Could be interesting!



According to the minister, the law allows that a licence can be renewed six months before expiration.


very interesting this news as sle have a 4.5% on the whole field including the extra added on the licence plus now going to be drilled 3Q 2019…!!

from blueril lse…


Commenting on the announcement, Tony O’Reilly, Chief Executive

of Providence said:
“The rig nomination allows us to progress the rig-related consents for the upcoming Barryroe appraisal drilling programme. Subject to the receipt of all necessary regulatory approvals, we currently envisage rig mobilisation and drilling commencing during Q3 2019. The Barryroe Partners look forward to working closely with COSL on the execution of this major drilling programme and further project announcements will be made as appropriate.”


Kachikwu said: “This is to build the capacity of Nigerians. We have been in the oil and gas exploration, production and distribution for over 60 years and some of the real benefits are still monopolised by foreign operators.

“The time has come to build our own companies. So, we (have) selected indigenous firms that we can help through financing, business opportunities and promote them to the next level.”

… eroton perhaps!!!.



couple of interesting articles!!



Fingers crossed for a conclusion on the share buy back today as it looks it’s going well…

Great post from Alaric lse…

Alaric 335 posts
RE: share buyback
well today’s hearing in Dublin is a formality to sign off the share capital reductions and allow the sbb to commence. so that obviously means we now only have hours left to buy ahead of this news being formally announced. GLA.


nice to know that when eroton start their share distribution which sle are due over 2 years of back production cash and they part own Martwestern!..

from admin doc…

The OML 18 Production Arrangement consists of the acquisition by the Company of certain Loan Notes and warrants issued by BidCo, the special purpose vehicle used by the Company and Midwestern, for the purposes of the OML 18 Production Arrangement, and the acquisition by BidCo of Martwestern.

Midwestern is an independent exploration and production company based in Nigeria and Martwestern is the owner of a 50 per cent. shareholding and an initial 90 per cent economic interest in Eroton.

MLPL purchased all of the shares in Martwestern Energy Limited (Martwestern), a company incorporated in Nigeria. Martwestern holds a 50% shareholding in Eroton Exploration and Production Company Limited (Eroton), a company incorporated in Nigeria and the operator of the OML 18 Oilfield. Bilton Energy Limited (Bilton) is the other 50% shareholder in Eroton.





I seem to remember any dividend payment can only happen after audited accounts from both Eroton and SLE are signed off.

I don’t think we’ll see anything this year because of the financial years of both companies overlapping in an unfortunate way. That’s from memory though and I can’t remember what dates the financial year runs for Eroton. SLE’s runs from July 1 to Jun 30th, of course.

Its also confused by, it appears, payments still outstanding for 2016, but up-to-date so far as 2017 and 2018 go. What’s the betting we have to wait for 2016 to be paid up before any actions can happen with 2017 and 2018 monies? It would be typical, after all.


eroton have paid a whooping 265m off their existing loan agreement…through production etc!!

11.4.12 RBL facility
The reserve base lending agreement provides sets out the terms relating to the
US$663 million facility made available to Eroton to acquire the interest in OML 18.

but now…

" 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 reserves based lending facility with Guarantee Trust Bank (the “GT Bank RBL”) for the same principal amount, with the following notable advantages:"

this from sle …

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.

from the same rns…

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).

add this to the final results last year makes interesting reading as it now implies with what we know eroton have indeed paid the 90m off!!

Finally, the Nigerian National Petroleum Corporation (“NNPC”) still has significant outstanding payments due to Eroton, settlement of which would provide capital for further investment in the asset. NNPC have been paying their cash calls through 2017 and it is hoped that the improved business climate and outlook will enable settlement of the outstanding payments.
Removing the above 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.
The Reserves Based Lending (“RBL”) conditions required for the payment of dividends by Eroton have now been met, with the exception of satisfying the amount payable to the Debt Service Reserve Account (“DSRA”) and thereafter submitting audited accounts. As announced on 7 September 2017, depositing three future quarterly RBL repayments into the DSRA attached to Eroton’s existing RBL facility, is one of the conditions that needs to be met before the RBL lenders will allow distribution of dividends from Eroton to its shareholders. The cumulative amount required to fill the DSRA varies according to the RBL amortisation schedule and is approximately $90m for much of 2018. The DSRA balance however fluctuates according to operational needs and due to some of the funding challenges experienced.

but on the 21st Dec 18…

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.

… it seems clear that eroton are now in a better position to pay dividends to their share holders…yes we wait but!..that wait is defo getting very very close now…as is an update on all things oml18…

and this from sle!!..

“Removing the above 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.”

gunna happen!!..its what Tosca is here for!!!


Well thanks for posting that - I had actually read it all and hence my conclusion that 2017 and 2018 are paid up but 2016 isn’t.

So, I’m still left wondering if anything can be paid in that circumstance (of course it can be paid but the outstanding amount could be used as an excuse not to) and the original Aug 2016 agreement wording about payments only after accounts have been successfully audited etc always rang an alarm bell in terms of delays - as I have posted previously and been scoffed at so far back as 2017 when certain people said payment was imminent.

I haven’t re-read the agreement, but I’m pretty sure any delay to dividends to be paid to private SLE shareholders will also mean a delay to the buyback programme as it all comes from the same pot of money.

Having bought another tranche last year, which I recorded here, I was hoping the buyback would be well underway by now and the buyback announcement certainly suggested it would. As ever with SLE, so far they have failed to produce the goods.

