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lse:sle

#102

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

… now we might get some of this!!

A Master Services Agreement exists which entitles San Leon Energy Nigeria BV to provide specific services to Eroton and Midwestern for their activities

service contract worth $1.5billion…

“The terms of the OML 18 transaction also allows the
Company the right to provide oilfield services to
the operator of OML 18. The projections assume
that the Company will receive an up-front payment
on completion of the agreement to provide these
services with further income streams arising on the
roll out of these services”.


#103

interesting post from bluerill lse…

bluerill
Posts: 155
Opinion:
No Opinion
Price:
24.30
RE: wow it gets better
Today 07:33
With San Leon’s share price so objectively undervalued, you could arguably describe the company’s efforts to clear the decks in order to hand back some capital to shareholders - which looks set to be cleared early next year - as Oisin playing great defence. Now, with the recently announced spudding of the first well on OML18 since first gaining their 10% economic interest in the field, and today’s long awaited news of the NNPC becoming near-current with arrears payments and all that foretells for Eroton’s RBL constraints and its subsequent abilities to begin again investing actively in field development and then of course to pay out dividends to consortium members, represents San Leon’s long overdue opportunity to begin to go on offence. Great news.


#104

looks like a dividend from eroton could now be on the cards with NNPC paying up their cash call

http://www.sanleonenergy.com/media/3267159/san-leon-final-results-2018.pdf

The Nigerian National Petroleum Corporation (“NNPC”) has made substantial repayments to Eroton for 2015 and 2016 joint venture cash call arrears. However, significant outstanding arrears still remain unpaid, which if received would provide capital for further investment in OML 18. NNPC has been paying its 2017 and 2018 cash calls and it is hoped that the improved business climate and outlook will enable settlement of remaining arrears to Eroton. • Removing the challenges will enable greater capital allocation to production growth and support future dividends from Eroton to the Company via its initial indirect 9.72% economic interest in OML 18.


#105

thanks for posting the link


#106

so pleased this is happening by a forward looking company…

" 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."

as!!!..


#107

#108

Article on ShareP 31st Dec - 5th Para Onwards…1st share tip 2019 they say…

San Leon Energy (SLE) – shares in which also didn’t perform in 2018. They returned from potential M&A-induced suspension in April, rising to above 30p and are currently at a 26p offer price – with these also comparing to 57p+ reached in 2017. That followed takeover interest - including an indicative offer price of 80p per share - and an update including “we are encouraged by the performance of the OML 18 field to date”.
Takeover discussions were eventually terminated and the company has most recently updated on 21st December, including CEO Oisin Fanning stating “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”. This follows the company’s prior half-year results having noted “operational and financial challenges being tackled by Eroton as operator of OML 18”, with despite some joint venture payments from Nigerian National Petroleum Corporation (NNPC) “significant outstanding arrears still remain unpaid, which if received would provide capital for further investment in OML 18”. That after it previously stated “asset performance has not been as hoped due to funding constraints”.
As such, the recent payment of the substantial majority of the arrears looks very positive for future OML 18 field performance – with this a world-class oil and gas block onshore Nigeria. San Leon “anticipates future cash flow from continued principal and interest repayments from the loan notes, income from the master services agreement, dividends from the company’s initial indirect 9.72% economic interest in OML 18 (once Eroton is in a position to pay such dividends), and through the potential income or sale of the company’s 4.5% net profit interest in the Barryroe oil field (offshore Ireland)”.
The loan notes were issued to fund the purchase by a special purpose vehicle of an interest in Eroton and were purchased by San Leon. The half-year results noted “during 2018 to date US$37.7m (€31.1m) has been received… the company is scheduled to continue to be repaid against the loan notes, whose balance is currently $157.8 million”. That helped see a swing to profit and net cash increase by €17 million to €21 million, with total liabilities of €20.2 million but total current assets of €87.6 million and ex-intangibles non-current assets of €162.8 million.
There are of course risks such as Nigeria and commodity prices but this all compares to a current market cap of circa £130 million (€144.5 million, $165.5 million) – and such a valuation makes this my first tip of the year 2019.


#109

“Dr. Baru made the promise that NNPC would stick to the Repayment Agreement with the JV Partners while transiting to self-funding IJV modes with the corporations partners, saying that tiding up the Cash Call issues has led to increased commitment and enthusiasm to invest in Nigerian Oil and Gas Industry even as it has also boosted NNPC’s credit profile internationally.”


#110

#111

“We have actually asked for early renewals, because we needed to get money out of it to help finance the budget and from that process, we have actually gotten about $2 billion,”

The minister said his ministry deliberately put a policy in place to hasten renewals, so enough funds could be put together for the budget

I put a policy of early renewals in place so that even blocks that are not due for renewal before 2019 are being renewed right now,” he said.


#112

https://af.reuters.com/article/nigeriaNews

JANUARY 3, 2019 / 3:55 PM / 3 DAYS AGO
OPEC oil output posts biggest drop since 2017 on Saudi move
Alex Lawler

  • Saudi Arabia, Libya, UAE, Iran pump less oil

  • Iraq reports OPEC’s biggest rise in output

  • New supply-cut accord starts in January

  • For production by country, click on

By Alex Lawler

LONDON, Jan 3 (Reuters) - OPEC oil supply fell in December by the largest amount in almost two years, a Reuters survey found, as top exporter Saudi Arabia made an early start to a supply-limiting accord while Iran and Libya posted involuntary declines.

The 15-member Organization of the Petroleum Exporting Countries pumped 32.68 million barrels per day last month, the survey on Thursday found, down 460,000 bpd from November and the largest month-on-month drop since January 2017.

