KWID we don't know if an interesting offer will be tabled, but you can't be taken seriously when you say that SLE's assets have no value. I can only disagree. Have a look at the following article posted earlier to refresh your memory. ByA 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 t
Nobody is saying an approach has not been made, obviously that would have happened - as in accordance with Section 1, Rule 1 Of the Irish Takeover Panel Act 1997. Unless we confirm who the offeror is, the nature of the deal is open to speculation - thats what I was hinting at. I doubt it will move into a firm offer is my main hunch. Shouldn't take long now (a few days) to ascertain if they are going to be serious about this - and will need to declare it.
Kwid - wondered if you would pop up - bog standard RNS as there must have been an approach to say otherwise is to call the company and it's NOMAD liars not wise I suggest you get Admin to remove your post
An asset isn't an asset unless it has production value. So, the value can't be in Rawicz - else you would go for PNR instead. The value isn't in Barryrow - else you would go for PVR instead. I really can't understand why there is interest here - if there was a license that was attractive it would make more sense just to buy the asset instead of exposing yourself to the risk and liabiliities of the whole company... Either 2 probabilities - 1. Its a rouse, to spark interest and share price movement - note, no deadline was made on the offer - and isn't being promoted as a serious deal by the SLE rns. 2. Its MH preserving his capital as he has done so in the past - even with the blessing of Tosca, going to be a brave decision to conduct due dilligence on SLE - lets face it, its these ASSETS that have yielded 0, yep, thats zero output of BOE in over 7 years, and i'll allow you to do the homework on the aggregate £M's spent on that. . .leads me to think someones taking the ..<Michael>..!!.
I look at broker targets as a pure indication, but interesting to see that Westhouse on 21.7.15 confirmed a BUY rating and 164 TP, whereby Finncap on 24.8.15 confirmed a CORPORATE rating and 278 TP and Macquarie confirmed today an OUTPERFORM rating and 130 TP. Either way the stock is cheap IMO.
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