what is eadwig blathering on about tosca and auditors ? got absolutely nothing to do with it. as you’ve correctly pointed out linksdean, the order for this technical capital reorg from the High Court in Dublin was lodged this week at the Companies Registration Office. all completely normal practice btw in these circs . if people want to read the tealeaves while we wait for a formal announcement on the share buyback, then they might do better reading a more informed poster like bluerill on lse who wrote ‘Patience, mate. The company only just cleared its final court appearance on Friday. I’m sure there are still some technical matters to resolve with various parties (broker, NOMAD, regulator, etc) on how the company will operate in the market on a daily basis, whether the shares will be held in treasury or cancelled, how block share trades might be handled, etc., before SLE is ready to put out comprehensive RNS covering a return of capital. Shouldn’t be much longer to wait (this week?) to work through this final paperwork.’ also I think your suggestion that we may well be getting other news simultaneously is a good one.
So, its ok to read the tea leaves so long as you’re toeing the party line? Typical Alaric. Entirely biased and continually wrong when making predictions of imminent payouts in the past or predicting share price rises.
As for having patience - how many years have you been waiting for a single penny return on your investment? Who can blame me for running through some scenarios that might cause a delay, even though I began my post by saying I can’t see any reason for delay within the Irish court system.
apologies Eadwig - didnt mean to upset you, just trying to keep it factual that’s all. given we’ve now filed the Irish court order (on 12 Feb), following the last appearance, i don’t believe there is any delay with the Irish court process or it has anything to do with auditors (?!). i also think bluerill is closer to the mark with his post. as for your personal comments, well the record shows i have been continously correct about avobone, sun trust, receipt of our cash payments and even our slow sp climb off our lows of last year, so if youre going to sling mud be more specific please and keep it accurate.
I accept your apology. As for fantasies of your predictions coming right I’ll leave that to onlookers to judge for themselves. Specifics? How about this one from 11 days ago…
Effectively urging people to buy within hours beggars belief. Given that none of us have seen a single thin red cent in return on our investments in S.L.E. it amuses me that you continually attack me for expressing scepticism.
18 December RNS
"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."
Still waiting, but god forbid anyone should speculate on the reasons for a hold up. Mind you, given the way you support S.L.E. and their pretty much 100% record when it comes to missing their own deadlines, a few hours or a couple of weeks or a couple of months probably seems close enough for you.
speculate away Eadwig but try and keep it factual. we have done the advertising, got the court order and now waiting to announce the sbb commencement. so don’t insinuate otherwise. yep there’s been a slight delay in this announcement- is that a big deal? i don’t think so but lets see where we are say in a fortnight and compare notes then? you clearly think this is bad news - so sell. i’m holding along with a bunch of other big shareholdrrs i know and our majority insto holders.
I didn’t insinuate otherwise at all. If you’d followed the thread you’d have seen that.
But, hey, why let facts get in the way of your bile?
then what’s your beef Eadwig? like so many you’ve lost money on a very bad investment in san leon and boy it’s been a shocker. but at 20p, now 30p, and a real value story in a world class oilfield in the Níger Delta that is delivering, with $50m in the bank and much more to come, this looks a very undercooked play in my book and that’s all i care about. if you dont see that and you’re still hurting from the past, then you shouldn’t be here. am not really sure aim oilies are for you anyway.
Like I said, if you read the thread you wouldn’t make such silly comments - although I seem to remember you don’t bother reading past the first line or so. Which explains a lot.
I bought a small tranche, posted ‘live’ here, on the strength of the buyback which should have been underway by now. Although that is standing in profit right now, I am still anxious to see the buyback confirmed and active to get a feel for just how much it might affect the share price - and whether or not it is worth holding for subsequent buybacks. Those that I correctly predicted 3 years ago.
I gave a target for where I thought the first $10m might take the share price, but as you’re not interested in speculation I wont repeat it or go through my working.
there has been nothing from sle to say that there has been any problems…so I believe there is none as the sp says it all…ie it awaits as we do and it cant be far away…surely!..
absolutely right Eadwig- i am really not interested in anything you might have to say about this stock. sle remains deeply undervalued and will return significantly for these who have patience and know how to read value plays.
why respond to my posts at all then you cretin?
20 February 2019
San Leon Energy plc
(“San Leon”, the “Group” or the “Company”)
Proposed Return of up to $30 million by way of Tender Offer at 46 pence per Ordinary Share
Notice of Extraordinary General Meeting
San Leon is proposing to purchase up to 50,475,000 Ordinary Shares through a tender offer at a price of 46 pence per Ordinary Share (the “Tender Offer”).
