We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Your right about america they had 18 trillion cap which was surpassed months ago and they are still ploughing billions in every month...
To be honest, I would rather administrators run it for 5 months rather than present board
even if the company is insolvent, it can trade on in administration for at least 6 months, and much longer with a court agreement, and even at that it would be a move of last resort for the BH, even then there is asset sell offs and other options, indeed a merger would eliminate many admini costs too. So, complete collapse is a bit off the yet. People who shorted this could be in trouble if a deal is done with Seplat .
a global economic collapse ? gosh I hope not, but I think we will see a global realignment in the years ahead, perhaps it will come faster than we realise. The US debt crises makes Greece look like an unpaid bookie bet.
Excellent. The more people believe that the happier I get.
hard to say, but we are supposed to be solvent at $50, so its close.
It won't be just afren, i wouldn't be surprised if an economic collaspe happens....
When will this happen on rate of current spend. Personally, Think we may have passed the date.
when Seplat approached first we had just come through a 2 month POO average of close on $60 WTi. But the time they departed talks in mid Feb the price had crashed to $50. So you see, when we started talks we were making profits, and within 2 months we were at break even. regardless, its lower still now.
You are correct . Seplat approached right at the end of Dec and the market was informed just after. Our Dec oil was sold at $57 $58 a bbl, and yes you are correct it fell back in Feb to $52 ish, and then back up to $60 in early summer. so there we have it. volatile POO.
sorry.. I mean... Shareholders will agree with 2 or 3p...
granto I dont think shareholders will after with 2 or 3p a share... Better go for administration!!
Wti oil was never $60 around feb and march time as you stated that is what we sell are oil in a earlier post? Ill agree brent was.
at that time POO was $60 and afren was making a profit , they got greedy and wanted the company . Seplat's offer was not good enough considering the profit being made at that time . There was no point putting it to a vote because the BH had rejected it . If Seplat bid again it will be lower this time ! So no guarantee BH will accept .
why didn't they just let seplats offer around feb be put to shareholders. Instead of ploughing more money in they are obviously in for a return.
1: the BH decide to play on and plough another $30m plus in. 2'; the BH refuse to and the company may and probably would go into administration. somehow, I think finding a buyer, and taking 25c in the $ is more to a BH liking. Let us remind ourselves, these were not normal 3% 4% corporate bonds. These were very high yielding bonds with up to 11% return. As such an element or risk was built-in here at the very beginning. No doubt they will fight for every last cent here but the BH may bail out and sell out….to the highest bidder.
1: the BH decide to play on and plough another $30m plus in. 2'; the BH refuse to and the company may and probably would go into administration. somehow, I think finding a buyer, and taking 25c in the $ is more to a BH liking. Let us remind ourselves, these war enot normal 3% 4% corporate bonds. This were very high yeilding binds with up to 11% return. As such an element or risk was built in here at the very beginning. No doubt they will fight for every last cent here but the BH may bail out and sell out….to the highest bidder.
i don't think the BH wanted or expected to be paid off completely, but as a figure of speech, you are correct, the BH certainly wanted a much higher percentage of their debt covered than ' the considerably less than the full amount ' that Seplat offered. I don't agree BH will accept anything, but they will accept a Market Value of their secured assets. THis is currently around $350m to $450m. Lets not forget the Shareholders who will have to get their palms crossed to agree to the deal. I imagine any offer would be higher than the 30 day average. perhaps 2p or 3p a share, Here's hoping that Seplat are back.
I was wondering the same myself. remember the reason the Seplat deal was turned down was because they 'offered less than the companies debt, or considerably less than the company's debt'. Clearly, the BH are now faced with lower production and lower POO, I agree the Typhoo that will except a lower offer now.
Since the BH's wanted to be paid off completely, no deal would have been acceptable. Now that they have sunk further in and the ship looks like at real risk of sinking, they will now grasp at any straw available.
Wasn't there talk of a merger. Would that not be better for all concerned.
I wonder if this is the real reason shares were suspended before news leaked....
Looks like the consortium is gone and Seplat has picked up the legal tab . Note they mention an 'option' to buy into an asset . What's that ? A JV ? I suspect it's a part of Afren
Seplat have confirmed they are in the process of negotiating the purchase of a petroleum asset ( almost certainly in Nigeria ) with several $100m ( $350m) on the table . With the entire company in danger of sinking under the waves the Bondholders may have found a solution . Sadly for them this may only realise $350m of the $1300m owed. I imagine SH will have to be bought off to seal the deal . Could be 2p a share maybe more. I am guessing here of course and there is nothing concrete to link the two .but would anyone be surprised if Seplat came back to the table / they said they would .... Remember ?
On 9 July 2015, post period end, the Company announced that it had reached agreement through its wholly owned subsidiary Newton Energy Limited ("Newton") for the release of the sums from escrow that had previously been allocated as a refundable deposit against a potential investment. Pursuant to an agreement reached by Seplat, the sum of US$408 million which was held in an escrow account has been released. The escrow account was originally set up in connection with a potential acquisition of an asset by a consortium, which Newton has an option to invest into. There have been material delays with the underlying acquisition that prompted Seplat to reach agreement with the consortium for release of the escrow amount. The remaining US$45 million of the US$453 million which was originally allocated as a refundable deposit remains as a deposit with the potential vendors of the asset whilst negotiations between the consortium and vendors continue. Certain recent events have led to the restart of negotiations by the consortium to secure the asset, and Seplat continues to work with them. As this process continues, and following the release of the escrow amount, a sum of US$29 million has been placed into a new escrow account in London, pending agreement of final terms of the acquisition transaction. The remaining balance of US$368 million has been returned to the Group. In the event that terms can be agreed for the potential acquisition of the asset by the consortium and Newton agrees to proceed with the investment, the funds in escrow will be released back to Newton. Should Newton at its discretion decide not to proceed with the potential investment, an additional payment of US$20 million will be made to other consortium members with the remaining funds in escrow released to Newton. Newton has also agreed to pay a portion of previously incurred consortium costs equating to US$11 million, payable US$3.5 million now and US$7.5 million on a deferred basis