skyhigh
- 05 Mar 2009 08:50
Anyone else in ?
On board this morning for the first time...(small time)
I've probably paid a bit more than I should've done and one should never buy first thing in the morning when it's probably marked up high to begin with!
But, let's see how it goes..the story is compelling and the rewards could be high, even though it's been tipped by TW ! (Article below..TW tip usually the K o'D!)
Good luck all!
(IMHO,DYOR)
Buy Leni Gas & Oil at 2.125p
Argues Tom Winnifrith of t1ps.com
Tom Winnifrith publishes 20 t1ps a year on www.t1ps.com. To access the website for as little as 73 a year click HERE
Having reached the giddy heights of $147 per barrel in July 2008, with analysts then forecasting $200, oil has since plunged to sub-$40 and some reckon we will see $25. Perhaps that will be the case in the short-term, who knows? One thing that is certain is that at sub-$40, most oil fields that have been developed in recent years will not be economically viable. The outcome, which is already being observed, will be a continued scale back in production until such time that basic market economics prevail and the price is pushed up as demand begins to outweigh supply. I anticipate a return to $60 oil sooner rather than later, which would inevitably see oil stock valuations emerge from the ruins as investors flock back to get a piece of profitable, cash generating producers. AIM-listed Leni Gas & Oil (LGO) will be one of these, but even at current oil prices, its growing cash flow streams derived from a well-diversified portfolio of producing assets represent an enticing investment of amplifying appeal, which will leave its current market cap looking extremely daft. With oil stocks hated by investors driven by sentiment not fact now is the time to gorge greedily on stocks such as Leni.
The Business
The company's primary strategic approach is to identify projects and businesses within the oil and gas sector that may contain a development premium which can be unlocked through a combination of financial, commercial, and technical expertise. This is where Leni's highly-skilled and experienced management team comes into play, assisted by a network of independent experts to evaluate investments to ensure development success.
Operations
Across its portfolio, Leni is currently producing the net equivalent of around 715 boepd from target recoverable reserves of 36.6 million boe at an average estimated operating cost of $10 per barrel.
US Gulf of Mexico - Leni has a 29% interest in Byron Energy, having acquired rights on Eugene Island blocks 172, 183, and 184. The company's interest in Eugene Island equates to an effective working interest of approximately 8%. New production wells were completed in the second half of 2008, with gross volumes of more than 5000 boepd. Additional rights include six oil and gas assets in varying stages of appraisal and development drilling. Planned for 2009 are development drilling, new production completions and assessment of exploitation potential, prior to development in 2010.
Spain - Leni's 100% owned Ayoluengo Oilfield (yes it was once owned by Northern!) is the largest in Spain with STOIIP of 110 mmbbls. Production is up to 260 boepd and continues to increase through improved well productivity programmes. A major development programme has been initiated to increase total field recovery to 30% through secondary recovery and in-fill drilling targets. The company is targeting production to previous plateau levels of 2,500 bopd and it should be heading that way by the end of this year with steady month on month increases. Leni also has an 85% stake in Halo Acreage Exploration & Development, which has total resources of 12.8 mmboe with a focus on high potential developments.
Trinidad - A well stimulation and production enhancement programme is underway at the company's 50% owned Icacos Oilfield, to lift current production from 30 bopd to around 150 bpd. Full re-interpretation and surveys are underway to identify step change production potential. Also, at Leni's 50% owned Icacos Deep Prospect, significant oil & gas discoveries have been made in the halo vicinity. High API oil has been identified, indicating a deep oil system. Seismic and area re-interpretation are planned.
Hungary - The PenZszlek Gas Field, in which the company has a 7.27% interest, has remaining GIIP potential of 22bcf with identified undeveloped discoveries. Production commenced in August 2008 at 4 mmscfd and a 3D seismic was executed at the end of 2008 to validate undeveloped prospects and accelerate incremental production. Elsewhere, at the Zala Basin Gas Play, in which Leni also has a 7.27% interest, multiple tight gas reservoirs exist on the border with Slovenia, with well stimulation and re-completion set to increase recovery.
Malta - The company has a 10% interest in a high potential exploration play with a highly prospective oil & gas basin. Four prospects and five leads have been identified with gross mean 2P STOIIP of 5.7 billion barrels and recoverable reserves of 1.484 billion barrels. A PSC has been signed with the Maltese Government to drill a 2500m well by July 2011. A second study phase is currently being undertaken to increase the chance of success with selected drilling locations.
