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Leni Gas & Oil PLC (LGO) >>> Tipped to go Skyhigh! (LGO)     

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%)

cynic - 07 Dec 2015 16:56 - 175 of 222

LGO, UKOG, REG and any other company that this scumbag has anything to do with should be avoided like the plague

tried to tell peeps on advfn and perhaps here a few months ago and was roundly abused for the pleasure

2517GEORGE - 07 Dec 2015 17:14 - 176 of 222

Not by me.

It looks like my holding in LGO (don't hold the other 2) is next to worthless, however whilst I still hold quite a few I off-loaded the rump @5.45p about 14/15 months ago for which I paid an average of 1.40p so I made good money overall from what now seems to be just a rag (oily). It's still annoying though given the drilling results to date.
2517

mentor - 17 Nov 2016 08:58 - 177 of 222

KEEP an EYE

0.10125p

Has been moving higher during the last week as it reached a low of 0.875p

any of those could be true
Re-finance

Spanish oil sale
Licence extension - Spain
In fill wells flow results
News on drilling programme
EOR timetable
Cedros partner
More favourable Petrotrin terms
OPEC agreement
1,000 BOPD

Chart.aspx?Provider=Intra&Code=LGO&Size=

cynic - 17 Nov 2016 09:00 - 178 of 222

aaarrrrgggghhhh!
is that crook lenigas still involved?

at least he seems to have backed out of REM (don't hold those either) though his smell still pervades

mentor - 17 Nov 2016 11:45 - 179 of 222

Something is going on as volume reaches 250M and share price at 0.011125p after reaching 0.01175p

mentor - 18 Nov 2016 10:34 - 180 of 222

Falling Wedge

The falling wedge can either be a reversal or continuation signal.

As a reversal signal, it is formed at a bottom of a downtrend, indicating that an uptrend would come next.

grade7-falling-wedge-reversal-after2.png

http://s3.amazonaws.com/babypips-media-production/images/2016/05/grade7-falling-wedge-reversal-after2.png

mentor - 18 Nov 2016 11:17 - 181 of 222

and gone to 10.75 v 11p +0.025p

one hour delayed BUY trade for 40M shares
interesting to see some interest once again

09:57:36
0.1075
40,000,000
£43.00k

p.php?pid=staticchart&s=L%5ELGO&width=60

mentor - 06 Jan 2017 14:20 - 182 of 222

KEEP an EYE

0.10125p ( 0.10 v 10.25p )

It went all the way to 0.155p not long ago and after the large retracement, and bounce from the lows this morning, could bee ready to better things again.
Positive level 2 of 2 v 1 and buyers paying full offer and even premium 0.1234

Chart.aspx?Provider=Intra&Code=LGO&Size=

mentor - 06 Jan 2017 14:46 - 183 of 222

since

earlier someone paid 0.1034p earlier, premium for 3.8M
another was prepared to pay 0.104p and the only MM left gone to 0.1050p
now the Level 2 has improved again as there is 2 at bid 10.25p

Level 2 is 2 v 1

what moved the offer........
14:29:0
0.104p
961,543

mentor - 06 Jan 2017 17:02 - 184 of 222

Finished the day at 0.105 v 0.11p +0.0037 (+3.61%)

That means the Closing Candlestick is a "HAMMER" and that means reverse on the share price
---------------
The HAMMER
The Hammer is an extremely helpful candlestick pattern to help traders visually see where support and demand is located. After a downtrend, the Hammer can signal to traders that the downtrend could be over and that short positions could potentially be covered.

HammerAIGchart.gif---- p.php?pid=staticchart&s=L%5ELGO&width=60

mentor - 08 Jan 2017 23:23 - 185 of 222

Downtrend over, now on the bounce after retracement from 0.15p

p.php?pid=chartscreenshot&u=gNzO3M33PXif

A strange % of retracement 88%
p.php?pid=chartscreenshot&u=8mbYIi81Or4E

mentor - 10 Jan 2017 17:23 - 186 of 222

0.11375 +0.0063 (+5.81%)

continuing with the change of trend with very good volume as is rising 202M
WINS has been playing with the bid price on the afternoon moving to 0.115p and then down to 0.11p a few times.

Chart.aspx?Provider=EODIntra&Code=LGO&Si

mentor - 11 Jan 2017 12:25 - 187 of 222

0.1225p +0.00875p (+7.69%)

another good movement up with volume 241M so far on Half day

Chart.aspx?Provider=Intra&Code=LGO&Size=

mentor - 12 Jan 2017 09:37 - 188 of 222

0.12875p +0.00875p (+7.29%)

A good rise so far and with volume as usual 65m so far

Chart.aspx?Provider=Intra&Code=LGO&Size=

mentor - 13 Jan 2017 10:02 - 189 of 222

0.14625p +0.015p (+11.43%)

another good rise from the start, has reached 0.15125p almost like the last intraday high last month of 0.1525p

mentor - 31 Jan 2017 13:11 - 190 of 222

It is a long time since the last time I was here, it went to 0.1575p on the spike, I did wait for the next day as it did not go further up than that price and I did sell @ 0.1455p on the 16th.

I have been following the stock since with the idea of buying again and 2 days ago I did a retracement chart and 0.11p was an important point, with maximum retracement

So I bought this morning at 0.109p, as the level 2 was very bullish at 3 v 1 and the real spread buying / selling was 0.1078 v 0.109p

p.php?pid=chartscreenshot&u=14k59nvXF43q

mentor - 01 Feb 2017 09:56 - 191 of 222

0.1125p +0.625

RE: Time to bounce - Today 09:28
CEFD got a shock with the 2M buy and went up 0.50p on the price, nice to see the buy are still on a NO sells, no wonder the bid price is higher also.

Today 09:51
This time was WINS with the 10M buy who got the deal and certainly it moved into the bid 11p, so now 2 there

p.php?pid=staticchart&s=L%5ELGO&width=360
MAM chart does not give the propper price

mentor - 08 Feb 2017 12:04 - 192 of 222

0.12p +0.0087p (+7.87%)

going places today as the volume reaches 78M

mentor - 09 Feb 2017 15:30 - 193 of 222

0.1225p +0.00125p

Some very large trades not long ago got the stock at best of the day as now buyers are paying full offer 0.125p

PROACTIVE INVESTORS - 11:52 09 Feb 2017
LGO Energy's Neil Ritson 'hoping to move quickly' to re-establish Spanish production

LGO Energy PLC (LON:LGO) executive chairman Neil Ritson talks to Proactive about the company's intention to re-apply for the production licence at the Ayoluengo Field in northern Spain.

The field was operated by its subsidiary Compañía Petrolífera de Sedano (CPS) until the termination of La Lora Concession on 31 January.
--------------
Trinidad - Forestry stuff resolved.
video from CEO

http://www.proactiveinvestors.co.uk/companies/stocktube/6894/lgo-energy-s-neil-ritson-hoping-to-move-quickly-to-re-establish-spanish-production-6894.html

mentor - 10 Feb 2017 10:21 - 194 of 222

0.13375p +0.0087 (+7.00%)

Another good move up today, oil price on the rise helps, a spike at 9am to $ 56.25 + $0.55p

big.chart?nosettings=1&symb=UK%3algo&uf=
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