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.
Really Martay? You skulk away for like 4 days, hole up with your favourite Intro to Finance textbook, and that is the best you can up with? A 3rd rate re-imagining of a bunch of near-meaningless points that have all already been knocked back (its almost like you want someone to give you a gold star for observing that a company that has loaned money has counter-party risk, but you're too thick to try and understand how that counter-party risk is accounted for) + some mindless re-tweets from a racist avatar? You don't know, you don't know what you don't know and you don't know what it means to know, girlfriend, and I just don't have the energy to keep up the monumental and thankless job of trying to alter that even a little bit.
'.....You utter amadain. You have been saying the same rubbish for years but the price only falls further.
BTW - the stock market is forward-looking.......'
Ok, so this is starting to approach ritual abuse, but if I can continue to turn his backwash into teaching moments, then I'll continue to punch down (besides, it never stops be amusing). Let's pick this particular gem apart, wishbone-style: first off, how's that 'no name calling, I'm above all that' baloney going for you, Martay? (Not that I give a hoot myself; actually had to look that particular insult up. My first thought? wow, classic projection). Next, and for the 10th time (that's all your fingers and toes plus the number of times you've made a relevant point), anyone advocating for this name for say, 'years', as you seem to be suggesting Alaric has done, I say, 'Where is he? I want to thank him for putting me into one of the best small cap O&G names in the UK market, if not the very best over that period. Hey, its not Amazon, but if I had chosen virtually ANY other small cap name in the space over those x years I'd be looking at using my shares for wallpaper. Instead, I have a very decent balance remaining in a company that is all cashed up when producing assets are for sale on the cheap, so at least I have a genuine chance of recouping my small losses and then actually turn a significant profit. I could so easily have listened to the siren call of names not run by that evil Oisin Fanning like Chariot or Rockhopper or Savannah or LEK or Circle or Jersey or Max Petroleum or Regal or Jersey Oil & Gas or...Wait a second.... almost forgot about that darn tender at 46p last year! I was able to cash out of over 1/2 my holding at almost double where it was in 2018. That Alaric is one clever fella. Put me into the one name that actually made me money since it came back from suspension in 2016 - which is when he started posting - at 26p and it looks like it has a mighty bright immediate future and I'm still alive enough to enjoy it.....'
As for your notion that 'the stock market is forward-looking' which I assume is a kind of 6th form effort at finance theory, a means of implying that if any of the positive developments your betters have been banging on about (you know, like cash in the bank that exceeds the market cap) were genuine, then of course the share price would be waaaay higher already, but because it isn't that means that the market seems some dark clouds that we don't, i say, 'yeah, nah'. If you think the stock market, particularly that which is responsible for clearing prices on small cap resource shares, has been anything even approaching a forward-looking discounting mechanism, then there are a couple thousand Apple shares I'd like to buy from you 3 years ago. These markets have been a 'what have you done for me yesterday' environment for the past forever years, especially in small cap resource/oil and gas shares. Any idiot knows that, you, you.....amadain
You utter amadain. You have been saying the same rubbish for years but the price only falls further.
BTW - the stock market is forward-looking.
everytime you get the urge to say something, Martay, you just seem to confirm bluerill's views on the incidence of congenital idiocy on these boards. so sorry to have correct yet again but 17.5p is the SP today. the mountain of gold reaches $84m in October plus then the $100m secured due next year. which with very simple maths tells you the SP does not presently reflect this value, nor indeed any value at all for our 10.5% interest in OML18, which we effectively acquired for nothing. clever guy, Oisin, cleverer than you for sure.
Your mountain of gold is currently 17.5p. Yes, facts do get in the way.
yep them damned facts do tend to choke a spleen venting.
Ok, quiet down everyone....who had 'keyboard warriors - your country needs you'? Alaric, I think you may be closest with 'Stop being mean to me while countering my spleen venting with facts about the company - mumbles incoherently into his chest' ... congratulations!
well picked up, mclean. i guess we assume the increased oil figure is down to the 3 new wells drilled. so the prospect of 11 more next year heralds exciting times indeed.
