Indeed Dandyman, there is no doubt that he see's SLE as a great way to make money.
Are you one of his wealthy private clients as Martin is not here to make money willy nilly for complete strangers who pay him no commision Or are you just hoping to "get in" on his shirt tails?
Any idea why they need to control 41% of the shares but not the company? I think saying he likes the way it is run now wont wash as even if he did it would be far wise to have the option to control SLE when/if needed. Like so many say Mr Hughes must be a very wise rottweiler It is most unusual to ask for a waiver on the take over rules....speaks volumes to me.
Perhaps he is just waiting to take control of the whole company when the time is right, he will probably be able to anticipate that before anyone on the outside of city circles, with 41% in the bag the rest will be easy pickings, and very cheap, timing is everything, as they say.
And MY summary: with OLM-18 we can see tosca's REAL appetite for this company.
They CLEARLY see SLE as an alpha vehicle for swallowing up the vast opportunities in the O&G market today.
We're not only sat on our own exciting plays in Poland and Morocco plus our NPI in Barryroe, but it looks like we're using tosca's financial leverage to take advatntage if some of the BEST production deals in the market at the BEST time to go hunting for production assets. Self sufficiency will breed immense success here.
We as shareholders are set to go on the journey of our lives UP UP AND AWAY!! ... all imo...
"It seems to me that Tosca have no interest in SLE as a company." ..... "Honest"Sid
Hahahaha!!! Yeah good one that slid...
"San Leon Energy; Serious Due Diligence Now Completed By Andre Brand
Martin Hughes is no mug, you don’t get the nickname “The Rottweiler” for nothing. The head of the US $7 billion Tosca fund doesn’t suffer fools gladly, he has just put £16 million of Tosca’s money into San Leon Energy as part of today’s £29 million Placing. In addition to its current shareholding of approximately 22% in San Leon, this investment would take Tosca's total shareholding after the Placing to approximately 41.5%.
So what does Martin Hughes see in San Leon? Clearly it is Poland where investor’s money is now set to pay off. The upside from here on in is pretty clear. San Leon will be a gas producer by Q1 2016 and generating revenue from the Rawicz field and I suspect Martin Hughes sees the real value catalyst for San Leon being the potential for the Rawicz field to be subject of acquisition. Let’s face it the Rawicz field has Proved plus Probable (2P) reserves of 50.3 billion cubic feet (Bcf) based upon a five-well development plan (including the Rawicz-12 well).
But it’s back to the due diligence. Martin Hughes and the the Tosca team will have taken a long good look at San Leon and given my own experience with hedge funds, will have been looking for a major value catalyst, with a high level of probability of success, that would serve to give Alpha Returns for the fund. I strongly suspect that Hughes would have seen the potential for San Leon’s Polish “Conventional” Rawicz and Siekierki fields to be the subject of a transaction now that the company through Palomar has cracked the geology for these conventional gas plays. For the Tosca fund, realizing value returns from San Leon’s Polish assets holds the closest near term potential. Barryroe, the offshore Irish field where San leon has a 4.5% NPI is a longer term bet, and is likely to only see some return when the oil price climbs back up, its one for the future, but I don’t think it would have been the major San leon asset that Tosca is depending on to see a return on its investment. Morocco looks promising and I see some value triggers emerging from San Leon’s forthcoming drilling activity.
Summary: The comfort private investors can get from today’s announcement by San Leon is the fact Martin Hughes is in the game. You don’t manage $7 billion of people’s money if you are a mug and you certainly make sure you do your due diligence and you are happy with the management of the company, which includes there salaries…………Oisin Fanning is taking 80% of his in stock remember!!!!"
And MY summary: with OLM-18 we can see tosca's real appetite for this company. They see it as an alpha vehicle for swallowing up the v
Nice one Sid - not too negative :) Hedge funds are 'in it for gain - end of'. Glad we have Tosca of course but let's not fool ourselves. Gone are the days when 'Special Opps' stocks had the investment trust/ unit trust manager as a non-exec - surely? PNR will have finished testing by now and it's up to them to report regardless of the SLE Nigeria deal?!?! Imo we will have to wait for the financing deadline (hit or missed) before we get anything out of any of these boys!
