Member Info for BlackSwan

OF ever the show man - here comes the balance for the LNP - at least they arrived - small things etc

Alaric - If I was helming SLE we wouldn't be in Nigeria in the first place - but we are so I am advising caution - maintain the status quo whilst receiving our expected quarterly payments then continue to wait until such time as the NNPC cash flows into the relevant company accounts to the levels where dividends can theoretically be paid then we should reconsider our options on new wells, pipelines and offshore floating storage installations to bypass Barry island etc.

bluerill - Frankly I don't see why you waste your valuable time commenting on SLE given its history and current financial status, nevertheless thanks for your time all the same.

If I may comment on a part of your recent posting which I cut and paste below - most of us are aware of the state of play in Nigeria - BUT say we were to eventually hold a significant percentage of Eroton/Midwestern and the Nigerian payments were never paid in full or were severely delayed what good would it do SLE (even if we could find the cash to keep going per se) since the company does not have and given it's financial history are unlikely to be able to raise further finance to continue in Nigeria - even at this stage I would prefer if SLE were to cease all major or even minor activities in Nigeria until the NNPC payments come through.

bluerill extract:

'if Eroton/Midwestern miss a single quarterly payment, even in theory by a single day, SLE will be entitled to take control of assets backing their loan that are worth far in excess of the remaining liability"

CJ Thanks for that - Insightful to say the least -another stone unturned - Jeez I am going for another swim!

Searcher - Thanks excellent idea - I'm off for a swim!

Sorry folks to bore everybody with all these rants but it does make me feel better after six years or so of being with SLE - personally I don't see any immediate future for the company recovery - goodness knows why the share price is rising today MM games again I presume - I will remain a shareholder since the paltry sum I would get from what is left of my share valuation isn't worth cashing in - who knows OF might still pull a rabbit out of the hat?

P.S. I still can't get my mind around the last two lines of this extract below as to what it actually means?

The Directors have concluded, that whilst any quarterly Loan Notes payment due in the second half of 2018, if delayed or not received, represents a material uncertainty in relation to the carrying value of the MLPL Loan Notes, the payment of the fourth quarterly Loan Notes payment of which US$11 million has been received to date, and a further up to US$8 million will be paid on behalf of MLPL by the end of June 2018, will enable the Group and Company to continue as a going concern. The uncertainty in relation to subsequent receipts in the second half of 2018 does not give rise to a significant doubt in relation to the Group and Company's ability to continue as a going concern.

The Directors have concluded, that whilst any quarterly Loan Notes payment due in the second half of 2018, if delayed or not received, represents a material uncertainty in relation to the carrying value of the MLPL Loan Notes, the payment of the fourth quarterly Loan Notes payment of which US$11 million has been received to date, and a further up to US$8 million will be paid on behalf of MLPL by the end of June 2018, will enable the Group and Company to continue as a going concern. The uncertainty in relation to subsequent receipts in the second half of 2018 does not give rise to a significant doubt in relation to the Group and Company's ability to continue as a going concern.

Further cash inflow of US$3.6 million before interest and an extension fee from the sale of certain Polish assets on completion of the sale to NSP Investments Holdings Ltd (previously referred to as Palomar) will be received.

L'Office Nationale des Hydrocarbures et des Mines ("ONHYM") contacted San Leon to take control of the bank guarantee on Zag and to request a further payment for work not performed.

Non-rig workovers performed during 2017 continued to proceed less quickly than expected due primarily to downhole challenges. Undocumented debris ("fish") in the wells has been the main issue, albeit one which is expected to be overcome - and this is one of the focus areas for San Leon's senior operational manager now seconded into Eroton.

Expected - Jeez
The Company is now in a strong financial position, with the benefit of an expected regular future income stream from its ongoing quarterly Loan Notes repayments.

The Company has applied for entry into the appraisal period of its offshore Duressi asset in Albania, for which a farm out is sought.

Can't keep a good dog down so they say and where is the money coming from for this adventure?

Any future payments of dividends by Eroton to Martwestern and from Martwestern to MLPL, after settlement of MLPL's Loan Notes obligations, will enable MLPL to pay dividends to its shareholders including San Leon. Given the delays in operational activity, downtime and pipeline losses, dividend payments by Eroton are not expected until the impact of the alternative export pipeline and/or the rig-based well activity have materially increased sales volumes of oil.

OF really sneaks in the wording?
RNS
with the benefit of an expected regular future income stream from its ongoing quarterly Loan Notes repayments

A facility is available as contingency to enable the Company to fulfil its cash flow requirements. This facility comprises up to £10 million available for a 2 year period from 08 June 2018 which can be drawn down in quarterly amounts of £1.25 million from Shard Capital Limited and Shard Capital Management Limited at the discretion of the lender.

BR - Surely we must but if we don't I am pretty sure we won't get an explanation-
RNS Extract
This leaves $165.4 million of principal and interest outstanding and payable as of 28 June 2018.

Anticipates - As of June 2018 the Company anticipates future cash flow from:

operational issues - operational issues, mostly external to the asset, have resulted in average OML 18 oil sales of approximately 26,000 bopd for 2017.

Longer term - In the longer term, the export pipeline and FSO system mentioned above will provide additional control.

Outstanding - However, significant outstanding arrears still remain unpaid, which if received would provide capital for further investment in OML 18. NNPC has been paying its 2017 and 2018 cash calls and it is hoped that the improved business climate and outlook will enable settlement of remaining arrears to Eroton.

RM- I was thinking the same thing - where is the money - strange not to wait until it had been received = only a couple of days - before issuing RNS - dribs and drabs come to mind?

Today RNS - AT last no suspension - AGM and Results - have yet to read them but they prove interesting and hopefully stop the decline in the SLE share price - looking forward to some more interesting postings on this BB than we have been having of late!!!!!

BS - Yes, your right many factors come into play - example - I wasn't aware that different refineries around the world are optimised in their design to only process particular grades of crude oil - apparently in the case of japanese refineries in their preference is for the grades of oil sourced in Iran.

Thanks HS your comments confirm my point.