Click for Full Charting facilities from ShareCrazy.com
Production
During January 2009, monthly production increased by 150% to 20,020 boe. Dividing it up into the company's operating regions: In Spain, production net to Leni, was 7,125 barrels, which was up by almost 10% on the previous month and more than 120% higher than historical plateau production. Oil sales reached a record of 6,935 barrels, representing an increase of more than 100% on historical monthly sales. In Trinidad, the Icacos Oilfield produced 900 barrels during the month, with net production attributable to Leni totalling 450 boe. The rapid progress is signified by highlighting that the oilfield was only pumping around 35 bpd in early 2008. Meanwhile, in Hungary, the PenZszlek gas field produced 1.67 million cubic feet of gas net to Leni during the month, with net production of 279 boe. This was down on the previous month, as the gas field was shut-in due to the failure of a compressor at the downstream gas processing facility. In the GoM, the company's interests held by Byron Energy currently produce approximately 5,000 boepd gross from the Eugene Island Field, with Leni's effective net working interest equating to a net monthly production totalling 12,000 boe.
The numbers demonstrate the success of the company's production schedule step change, reflecting the full benefits of its GoM interest and its Spanish enhancement programme. Having delivering significant month-on-month production increases and achieving record oil sales, Leni is in a commanding position with regards to its full-year targets, and of course, generating expanding and sustainable streams of operating cash flow.
Management
Executive Chairman, David Lenigas, has 25 years' experience in the natural resources industry, covering oil and gas, coal, precious and base metals. He is currently the Executive Chairman of Lonrho, Lonrho Mining, Lonzim, and Templar Minerals, as well as a Director of Vatukoula and GCM Resources. Lenigas is also the Chairman of the Audit and Remuneration committees.
Operations Director, Fraser Pritchard, has 20 years' oil & gas experience from most oil & gas provinces and international and state energy companies. He maintains a focus on securing investment for, and managing junior E&Ps from start-up into sustainable operations.
Finance Director, Donald Strang, has 15 years' experience in financial management predominantly within the natural resources sector. He is currently a Non-Executive Director of Lonrho and Vatukoula, and was previously the Chief Financial Officer and Company Secretary for GCM Resources and BDI Mining Corp. He has also held senior financial positions with Ernst and Young and several publicly listed Australian Resource companies.
Executive Director, Jeremy Edelman, has 20 years' corporate finance experience coordinating acquisitions in the natural resources sector. He has previously held directorships in listed companies in both the UK and Australia, with a focus on resource exploration and development, including investment companies established with the specific objective of investing in oil and gas projects.
*The value of investments can go down as well as up. Past performance is no guarantee of future success. Investing in equities can lose you part or all of your capital. The tips given here are of necessity, general. They cannot relate to the individual circumstances of investors. Anyone considering following the recommendations contained here should seek independent advice. Investments in smaller company shares, by their nature, can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares.
Financials
In the twelve months to 31st August 2008, the company recorded revenues of 1.91 million and posted a pre-tax loss of 40,000, mainly attributable to a non-cash item of 0.55 million relating to share options. It is worth mentioning that pre-tax operating profits from Spain alone amounted to 0.87 million. The basic and diluted loss per share equated to 0.01p, compared to a loss per share of 0.14p in the previous twelve month period. The balance sheet showed net cash of 1.85 million and net assets of 23.05 million, which consisted of intangibles valued at 20.23 million.
Financials
Leni is currently producing around 21,000 boe per month. With low operating costs of around $10 a barrel at present, the company enjoys a very healthy margin. The oil price weakness will not last indefinitely, and in the meantime Leni continues to drive down its operating costs, which are estimated to be trimmed to around $5 a barrel by the end of 2009. Meanwhile, production is rapidly being ramped up across the company's primary prospects, notably in Spain and the Gulf of Mexico. Assuming this acceleration continues according to plan, the company would - on a self financing basis - be looking to produce at 5,500 boepd by the end of the year, generating sizable and sustainable cash flows just the sort of thing investors are crying out for as the economy continues to reverberate from the profound effects of the financial meltdown and the extreme uncertainty it has bred.
At 5,500 boepd, Leni would be looking at c. 2 million boe per annum. Assuming a conservative average oil price of $45/bbl in 2009, and estimated average operating costs of $10/bbl, the company would be booking operational cash flow of $70 million (48 million) on an annualised basis. On a more bullish (and practical) outlook, taking crude at $60/bbl, annualised cash flow would be c. $100 million (70 million) and it is my strong belief that $60 is where crude should be.
