Smithy didn't write the article he only copied it....Point is who ever did write it, obviously knows s**d all about SLE and the deal. IMO it is written in a very misleading way. As such Smithy should not have posted it here.
Shares in San Leon Energy(LSE: SLE) are currently suspended after the company dumped its NOMAD but where the business's shares return to the market, is likely there will be a sudden rush by investors to buy into the firm's growth story.
At the beginning of March, San Leon secured funds from its investors totaling C$89.3m plus an additional $4.5m in transaction costs to fund the acquisition of Canada's Mart, an exploration and production company. As part of this deal, San Leon will secure a 9.72% indirect economic interest in the OML 18 block, onshore Nigeria.
The company has also negotiated a deal to acquire another of Martwestern Energy's shareholders, SunTrust Oil Co Ltd. In a restructuring deal, San Leon is paying $117.4m to acquire SunTrust's stake in Martwestern. Gross OML 18 block production was 31,600 barrels of oil per day in September 2015. Most of the production is hedged at $95 a barrel until December 2017. This deal could transform San Leon into a major oil producer.
OK, should have a new momad I place by next week. Just though the company would want to hurry this up as the hedge runs out at the end of 2017 so best to get full use out of it. Or do you think they are delaying and letting the cash earnings build up at bidco from daily sales to make up any shortfall of funding for the rest of the deal? Either way the company needs to provide a timeline to sharehilders as everyone will want to know what their options are.
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