Member Info for bluerill

I misspelled 'sweet'. Ruins the whole post

While we wait for the other 5% Suntrust shareholding in SLE to settle in Jite's Midwestern account and then the share buyback to be announced, here are a few numbers to consider when thinking about how cheap SLE shares are: Once Jite completes this non-cash transaction, his group will own 14.29% of San Leon, or roughly 71.5m shares, and will still owe SLE roughly $183m in principal ($146m) and interest (about another 1 1/2years at 17%, or appox $37m).
Now, just for fun, imagine Eroton wanted to take over San Leon outright at say, a 100% premium, or 52p. Well on paper that would 'cost' Jite around £260m, or $335m. But of course, he will already own 14.29% due to the current cashless transaction that should close soon, so that would reduce the purchase price to $287m. Ah, but we mustn't forget that buying SLE will relieve him of around another $180m in future liabilities over the next 18 months or so, bringing his net 'cost' down to just over $100m. Pretty sweat, huh? Ah, but we're not quite finished since the company he's buying now has approximately $40m of cash on its balance sheet already, with no debts.
In the end, buying all of San Leon's net assets would end up costing Jite's Eroton little more than $60m after foregone debts and cash on hand, despite paying double the prevailing market price for the shares he doesn't already own.
Happy Thanksgiving indeed.....

Don't be short

Whatever. Just trying to explain that this is a minor nuisance and shareholders should look out for research from today, only from one of the three brokers I mentioned.

That's not really important either. Just new rules out of Europe from 1 Jan of this year that have made it much harder, among other things, for broker-dealers to distribute research to anyone who isn't explicitly paying for it. As feared, this has devastated the research business in the City, particularly for small caps. I may be wrong, but it seems to me that since the rules have hit, more weird stuff that looks like research is popping up all over the internet, and then occasionally gets picked up as legit by Bloomberg or Reuters, and then by websites frequented by small investors.

They are meaningless. Just something the internet coughs up occasionally, particularly in the post-MiFid2 era. Ignore them. Numis don't even cover sle any longer. The only coverage that would be relevant right now would be currently dated and coming from either Cantor Fitzgerald, SP Angel or Brandon Hill. Or me

Oh for the love of pete, there's no 'company reorganisation' of any type coming soon or otherwise, so you can go back to sitting comfortably, squirrel. I'll give bs the benefit of the doubt this time and grant that he's just using an unfortunate short-hand for the eagerly awaited decision from the Irish Commercial Court permitting SLE, if it desires, to return capital to shareholders, and perhaps, the still possible corporate action with Eroton/Midwestern. All as was previously explained multiple times, in multiple ways.

No, just the unfortunate product of blinding bitterness and sometimes shocking ignorance. While that word salad may actually contain a coherent thought somewhere and will probably provide a therapist with some valuable nuggets some day, it also shows that this person is utterly clueless about basic financial principles such as how a share consolidation works (hint: it has absolutely no impact on a the value of a company and therefore its shares) or what dilution is. And while ignorance of those concepts is certainly not a crime, bouncing around a message board spitting bile and pretending you actually know what you're writing about, at least should be.

beautifully described

You want me to scratch behind your ears and tell you what a clever boy you are?
Ok, you poor gormless snowflake

Here, boy! Stay away from that dictionary!!

Fair enough.

Fwiw pc, you are nowhere close to correct about the relative roles of tosca and management in having, as you describe, 'positioned SLE to where it is now...' I know you've written this before and I didn't correct you - perhaps because it's not really important how we have gotten here, only that we have - but you are operating under some serious misconceptions. Martin Hughes is a brilliant investor and financier, and his support has clearly been central to getting the OML18 deal done (I have written about that myself in the past) but he has no real background in oil and gas, and certainly no business relationships in the Nigerian market. In addition, though he takes a lot of hits on this board, Oisin Fanning is no dummy, and he would have been intimately involved in putting this complex deal together, a deal the market is finally starting to realise was a pretty sweet one for San Leon shareholders. Meanwhile, Hughes and Tosca have provided evident capital and intellectual support along the way, but it has been anything but single-handed.