Knocking off 4 million for central costs (far too high) and a 30% tax rate this is a company that should on my $60 scenario be throwing off 46 million a year on an annualised basis. Even at $35 oil this company should throw off 22 million.
At 2.125p Leni is valued at just under 13 million. My initial base case target price is three times cashflow at $35 oil plus net cash with the exploration assets in for free - that is to say 68 million or 11.1p per share. My long term target price uses $60 oil and the same formula and is therefore 140 million or 23p per share. I said that oil stocks are loathed and that is why Leni shares are so cheap. Now is the time to be buying. Leni Gas & Oil is a "buy" at 2.125p and at up to 6p with a base case target price of 11.1p.
Key Data
EPIC: LGO
Market: AIM
Spread: 2p - 2.25p (11.8%)
jimmy b
- 17 Mar 2015 11:17
- 156 of 222
LGO Energy aims to increase oil production in Trinidad
StockMarketWire.com
LGO Energy has announced that its wholly owned subsidiary, Goudron E&P, has now drawn an initial $11.78m from the $25m pre-paid oil swap facility agreement with BNP Paribas to fully fund the planned 2015 development drilling programme in the company's Goudron Field in Trinidad.
This funding will be targeted at significantly increasing oil production this year with the drilling of at least seven new development wells at Goudron, as a follow on from last year's successful eight well drilling programme, and also to upgrade the field's oil handling infrastructure which is needed to meet anticipated sales capacity through the second half of 2015.
Neil Ritson, LGO's chief executive, commented: "We are now entering one of the most exciting growth phases of the company and are delighted that this finance facility is now in place and that our development programme at Goudron will be carried out through a long term funding arrangement with a first class lending institution.
"As our business grows in Trinidad we look forward to the relationship with BNP Paribas growing to match our needs."
At 11:05am: (LON:LGO) Leni Gas Oil PLC share price was +0.06p at 2.48p
js8106455
- 17 Mar 2015 13:20
- 157 of 222
LGO Energy - USD11.78 m drawn from BNP Paribas facility & Goudron Field update
click here]
js8106455
- 30 Apr 2015 16:21
- 158 of 222
LGO Energy - Goudron drilling and field update
click here
LGriffith
- 18 May 2015 11:27
- 159 of 222
new video by Neil ritson, ceo of LGO:
link
LGriffith
- 03 Jun 2015 09:08
- 160 of 222
Neil Ritson talking about the annual reports and expectations for investors:
click here
2517GEORGE
- 11 Jun 2015 10:08
- 161 of 222
Usual sell off on the news, still holding in anticipation of significant sp appreciation.
2517
LGriffith
- 17 Jun 2015 11:20
- 162 of 222
New good news on Goudron project by the CEO:
link
jimmy b
- 12 Oct 2015 07:59
- 164 of 222
LGO's BOLT stake
StockMarketWire.com
LGO has completed the acquisition of a 25% stake in Beach Oilfield Limited with which LGO already holds an agreement to acquire the deep petroleum rights to all of BOLT's South West Peninsula interests in Trinidad.
Through this acquisition LGO also now has access to an interest in the shallow petroleum rights held by BOLT, including the producing Bonasse Oilfield.
LGO chief executive Neil Ritson said: "We consider the South West Peninsular of Trinidad to be a major medium term investment opportunity, especially the deep targets which have so far not been adequately explored, however, the acquisition of an interest in BOLT also gives rise to immediate access to shallower objectives including within the producing Bonasse
js8106455
- 12 Oct 2015 09:15
- 165 of 222
Watch: LGO Energy - Acquisition of a 25% stake in BOLT
Click here
cynic
- 13 Oct 2015 08:36
- 166 of 222
if you want to know why LGO is thought of as highly as UKOG, then look no further than the common factor of David Lenigas
this is not someone with whom one would even want to shake hands without checking that you still had all your fingers
i happened across - can't remember exactly - a news item on the television yesterday evening, in which UKOG was discussed ..... said it all!
jimmy b
- 19 Oct 2015 08:37
- 169 of 222
Not good news .....
http://www.moneyam.com/action/news/showArticle?id=5134787
LGO Energy (LGO), down 41.82% to 0.48p, has plugged well GY-678, Trinidad, after equipment was lost down the bore. Attempts to recover the equipment cost about $1.9m. The value of the equipment was about $1.5m and LGO may yet be liable for it. The well may yet be re-drilled to reach the extensive C-sand net oil pay zone previously drilled and logged in the well
cp1
- 03 Nov 2015 14:39
- 170 of 222
Not sure what's more shocking here.
a) people still buying
or
b) £17 million market cap.
in a race to the end alongside CAZA.
cynic
- 03 Nov 2015 14:59
- 171 of 222
sorry for you guys holding these, though it has long been one to avoid along with UKOG - see post 166
but you aren't alone ...... advfn has threads for both the above, on which i got roundly abused some time back for daring to suggest that both companies were as good as saturated cardboard
jimmy b
- 03 Nov 2015 15:17
- 172 of 222
I never bought in here just had it on my watch list , i wouldn't touch any really small oilers .