I would hope that any buyback programme when finally announced as commencing will be WELL in excess of $10m now, or coupled with a dividend, given the delay and the rate of outstanding monies received meantime. I still wonder if it wont happen until after the audited accounts though, meaning 6 months away at best.

This is a time that the CEO should be earning his corn for the shareholders simply by MAKING SOMETHING HAPPEN. Given the calculations I posted when I bought the tranche, clearly the market needs to see evidence that SLE actually does intend to try and ‘return value to shareholders’ by giving some money back. The share price tells us that the market no longer believes words from SLE and only actions will matter - hence the need to show some action or we will drop to @25p again, or lower.

I’m not clear on this refinancing deal for Eroton - does that mean that ultimately SLE are going to receive monies at a much lesser rate per annum or does it have no impact at all?

Given that the refinancing deal strings out to 2025, if it does involve SLE then does that mean that SLE’s ownership of a portion of OML 18 is extended, guaranteed, or will it still expire on the same date?

I suppose Eroton can go with who they like and say that the money is still owing, but if SLE are no longer involved I wouldn’t be placing any value of that statement given what has gone before not only with SLE but also the previous owners of the percentage of OML 18 that SLE bought (who never got paid what they thought they should either).

I’d appreciate any answers you have to those questions, Mr L., but not a load of cut and pasted stuff about Nigerian oil production etc please. I don’t have time to wade through it all.

If ANYONE knows the answer to the question what dates does Eroton use as a business year? (E.g. SLE is July 1 to Jun 30) I’d also appreciate a quick reply. Say Eroton’s dates are Oct 1 to Sep 30 (like my own business), then potentially they wont be able to announce any repayment until late 2019 and then, as I read it, SLE would have to wait until after June 2020 before and buyback/dividend was put in place.

Way too long for me to hold onto the stock I have with the same management at the helm who have continually and 100% failed to deliver anything ever.


$20m is outstanding from 2016…all other amounts from NNPC have been paid!.

loan payments were made in 2017…

Repayment of Midwestern Leon Petroleum Limited (“MLPL”) Loan Notes (the “Loan Notes”)
The Company is scheduled to be paid approximately US$19 million per quarter by MLPL in respect of the Loan Notes from Q4 2017. The Company has previously announced the receipt of US$11million in satisfaction of payment of amounts due for Q4 2017. A further US$7.75 million has also now been received, meaning that MLPL’s obligations for Q4 2017 in respect of the Loan Notes have been met.

plus the buy back is not delayed its happening hence sle has been in Irish courts the other week to get the reorganisation programme started so buy back can commence…and before any buy back/dividend payouts …sle have to prove they have no creditors which looks like they haven’t! we now await conformation of this from sle…

agree with the minimal $10m as sle themselves have stated this so it could mean they may/might buy more than the $10m…

sp has risen from 20p to 30p…not a bad return for those who was buying back then…

refinancing deal is brilliant as eroton have paid back $268m and it gives them free cashflow of $240m until mid 2021 for further drilling and development of oml18…plus they only have to pay into the drsa acc $50m instead of the $100m they were paying!!

sle % doesn’t expire in 2025 and as for when eroton biz year ends like you I have no idea…


The below is what I’m talking about with refinancing etc. Any idea what the situation is there? [This text from the proposal, not the actual 2016 deal, but only because that was the quickest thing I could find, so far as I know the dates didn’t change.]

“The Loan Notes have a coupon of 17% per annum and mature on 22 March 2020. Principal and interest repayments will be paid through a cash sweep of at least 65% of the available funds distributed to BidCo from OML 18. The repayments have been guaranteed by Midwestern and Mart Resources Limited (a wholly-owned subsidiary of Midwestern), and the Loan Notes are secured via a securities pledge on 100% of BidCo’s currents assets, subordinate to reserves based lending.”


eadwig…the loan notes owing have nothing to do with san leons % in oml18…I suggest you read the admin doc again and annual reports… but once these loan payments have been paid back in total it means sle have entered a world class producing asset for nowt!!..eroton are now in a far better place now than they were 2 years etc ago especially with most of their cash calls from the NNPC now being paid…


proof sle are going to court over their share reorganisation to bring about share buy back/dividends…( you may have to type in san leon energy)


Yes, they certainly seem to be.

I can’t see the court link but I can’t see any reason why the Irish courts should hold up anything (except for their general speed in getting around to reviewing cases).

Dividends/buybacks are a limited company’s own decision. OK, if SLE have some restriction because of previous outstanding debts, then surely it only requires an auditors report to convince them.

Perhaps it wasn’t such a great idea running that previously discussed dispute down to the wire when Tosca could have stepped in and paid the ordered amount as a loan to the company at any time they chose - assuming they had the cash on hand.

If auditors can’t convince, I assume the Court can order some amount to be held in escrow for a period of time, ‘just in case’, or something similar, allowing the company to get on with their business.

Never heard of a court having to rule on the legitimacy of buyback, but then the structure is so odd with Tosca owning more than half the shares etc I’ve probably never seen a buyback in such a situation. Lets hope it is little more than a formality.


I would say it’s more than a formality as sle would and have advertised if any creditors are owed…none have appeared as the sp would have said so!..with a new well being undertaken and a update due maybe sle are going to put it into a all singing and dancing report!!..defo due one on all fronts…