Two pathetic sad keyboard warriors. Keep it up, boys - your country needs you.
yep idiot nails it. ( hidden plus : don't think you can be accused of racist abuse)
And so we're clear, idiot is technically not name-calling since it's clear that you literally can't read. Maybe illiterate would have been more accurate. Moron? Classic , but kinda vague. Your combination of overdeveloped confidence and ignorance of even basic financial accounting distinguishes you as a bit of a buffoon. Nah, too old-fashioned. Cretin? Knob? Simpleton? Craven? Limited? Hopeless? Shameless? Spineless? Well, certainly less.....No, nothing else quite captures the moment. Idiot it is. I'll let OF know.
I really tried to treat you with a modicum of respect, if not for you personally because you don't deserve it, but at least for the point you were so desperately trying to make, but it's clearly fruitless on account of the fact you're an idiot. truly. what a massive waste of space
I too am tired of your hectoring blabber and will let the company itself address the matter:
"....... the main credit risk is regarded as the timing of payments by MLPL which is dependent on dividend distributions by Eroton...... To date Eroton have been unable to make a dividend distribution. Consequently, MLPL had to enter into a loan in 2017 and subsequently, in order to be able to meet its obligations under the Loan Notes and make payments to San Leon."
And now we have a one year + extension.
I suggest you make any further diatribe on the matter directly to OF although, if you want a civil reply directly from the horse, I also suggest you leave out the name calling.
you a bit touchie bluemouth all i said was rns just about repayment of loan to the red lion not income from oil and the red lion has so much money in bank i ask can it give some to shareholders.
this because the red lion supposed to be oil compuny not lending bank.
you wayste lots time writing rubish again no wunder you get tyred.
afake or afact.
think bigger
Interesting - Mr Adekolapo Ademola joins Sle (ex Energy Link Infrastructure Malta Ltd) - OF ever the deal maker certainly knows how to string interested parties together, floating offshore storage, anyone?
Let's see if I can be a bit more direct for you, you bitter phoney: Eroton just paid us another 40+10 million dollars, leaving sle with the better part of $85m in the bank, and bringing their total repaid to-date to $194m in principal and interest, which if you were paying attention, already EXCEEDS the original principal amount of the loan (roll that small, but perfectly formed thought around in your angry little mind for just a second, genius). This is NOT the performance of a distressed partner, but rather, precisely the opposite of course. So here's the thing: to essentially ignore, as you continue to do, the objective reality of both Eroton's loan compliance through an extraordinarily difficult period for the industry, and San Leon's resulting rude health, and instead try and focus solely on a one year extension on the principal balance of just $85m provided to that partner - without any other relief on interest or conditions - as evidence that somehow the sky is falling, is classic, Trumpian-level dissembling. But wait, there's more: Furthermore, if Eroton never pay us another farthing, sle shares are still worth a minimum of 30p, based just on that cash in the bank, its current 10% OML18 ownership, service revenues, etc, particularly in light of the coming new evacuation infrastructure which is on schedule and on budget. Of course that's never going to happen, but if it did, San Leon retains enviable default protections, enforceable in UK/Irish courts, which - particularly now that the amounts owed are far, far less - provide for significant over-collateralisation through primary claims on all Eroton's assets. Finally, circling back to a point made earlier: ignoring all this (and there's more of course, but I'm tired) in an attempt to try and gin up controversy around a minor point, and in the process to try and pound your chest and present yourself as some kind of noble truth-teller, in a way makes you even worse than the useful idiots who typically pop up here to do Jabba's bidding.
Why do you, like your sidekick ("pipe losses are immaterial. But when reduced, the effect on revenue will be significant......"), always talk in circles? First you say there is no risk whatsoever. Then you say that, due to global economic circumstances, perhaps there is a valid need to extend the facility. Make up your mind. BTW, your second point merely repeats what I previously said. Presumably you think that the fact you are now saying it makes the point valid.
Your 'what if' is great but remains what if. When SLE starts returning funds to shareholders, people like you can stop talking in circles.
Why is the LSE site showing a price of 25p now? It closed at 18.75p on google finance?
