Eroton made nearly $68 million profit last year, with production going up 100% only a fool would think that profit hasn't increased even more and that sle would be paid.
Taken from ii
The funding and acquisition mechanism provides the Company with protect via the existing hedging arrangements, which are currently at a strike of ~$95/bbl less costs of ~$3/bbl, with ~6mm bbl existing under contract.
6mm bbl existing under contract @ $91.50= mega $$$millions to eroton!!..
Eroton will be 50% owned by Martwestern (100% owned by BidCo)
Martwestern is entitled to a 90% share of distributions
eroton..2015 Revenue US $184.4 million*, 2015 Profit after tax US $65.7 million*
*Revenue and profit generated includes income from $95 per barrel hedge *Eroton Audited Financial Statements 31 December 2015
SLE receives preferential payment on US$173 million BidCo issued notes and interest
Payments from BidCo commencing at end of 2016 and paying quarterly
Of course SLE will be worth more than nowt when the RBL is paid back. That will be great news. Any ideas how long it will take? Any idea how much it is?
Come on Osin let us know please.
"Eroton continues to accrue cash from OML 18 operations into the Debt Service Reserves Account (“DSRA”) attached to the existing Reserves Based Lending (“RBL”) facility. Cash flow to San Leon will begin once sufficient funds have accrued in that account"
Sle through the placing paid the monies borrowed from tosca back hence sle are being paid the loan plus 17% interest on top.
Sle originally got $20 mill from palmar and this amount of $9million is a nice some as we haven't heard nothing from palomar regarding gas connection tie ups and the like, so sle has taken the cash no more investment plus have a tidy 10% npi
We have a great producing asset in oml 18 and cash flow will be quicker than rawicz!
Off the wall future scenario/comments assuming SLE/Tosca/OF do not want small PIs in the company.
A certain tidying up and a consolidation of assets whilst minimising of liabilities has been taking place - Poznan/Avobone/Barryroe - company emphasis has been placed on retaining a relatively small percentage return of other peoples efforts/risks whilst eliminating their own liabilities - my question is where is all this taking the company or even will the company even continue to exist in the future?.
A large portion of the Nigerian share deal went into three of Tosca's funds - sorry I don't recall their names (was it in some RNS ?) - anyhow the company's current focus is now on Nigeria but will SLE aka Tosca really want or need to get involved with any actual field exploration and development work in OML 18 given they already have - 17% interest on loan capital, 25 pence share options and guaranteed future ownership/return based on a percentage of OML 18 production profits into the future a la the Palomar/Barryroe investment model all this could/would make a nice return to the bottom line of Tosca's funds..
If I were the Rottweiler and the Nigerian adventure survived or even prospered preferable without any further work over costs or exploration from myself I would then look to buy out existing SLE shareholders via my Mauritius subsidiary, pack the acquired assets into my fund portfolios ensuring that anybody who wanted returns out of the Nigerian OML18 holdings would have to do so by buying into my funds with percentage entrance fees and annual management fees. Meanwhile the share price just sits there at 43.7 pence today.
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