LGO Energy Share Discussion Threads

[jcgswims] 10/5/2017 14:58

No doubt the traders will jump off now as they seek short term opportunities elsewhere, which is fine by me. I'm a LTH and if Leo sticks to his plan and delivers his 3 year vision then I will be very happy.

[edgein] 10/5/2017 14:48

Sounds like a very focused strategy though from a team with a proven track record. He's brought a field engineer with him too, who is going straight over to T&T to get stuck in and come up with that to do list. Good to have a mature field expert on the scene, will be interesting to see how the Goudron production profile increases over the short term. Initial pilot pressure support/water flood seems to be priority.

Regards,
Ed.

[jcgswims] 10/5/2017 14:45

Yes indeed, he came across well and I'm more optimistic now that things will change for the better, in both strategy, communication with shareholders and future management of the business.

[ccr1958] 10/5/2017 14:41

Thanks for the link jcg ... lets hope we are turning a corner and in the right direction ,talk is cheap and expansion costs money !!

[ccr1958] 10/5/2017 14:37

Is This Leo`s day 1 by any chance :))))

[dodge city] 10/5/2017 14:19

Looks like everything is on hold pending reevaluation of the business. I don't see this going anywhere soon.

[edgein] 10/5/2017 13:50

"Building an oil production led South American exploration business." Sounds like a possible expansion of current direction.

Regards,
Ed.

[jcgswims] 10/5/2017 13:12

Link now live to submit questions

[theprototype] 10/5/2017 12:14

rossannan

It doesn't matter how much oil Trinity is producing its profits that matter. Their unadudited accounts for 2016 put losses at $7 million. Trin have already been bankrupt and like LGO only got back into the game via $15.0 million in a placing and convertible loan notes.

Wait for the audited accounts for 2017 and I'll wager they show another large loss.

[edgein] 10/5/2017 12:13

Excellent volume again like yesterday, market seems to be taking the news very very well. This guy is significantly experienced with large north sea field development and will be a specialist in pressure support (most north sea fields come onstream with water injectors as pressure support). Its great to see that he recognises the potential of Goudron and the other assets even though the market currently doesn't. We'll soon be starting the programme of converting wells to water injectors/pressure support wells in the C sands to aid in EOR. Great to have this guy at the top managing this development and the active drilling of the infill wells too. If you wanted a highly experienced chap to get at that 1bn bbls STOOIP this is the guy to give it a go. I wonder will he take LGO back into his old feeding ground too. He'll have a list of contacts in the NS oil industry, and financial muscle from Abu Dhabi, as long as your arm.

Regards,
Ed.

[scotty1] 10/5/2017 12:06

In English please :)

[theprototype] 10/5/2017 11:28

From Ritson:

“After a difficult couple of years in which the Board and I have restored the balance sheet the Company is now able to chart a new course and that requires new leadership.”

From Koot:

“The Company's current asset portfolio is strong, we are growing our production and generating cash. We are seeing ever more investment flowing back in to the sector. These are excellent fundamentals from which to grow the business”

Well Neil you did restore the balance sheet but only by diluting LGO’s shareholders to oblivion.

If LGO are growing production and generating cash there why is there any need to chart a completely new course which is such a radical departure from the old plan that it requires a new leader?

One wonders if Leo Koot is a new broom or just a new handle in that the old head has been begged by the board to stay on for 12 months in an advisory capacity. £250,000 in consultancy fees right there one feels. Will Neil still be writing the RNS one wonders? Is he already putting words in Koot’s mouth? Perhaps not as one would have expected Ritson to have said ‘These are excellent fundamentals from which to grow the business and increase shareholder value’.

Using some reasonably informed guesswork and reading between the lines - then following the recent RNS detailing depletion in their new wells at rates of 30 and 40% within weeks it’s starting to look reasonably clear that Ritson could not conceal depletion in the GS any longer and future production news would expose his misleading fund raising suggestions that wells in the GS would only deplete at 20% per annum.

