Nobody knows if these levels are the lows but IMO we got to a level where with cash raised almost equal to the market cap and interesting assets in the appealing gas sector the stock is deemed cheap by institutional and private investors such as me who bought again yesterday. At the same time people who shorted the stock on the way down might start to think that it's too risky to continue with that strategy and therefore I feel pretty positive, but time will tell.
When did you join SLE....You say your happy with deal at 80p, your happy with deal or no deal, your covered for all situations. Buy more if it goes lower ( for greater gains later on ) ...Or you'l sell the lot higher win,win. The game is afoot. What you dont seem to have taken into consideration is what if it goes lower and stay's lower..If your happy with 80p you must have got in very cheap and very recently. When you say you are covered for all situations is that because your a 17 company trader.
Clearly whoever made the approach does have an interest and ultimately knows that SLE is undervalued at these level. Time will tell if they will make a firm offer and at what level, but at the same time it might push others to make a move. I'm convinced that Tosca must have also purchased such a large stake after having reached a similar conclusion at higher prices (ie we are cheap) and they will for sure not sell their stake with no return.
Nobody seems to have raised the coincidence that our neighbor in Poland, FXEN, got two offers a couple of weeks ago. It might be relevant to today's news, especially if the interested party is not Tosca:
A City banker who recently helped fund San Leon Energy (LON:SLE) says he is not surprised that someone’s interested in buying the junior oil and gas company.
News of an approach sent San Leon shares about 16% higher on Monday morning, rising 8.5p to 62p, in what was an otherwise dreadful morning across the rest of the stock exchange.
A brief stock exchange statement confirmed speculation in Ireland’s weekend newspapers that a bid approach had been received.
“I do not know who is preparing a bid, but it hardly surprises me,” Oliver Stansfield, chief executive of Brandon Hill Capital, lead banker in June’s £29mln capital raise, told Proactive Investors.
Stansfield does, however, think that investors would need to see a premium before they agree to sell.
“I would think that any bidder would have to pay at least 80p a share for the company,” he added.
Oisin Fanning, executive chairman of Dublin-based San Leon, was unavailable for comment. But a spokesman said: “Yes an approach has been made.
“However, there is no certainty that an offer may be made or as to the terms on which an offer may be made”.
Stansfield, meanwhile, highlighted that Toscafund - which invested £16mln as part of the recent funding - owns 41.47% of the company.
“At 60p a share currently the company has a market cap of £33mln.
“Given they have not just most of the cash left but also some very good assets the shares are cheap.”
San Leon has a spread of assets in Poland, Ireland, Morocco and Albania, but the immediate value is thought to lie in some acreage in Poland and the Celtic Sea in Ireland.
In Poland, San Leon Has a 35% interest in the Rawicz field and adjacent acreage where together with its joint venture partner, it has made one of the biggest conventional gas discoveries.
Mean recoverable reserves (P50) have been put at 100mln cubic feet of gas following a positive drilling result and flow test of 4.5mln standard cubic feet a day (MMscf/d).
First production is expected in the first quarter of 2016.
The potential cash flow for 2016 is put at US$10-15mln. Fanning has put the value of this asset at US$150mln
The other near term value asset, assuming a farm-in partner can be found to develop it, is the Barryroe discovery in Ireland. There is thought to be 266 mln barrels of recoverable oil in the field.
San Leon, with a 4.5% net profit interest (NPI), could benefit to the tune US$230mln of the field, based on lower oil price assumptions made by the company itself.
Obviously, the detail of the approach is thus far undisclosed and so shareholders will have to wait, but, they can do so in the knowledge that they own one of very few shares to see positive territory in London this Monday.
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