Highlights of the Tender Offer
– The Tender Price represents a premium of 50% to the closing mid-market price on 19 February 2019 (being the latest practicable date prior to the release of this announcement); and
– The maximum number of Ordinary Shares that may be acquired under the Tender Offer is 50,475,000, representing approximately 10% of San Leon’s Issued Ordinary Share Capital on 19 February 2019 (being the latest practicable date prior to the release of this announcement).
– Qualifying Shareholders will be entitled to have accepted in the Tender Offer valid tenders of their Basic Entitlement of approximately 10% of their shareholding and may also tender Ordinary Shares in excess of this amount.
– The Tender Offer opens today and will close at 1.00 pm on 20 March 2019 with cash payments expected by no later than 29 March 2019.
– Completion of the Tender Offer will be conditional on Shareholder approval of the Tender Offer at the Extraordinary General Meeting on 15 March 2019.
The preceding summary should be read in conjunction with the full text below, as well as the shareholder circular (the “Circular”), which the Company is posting to Shareholders today and which also includes notice of San Leon’s Extraordinary General Meeting. A summary expected timetable of principal events is set out at the end of this announcement.
The Circular is available on the Company’s website www.sanleonenergy.com. Terms defined in the Circular have the same meaning in this announcement.
Oisin Fanning, CEO of San Leon, commented:
“We are delighted to be able to announce this tender offer, which is considerably larger than previously announced. The scale of the Tender Offer reflects our strong financial position, our confidence in the Company’s future prospects and commensurate cashflow, and our view that the current share price does not reflect fully the potential value of our business. We will continue to seek opportunities to return capital to Shareholders through either further share buyback tenders or dividends, as the business continues to grow and we execute our strategy on the ground in Nigeria.”
The Tender Price represents a premium of 50% to the closing mid-market price on 19 February 2019 (being the latest practicable date prior to the release of this announcement
Oisin Fanning, CEO of San Leon, commented:
"We are delighted to be able to announce this tender offer, which is considerably larger than previously announced. The scale of the Tender Offer reflects our strong financial position,
our confidence in the Company’s future prospects and commensurate cashflow,
and our view that the current share price does not reflect fully the potential value of our business.
We will continue to seek opportunities to return capital to Shareholders through either further share buyback tenders or dividends, as the business continues to grow and we execute our strategy on the ground in Nigeria."
… brilliant news…
like these bits…
The economic effect of this structure is that San Leon has an initial indirect economic interest of 10.584 per cent. in OML 18. Shareholders will note this is higher than the percentage interest anticipated by San Leon at the time of the acquisition in 2016
Quarterly payments to San Leon under the Loan Notes commenced during 2017 and have continued since. To date, San Leon has received aggregate payments under the Loan Notes totalling US$108.8 million. The payments received represent interest and principal on the Loan Notes. As such, the Company has a significant balance of cash.
the Company confirmed during 2018 that it intended to return not less than US$10 million to shareholders following completion of a court approved capital reduction which was required to enable the Company to return capital to its shareholders. This capital reduction was finalised on 12 February 2019.
" This capital reduction was finalised on 12 February 2019."
looks like the loan payment came in!..
“Further Loan Notes repayments have been received by San Leon since commencing the capital reduction process and, recognising that, the Directors have determined to increase the capital to be returned to US$30 million”
yep nice one linksdean - boosh!
yep Alaric…and we are due an update of sorts on drilling…ST…etc etc!!
Appears to have taken $30m instead. Lets hope the market price does indeed push up towards that figure given what appears to be a limit set on the number of shares that an individual can sell under the tender offer.
No provision for small holder P.I.s to be able to sell out completely via the tender offer which I would have expected, but there is a lot to the offer so possibly I missed it.
I also expected to see the board positioning themselves to line their own pockets and that was not at all difficult to find. Apparently the board has begged O.F. to return to being paid 100% in cash … and he accepted back in October.
San Leon Energy - A return of capital worth waiting for…
Good morning. Given your (historic) interest in San Leon Energy (SLE) please find attached an RNS released by the Company this morning and some commentary below intended to try and outline some of the nuances surrounding it. This is neither research nor independent as both Brandon Hill Capital and myself have had a beneficial interest in the shares of the Company for a number of years. Nor is it advice to accept or reject the terms of the proposed Tender Offer.
