Member Info for damofarl

Simonm; thanks your contribution.

Depending on what permutation occurs, I too see a dividend cut, to 1p, to reflect lower ongoing income, albeit aligned with ad-hoc capital return to reflect half-life fee/sale etc.

Whatever the outcome, AA4 will still deliver a decent return for some time yet....

Been here 3 years now, and when I first bought I asked, here is a company with possible prospects that on a day to day is earning 10% of its mkt cap, what am I missing? As a value Investor, I saw something paying it's way whilst hoping one of it's prospects would find it's day.

And I was thankful for long term holders who highlighted the mgmt/board largesse,the remuneration excess. They were right about that now, and the excess is still today. And just because of such, the self interest, I will time my exit, maybe leaving aot on the table.

In my time my holding was down 60%, but kept it less out of belief of prosperity, more as a reminder / lesson of mistakes made, and now it is 80% up (disregarding opportunity cost).

I'm long term investor , and I ignore the noise, but this holding has always made me feel uncomfortable , because the mgmt self interest. Yes these things can take time to come good, but that doesn't excuse the excessive mgmt salary/renumeration in these proceeding years, which smacks of self interest.

I believe in EG. I just can't believe in the mgmt. A small rise and I'll be gone, but I truly wish long term holders a potential bounty - and thank them for their honest and pragmatic contributions to this board, and my better understanding of EOG.

Thank you.

2 of 2....

Heirs is a major end consumer user of energy (Nigeria's national grid?), which provides an efficient conduit for SEPL's increased gas production/supply.

The Heirs group owns a bank, which can only help with SEPL/an enlarged group with funding for absorption of other smaller Nigerian oil centred companies, promoting Heirs mission of 'Africafinance'....

I think today's RNS is suggestive that a merger/takeover of SEPL is in the near term, very much being considered, as SEPL has long delivered on its bread and butter without such advisors.

I think Heirs will take SEPL out.

I think if they do as holders we will gain.

I think I'd rather SEPL was the consolidator, rather than the consolidated.

I think we would gain more as we are.

That's my tuppence, but whatever way, your not going to lose on SEPL in the next 6 months.

Heminator; thank you for your kind thoughts. Happy New Year to you too. In short, this year is going to make every SEPL holder happy.

The heirs stake is not an additional vote of confidence, it's a replacement of confidence from MAU to Heirs, but that's not to say it's not significant, and yes it does give confidence.

Firstly, you may recall our previous posts where I suggested that SEPL could continue to consolidate into THE Nigerian champion (and should). There are half a dozen, (with only cursory researching) Nigeria only based operations/companies, that could be absorbed, to which SEPL could garner production improvenents/economies of scales. Just with this Heirs holding, there are obvious synergies/skill & knowledge sharing to be garnered, for both parties. Just on a straight oil production basis.

Secondly, I refer to a number of sea tank posts from roughly 18 months ago, where he correctly argued, against the questioning/worried crowd, that the state adjustments to the currency, adjustments to the state reduced consumer pump price, would 1 benefit the economy and Nigeria's citizens long term but crucially signal that Nigeria was changing to a business/fiscal/regulatory governance, that would support investment and prosperity into the future. He had great almost mystic meg insight there, on the step change in governance.

And I bring these two points together, but firstly I have to say (and I hold MAU), I'm surprised at their sale to Heirs - I disagree with posters here in that they needed the cash for investment into a holding/new prospect. Their operations are already throwing off considerable cash, enough to support Thier non distressed raise of funds for a new purchase in the money markets. Even if they were cash constrained on a new prospect, considering their statement that there is much still on the table for SEPL, why didn't they sell a 10% stake? That they didn't highlights Heirs desire to have such....

As SEPL has long done (it's staffing by Nigerians at production to board level is unprecedented to me), Heirs promotes Nigerian oil for Nigerians, by Nigerians for the benefit, firstly, primarily of Nigeria. And in that belief, they have excellent ear of govt, deploying effectively as a business, govt policy/desire. Supporting, championing, as does SEPL, the greater Nigerian good.

The Heirs holding, to my mind will become a reverse takeover of SEPL and as long as they don't low ball, I'd be happy with that, desiring to hold stock in the new entity.

And I do think that is inevitable, desirable, and POSITIVE, for the following reasons:

Just a combined Heirs/SEPL will garner economies.

The govt, with sizeable holdings in each of their, and other small companies, wants improved/increased production to support their ambitions for their citizens and knows that those Nigeria positive companies are best able to deliver that improvement (this supporting consolidationan).

Buzzard44; I hope you are right, if only to see your patience rewarded.

