Member Info for Callasjunkie

If San Leon has sold on all its liabilities re Seven Heads in 2019, why is it listed in San Leon's 2021 Accounts as a Contingent Liability?

Alaric, Redeyemines, are the published Accounts incorrect?

Clearly the judge believes there's a case to answer or he wouldn't have admitted it for hearing in February.

A return to one of my favourite subjects....Notore Chemicals which was once the sole offtaker of OML18 gas (that is when in years gone by OML18 actually produced gas). It still owes Eroton 21 billion naire for its gas supplies, one of the principal reasons given for NNPCL seizing the Operatorship just after the start of the year.

The latest set of 3Q/23 accounts show an absolutely dire situation with losses for the year to date at 66 billion naire (or 82.5USD. To put things in perspective, finance costs at 23 billion naire were nearly double the value of sales. That was before the addition of 28 billion naire due for foreign currency losses due to the dramatic devaluation of the naire (reference BlackSwan's comments on the Nigerian economy.).

Total borrowings are now an eye-watering 200 billion naire or 248million USD.

Why does this matter?

First, it seems extremely likely that Eroton will ever see its 21 billion naire unless NNPCL sues Notore and the valuable site is sold.

Second, it shows that the much lauded Jite Okoloko is showing very poor business judgement. One of the very basic rules of business is that unless you have extremely good reasons otherwise, you borrow in the currency of your sales.

Nearly all Notore's sales are in naire whilst it is largely financed in USD, the devaluation of which which has now strapped the company with suffocating debt, if it wasn't bad enough already.

One other thing, and I've never seen this in publicly published accounts before, the Group table of Fixed Assets doesn't add up!!!! (interestingly the table for the Company does)....sloppy beyond belief.

sle's rns of 24 march, 2023:

" the board notes that eroton is in the nigerian law courts challenging the matter [it's operatorship] and expects the case to be resolved shortly."

only 6 months have elapsed since and no information whatsoever. words like

curious wording. if eroton were the de facto continuing operator, then the rns should have said it is seeking confirmation in the court, not 'challenging' the existing situation.

then again words like 'shortly', 'imminent', 'near term' have a different meaning in the san leon lexicon than the rest of us understand.

bet the ****tails in dubai are delicious.

Raspberry jam?

Yes, in this perfect financial storm, 5m USD is only kicking the legal can down the road. I'm guessing it's a sop to avoid for the time being legal sanction for publication of notification to creditors et al of the wind up petition. The only 2 ways I saw out of this sorry mess was execution of the Afreximbank loan or NNPCL taking over the Acoes project. The first has to be dead duck (unless the bank eschews sanity) and the second remote but could make sense in time.

Https://thenigerialawyer.com/20m-judgment-debt-court-adjourns-suit-seeking-to-wind-up-eroton-exploration-to-july-20/

Hence the urgency of the Tosca loan.

Black swan, OF stated that, in relation to selling off its Decklar stake, it had a book value of $5.6m, giving the deliberate impression that it's worth that. In fact the current market value is about a quarter of that, and he still can't sell it!

BlackSwan, here's the link to the UAE Business Registry.

Just enter MM Capital Holding Limited into the second (English) dialog box and fill in the Captcha. You'll see that Mm Capital canceled it's licence (or had it canceled) last January.

https://ner.economy.ae/Search_By_BN.aspx

Correction: ,meant to say all but one have an 's' on Holding.

BlackSwan, like everything else SLE nothing is straightforward. Whether the Tosca $5m is an astute investment or an act of desperation, time will tell.

There are at least four companies I have found with the name MM Capital Holding...all have an 's' on Holdings.

The MM Capital described in the Admission Document is Holdings Limited and registered in the UAE.

A search of UAE Companies Registry shows the company registered in Jan 2022 but canceled in Jan 2023! I'm not saying you have the wrong link but there are obviously doubts.

By the way the MM facility described in the Admission doc is also at 10% with generous repayment terms. However terms of default are stringent.

Followers of this Board might be intrigued to know that Eroton Exploration and Production Albania Limited was registered in Malta in 2017.

In case it could be thought that this is an extraordinary coincidence, there are common Directorships with Eroton Nigeria.

