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What you need to know


San Leon Share Chat (SLE)



Share Price: 49.25Bid: 48.00Ask: 49.25Change: 20.125 (+69.10%)Riser - San Leon
Spread: 1.25Spread as %: 2.60%Open: 48.00High: 58.00Low: 29.125Yesterday’s Close: 29.125


Share Discussion for San Leon


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GoldD
Posts: 867
Off Topic
Opinion:No Opinion
Price:49.00
RE: says it all
Today 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: 2,709
Off Topic
Opinion:No Opinion
Price:50.00
says it all
Today 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: 86
Off Topic
Opinion:No Opinion
Price:50.00
RE: I wonder
Today 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: 1,038
Question
Opinion:No Opinion
Price:50.00
I wonder
Today 10:24
what will happen late this afternoon when the day traders all close their positions over the B/H weekend?
heardy
Posts: 66
Premium Chat Member
Off Topic
Opinion:No Opinion
Price:50.00
Poland
Today 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
Today 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.
Korg
Posts: 2,709
Off Topic
Opinion:No Opinion
Price:50.00
View Thread (2)
RE: 62m
Today 09:59
heardy, what a plonker. Have you read the details of the deal, and all the other assets they have. Poland was worth 120p alone.
Phoebus
Posts: 1,828
Off Topic
Opinion:No Opinion
Price:50.00
Even Winnifrith
Today 09:58
likes it. Article today on SP. Very good sign.
Timbremner
Posts: 86
Off Topic
Opinion:No Opinion
Price:50.00
RE: 62m
Today 09:55
probably not so easy to do given that there are not many PIs.... and the purpose of sustainable production is to provide income to grow the company without having to return to shareholders. can't see your forcast coming to pass.
GoldD
Posts: 867
Off Topic
Opinion:No Opinion
Price:50.00
Booooooooooooooooom
Today 09:55
Watch this rocket as soon as the market wakes up. MULTIBAGGER




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