Out of the other 3 posters attempt at rebuttal, yours seem to be most cogent, as you actually try to provide a reason why a cash raising event cannot happen. But, we know that companies do raise cash at less than par value of existing shares theres ways and means and examples of such cases - they are out there searcher - go search. If you say they can't you provide even less incentive to invest or become interested in SLE - as without a cash raising how on earth can it afford to contribute to its share of the costs to move rawicz into production - do you think OF will lend SLE the cash (usually thats the other way, and believe me, the interest rate will be significantly higher than the ones he had from SLE), do you think the overdraft facility or further loans can be extended (with no reserves or assets to secure them against), do you think that JB will change the deal and back down in favour of SLE (and be supported by PNR), or do you think the salvation army will pick up the costs? There is only one way - and thats a cash raiser - period! Unless of course it sells rawicz, or a further share, the CPR could well have been initiated with this in mind - but its not exactly the MAYFAIR of oil and gas acreage in the world. Theres much more desirable places in this buyers market.
Quite so but DYOR?...Unless you are able to personally take a trip to Poland and elsewhere to inspect the projects assets etc: Or you know someone who works in the company who is able to give you info:..Then DYOR is restricted to reading about it from where ever you can.....One such source is on here LSE so that's why it is important to know why anonymous bull or bear posters are posting as they do and why you should believe them or not. Without doubt they can and do influence people as to what they believe. I think you'd agree that to just read the SLE website would be a very poor way of deciding your business.
just proves Im just a little "Ol"investor like you!!!!...the dilution turned out to be for turkey which was a placing for IIs..not how he put it..but that is old hat!!....said before frus move on..sle has now got reserves which will now start to take this story forward..and forward sle is the direction they head...Im going with them....
proof you can get a higher price if nitrogen is taken off...
"with some upside if part of nitrogen is removed."
These fields typically produce 68% to 70% methane which is priced at around 6.5-7 $ per mcf, with some upside if part of nitrogen is removed. We are talking about long term sustainable production from onshore gas fields in Poland.
San Leon have indicated 57 bcf of low-methane gas for the full Rawicz field, of which 35% belongs to the company, they farmed out 65% to Palomar, who have been the lead developer of Rawicz. Polish domestic gas is priced at typically $7/mcf, at 35% this would represent circa $140 million of gas sales, less costs and tax in revenue to San Leon. The well itself would be worth approximately $400 million.
Revenue from this cashflow should add about 0.0056p per share to San Leon. Before the announcement yesterday, San Leon was trading at around 1.2 p meaning that a realistic share price based on the potential earnings from Rawicz would be approximately 1.7p, pretty much what the current trading price is now the news has broke. Naturally San leon’s other assets should be factored into this valuation, particularly the Palomar-San Leon Polish conventional plays that have yet to be drilled and lets not forget, this valuation is for one well, there are I think four planned on this Rawicz acreage.
". Polish domestic gas is priced at typically $7/mcf, at 35% this would represent circa $140 million of gas sales, less costs and tax in revenue to San Leon"
but JB states..Currently, the price of gas imported by Poland is one of the highest in Europe, exceeding 10 USD per thousand cubic feet
so we could be looking for more than the $140mill to sle..
and........share price based on the potential earnings from Rawicz would be approximately 1.7p, pretty much what the current trading price is now the news has broke. Naturally San leon’s other assets should be factored into this valuation, particularly the Palomar-San Leon Polish conventional plays that have yet to be drilled and lets not forget, this valuation is for one well, there are I think four planned on this Rawicz acreage.
"and lets not forget, this valuation is for one well,"..1.7pX5=8.5p...
Jp..proactive.........boy was he right regarding other structures!
Oh so promising rather than fairly this is a great result at the top end of our expectations..the well is capable of excellent flow rates and proven up that the formation that has good ability to flow and permabilitity..and despite the fact a bit of damage from the skin from the drilling process which we expect to be removed as it continues to be removed as it has been so far from the well test with the well increasing and pressure increasing over time..then there is clearly more upside to this well on that rate already..
several things and we are going to do them in parallel..we have already completed a feasible study regarding tying in facilities and so on for a development..we are talking to pipeline owners which there bare more than one locally about tying in and pricing and so on, that's well advanced..
the results of the well have very clearly told us we should now go ahead and finish planning the next well..that could well be a horizontal or high angled well which should in the same rock have a significant higher flow rate due to a lot more contact with the resevior..so more drilling and prosecuting the development phase are what we looking to go after..
it does I believe around 70% of polands gas is imported and any country would like to produce it themselves for an energy security point of view and from an income view..so this is a big deal this I believe is the biggest field since the middle 90"s that is now going toward development..it is a big deal for Poland and locally we have other targets as well..we have leads and prospects and particually to the west of rawicz we have a similar size prospect which we will look to do 3D seismic over and mature that up for future drilling as well..so the stuff that comes off locally for this success as well..
well certainly oil prices arnt but the real positives regarding rawicz and Poland is the gas prices are very buoyant in Poland, some of the best in Europe and of course gas hasn't sufford in the way oil has so we are talking about a high value product here with a very ready market,local infrastructure and your absolutely right the deal is san leon do not pay upfront for the fist couple of wells and associated activities and in a success case that is clearly demonstrated here when production occurs then part of the production is used to pay back our 35% share of those costs..its a good structure for us and we are extremely happy with the outcome..
San Leon Energy books first Polish gas reserves thanks to Rawicz success
By Jamie Ashcroft
May 19 2015, 7:58am Rawicz is seen as a first step in building a sustainable long term gas exploration and production business in Poland. Rawicz is seen as a first step in building a sustainable long term gas exploration and production business in Poland.
A positive assessment of the breakthrough Rawicz project, in Poland, has delivered San Leon Energy (LON:SLE) its first bookable reserves.
It follows the success of the Rawicz-12 appraisal well which was drilled earlier this year.
The company, which has a 35% stake in the field, told investors that a new independent competent persons report (CPR) has identified more than 50bn cubic feet of proved and probable (2P) gas reserves.
Ryder Scott, the consultant providing the CPR, has based these reserves on a five well development scenario at Rawicz.
Rawicz is seen as a first step in building a sustainable long term gas exploration and production business in Poland.
Talks are currently ongoing with the Polish authorities over a gas sales deal, and it is anticipated that 2P reserves will be upgraded to the proven (1P) category once a contract is signed.
Production could begin as soon as early 2016. Several field development scenarios are currently being considered by San Leon and its partner Palomar Natural Resources (which owns the other 65% and is the operator).
"We are quickly moving forward with the development of the Rawicz gas field, and the confirmation of reserves from the CPR is a very positive step,” said Oisin Fanning, San Leon’s chief executive.
“San Leon and PNR are focused on first production and expanding our development using modern drilling and completion technology to unlock the significant remaining reserves in this under-explored basin, where some of the best gas prices in Europe can be found."
Palomar’s current development plan aims to build a scalable central processing plant which would be capable of handling additional production from other adjacent gas prospects, which it estimates could hold more than 100bn cubic feet.
John Buggenhagen, Palomar’s chief executive, said: "This is an exciting time for Palomar and San Leon, and for Poland - the Rawicz field development is the beginning of a larger exploration and production business for conventional gas.”
“We have already mapped several other large, undrilled structures on our 3D seismic database at Rawicz and across our broader acreage position, that bring significant upside potential to the area and justify a larger, fast-paced development
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