The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Facts dear boy. Look at the 10-year share graph?
Eroton announced in March they were "approaching" the Nigerian Courts, whatever that means- why haven't shareholders been updated about this litigation?
Ejembi Eko has described the Nigerian judicial system as riddled with corruption - he should know he was a Nigerian Supreme Court Judge, trouble is Western-backed companies can't go down that road due to tough extra-jurisdictional anti-bribery laws.
Do you really think this is going to be resolved in favour of Ereton any time soon?
I take no joy saying any of this, I am one of those who lost money in San Leon when they were bubbling over with excitement about their previous exploration projests which proved to be empty promises, those lessons are painfully learned.
Apologies for sounding thick but didn't San Leon's investment go down the plug-hole when NNPC sent armed guards to seize the OML field off San's partner Eroton. Has there been an update I missed about Eroton being restored to operatorship and NNPC crawling back under the rock from where they came? if not why would anyone lend money in such circumstances?
Not sure how much credibility you can give SLE's management, latest press release fails to mention the elephant in the room that is the gun point seizure of the prized OML 18 asset. Bear in mind that in response to this development shareholders got some lame re-assurance from SLE about how the takeover of OLE18 was unlawful and how the matter would be quickly resolved in the Nigerian Courts- really quickly and fairly - Just how naive can you be? Retired supreme court judge Ejembi Eko commented last year on corruption being rife in the Nigerian legal system, San Leon and its friends have to comply with Western anti-bribery laws whereas the people they are up against will play by local rules so you have to question the likely timescales and outcome. Worse in my mind was Investors Chronicle rating this share a hold when it was obvious there are mounting problems with no evidence SLE can resolve them.
Maybe it is serving Iraq's purposes that Turkey gets the blame for halting oil exports through the pipeline. Could be Iraq isn't too bothered if a manufactured dispute puts the Kurds and their licensed oil producers in a difficult spot? Belgrano is right to ask the question whether Iraq anticipated this development when they were negotiating with the Kurds.
Article publsied in legal press today (behind a pay-wall unfortunately), about Iraq is seeking to enforce its billion dollar+ judgment against Turkey in the USA. Sounds like Turkey is levereging the pipleine re-opening in order to try to agree favourable terms for resolving its arbitration liabilities. Could get very messy. One can imagine the Iraq government wont cry too many tears if Kurdistan Govt and the likes of KSP suffer in the meantime, just makes it cheaper/ easier for Iraq to hoover up the pieces later if the likes of KSP go to the wall. Hope I am proved wrong but talk of Southern routes for exporting the oil, does not bode well for an early resolution, sounds like both sides are now posturing with threats to delay turning the tap back on .