|Oil Pessimists Exit Market as Supplies Seen Closer to Balance
|From Goldbullion (John) on LSE Today 13:57
I have recently purchased shares in LGO. I now hold a sensible amount.
I decided to buy back into LGO for several reasons, and I have waited patiently for a few things to change within the company and also the wider oil sector...|
|grannies attempt to justify why this is a buy shows why he tends to stick to one line ramps.
He is genuninely clueless.|
|What a good argument you make, northzy.
Have you tried 'I've got a bigger willy than you?'. Thats always a good one for getting folks to buy your share.|
|emily stop coping my posts, and passing off as your own, cheeky rat :)|
|That's OK then. Just as long as they're not going rusty in his shed or being auctioned on eBay.|
|defo no lact, not sure about the 10k tanks, but 2000bopd+ tanks are all we going to need, them 10k tanks were just nr ramping back in the day,|
|I've seen no word on the additional storage tanks since the talk of laying the footings and building the bund. Also no mention of the LACT meter. Anyone shed any light?|
|thats the way bud, only way some of the high average peeps are gonna make profits is to load some sub 0.30's, no one likes to average down, but they will have no choice here, forget 1p+ imo, thats next year after gs wells come, like alfie, u got to change with the investment|
|My average was 3p +.....bought in again 0.28....average is now 0.65p..solely to breakeven anything extra bonus|
|eh? what do you mean bud|
|Why would you buy a share to break even Granny?|
|if peeps got a higher average then 0.80, best they start averaging down now|
|jacks bud, i know when to be sensible on entry and exit prices, no point in saying 1.25, as i dont think it will come, but my target is my own research and i think you will see it smashed between now and end of the year, creditors will be given shares at hopefully higher share price in a couple of months, so now we have £3m odd to boost production, maybe a placing around December at 0.80? to clear debt and dollar for gs plan, lets sat they need $10m to clear decks and money for wells, that will do me :) no peeps even mentioned all that money spent on infrastructure before, its all there for higher production bud, no more bottle necks imo, like i said, first time we will see production increasing after its been falling for a year|
|Good Post Granny , Yes if old NR keeps his eye on the `ball` a little better , and PoO helps us out we should `sail`on !!! ccr.|
|Thanks granny. I know that grannysnuff (i’m assuming that was you) did call this correct all the way down, so I know you’ve got a good handle on this company.
So in summary:
gone back to their knitting
placing price is the new floor
is a producer
production expected to rise
drilling not contracted out
oil price has risen
infrastructure in place
debt problem being dealt with
other assets, (Spain and Cedros)
renewed licence expected for Spain
Looks a decent list and I’m happy to stay in on that basis. You mention further placings, and that does seem to me a certainty unless they were able to sell the Spanish assets after licence renewal. Is the prospect of another placing the reason you expect to get out at 80p or is it that you just like to bank profits on the way? Again thanks and respect for your considered reply.|
"A number of creditors of LGO's wholly owned subsidiary, Goudron E&P Limited, have agreed to be paid by the Company in shares through an approved placing agent in London who will ensure an orderly market if and when the shares are sold. The total value of invoices being settled is approximately GBP0.9 million of a net creditor balance of approximately GBP1.6 million"
From May 4th
"The net funds raised by way of the Placing Shares will be used as working capital by the Company. As a result of these funds being raised, agreement has now been reached with all material trade creditors outstanding from the 2015 drilling campaign in the Goudron Field in Trinidad ("Goudron"). Further announcements on these arrangements will be made in due course. This allows the Company to refocus its efforts on increasing oil production from Goudron"
From the LGO website FAQ
"2. Corporate - Can you explain what share payments to creditors will be made and how?
In our announcement on 4 December 2015 and 4 May 2016 we indicated that we had reached agreement with various creditors to settle their outstanding invoices in LGO shares and thereby conserve cash. A total of approximately £1,750,000 has been agreed to be settled in this way. Shares will be allotted at the market price once the individual creditor arrangements are completed and we will make a separate specific announcement at that time."
I think this is a good thing... the longer it takes the better.... Give the share price a chance to rise.
Would also point out that this could happen after the next AGM...first week of July? I do not know how many shares are left that they have permission to allocate but they may have to wait until the AGM for new permissions to satisfy the creditors.|
|I will grant its looking undervalued but I thought it was undervalued at 2.40p This stock has a nasty habit of surprising on the downside and the dilution is massive. When I bought in it was circa 1.5 billion shares now some 5.6 billion shares. We also do not know how many creditors took the shares and how many cash. So we really dont know the cash position going forward for well recompletions. It also failed to close below my further buy re-entry point of 0.22p. A long term bull, hitherto, ROSSANNNN is cautious. So Wait and see for the moment whether the rampers or the fear mongers hold say. Director buys would be encouraging but the key is information about cash reserves and work overs. All the rest of it is Blah Blah.|
|Very good post granny and totally agree with that. I think we will see DL topping up with more shares soon. He's not going to let this gift go without loading up huge.|
|jacks bud, i will keep it short and simples, i have always called this right up and down, never been in love with a share, we are all here to make some dollars, i called this from 0.64 to 5p, ok it made more, but that was on herd run bud, i then called all pull backs and all bounce backs, did i not tell you it would hit low teens, and that call was made at 1p+, once the decline news was public, it was overpriced big time, granny then waited almost a year for the share price to be right and its right now bud
cheap workovers, completions etc is lgo bread and butter,nr just got carried away with 664 and 670 thats all, he ignored the core business of low spends, and went on a spending spree with shareholders dollars, it floored last week, and cash has come in to pay off creditors and fund cheapie wells, £11m market cap with a field with 800m barrels, already has infrastructure and is producing oil, dont take much to work out it undervalued bud. production will go up from now on and not down for the first time in a year imo, we are at around 450, throw in the last two completions and we should be about 530, next 5 will get us to 730 and a few more for a target of 900-1000 imo by the time 2016 plays out, all work is by our own rigs and staff, oil at $40-50 will get on on breakeven after bank and admin, another placing at end of year and we will get gs wells program fired up and away we go, so bud whats a producing field, all infrastructure in place and recently upgraded to take a lot more, 800m odd barrels floating under it, and debt of $4m only, yep a market cap around £35m+, oh i almost forget, spain and cedros, new licence for spain, sell or jv and pay off debt, jv for cedros and get that one rolling, and we have market cap around £40-50, thats where it is bud, if peeps cant see it now, they never will, simples|
|will do bud, on beer tonight, maybe tomorrow
granny macy :)|
|granny, I’ve got a job for you while the markets are closed and you’ve nothing else to do. Will you write up an investment case as to why the lurkers should follow your advice and invest in LGO? I can’t include myself as a lurker any more because I went and bought some last week.
I don’t mean the usual blether that the rampers like your deputy 12bn spouts. No, I mean a rational list of reasons explaining why you think the company is now on the mend, at least on the mend to the extent that you expect to see 0.85p in the near term.
A list of bullet points will do and I don’t mind if you bring in one of your advisers to assist, although I know you don’t really need any help. Will you do that granny? You could even post it in the header. Who knows if you do a good enough job you may be able to start a ‘Malcy’s Blog’ type thing, renamed of course, something like ‘granny’s trading gems’.
p.s. guesses, such as DL will rejoin the board and the share price will jump 20% on the news are strictly not allowed.|
|Jeeez, you guys are ill.|