I'll leave aside the cut and paste effort on buybacks v divis. Meaningless, but at least not dangerous. But then, like some message board Del boy, you have to go and write this: '.....As for the other big deal ie: Midwestern our friendly big brother it would seem that our resident big shots see this as a step nearer to a merger of some kind and that its great news. Well once again its one of those situations that depends where your standing. If it did happen don't forget Midwestern are a private company and as such it would finally be game over.....' Game over?? GAME OVER?!?!?! You know why this is so much worse than your usual toxic backwash? Because I know I've already spent many minutes of my life over several posts - time I will never get back! - explaining this deal to you and your fellow squirrels, but because of your near HomerSimpson-level inability to recognise your often breathtaking (given how confidently you proffer fake news) knowledge gaps and the resulting massively erroneous conclusions you so often draw, you are uniquely unable to learn ANYTHING and so continue to advance the same nonsense over and over. And the matter-of-fact way you just toss out such ignorant tripe is particularly galling.

There. Spleen vented. One more time then: This deal, if it happens, would be a type of 'reverse' merger, meaning that some/all of Eroton/Midwestern's - yes indeed, a private enterprise - assets will be 'reversed' into San Leon, a public company. However, this will NOT result in somehow SLE magically becoming a private company. Rather, the now much larger company will essentially become San Leon 2.0, but will of course remain a PUBLIC company under the same symbol, SLE.L. The only important difference is - assuming, as I am, that San Leon negotiate a favourable exchange of assets - the share price will likely be materially higher.

Nothing. We do. Our relationship with the NNPC is primarily as a drilling/capx partner where they are still in arrears with Eroton for past capx payments, though they are apparently current with recent commitments.

bs - you are fundamentally mistaken. the $55 hedge is in the form of an option and only covers the minimum production amount required by Eroton's RBL agreement. The group is significantly exposed to the current elevated levels of oil prices

Why does engaging with you make me feel every time like I should keep you calm until the cops arrive?

On the basis of how you've projected the responsibility for your investment mistakes onto everyone and everything but yourself which then has clearly fuelled your information-free rants, I can only determine that your mangled syntax proves that somewhere in your past you were abused by an apostrophe.

You have a point I suppose. Putting you in your place, as it were, would mean sending you back to primary school to try and fix your appalling spelling before trying to teach you some basic business principles. Only then could we move you on to civics class where you might be instructed in how to form a reasoned argument before ending in psychology class and lessons in how to channel feelings of inadequacy into constructive activities like making paper mache animals and away from social media message boards where you inevitably end up parading your ignorance like a badge of honour.

um Bill, that's exactly what defines a 20% yield, so long as the lender also receives its principal back over time in addition to the interest payments, of course. Each quarterly payment that San Leon has been receiving is in fact partial principal + 17% interest on the remaining principle outstanding, pretty much the definition of a 17% yield on their money. In addition, you've forgotten that San Leon ALSO received a near-10% stake in a 50k+ bbl/day oil field, plus the economics on a massive service contract on a multi-well producing field in the deal.

This is - on its face - good-to-great news for SLE shareholders for a number of reasons:
- Suntrust is out of our lives. Of course the immediate upside of this transaction is that ST's ridiculous 'lawsuit' goes away (this was not officially acknowledged in the RNS but since it was partly based on ST's assertion that they were duped into taking SLE's shares in the first place, I reckon everyone can accept the lawsuit disappears with this transaction regardless), but in addition the Jite-for-Suntrust exchange rids us of what the market was probably already seeing an eventual huge overhang on the shares, especially as the share price would recover towards ST's 45p entry price;
-The imputed value for SLE's share price is likely (very) positive. The terms of the Midwestern-ST exchange were not disclosed, but it stands to reason that the deal was done at a premium of some consequence. We know that ST's blundering legal tilt at SLE began as our share price declined from the original 45p and ST's bank(s), which had funded their original investment became increasingly demanding for more collateral. It is difficult to believe therefore, that those creditor(s) behind the original purchase would agree to a deal if ST were getting assets worth materially less than ST's shareholding's value at or around the 45p level;
- We are exchanging a hostile 'outside' investor, for an 'insider' strategic who understands the value of our core asset - OML18 - intimately. I'm pretty sure that efficient market theory would describe this as positive asymmetric information.
- This probably makes a reverse-merger deal with Eroton more likely now as it clearly lowers the cost to midwestern/eroton to do a deal at a higher SLE share price than they might have considered previously. Hopefully, negotiations between the parties continue.

How's that Skull?