Today's Oil and Gas Update - Eco Oil and Gas, Eland Oil & Gas and San Leon Energy.


20 February 2019


In Brief


Eco Oil and Gas (ECO LN – 69p)

Countdown Has Started


Eland Oil & Gas (ELA LN – 125p)

Maiden Dividend


San Leon Energy (SLE LN – 31p)

What a Difference 12 Months Makes



News In Brief

​Eco Oil and Gas

(LON:ECO) – 69p 


Countdown Has Started

News that the management has secured the Stena Forth to drill the Company's first well, targeting the Jethro-Lobe prospect in the Orinduik licence, offshore Guyana by July 2019, starts the clock ticking on what has been one of the most keenly awaited wells for some time.


While time will tell whether there is a success, or not, there remains a secondary target within the licence. The Hammerhead discovery is believed to extend into the Company's block, which makes for an interesting appraisal well, and if successful, could lead to a unitisation deal, or an outright acquisition of the rights to that area of the licence.


Either way, the Company is well set, not just for the drilling of the Jethro-Lobe, but beyond too.

​Eland Oil & Gas

(LON:ELA) – 125p 


Maiden Dividend

The announcement of a maiden dividend is a more than just returning cash; it's also a statement that the Company has reached self-sustainability, and that it has more cash than it needs for the foreseeable future.


While the fact that the sums involved are modest (at a yield of 2.5% the obligation would be ~$9.0mm), we can't help but feel that this may be a little too early, as to our mind, there remains a risk, especially in Nigeria, that variance in timing and commissioning of the next phase of development could leave them short of cash.


That notwithstanding, we applaud the management's approach, and they are in a better position to judge the likelihood of that scenario arising than we are, and to be fair, they've done little wrong to date and deserve the benefit of the doubt.

​San Leon Energy

(LON:SLE) – 31p 


What a Difference 12 Months Makes

The disclosure that the Company will offer 46p a share in its distribution is a stark contrast to the position the Company was in 12 months ago.


That the turnaround has occurred in only 12 months of the OML18 transaction functioning according to plan underlines how compelling the investment was initially. We think that not only is this a just reward for those that have held their shares throughout that process, but it is also a sign of what we believe could yet come from the Company once it, via the operator group Eroton, is able to eliminate losses from the cluster export line.


The shareholders and investors will be pleased with the progress over the last 12 months, and today's news especially. 

We may provide a further update on one, or all, of the stories above later today. However, if there is anything that you would like to discuss, please feel free to contact us. 



SP Angel OIl & Gas
Email: [email protected]
Web: www.spangel.co.uk

​​Tel: +44 20 3470 0470


Prince Frederick House | 35-39 Maddox Street | London | W1S 2PP​​ | United Kingdom


This note has been issued by SP Angel Corporate Finance LLP ("SP Angel") in order to promote its investment services and is a marketing communication for the purposes of the European Markets in Financial Instruments Directive (MiFID) and FCA's Rules. It has not been prepared in accordance with the legal requirements designed to promote the independence or objectivity of investment research and is not subject to any prohibition on dealing ahead of its dissemination.
SP Angel considers this note to be an acceptable minor non-monetary benefit as defined by the FCA which may be received without charge. In summary, this is because the content is either considered to be commissioned by SP Angel's clients as part our advisory services to them or is short term market commentary.

While prepared in good faith and based upon sources believed to be reliable SP Angel does not make any guarantee, representation or warranty, (either express or implied), as to the factual accuracy, completeness, or sufficiency of information contained herein.

The value of investments referenced herein may go up or down and past performance is not necessarily a guide to future performance. Where investment is made in currencies other than the base currency of the investment, movements in exchange rates will have an effect on the value, either favourable or unfavourable. Securities issued in emerging markets are typically subject to greater volatility and risk of loss.

The investments discussed in this note may not be suitable for all investors and the note does not take into account the investment objectives and policies, financial position or portfolio composition of any recipient. Investors must make their own investment decisions based upon their own financial objectives, resources and appetite for risk.

This note is confidential and is being supplied to you solely for your information. It may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published in whole or in part, for any purpose. If this note has been sent to you by a party other than SPA the original contents may have been altered or comments may have been added. SP Angel is not responsible for any such amendments.

Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or other solicitation or recommendation to buy or sell investments. Opinions and estimates included in this note are subject to change without notice. This information is for the sole use of Eligible Counterparties and Professional Customers and is not intended for Retail Clients, as defined by the rules of the Financial Conduct Authority ("FCA").

Publication of this note does not imply future production of notes covering the same issuer(s) or subject matter.

SP Angel, its partners, officers and or employees may own or have positions in any investment(s) mentioned herein or related thereto and may, from time to time add to, or dispose of, any such investment(s).

SPA has put in place a number of measures to avoid or manage conflicts of interest with regard to the preparation and distribution of research. These include (i) physical, virtual and procedural information barriers (ii) a prohibition on personal account dealing by analysts and (iii) measures to ensure that recipients and persons wishing to access the research receive/are able to access the research at the same time.

SP Angel Corporate Finance LLP is a company registered in England and Wales with company number OC317049 and whose registered office address is Prince Frederick House, 35-39 Maddox Street, London W1S 2PP. SP Angel Corporate Finance LLP is authorised and regulated by the Financial Conduct Authority whose address is 25, The North Colonnade, Canary Wharf, London E14 5HS and is a Member of the London Stock Exchange plc.



* - SP Angel acts as broker to this company

** - SP Angel acts as NomAd to this company

*** - SP Angel acts as broker & NomAd to this company


Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Eland Oil & Gas PLC named herein, including the promotion by the Company of Eland Oil & Gas PLC in any Content on the Site, the Company...



Global Energy Metals in London discussing plans to develop cobalt projects...

Global Energy Metals Corporation (CVE:GEMC) (OTCMKTS:GBLEF) CEO Mitchell Smith caught up with Proactive's Andrew Scott while in London to update shareholders on progress within its portfolio of cobalt and battery metal projects. Smith says the firm's well-placed to take advantage of the...

13 hours, 2 minutes ago


Form 8.3 - Eland Oil & Gas plc

10 hours, 41 minutes ago

Form 8.3 - Eland Oil & Gas PLC

11 hours, 5 minutes ago

Form 8.3 - Eland Oil & Gas PLC

12 hours, 26 minutes ago

Form 8.5 (EPT/RI) - Eland Oil & Gas Plc

14 hours, 6 minutes ago

Form 8.5 (EPT/RI) - Eland Oil & Gas PLC

14 hours, 6 minutes ago

Form 8.3 - ELAND OIL & GAS PLC

14 hours, 23 minutes ago

22 min read