Bullshare
- 05 Nov 2015 09:59
- 173 of 222
Neil Ritson is presenting at one of our evening events on 19th November, main topic is Solo but I know already a few LGO shareholders will be there to talk with him over drinks!
Shares Investor Evenings showcase up to four presentations from leading companies bringing them together in one room for one evening only.
Directors present their latest plans regarding development and growthAn opportunity to talk directly to the companies and personally put forward your questionsThe chance to network with other attendees over drinks and canapés - private investors, wealth managers, private client brokers, fund managers and financial institutionsWho Should Attend?
The evening exposes investors to companies across various sectors. Perfect for existing investors as well as those looking for new investment opportunities.
Date:
Thursday 19th November 2015
Venue:
Novotel Tower Bridge, London EC3N, 10 Pepys Street, London, EC3N 2NR
Event Timings:
18.00 | | Registration and coffee |
18.30 | | Presentations • David Reading, CEO & Director - Aureus Mining (AUE) • David Hornsby, CEO - Ideagen (IDEA) • Dr Jim Phillips, CEO - Midatech Pharma (MTPH) • Neil Ritson, Chairman - Solo Oil (SOLO) + More to be announced |
20.30 | | Drinks reception and canapés |
21.30 | | Close |
Attendance is free, but spaces are limited.
Register now to secure your place!
Aureus Mining (AUE)
 | | Aureus Mining Inc, through its subsidiaries, is engaged in the exploration and development of gold deposits in highly prospective and under-explored areas of Liberia and Cameroon. Aureus Mining’s activities are currently concentrated on the development of the New Liberty Gold Project in Liberia. The Company also owns 100% exclusive rights to the Weaju, Gondoja, Ndablama and Leopard Rock projects in Liberia and to the Batouri gold project in Cameroon. Our Vision is to be an African mid-tier gold producer with a brand recognised for sustainability, innovation and good relationships with the local communities. |
Ideagen (IDEA)
 | | Ideagen Plc is a supplier of compliance based Information Management software with operations in the UK and the United States. We specialise in eGRC (Enterprise Governance, Risk and Compliance) and Healthcare solutions for organisations operating within highly regulated industries. As authors of an excellent portfolio of software products, Ideagen is able to provide complete content lifecycle solutions that enable organisations to meet their Regulatory and Quality Compliance standards, helping them to reduce costs and improve efficiency. Our Mission Statement is: “To enable our clients to improve their organisations by providing the tools which can help improve customer service, increase efficiency, reduce risk, enhance compliance, and lower costs". |
Midatech Pharma (MTPH)
 | | Midatech is a nanomedicine company focused on the development and commercialisation of multiple, high-value, targeted therapies for major diseases with unmet medical need. It is advancing a pipeline of novel clinical and pre-clinical product candidates based on its proprietary drug conjugate and sustained release delivery platforms with a clear focus on the key therapeutic areas of diabetes, cancer and neuroscience/ophthalmology. Midatech’s strategy is to develop its products in-house in rare cancers and with partners in other indications, and to accelerate growth of its business through strategic acquisition of complementary products and technologies. |
Solo Oil (SOLO)
 | | Introducing Solo Oil - Oil and gas Investment company- Listed on the London AiM Market (SOLO) Objectives To acquire and develop a diverse global portfolio of oil & gas assets Portfolio Non-operated oil & gas assets: - Major stake in the prolific Ruvuma Basin, Tanzania- Interest in Kiliwani North (KNDL), Tanzania- More than 5 tcf of prospective resources identified in Tanzania- Ntorya-1 (Tanzania) discovery flowed 20 mmscfd and 139 bopd- Participation in UK Weald Basin exploration projects, including Horse Hill- Strategic investment in Burj Africa, West Africa- Enhanced Oil Recovery project in Ontario, Canada |
Sponsored by:
cp1
- 07 Dec 2015 16:02
- 174 of 222
I think this will beat Caza to the bin after today's rns.
NTOG trying to get involved though that one has always found cannon fodder to sell new shares to in the past so may be able to last longer.