Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Lot of imagining going on here.
Let's remind ourselves of SLE's own RNS of 10 October:
"[Tri Ri funds to be applied to] ..d) settle the Company's creditors, satisfy its working capital needs and pursue its strategy. As previously announced, the Company has numerous outstanding creditors (totaling around US$15 million) and these creditors have been exerting increasing pressure on the Company (including sending letters before action). The Board believes that without the receipt of the proceeds of the Investment, the Company's financial position would have become increasingly precarious and that it would need to take steps to protect the interests of the Company's creditors.
It is a condition of the Investment that San Leon advances the further US$37 million to ELI and acquires Ocean Pearl's shareholding in ELI without delay. ELI is heavily indebted and requires an immediate injection of capital in order to meet certain court sanctioned obligations to its main contractor for the pipeline construction (which have not been complied with by ELI). Without the further US$37 million loan from San Leon, the Board believes that ELI would be unable to pursue its strategy and, in particular, would have failed to secure customers for its pipeline. This would inevitably have been highly detrimental to the value of San Leon's investment in ELI. In addition, the Board believes that, due to ELI's severe financial difficulties, without the US$37 million loan from San Leon, ELI may be required to take steps to protect the interests of its creditors. The Board anticipates that part of the US$37 million loan will be applied by San Leon settling ELI's creditors directly."
Apart from describing the hideous financial situation that both SLE and Eli find themselves in, there's a disturbing thread running through SLE's relationship with ELI.
The last SLE Admission document described ELI as pretty much administratively incompetent, a company in which
SLE has already invested and lent many millions. The evidence is there in their previous Accounts of very significant fines for late fiing of Accounts and Tax Returns.
Since then there has been litigation between WCC, builders and operators of the FSO and ELI, one consequence of this being the replacement as operators of the FSO by a Nigerian company. Also WCC is selling its shareholding at a reputed discounted price.
According to the RNS, ELI needs an "immediate" injection of cash to fend off potential examinership/liquidation.
Interestingly the RNS makes first mention that there is a financial court judgement against ELI in favour of the
pipeline contractor. Alarmingly, the RNS notes that ELI has not complied with the judgement.
It should have been reported in an RNS many months ago, just proving up the comment made
by G1lo.
Again disturbing is the language that when the funding goes through SLE will settle some of ELI's creditors direct.
Sounds like SLE don't trust ELI to manage a cash injection.
Fortified Securities (founded 2022) appointed joint broker as per RNS 10 Oct. Mentioned as an arranger of the Tri Ri package. Strange, their website doesn't show SLE as a client or in their news sections.
Naibob,
Amongst the blue smoke and mirrors, Fanning and Eli have given the uncautious observer the impression
that the ACOES is up and running (e,g the backscratching Malcy interview)....as mentioned in the IT article.
We know the pipeline element is outstanding and the pipeline contractor is suing Eli. Fanning mentions in the Malcy interview that barging has just begun....well that was supposed to have commenced well over a year ago and we have no hard evidence that anything has been delivered and offloaded by Shell.
(He also forecast the lifting of SLE share suspension as likely to occur in the second week of November...maybe he meant 2024).
Come 12 December, if Eli hasn't filed accounts it will yet again be in breach of Maltese company law.
Naibob, friend turned up trumps.
"Cantillon
Tue Dec 5 2023 - 05:39
In 2016, Oisín Fanning’s San Leon Energy completed a transformational, if highly involved, acquisition of an indirect 10 per cent stake in a major Nigerian offshore oilfield, known as OML 18, through a Mauritius vehicle called Midwestern Leon Petroleum Ltd (MLPL).
Over the following 12 months, two takeover approaches from Chinese suitors came and went, while its main shareholder UK hedge fund subsequently almost doubled its stake to 75 per cent.
Earlier this year, San Leon unveiled plans to take over certain assets of Nigeria’s Midwestern Oil and Gas Company, which is a 13 per cent shareholder in San Leon, by way of a reverse takeover. The deal – and this is the simplified version – was to increase San Leon’s indirect OML 18 stake to more than 44.1 per cent.
[ Exploration company San Leon receives €176m backing for Nigeria operations ]
[ Oisin Fanning-led San Leon’s shares down almost 30% on refinancing and accounts delays ]
It was also to involve Midwestern transferring its stake in Energy Link Infrastructure (Malta), or ELI, a provider of crude oil transport and storage systems within the Niger Delta area of Nigeria, to San Leon.
However, drift in getting a loan facility over the line – contributing to delays in San Leon’s 2022 accounts and its shares being suspended in July – resulted in that plan being scrapped in October.
The following day, San Leon revealed it had agreed to raise $187 million (€173 million) by way of convertible loans from US investment house Tri Ri Asset Management (TRAM) to pursue a different deal.
The funds were earmarked to allow San Leon take a controlling stake in ELI as well certain new assets in MLPL (which, incidentally, owes San Leon about $120 million). There were reports in some quarters that the deal could ultimately give San Leon, which had a market value of £74 million (€86 million) when it was suspended a $1 billion valuation.
San Leon said on November 2nd that TRAM had pressed the send button on initial funds and that the money would land in a UK account “shortly”. More than month later, it’s still waiting for the funds to materialise.
Investors will be hoping that Fanning is already working on another plan – even if it’s unlikely to be less complex than anything else he has come up with in recent times.