With Ritson stepping down, the company being renamed and charting a new course - all suggests to me that they are going to virtually call it a day at Goudron. I am guessing they will announce that they are to put the shallow infill well program on hold and leave Goudron ticking over in the background supposedly generating cash whilst they shift all their new developments to the rest of their portfolio which I assume will be Cedros and/or the newly acquired Bonasse field.

It is possible that they could announce that they are going to press straight ahead with an all out water-flood at Goudron but I feel that is unlikely given that such a water-flood was always part of the old plan so it would not exactly be a new direction that required a new leader.

Essentially this looks like Colombus Energy Resouces is going to back to square one as an oil company with a cold reset of the jam tomorrow business of losing money drilling for oil in T&T.

Unfortunately it is not particularly Goudron or Ritson that is the underlying problem. No-one makes money drilling in T&T. Trinity, Touchstone, Range, LGO etc have all burnt through millions and this reset will not make any difference in the long run.

Given that the strategy briefing is being held in VSA’s offices, it is reasonably likely that this briefing will also include the announcement of a big new fund raising via PrimaryBid. One can hear the pitch already. ‘Following the success of our over-subscribed share issue via PrimaryBid we are pleased to offer private investors the democratic opportunity to subscribe to a new offer to give Colombus Energy Resources PLC the capital platform to aggressively develop the exciting opportunities in its strong asset portfolio’.

Growing the business from its typically poor Trinidadian asset portfolio is going to require massive amounts of new capital that can only be raised via new debt and placings and perhaps a joint venture. Having reinvented itself this could basically amount to a new virtual IPO.

Will it work? Probably. “We are seeing ever more investment flowing back in to the sector”. Long term investment in the oil business is complete insanity particularly in US shale where they rack up losses that make LGO’s look like a penny piece received in the smallest of change. Yet investors keep insatiably buying the energy sector’s bonds and new equity issues with complete disregard of its losses year after year.

Will Columbus Energy Resources PLC ever make a profit? No: but that doesn’t seem to matter in the new normal.

If things do indeed pan out this way then it raises serious questions about VSA’s daily broker buy recommendations and target price of 22p as they were entirely based on the old plan which overwhelming depletion has finally killed off it seems.

Without Lenigas, Ritson and Goudron the LGO horror story is finally coming to an end. CER will be a completely new book that will ultimately tell the same story. I've wasted far too much time following the LGO saga and I don't think I can bear to read the sequel.

[master rsi] 10/5/2017 10:52

finally the 2.30p bid has come and with only 125K buy and then another 150K a minute later

[master rsi] 10/5/2017 10:33

Wants to go better

Has been holding at this price for a while and slowly the buys are large than sells
Since the level 2 has improved, but not yet the share price, just needs another good buy 150k+

spread 2.25 v 2.40p
Level 2
2 v 1

[brasso3] 10/5/2017 10:22

I expect they have invited some new investors along to this presentation and strategy review. Things should improve now over the next few days as this news spreads. I have personally always avoided Lenigas companies and this was a rare exception due to the large reserves. Now this cloud (name change) and the NR cloud is removed we have a clean slate.

[nexus7] 10/5/2017 09:40

From substp Today 09:00
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..

[kwizza] 10/5/2017 09:27

Perhaps Columbus will discover something new in Trinidad

[j284] 10/5/2017 09:15

Got to be a good thing. Hopefully that is now a clear break with the past, no more of the ritson/lenigas era. Hopefully this new fella is a bit shrewder when it comes to PR and news releases, certainly couldn't be worse than NR.

[ccr1958] 10/5/2017 09:02

TN,LGO defo needed this change can only be positive , NR has been under pressure for a good while, some of it his own making ... I wish him well as well as Columbus Energy .. :)))

[the guardian] 10/5/2017 08:53

Very good news for all LGO holders. Hopefully, although we may still need to raise funds, we will not see placements when the share price is already at its lowest.Dare I say .....onwards and upwards.