The exploration director makes another purchase – his second in just a week.
Insider trades are often a clear indicator that management feel the sp is too cheap.
That’s the 14th meaningful RNS from San Leon in 6 weeks.
Investors would do well to run the numbers on San Leon’s 4.5% net profit interest in Providence Resources Barryroe Licence. It could amount to as much as 14mmboe and that’s ‘profit oil’ and has no working interest. Assuming a basic net profit amount of circa $45pb (based on $100pb prices) it equates to around $600mln in rev over the course of the licence.
Figures assume Providence’s higher numbers of 1bln oip for Barryroe.
The market has been swift to price Providence Resources higher (3 bagged so far in 2012) yet seems reluctant to price a ‘profit share’ into SLE. Odd considering the profit oil is just that – profit. There is no doubt over funding or extraction costs. It doesn’t come into for SLE. They just skim 4.5% cream of the top.
18 July 2012, San Leon Energy Plc
San Leon Energy Plc (“San Leon”), the AIM listed company focused on oil and gas exploration in Europe and North Africa, announces that on 17 July 2012 John Buggenhagen, Exploration Director, purchased 750,000 ordinary shares in the Company at 10.75p per share. Following this purchase Mr Buggenhagen holds 1,250,000 shares in San Leon representing 0.11% of the Company’s share capital.