after sell advice is given on this website.
more of the same… but with news buy back is on! it opens the door for dividends too…
next quarterly payments of $16m end of month plus an update fingers crossed!!..
we should have nigh on half our market cap in cash soon…
excellent news indeed…
Receipt by Eroton of further NNPC Cash Call Arrears
21 December 2018
San Leon Energy plc, the AIM-listed company focused on oil and gas development and appraisal in Africa, is pleased to provide an update with regards to the receipt by Eroton of cash call arrears from the Nigerian National Petroleum Corporation (“NNPC”).
The Company announced on 7 September 2017 that NNPC had begun paying its 2015-2016 cash call arrears to Eroton Exploration and Production Company Limited (“Eroton”), the operator of OML 18, onshore Nigeria, but that $93 million remained outstanding. The Company is pleased to announce that it has been informed by Eroton that all of the 2015 NNPC cash call arrears have now been paid to Eroton and only approximately $20 million of arrears remain for 2016. All cash calls have been received for 2017 and are up-to-date for 2018.
Oisin Fanning, CEO of San Leon, commented:
“I consider the payment of the substantial majority of NNPC cash call arrears to be a very positive step in supporting the OML 18 new well drilling activity which began last week and is targeting increased gross oil production.”