CantillonNigeria"
Doesn't tell us more than we already know. However, news now in a more public domain and the Irish Times, in common with the vast majority of people on this island, don't have much time for Fanning ( that could be the understatement of all time).
Sorry Naibob. I already have a newspaper subscription and don't want to add to it.
What I'll do is contact a friend whom I think has sub and get him to send it to me. Hopefully that'll work.
Yesterday's article from that well known mud slinger, the Irish Times:
https://www.irishtimes.com/business/2023/12/05/oisin-fanning-may-need-fresh-san-leon-plan-as-us-funds-fail-to-turn-up/
Little Sam, there I was thinking you had no abilities whatsoever...but I underestimated your incredible ability to cut and paste.
BlackSwan, does the following remind you of anybody?
Signs of Narcissism
Sense of Entitlement
A common sign of people with narcissism is the belief that they are superior to others and deserve special treatment. They believe that others should be obedient to their wishes and that the rules don’t apply to them.
Manipulative Behavior
Another common trait of narcissism is manipulative or controlling behavior. A narcissist will at first try to please you and impress you, but eventually, their own needs will always come first.
When relating to other people, narcissists will try to keep people at a certain distance in order to maintain control. They may even exploit others to gain something for themselves.
Need for Admiration
One of the most common signs of a narcissist is a constant need for praise or admiration. People with this behavior need to feel validation from others and often brag or exaggerate their accomplishments for recognition. They also like to feel appreciated to boost their ego.
Lack of Empathy
Lack of empathy is another sign of narcissism. This means that the narcissist is unwilling or unable to empathize with the needs, wants, or feelings of other people. This also makes it difficult for them to take responsibility for their own behavior.
Arrogance
People with narcissistic behavior already see themselves as superior to others, so they may become rude or abusive when they don’t receive the treatment they think they deserve. While they hold themselves superior, they may speak or act rudely toward those that they deem are inferior.
Other signs include:
A sense of self-importance, exaggerating their achievements and talents
A preoccupation with fantasies of success, power, or brilliance
A belief that they're more special or unique than others and should only associate with other high-status people
Here's a good summary of how bank transfer delays can occur.
https://statrys.com/blog/delayed-bank-transfer#:~:text=Delayed%20bank%20transfers%20can%20be,may%20also%20contribute%20to%20delays.
Looking on the positive side, the transfer could be stuck for genuine reasons.
What stretches credibility out the window is that, for a $89.4 m transfer, the parties don't know the reason after 3 weeks confirming the transfer.
Either Tri Ri, SLE or both are not coming clean
If UK went ex div before the US., at least the US would be closed. The way it is at the moment both markets are open when the ex div is only applied US. More room for distortion than if applied to both markets on the same day.
Otherwise agree with you.
Very odd having alternate ex div days...hope there's a good reason for it as it's seems to be introducing short term distortion.
Goodness, Alaric....you're right , there's only 1 SLE rep on ELI'S Board. Amazing that he didn't seem to notice that Eli's very existence is being challenged in the Maltese courts over the past year.
You might like to re-familiarise yourself with SLE's recent RNS.
"Importantly our partnership with TRAM enables us to fulfill our long-held strategy of becoming the majority shareholder in ELI."
Can I suggest that a second SLE rep may be required to keep the other one awake.
By the way have you figured out yet how SLE's 2021 Accounts show a Contingent Liability re Seven Heads when you contend that all such liability was extinguished in 2019? Have you informed SLE that in your opinion there must be a mistake in their audited Accounts LOL
The ACOES pipeline contractor filed its suit on 7/12/22 as a winding up petition.
Obviously an extremely serious matter. The ACOES by SLE's own admission defines the ACOES as it's fundamental corporate strategy.
However shareholders have never been informed of this litigation by RNS despite SLE having two reps on Eli's Board.
I can't believe that this is not a serious breach of stock exchange rules.
Well done Naibob. My system wouldn't let me access the Sessions page of their website.
What document was withdrawn, goodness knows. This is I think the 4th deferral.
What can we surmise from what you tracked down?
First, as the case has been relisted, it indicates that the Tri Ri money hasn't been applied to settling with the pipeline contractor.
Second, it casts doubts on whether Eli will complete and file their Accounts by 31 Dec, in which case SLE can't complete their own Accounts and risk delisting from AIM.
Third, it probably puts substantially forward the schedule to complete ACOES.
Enjoy your break.
Thank you for that post, demonstrating your shallow mindedness.
I'll refrain for the time being from refering to your investment record.
No info yet on the Sittings page of the relevant website.
Here's the link. It's case ref 124/2022
https://ecourts.gov.mt/onlineservices/CivilCases/Detail/431603#
... to have Eli wound up,
Big day tomorrow. Unless there has been any very recent settlement, the case brought by the ACOES pipeline contractor to Eli Infrastructure wound up is due for hearing in the Maltese Commercial court.
Thanks Naibob. I've never made any secret of my scepticism to this company and have explained why in previous posts. The combination of Fanning with his disastrous track record of failure with putting yours eggs in one basket in one of the most corrupt countries in the world should be a red flag to anybody.
How a $125m investment by an American real estate trust, with apparently no experience in the oil business or Nigeria, will pan out is anyone's guess.
For the sake of BlackSwan, yourself and others who are trying to recoup their investment here, I wish you the best. But I will continue to call out what I see as ramping, lies and barefaced innuendo.
Alaric, Redmineeyes,
Is the Contingent Liabilities note in the 2021 Accounts incorrect?
Yes or no?