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San Leon Share Chat (SLE)



Share Price: 50.75Bid: 50.50Ask: 51.00Change: -3.25 (-6.02%)Faller - San Leon
Spread: 0.50Spread as %: 0.99%Open: 53.00High: 53.00Low: 50.75Yesterday’s Close: 54.00


Share Discussion for San Leon


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Korg
Posts: 2,724
Off Topic
Opinion:No Opinion
Price:49.00
50,000 bopd
Fri 12:36
The transformational deal is finally drawing to a close

"Crucially, it will secure an initial 9.72% indirect economic interest in OML 18, which with output of around 50,000 barrels of oil per day is described as a world class asset. It is expected that operations in Nigeria will be expanded to lift production further."

http://www.proactiveinvestors.co.uk/companies/news/129749/san-leon-unveils-premium-funding-for-nigeria-deal-129749.html
 
barnaby67
Posts: 871
Off Topic
Opinion:No Opinion
Price:49.00
View Thread (2)
RE: just a bit of fun
Fri 12:26
I sold my 30,000 shares in a few tranches and happy to have the opportunity to get out as there is something not adding up here for me. Hope it does work out very positively for all LTH's that have had a traumatic time here.
positive1
Posts: 6
Off Topic
Opinion:No Opinion
Price:48.00
View Thread (2)
RE: says it all
Fri 12:14
I agree, have to give Fanning his due, great deal.
honestsid
Posts: 1,043
Off Topic
Opinion:No Opinion
Price:48.00
just a bit of fun
Fri 11:52
Place you bets for todays closing SP

I will start the game early, before midday, with a guess of 46.75.

Roll up Roll up and place your bets.

Its just for fun remember!
GoldD
Posts: 893
Off Topic
Opinion:No Opinion
Price:49.00
View Thread (3)
RE: says it all
Fri 11:01
Wow, a lot of cash coming our way.... This is a no brained, so will triple in no time. Let the news sink in and word spread and then happy days ; )
Korg
Posts: 2,724
Off Topic
Opinion:No Opinion
Price:50.00
says it all
Fri 10:42
San Leon Energy (“San Leon”, “SLE” or the “Company”) has announced that it has raised £170.3m (US$221.4m) in an equity placing (subject to shareholder approval) to complete the acquisition and restructuring of various interests in OML 18, located onshore Nigeria (the “Transaction”). On completion of the Transaction, SLE will have an initial indirect 9.72% economic interest in the licence, which as at May 2016 was reported as producing c.60mboepd and has significant future growth potential. At the 45p placing price, San Leon will have a post money market capitalisation of circa £200m.

Based on forecasts from the Petrovision Energy Services (“Petrovision”) CPR and model, and assumptions on income from the provision of rig services, the Transaction could generate US$530m of cash flows to the Company by 2020. SLE is committing to distribute 50% of available Nigerian free cash flow to shareholders for the next five-year period by way of dividends and/or share buybacks providing a substantial potential yield.

Cash distributions from OML 18 to SLE are underpinned by the excellent performance of the asset to date (oil production has increased five-fold in the past year), future low risk production growth (production is forecast to reach 200mboepd in 2020), low operating costs, a substantial hedging position for 2016 and 2017 at US$95/bbl, a disproportionate cash sweep and a corporate guarantee from Midwestern Oil & Gas (“Midwestern”). SLE will also have the right to provide oilfield services to the operator of OML 18 with a significant contract value based on expected capex of around US$1.5bn over the next 5 years.

In aggregate, these cash streams have an NPV10 to SLE of US$514m indicating the Transaction will be highly value accretive to shareholders. A right of first refusal to participate in other future upstream and downstream projects alongside Eroton Exploration & Production ("Eroton") and Midwestern provides additional reinvestment opportunities.

Based on projected 2017 cash flows net to San Leon of $102.3M and the committed distribution policy, San Leon would be valued on an earnings multiple of just 2.6x and a yield of 19% at the 45p placing price. Whilst these numbers exclude corporate overheads and there are a number of other factors to evaluate, we would consider these ratios out of line for typical AIM listed Oil & Gas producers and believe a significant rerating above the 45p placing price in the next few years is possible.
Timbremner
Posts: 92
Off Topic
Opinion:No Opinion
Price:50.00
RE: I wonder
Fri 10:32
um, the share price will probably retract sid, like it typically does when day traders close. and good luck to day traders. i think many here are looking at a medium to long term play so inter day trading is somewhat irrelevent.
honestsid
Posts: 1,043
Question
Opinion:No Opinion
Price:50.00
I wonder
Fri 10:24
what will happen late this afternoon when the day traders all close their positions over the B/H weekend?
heardy
Posts: 67
Premium Chat Member
Off Topic
Opinion:No Opinion
Price:50.00
Poland
Fri 10:21
If Poland WAS worth £120 its not in our pockets hey ho what does the plonker know.
Wabusher
Posts: 4
Off Topic
Opinion:No Opinion
Price:50.00
View Thread (2)
Brandon Hill Note
Fri 10:18
San Leon Energy

Current Price: 45p

Market Cap (M): £199.4

rule


Event

San Leon Energy (“San Leon”, “SLE” or the “Company”) has announced that it has raised £170.3m (US$221.4m) in an equity placing (subject to shareholder approval) to complete the acquisition and restructuring of various interests in OML 18, located onshore Nigeria (the “Transaction”). On completion of the Transaction, SLE will have an initial indirect 9.72% economic interest in the licence, which as at May 2016 was reported as producing c.60mboepd and has significant future growth potential. At the 45p placing price, San Leon will have a post money market capitalisation of circa £200m.

Based on forecasts from the Petrovision Energy Services (“Petrovision”) CPR and model, and assumptions on income from the provision of rig services, the Transaction could generate US$530m of cash flows to the Company by 2020. SLE is committing to distribute 50% of available Nigerian free cash flow to shareholders for the next five-year period by way of dividends and/or share buybacks providing a substantial potential yield.

Cash distributions from OML 18 to SLE are underpinned by the excellent performance of the asset to date (oil production has increased five-fold in the past year), future low risk production growth (production is forecast to reach 200mboepd in 2020), low operating costs, a substantial hedging position for 2016 and 2017 at US$95/bbl, a disproportionate cash sweep and a corporate guarantee from Midwestern Oil & Gas (“Midwestern”). SLE will also have the right to provide oilfield services to the operator of OML 18 with a significant contract value based on expected capex of around US$1.5bn over the next 5 years.

In aggregate, these cash streams have an NPV10 to SLE of US$514m indicating the Transaction will be highly value accretive to shareholders. A right of first refusal to participate in other future upstream and downstream projects alongside Eroton Exploration & Production ("Eroton") and Midwestern provides additional reinvestment opportunities.

Based on projected 2017 cash flows net to San Leon of $102.3M and the committed distribution policy, San Leon would be valued on an earnings multiple of just 2.6x and a yield of 19% at the 45p placing price. Whilst these numbers exclude corporate overheads and there are a number of other factors to evaluate, we would consider these ratios out of line for typical AIM listed Oil & Gas producers and believe a significant rerating above the 45p placing price in the next few years is possible.




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