Westhouse Securities analyst Mark Henderson described today’s news as “an unhelpful development” but also highlighted that any future payment may be significantly lower than £13mln.
“San Leon believes it has a strong case and international arbitration in the energy sector has not been regularly successful for plaintiffs so we do not believe that San Leon will end up paying anything close to the number suggested,” he said in a note
I rarely post during the day. I am not a non-holder. I bought nearly 3m shares here over the last few weeks after being out for at least 6 months. I'm sorry, but there is no positive spin to put on the RNS - will be interesting to see what accounting provision SLE hold, this is not the best start to the week however you put it. I accept my reaction was a bit over the top having seen a near 30% return since reinvestment go up in a puff of smoke shortly after posting. Good semi recovery though. I never post on a share I am not invested in - if I post I will be long or short that share!!
sle have no loan..they have no dept..they have/had a credit facility if required(or had back in the day!) but had no draw downs of it..sle have a successful well which soon they will have classed p1 proven reserves..this case isn't the end of sle as you would hope....things still here to blow the tumbleweeds out!!
Before I retire for the day, I want to ask you - if you had a credit facility, would you lend that capital out on a drilling program only to receive the return only if the program was successful? In this way, you are the sole risk taker, and you are allowing someone else to determine the outcome of that risk. indeed it is quite common to provide capital for JV loan agreements in which risk is shared but in my reading of the history this is certainly not the method in mind when aurelian and avobone signed on the dotted line.
And e close with more buys than sells. Gasp! Does this mean the world is not going to end? But Kwid et al said the end is nigh. Even with this unforeseen court ruling the SP is STILL higher than Kwids prediction at the end of last week, talk about our own mystic meg, more like septic peg!
I undetstand if you think £13M is just a sideshow or a mere trivia topic for the organisation as after all the pistons are firing at full speed and drilling activity is flourishing in Rawicz and Barryroe. Somebody even told me they even built a pipeline in Turkey paid for advance gas contracts.
Completing the circle - let's see what happens to companies that trys to do a runner from its debt obligations. .... A pecularity emerges in that Fanning and Mckeon have a brotherly habit of getting hit by the same sort of misadventure. maybe they were behind the bike sheds when the lesson on due diligence got taught.
While we are on the subject of debts - wonder which other companies are trying to chase down missed invoices for services as OLDGEO informed us. Maybe it's time to draw down money's owed from ardilaun/diamond dogs.
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