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San Leon (SLE) has updated on the suspension of its shares - something that has now lasted a week. We have been in constant communication with the company and are relaxed about the situation, not expecting it to last much longer.
San states: "The Company's main asset is an indirect interest in the OML 18 block, onshore Nigeria, together with the expected receipt of loan principal and interest repayments from the OML 18 transaction completed in September 2016.
The delay in publication of the Accounts has been for procedural reasons due to the need for San Leon to incorporate the consolidated financial statements of Midwestern Leon Petroleum Limited, to include the results of both Martwestern Energy Limited and Eroton Exploration & Production Company Limited (the operator of OML 18). San Leon will account for its share of that consolidation using the equity method of accounting.
The consolidation process involves several jurisdictions, and has taken longer than expected for what is the first such consolidation and equity accounted investment in Nigeria for San Leon. When this process is completed, it will be followed by a number of normal audit confirmatory and technical review matters, which when completed will then put the company in a position to finalise and publish its financial statements."
We are aware that Oisin Fanning has been in Nigeria but has returned to Eire with that part of the audit completed. We therefore expect the accounts to be published relatively soon, in weeks if not days.
Then it is down to the cash bid at 67-76p per share from China. The Chinese have another 35 days to complete due diligence and put up or shut up. We expect the former and that is why the shares should move sharply higher when trading resumes. We hope that you bought into our share tip pre-suspension. You should not be concerned during this forced holding process.
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