Following the completion of the OML 18 Production Arrangement, we forecast that San Leon could return over $280m cash to shareholders over the next 5 years, equivalent to an average annual yield of 18%. We value the cash flows attributable to San Leon from its interests in the 2P reserves on OML 18 at 91p per share, post Admission, and highlight that these assets could deliver another 68p of unrisked upside as resources are converted to reserves.
21 Sep 2016
Cash cow
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Cash cow
San Leon Energy Plc (SLE:LON) | 16.5 0 0.0% | Mkt Cap: 74.2m
- Published:
21 Sep 2016 -
Author:
Mark Henderson -
Pages:
23
Following the completion of the OML 18 Production Arrangement, we forecast that San Leon could return over $280m cash to shareholders over the next 5 years, equivalent to an average annual yield of 18%. We value the cash flows attributable to San Leon from its interests in the 2P reserves on OML 18 at 91p per share, post Admission, and highlight that these assets could deliver another 68p of unrisked upside as resources are converted to reserves.