Https://punchng.com/aradel-acquired-additional-40-stake-in-nd-western/

Note the reference sale price of £3.05

And this from Heirs energy:

"OML 17 is an under exploited proven and scalable low-cost asset, with multiple low-risk opportunities to grow production and develop high-grade reserves, located in the Niger Delta.......The asset has a recent production capacity of over 40,000 boe/d and has 2P reserves of 1.2 billion boe, with an additional 1 billion boe resources of further exploration potential."

Find today's rns on the 2 new non exec directors a very positive one.

Firstly, because their need was because of the exiting of two SEPL people to NNPC, which can only help in fostering relations with NNPC/govt

And secondly because the first appt has considerable experience in govt bodies/mechanisms and the second is a businessman connected to amongst others, a local bank - I direct line to financing/refinancing.

Good appointments to me, and reinforcing the excellent stewardship/increasingly aligned govt ear, both of which I see bringing more indigenous opportunities to SEPL.

What I don't get is, if I wanted EOG's EQ asset, rather than give a cash sum and free carry, just buy EOG - would be considerably cheaper, even if they offered £40m for EOG.....

Couple of observations....

They are at the limit of their leverage , which can be interpreted many ways, but to me means they are advantaging opportunities, being well below their maximum sector/individual holding limit.

Their market commentary of an increase in distressed debt was notable, in that such is the first time I've seen such stated in their factsheet, albeit it should be noted, they appear to be commenting generally rather than TORO specific

Dcarn, I took think the Shetland pipeline is a masterstroke, and totally agree with your observations.

I have long held a number of US pipeline transmission companies, precisely because they deliver earnings pretty much irrespective of oil price. The certainty (of income) they have delivered me, will deliver stability to SQZ.

I hold a handful of these renewable infrastructure stocks, which I bought on a yield/value basis; I'm 'fortunate' to be treading water on them.

To me, the main problem is their size, and the disproportionate cost of mgmt, both in self serving mgmt payments which is self serving and value destructive.

If the six I hold were to merge, you would have a £3bill company, offering economies of scale, opportunities to reduce debt cost, spread best practice, reduce mgmt cost duplication etc.

I have long felt consolidation would turn the underlying assets from maintenance/tick over to profit growth, and I still feel that, that it will happen.

The only thing that that is stopping this neccessary reality, is the protectionist investment mgrs/mgrs of each stock, to maintain their gravy train.

It really needs a private equity company to come in, streamline, reduce duplication, costs etc, and frankly I'm surprised one hasn't as it does offer long term visibility and fairly predictable often index linked income, which would be perfect, in an amalgamated form, to offload to a defined benefit pension scheme.

It is my opinion, that without such, all these types of stock will continue to struggle, and that such an eventuality is not of IF but WHEN.

Hi further to my previous post, I took the nuclear option. I held my EFR shares in AJBELL and despite considerable tooing and frooing it was obvious nothing would happen, so I transferred my whole SIPP to ii who judging by the fact that I sold all my EFR holding immediately, have no problem transacting.

It does rather undermine the suggestion that the fault is with Equiniti/registrars etc, and suggests it's more to do with the individual company's be they ajbell, HL or HSBC.....

Maybe concern at this holding changing hands/coming to market?

https://www.premiumtimesng.com/business/business-news/832256-bvi-court-rules-seplats-ex-chairman-orjiako-fraudulently-hid-assets-over-220-3m-access-bank-debt.html

Https://africa.businessinsider.com/local/markets/us-and-china-interest-in-kenyas-dollar62-billion-rare-earth-site-sparks-local-concern/mrfbsjy

Zeppp; the RNs makes clear that isn't documented, ergo it's my assumption.

An assumption based on the breadth of that RNS, and considerable stock holding experience of numerous companies 'intamating' exploring all options that have either wound down or closed into a linked/parent company.

We will see and will be pleasantly surprised if I'm wrong.

Edwardseaton; I invariably appreciate your posts where i see them but you do yourself an injustice with this -

"There really couldn't be less point in posting at length what is already fully visible on the RNS tab."

Yet you lost that. Really?

Lenmick; in my experience get out what you can before it goes to the jp Jenkins trading platform which is a misnomer if ever there was one. Illiquid, massive spreads - if you can find a buyer.

Thommo566; the commonality in all these wind/solar stocks is investors have lost, whilst the managers have creamed off great earnings based on NAV values they 'managed' (massaged?).

The investment managers uniformly have been winners

You'll get 2 more dividends and a 'buyout' at average last 30 days SP.

Great if you bought today - not great for anyone that bought yesterday or the last 5 years.......