San Leon Energy (SLE LN) have today advised they are to undertake a buy back of up to 50,475,000 ordinary shares, by way of a Tender Offer of US$30M, at a price of 46p per share, being a circa 50% premium to yesterday’s close of 30.6p. The pricing of the Tender Offer coincides with the substantial capital raise the Company undertook in 2016, when acquiring its indirect interest in OML 18 (Nigeria), at a price 45p per share.
The Tender Offer will remain open until 20 March 2019. Any shares purchased by SLE will subsequently be cancelled. Given there are circa 500.3M shares in issue, in the event the full 50,475,000 are purchased by SLE then the number of shares will be reduced by circa 10% to circa 450M.
The Current Source of the Cash
SLE has been advising shareholders for some time that it would seek to return distributable cash resources following its entry into Nigeria. The Company has regularly advised the source of these streams would be as follows:
The repayment of MLPL Loan Notes
Dividends from oil production in OML 18
Master services agreement to provide rig-based services on OML 18
To date it has primarily been the Loan Note repayments which have boosted the Company’s coffers. Whilst SLE had a number of sizeable creditors post the OML transaction, leading to some tumultuous times in 2017 as it awaited the commencement of payment under the Loan Notes (reflected in the weakening share price), last year SLE confirmed all material liabilities had been cleared. This is unsurprising given reaffirmation in today’s announcement that to date it has received payments of US$108.8M under the Loan Notes. Our best guess based on historical reports is that SLE now has a net cash balance of circa US$50M (prior to Tender Offer) and accordingly the decision to move from a standard share buyback of US$10M to a Tender Offer of US$30M seems eminently sensible and financeable. Perhaps even more so given the Company confirmed it is still owed a further US$167.1M under the MLPL Loan Note repayments. This outstanding balance is to be paid quarterly and in full by October 2020, we understand with a balancing bullet payment at the end. Given Loan Note repayments have been taking place on a regular basis since 2017, investors should feel comfortable these outstanding amounts will also be paid when they fall due.
If you apply an annualised 10% discount rate to the US$167.1M this equates to circa US$150M. If you also assume a 100% take up of the Tender Offer and therefore reduce cash by $30M, the revised cash ($20M) and discounted future cashflow ($150M) equates $170M. At current exchange rates this equates to circa £131M. Taking the reduced shares in issue into account, at 46p, SLE will have a market cap of £207M, leaving a valuation of circa £76M for the remainder of the portfolio.
The Future Source of the Cash
Moving briefly to the additional assets, as outlined in the RNS, SLE have an indirect economic interest of 10.584% in the OML 18 field Nigeria, which as per accounts released 25 Sep 2018 was producing at a rate of 46,086bopd. The operator is currently planning to construct a pipeline to remove pipeline losses being applied to this figure and also confirmed in December 2018 it had spudded a new development well (due for completion this month) to further boost production. An announcement last month of the refinancing of the Reserves Based Lending Facility should provide yet more cash for the operator to deploy in field work and a subsequent boost in production numbers and ultimately inaugural dividends to San Leon from oil revenues. In addition, SLE has the right to provide all rig-based services on the licence, which we believe could provide further significant revenues to the Company.
Outside of Nigeria, SLE’s other key asset is the 4.5% NPI across the Barryroe field, offshore Ireland. This licence is due to have a fully-funded multi-well work program carried out, with operations commencing in Q3 2019. It brings with it the potential for a fast track to production and gross contingent resources on the field stand of 345MMbbl with additional upside potential. Clearly a successful drill campaign and early production will boost SLE’s revenue stream further.
The Parting Comment
The above has assumed a full take up of the Tender Offer, however it is worth considering the likelihood of this. The Company has a number of long-term shareholders, many of whom invested back in 2016 at the 45p level. Whilst markets and sentiment change, it is clear that San Leon is now on the strongest financial footing it has been since its inception. Many investors no doubt subscribed for shares given the potential of cashflow coming from production on OML 18 and associated services. As outlined above, these two appear closer to materialising than at any time previously. Clearly if the Tender Offer is not fully subscribed then the Company’s cash balance would strengthen. Coupled with the balance of the Loan Note repayments and alternate revenue streams coming on line, this in turn may well heighten the probability of further buybacks/dividends/tender offers – as the Company alludes to in this morning’s RNS. If the free float diminishes and longer-term holders remain, it might well lead to further price advances on subsequent news.