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Hello everyone and please can someone help me to explain the tender offer to me, i am confused, is San Leon buying the private shareholders out and will San Leon still be quoted on Aim or is it San Leon just giving shareholders a opportunity to cash in and the company will carry on trading as normal and many thanks in advance for your help and kindness
Or the Barryroe 4.5% NPI, for that matter, should it get a production go-ahead one day in the medium-term?
Has anybody got a good handle on the value of SLE's 10% holding in OML 18, assuming 46k bopd for the entire field? I don't know the all-in costs/bl of production, or the tax/royalty take.
love the maths, bluerill (and your fake Fake News gag first thing, which had some confused and pee'd off the squirrels no doubt - where are you guys btw?).
see this properly trading at a discount to the tender price but not as much as we're seeing so far, so maybe once the market has woken up a bit we should be 40p- 42p. we should also have significant newsflow still to come and likely to be positive, so arbitrageurs will need to move quickly.
i know some of us have said this many times before but as we now see the cash piling up in our account (which must be the envy of many AIM oilers) and see how much still to come all at 17% interest, it is clearer what an outstanding deal this was, effectively delivering us 10.5% of a world class oil field for nothing. what value that and Barryroe in the SP today? this has got plenty more to go yet...
BS - no idea! But the company survived and here we are.
QF - Further to my comment of 0919 am today - I would add that the loan note interest payable till 2020 have allowed SLE the financial squiggle room to continue with participation in the development of OML18, despite the need for existing wells to be renovated, new pipelines to be built and to survive delay revenue payments from the NNPC/Eroton. Did OF foresee how fortuitous these payments would turn out be for the survival of SLE probably not but fortuitous they have certainly been under the circumstances we have been subjected to over the last years?
BS - yes and, given that Barryroe is beginning to move forward and the number of large investors with purchases at or around the 45p mark plus all the other points in Mcleans ii posts and from bluerill earlier, all the signs are that the future sp will be >> 45p.
I have some shares purchased at 21 and at 26p (but overall average is 65-70p) but at the moment I'm inclined to hold. It will be interesting to see if the SBB impacts the free float significantly (depends on what type of shareholder takes up the offer) as this could lead to more trading opportunities (short term spikes) which I'm sometimes in a position to exploit (day job permitting!).
Looks like our fake Nigerian - the one who can revert to very good English when provoked - is still short ...
QF
mrpc1 it is only a move of 30 to 46 for 10percent of the shares the other 90 are variable at the moment so for the other 90percent it is a move of 30 to 36 and that is during the mornings rush to jump on the train with professionals taking advantage of peoples excitment. they will sell off later this week and the price will fall again.. i do agree it is good though beter than anythink for quite a while. it is very very good for you and other who bought in the last month but dangerous for anyone buying this week.
QF - agreed I won't be taking up their offer either - if NNPC, or whoever replaces them, continue to promote the development of their marginal oilfields, as we have recently witnessed by them paying monies owed for previous years production, the resulting increased production will lead to a higher income from OML16 oil/gas rather than, as we are at the moment, relying on income from short term loan notes, in this respects it is good to read that our percentage ownership in OML18 has recently increased.
...the gentleman poster who went by the name of Brotherseven? I need to discuss that case of pinot noir....
Afamefuna - may i very politely suggest that you have no idea what constitutes a good deal for anyone apart from yourself. There are a few long suffering shareholders for whom the move from 30p to 46p represents a tiny improvement in the overall loss they have taken. There may be a few for whom this is the first step of many as they believe the % ownership of Eroton gives them access to a world-class asset, notwithstanding the problems of getting paid for work done in 'frontier-mining'. This board,or a few members of it, have got this story in recent months pretty much spot-on despite all the negativities thrown at us from all sorts. Indeed, if I remember rightly, you were just the other day decrying the performance of the SP...
With 500m shares and market cap of £150 m that give a share value of 30.6p. If they buy up 50 m shares then that give a share value for the 450m of 34p. So buy share up at 46p seems good, unless they expect share price to be driven up!
mr qf why not sell your 10 % at 46pennys and then buy them back at a cheaper price as you will probably be able to do that as only 10 percent of the company is deffinatly worth 46pennys. you will probably be able to buy at less than 46 and still have the same ammount to watch for a few years.
Yes good news. I'm in for the long haul so my initial reaction is that I probably won't take up the 46p offer.
mr pc1 you say but if every shareholder does that, then you will sell only 10%. of course every customer will sell their maximum 10% we would be stupid not to so it will only be 10% for each customer wont it. it is a good thing for 10% of our shares but the rest off the shares will not be worth 46pennys unless somthing else good happens.
Dear Afamefuna,
Don't let the facts get in the way of a good story! The company announced today that it will buy $30mm of its shares back at 46p. You can offer all your shares ...but if every shareholder does that, then you will sell only 10%. If, as per below say Tosca or Jite don't tender, then there may be not many shares at all for sale and you could sell a large majority of yours 9if you own any). However, I would be very surprised if many difficult months in getting SLE back on its feet if the major shareholder didn't want to take some chips off the table...but in this particular matter we know nothing.
Thank you Barbilly.
so shareholder can only apply this to 10% of their holding the other 90 going into a sort of rafful lottery that means you might or might not get more than 10%. most likely is brandon and tosca directors and other major holders will take up their full allocation and everyone will only get 10%.better than nothing though.
Roul, your broker will wrote to you.
Does anyone know how this will physically happen for us PI’s. Will we be written to etc?
Thanks in advance.
the 'basic' maths are more potent than pc suggests:
with just jite and tosca - assuming the ST transaction has closed or is closing - and assuming at least 5% further in strategic hands like brandon hill, we are looking at AT LEAST 85% of the shares that will very likely NOT tender at 46p.
Including some of the 'new' shares that have become relevant with the employee option rejig, we are therefore talking about a 50m share tender into a roughly 85m share free float (15% of the 500m share total + around 10m shares for some employees excercising their options and tendering).
therefore, the 'simple' math is that the average punter will be able to tender their entire holding at 46p and have a very reasonable chance of having around 60% of his or her shares sold to the company at 46p.
that basic math argues for a much higher price than 33p, especially if specialist hedge funds pick this up. 38p+
As previously announced, Oisin Fanning has received Ordinary Shares in lieu of 80 percent. of salary,
beginning in January 2015. In October 2018, as a result of the Company’s improved financial standing
and in line with the Company’s announced commitment to repurchase its own shares, the Board
requested that Mr. Fanning reverts to receive 100 percent. of his salary in cash as of 1 October 2018.
Mr. Fanning accepted this request, and new Ordinary Shares have now been issued to him in
accordance with the table below.
Ordinary Shares held at 28 June 2018 3,635,594
Ordinary Shares issued in lieu of 80% of salary for 1 January 2015 – 30
September 2018
5,590,270
Total Ordinary Shares held at the Latest Practicable Date 9,225,864
Bill still pushing the company along then in Nigeria good I had wondered what had happened to him.
Quote
In addition to the above, and as previously announced, each of Linda Beal and Bill Higgs has been
issued with share options over 1,000,000 Ordinary Shares at an exercise price of 45 pence. Both Linda
and Bill received these share options as a result of their appointment as non-executive directors of
the Company.
PC01 - Congratulations your candle is burning bright could get even brighter before days end - good luck to all those you bought in at 21p.
Despite the absence of new news, it seems like the market is slowly losing stock to fresh buyers...technicals for what its worth look very supportative. A close above 31.5p should leave us open to a move to 35p...I still burn a candle for 45p by the end of march.
Perhaps the Feb payment and the commencement of the sbb will be announced in one rns ... Very soon