Love to know the angle here.....and its unlikely to be oil.

Just a correction...Salma is described as Jite's estranged wife...seems they are technically still married?

My own researches into vessel tracking/vessel info sites would suggest that a lot of the information is out of date.

Eli Akaso was actually converted in 2019 in Malaysia overseen by World Carrier Corporation (WCC). It did earn $5.7m for 6 months charter in 2020. Its just one of the myriad of mysteries related to SLE et al as to why it wasn't put out on further charters. Apart from incompetence, it may have something to do with the relationship between Eli Malta and WCC which appears to be in deep trouble. For instance the FSO management contract was abruptly transferred to Century from a WCC subisidiary this year.

My memory is that an unmodified VLCC of Akaso's vintage are selling somewhere between $20 and $30m.

Regarding how much Eli Akaso is worth, an astonishing figure from the Admission document is that as of end 2021, Eli Malta had capitalised the ACOES at $190m!! That figure would have assumedly included the pipeline pipes lying idle in OML18, the linking modifications in OML18 and probably a heap of capitalised interest.

Its intriguing that on the Board of ELI Malta are two representatives of WCC. I haven't seen any notice of their resignation on the Maltese Companies Registry. That may not mean anything as SLE mention in the Admission document that Eli Malta's administration is appalling.

What's more, Jite's ex-wife is also a Director of Eli Malta. (Same comments apply as to whether she's still there) She's currently suing him for divorce in Florida where he's resident and he's seeking to have that litigation moved to Nigeria...where he might have more 'influence'.

Furthermore the ex-wife runs a company in Nigeria that did substantial engineering works for Eroton and hasn't been paid. I think the amount in dispute is well in excess of $30m.

The litigation to have Eli Malta wound up isn't scheduled until November of this year. That alone could delay their accounts for months.

Who needs Eastenders, Coronation Street or Emmerdale when you've the best soap opera in the world right here! Though of mentioning Casualty but that's a bit close to the bone.

One thing's for certain...OML18 is definitely in a state!

Afamefuna,

looking at the reportage of the tampering of the OML18 wells, it could be third party theft,

but the articles have more than a whiff of stage-management. Possibly another round in the

dispute between NNPCL/Sahara and Eroton?

So there we have it. So you're claiming that London South East are telling lies when they stated there were no short positions? I only repeated the information provided

by the proprietors of this board. Are you calling them liars as well?

OK Alaric,

I challenge you to post up a single lie, with evidence, that I have put up on this board.

Get to it.

I reckon someone in Guarantee Trust Bank doesn't sleep at night.

bs, it's clear as mud, as usual. i can't imagine any contract between opm and sle related to operations, so yes, it might have to with finance and the share purchase agreement in eli. unlike of not to cover his backside if he didn't have the cash in place..but maybe he was counting on the mm capital facility.

opm originally had the fso management contract but got replaced by century without explanation. i can't see how san leon would be a contract party to that.

i took another look at eli's 2021 accounts in the admission document. then bank and shareholder loans were circa $220m at rates of circa 14%. having not earned a ****** since, they are drowning in debt but that seems to be the common denominator to all the players in this whole sorry mess.

BlackSwan,

The auction business is all very weird. Despite it being reported on 3 Nigerian auction websites, I can't find any comment anywhere in the Nigerian or other media as to the case that gave rise to it or anything else. The case reference looks valid and Justice Pam does sit on the Federal High Court. Unfortunately the FHC seems to have stopped posting case by case results on the internet about 4 to 5 years ago.

What looks even more surprising to me is that case in Malta (taken we believe by the pipeline contractor) to have Eli Infrastructure wound up took place on 26 June. In this instance details are published on the official Maltese judicial website.

The appellant's advocate presented two evidence documents to be formally served on Eli (four documents having been presented at an earlier hearing) but neither of the two defendant solicitors showed up!! The judge directed that they be served on either Eli or their solicitors and gave them two weeks to confirm whether they were actually going to contest the case!! If so, the case is rescheduled to 13 November.

Bizarre

Failure to report the existence of these proceedings in an RNS looks to me to be a direct breach of AIM rules on disclosure.