The survey suggests Saudi Arabia and some of its allies acted unilaterally to bolster the market as crude prices slid on the possibility of a new glut. A formal accord by OPEC and its allies to cut supply in 2019 took effect only on Tuesday.

Oil has slid to $56 a barrel from a four-year high of $86 in October on signs of excess supply.

While OPEC has not ruled out further action, officials hope prices will be supported by further output declines in January as producers implement the new deal.

“Naturally, it will adjust from now on,” said an OPEC delegate, referring to the downward trend in production. “I hope the market will recover soon.”

OPEC, Russia and other non-members, an alliance known as OPEC+, agreed in December to reduce supply by 1.2 million bpd in 2019. OPEC’s share of that cut is 800,000 bpd.

The deal came just months after an accord to pump more oil, which in turn partially unwound a supply cut that took effect in 2017.

The drop in OPEC output in December is the largest month-on-month decline since January 2017, the first month of the earlier supply-cutting deal, according to Reuters surveys.

SAUDI CUT

The biggest drop in OPEC supply last month came from Saudi Arabia and amounted to 400,000 bpd, the survey showed.

Saudi supply in November had hit a record 11 million bpd, after U.S. President Donald Trump demanded more oil be pumped to curb rising prices and make up for losses from Iran.

The kingdom has said it plans to go even further in January by delivering a larger cut than required under the OPEC+ deal.

The second-biggest drop occurred in the United Arab Emirates, which like Saudi voluntarily scaled back supply, the survey found.

The third largest was an involuntary cut by Libya, where unrest led to the shutdown of the country’s biggest oilfield.

Output from Iran declined further as U.S. sanctions discouraged companies from buying its oil. According to industry sources, however, Iran maintained its exports, helped by sanctions waivers granted to eight buyers as well as dogged Iranian efforts to keep selling crude.

Among the countries boosting output, the biggest increase was in Iraq due to the restart of Kirkuk crude exports and a rebound in shipments from the country’s southern terminals.

Output also rose in Kuwait and Nigeria.

An OPEC list of output targets seen by Reuters and other news organisations will provide a basis to calculate compliance with the new supply deal in the January survey. As of 2019, OPEC has 14 members following Qatar’s departure.

The Reuters survey aims to track supply to the market and is based on shipping data provided by external sources, Refinitiv Eikon flows data and information provided by sources at oil companies, OPEC and consulting firms. (Additional reporting by Rania El Gamal; Editing by Dale Hudson)


#113

Eroton Successfull Refinancing
08 January 2019
Eroton Successfully Refinances OML 18 Reserves Based Lending Facility (“RBL”)

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 OML 18 reserves-based lending (“RBL”) facility held by Eroton Exploration and Production Company Limited (“Eroton”), the operator of OML 18.

The Company first highlighted on 7 September 2017, and subsequently since, that depositing three future quarterly RBL repayments into a specified Debt Service Reserve Account (“DSRA”) was one of the conditions needing to be satisfied before the RBL lenders would allow a distribution of dividends from Eroton to its shareholders (of which the Company is an indirect shareholder).

The Company has now been informed by Eroton that the RBL has been successfully refinanced. With a final repayment of $398 million, the RBL has been repaid in full and replaced by a new reservesbased lending facility with Guarantee Trust Bank (the “GT Bank RBL”) for the same principal amount, with the following notable advantages:

The original RBL had a repayment date in mid-2021, while the GT Bank RBL has a late-2025 repayment date, consequently reducing quarterly repayments and freeing cashflow (in excess of $80 million per year until mid-2021) for further drilling and development.
The DSRA requirement under the GT Bank RBL is reduced to two future quarterly repayments which combined with the lower quarterly repayment amounts means that only approximately $50 million is required in the DSRA compared with more than $100 million previously.
The refinanced interest rate is marginally higher at approximately 11% (versus 10% previously).

Oisin Fanning, CEO of San Leon, commented:
“I am delighted with the terms secured by Eroton for the RBL restructuring, and the impact which Eroton expects this to have, both unlocking substantial additional funds for operational activity, as well as lowering the DSRA hurdle to Eroton paying dividends to its shareholders.

This is a further material step in addressing previously identified operational and financing issues at OML 18 and follows the recent announcements of new well drilling, and of NNPC (the Nigerian National Petroleum Corporation) paying most of their cash call arrears.”


#114

More great news as this means another step towards dividend payout to sle from production…sp angel were quoting sle were on 2950bpd … Now over 2 years that runs into a multi million payout to sle give or take a few barrels here or there …

Plus 80m for future development on oml18…things looking good for sle this year…


#115

I was under the impression that they’d already indicated the “return to shareholders” (lol) would be in the form of share buybacks ( which, famously, don’t do anything for the sp or the shareholders!)
TP


#116

Tp the SBB is being paid by the loan repayment…sle have a working interest which they haven’t been paid as they require dividends from eroton who until now haven’t paid them due to the old RBL …this news today has increased the probable paying of them …lol by a shareholder…


#117

I thought this was good news. As ever the share price is far less quick to jump on good news than it is to dip on poor news. Probably needs some divis to start flowing through before we see much of an upturn. Fingers crossed. I had a stinker in 2018 so an upturn here would be most welcome.


#118

Divis being paid to our equity stake would be great news though TP


#119

:crossed_fingers:


#120

Ok, got it. It’s not usshareholders that are getting a divi then. Thought not.
TP


#121

Good news again, maybe 2019 will be San Leons year, been with them 5 years + so my bank manager would be grateful lol