Dublin-based fracking company may be takeover target
03:55, 23 August 2015 by Jack Horgan-Jones
Dublin-based fracking company San Leon Energy is being targeted for takeover, with a bid that could value it at a minimum of £50 million (€69 million) likely to materialise in the next week.
Sources said that at least one potential buyer is circling the company, with management already engaged in preliminary talks.
When contacted, a spokesperson for San Leon said that the company does not comment on market speculation.
Chief executive Oisín Fanning was unavailable for further comment, however, market observers said that a successful bid for the company would have to be priced at above the 80p a share paid by new investors during the company’s last £29 million capital raise earlier this summer.
British investor Martin Hughes, known as ‘The Rottweiler’, has been aggressively building his stake in the company in recent months. His Toscafund Asset Management controls 41.47 per cent of the company, up from around 22 per cent before San Leon’s last capital raise.
One source said a bidder would have to go above £1 a share to stand a chance of success. Shares in the company were trading at 53.50p in London last week.
The company, which counts former Fianna Fáil minister Conor Lenihan as a board member, struck gas at its Rawicz 12 well in south-western Poland earlier this year.
At the time, Fanning, who controls 1.32 per cent of the company, estimated that revenues from the find could be in excess of $150 million.
The two fields at Rawicz were originally drilled in the mid 1970s with San Leon securing the concession for the sites in recent years.
The company ‘farmed in’ Palomar Natural Resources as a joint venture partner at the sites earlier this year.
Since then, the company has joined other major energy players in scaling back its Polish exploration interests, as weak oil prices put the industry under pressure.
However, San Leon has claimed that it remains committed to its remaining presence in the country despite its recent cost-cutting measures
"----The silence on here is very eerie.----or is everyone short.----lol "
Can't disagree with that redeyemines or the strong buy recommendation.at this time if the rumors are true........if this report in the press had been negative for the sp this board would have been full of de-ramping posts all afternoon I am sure....it's about time but looks like the morning could well be squeaky bum time for the shorters...... hopefully the company will issue an RNS saying that they have turned down an offer for 200p plus...
Nope - nobody would hold a short right now. Have been worried about west Bromwich scoring an equaliser on the other hand recently. Still should get more return on Chelsea given the way Mourinho is playing the game. As for SLE wouldn't go near it if it was 757/1. There's a reason why odds are so magnificent - yep to take your money, make sure your stake is small - anything else outside of that stands a snowballs chance in hell - shame your still hoping, unfortunately my version is odds on favorite even though we're playing extra time - will fanny put it behind the net - he's scored zero in 6 years, only a few months/weeks to play.
Always a real risk in T/O situations when M.Hughes is strengthening a position in distressed equities. Time to start looking at what your shares are worth at today's prices, and move the balance into realised values.
It's the best thing any shareholder can hope for. But in a cash constrained environment with the slide in Oil $ still not confirmed, jitters with the Chinese economy and the proposed party without any P reserves, still less far from a commercial find and hung over with liabilities and legal issues, drilling in disputed territory going to take alot of negotiation to write a cheque above £50 million - Wonder which Tosca backed firm is making the approach - but if it will be a sensible t/o maybe let it drift a while longer and come in cheaper - a speculative risk buy like this one should be pricing around £20M - unless the avobone collateral is taken out of the equation.
Tosca control SLE and I can't see them agreeing to any T/O at the current SP. Perhaps they might be persuaded at a much higher figure but in light of current ongoing work in Poland, Morocco and Albania, we may well see a recovery in the SP over the next couple of months, so they'd be best off waiting. Any offer would grossly undervalue the company's assets and you could argue that if someone is prepared to make that offer, it is probably more beneficial for us to hang on to it. At least until the outcome of Morocco Albania and Rawicz becomes clearer. The successful reduction in shale drilling costs and increased efficiency in the US must make us take another look at W. Gdansk. The prohibitive costs of offshore hydrocarbon exploration and extraction means the majors must put onshore at the top of their capex list. Proving W Gdansk as a viable shale field with a high price market on your doorstep must be on the cards.
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