It seems to me that Tosca have no interest in SLE as a company. This was obvious when they had to ask the Irish Takeover Panel to grants a Rule 9 Waiver to Toscafund Asset Management. That is they had to ask for a waiver of the rules that meant that they had to take over the company due to their immense share holding.
There can be no argument that they do not want to control the company when they have had to ask specifically not to take over the company. Not even an advisory on the BOD?
All Tosca are interested in is holding half the shares so they have control over them. This control allows them to make more money playing the stock market with the remaining stock "for sale" on the open market using perfectly legal complex derivatives. They are a hedge fund.
This is of course only my opinion and I am absolutely sure someone here will think they have a better idea why Tosca has such a large share holding but wants nothing more to do with SLE than holding half of its shares.
Thats the joy of knowing how to play the market and having wealthy clients money to do it with. SLE is a stockbrokers dream.
I certainly think fanning is more likely a puppet CEO now which is a probably good thing. He will be used for his stockbroking and dealmaking expertise. I see him as a mere employee now working for his £4 bonus. Tosca I think are driving the creative strategy here and I think its going to be an exciting journey. Joel Price and probably the new board members will be making sure the deals make operational as well as business sense.
I can see Tosca using SLE as a vehicle to invest in a range of O&G opportunities as they arise, as opposed to investing in lots of different less controllable company investments, and as you say, more likely in complex consortium arrangements rather than as outright operational leaders.
I'm very happy with this arrangement. I think it would be naive to think that the PI needs are being directly seved, but I think its a mutually beneficial scenario that serves both parties nicely. There are less than 30m shares in issue in PI hands, and I think tosca will see that as a good balance of risk and control. They want want to give any away, but I don't think they want the risk of full control.
I think by the very fact that they will likely become financially self sufficient by purchasing clever production deals, and that they aren't desperately trying to attract new PI's will make their stock rise higher and faster.
Let's put it this way, I think the company is very secure under Tosca. I think we're going to do some mind blowingly clever deals through Tosca and I think our stock is going to become a 'must have' in the PI community, but it's going to be very difficult to get hold of. I'm glad I'm already 'in' put it that way, rather than scrambling for a position on open!
Looking back over the recent years of activity San Leon/Tosca have been involved in would it be wrong to assume the following:
San Leon is in affect the oil division of Tosca . Tosca will not directly take over or allow anyone else to take over SLE rather they will strive to keep SLE as their technical dealing front end for "Tosca oil/gas" and SLE will continue business as usual looking for opportunities to participate in joint ventures whilst avoiding taking any risk as a main contractor but remaining a "Bankers oil company" with a percentage on everything that San Leon gets involved in.
San Leon/Tosca do not see private investors as particularly important and prefer the financially strong joint venture investor.
My reasoning is:
SLE does not have a particularly good investor information service often keeping private investors uninformed as to what is happening with the various projects whilst conveniently hiding behind junior partner status or share suspension ruses or outright silence.
SLE recently decimated private investors holdings with a share consolidation.
Tosca made a major investment into the company ostensibly to keep the company solvent whilst greatly increasing their own share holding and control of the company.
Tosca had the ideal opportunity to "unburden" themselves of SLE during the recent take over negotiations but Tosca didn't take the opportunity to sell off the company albeit at what have been a give away price given the current share price and cash flows..
Tosca/OF seems to have been wheeler dealing in the background even as the take over talks were taking place as though they had no intention of letting SLE be taken over even going so far as to surprise us all with a Nigerian deal, which when one considers the normal company composition of a typical consortium under taking onshore extraction of Nigerian oil/gas does seem to be in order, the deal does seem to work - OF seems to have found a neat opportunity to insert SLE into one such typical consortium creating much needed cash flows for San Leon.
I believe it will be business as usual in the coming years - hope as the saying goes on this board "all to play for" in 2016 for San Leon..
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