Yeah, nah. Firstly, the 2018 declaration you cite resulted in only a minor provision in the income statement and then the company actually had to reclaim a portion of that in the subsequent interims as the loan repayments remained (and remain) current. Since then our 'risky' counterpart has managed to slip us (you probably didn't notice. too busy reading the footnotes of the 2018 annual probably) around $70m (and despite your incredibly prescient warning!). While your eyes are wedged open then, maybe you could cast a glance at one of the 5 continents you're not humiliating yourself on and notice a health emergency shutting down economies and causing businesses large and small desperately running to their overwhelmed banks for help. That might just help explain everything from why a company with its market cap in cash already might just consider giving its in-compliant partner a bit of of extra time to repay its loan balance (and in the process, defer cash receipts of principal and interest that are not now needed to next year, when it might be more useful, say for a significant capital return) and why the 'value' of that cash seems to have suddenly increased dramatically as the quality of producing assets available for a song has exploded. Instead of your dopey rhetorical question about MLPL and whether it's 'interested' in increasing interest payments to SLE, consider this: What if, for 20m or so, sle manage to pick up 2/3/4k bbl/day of production in country, start netting divis on another 2/3/4k bbls/day in H2 2020 on the new pipeline evac system, use some of that cash flow + suddenly reappearing services revenues + more from their cash pile to announce a 2/3p share annual dividend, and then take that tailwind into the end of the year and where it will be facing a 2021 where another $100m+ is due in? Where does that stock price, on 430m shares in issue, trade, you reckon? Mock you? More like tolerate.
..."racism is a criminal offence in the UK...."
In which case I suggest that you change your style of writing soon. But that would be like asking the scorpion not to sting the frog (yes, I realise that many of the yo-yos here do not understand this reference either).
Only a matter of weeks ago, I said that one of the issues that SLE faces in the current environment is counter-party risk. You of course dismissed the notion with your usual mockery (just as previously you had dismissed the pipe losses as insignificant). Now we see an RNS indicating that the LN due on 30 September 2020 has been extended to December 2021. You really think this is because MLPL wants to increase interest payments to SLE? SLE management itself expressed the situation rather clearly in the 2018 financial statements (which I doubt you read) - "Due to the inability of Eroton to make dividend distributions, the directors consider that the credit risk has significantly increased since initial recognition ..."
As to the company's 'strong position armed with such significant cash' - so what, Oisin - we have been hearing this for years? While acolytes lap up his words, investors await his actions.
definitely worth rereading our ceo's extremely confident and unqualified comment this morning
"The Company is in a very strong position armed with such significant cash. We believe that this is a situation that will continue. San Leon has around US$100 million of additional Loan Notes and interest receipts expected by the end of next year, as well as income from the provision of our technical services to Eroton as operator of OML 18. In addition, the Company expects to receive dividends from its indirect shareholding in Eroton in due course. I look forward with confidence to updating shareholders on the Company's growth and progress."
7 April 2020
San Leon Energy plc
("San Leon" or the "Company")
Cash Receipt of US$40 Million
San Leon, the independent oil and gas production, development and exploration company focussed on Nigeria, is pleased to announce that it has received a Loan Notes payment of US$40 million.
The Company also announces that it has entered into an agreement dated 6 April 2020 amending the Loan Notes Instrument (the "Amendment") between San Leon and Midwestern Leon Petroleum Limited ("MLPL"). Under the terms of the Amendment, the remaining balance payable is approximately US$82 million. A further US$10 million will be paid to the Company on or before 6 October 2020, with the balance of the Loan Notes receivable payable in three quarterly instalments, commencing July 2021 and completing by December 2021.
The balance will continue to accrue interest at a coupon of 17% per annum until repaid. All other material terms of the Loan Notes Instrument remain unchanged.
The Company has received just over US$190 million from Loan Notes payments to date, and has a cash balance at 7 April 2020 of approximately US$74 million with no debt.
Midwestern Oil & Gas Company Limited ("Midwestern") remains as the guarantor of the loan notes. Midwestern is a related party of the Company for the purposes of the AIM Rules by virtue of its shareholding of 13.18% of the existing Ordinary Shares. The Amendment is therefore a related party transaction under the AIM Rules. The Directors consider, having consulted with the Company's nominated adviser, Cantor Fitzgerald Europe, that the terms of the Amendment are fair and reasonable insofar as the Company's shareholders are concerned.
Oisin Fanning, Chief Executive Officer, commented:
"The Company is in a very strong position armed with such significant cash. We believe that this is a situation that will continue. San Leon has around US$100 million of additional Loan Notes and interest receipts expected by the end of next year, as well as income from the provision of our technical services to Eroton as operator of OML 18. In addition, the Company expects to receive dividends from its indirect shareholding in Eroton in due course. I look forward with confidence to updating shareholders on the Company's growth and progress."