LGO Energy Share Discussion Threads

[jcgswims] 10/5/2017 19:34

Interesting article on our new Boss

28/09/2016



A former North Sea oil boss is amassing a $500million energy sector investment fund with a difference.

Leo Koot, who was managing director of Middle Eastern firm Taqa’s North Sea unit for five years, said the fund would “take an active interest” in the businesses it invests in.

Mr Koot said: “We want to get involved in a business opportunity, understand and develop the business proposition, creating solutions for the problems it might have.
“Our expertise and capital will allow the business to get to sustainable value growth.”
Mr Koot said that if he cannot go into a company and contribute his expertise, he won’t invest in it.

The Dutchman said he was “excited” about launching the fund, adding “now is the time to get in − buy low, sell high”.

Two Abu Dhabi-based companies owned by Mr Koot are working together to create and manage the cash pot.

Mena Gulf Investments is the investment vehicle and Avanti Energy LLC is the management and advisory company.

Mr Koot, whose family home is in Maryculter, said he was already half way towards reaching the $500million target, having attracted a mix of individual and institutional investors.

He plans to invest in energy companies which are robust enough to ride out the current downturn.

The aim is to provide equity returns in excess of 15% on investments typically ranging from $25million and $75million.

A variety of companies across the world are being targeted, including those specialising in upstream E&P, energy services, renewables, power, petrochemicals and human resources.

Mr Koot said 10 to 15 companies have already been identified as having investment potential.

He said: “We are looking to create growth in the energy sector. People in Aberdeen have been focusing on operational performance, cutting capex, doing more with less and trying to survive.

“It’s been going on for nearly two years now but at some stage you’re finished. You can’t cut anymore, so to sustain a business you have to come up with value growth.

“By now a business will have adapted to the new reality and the focus needs to be on building a sustainable growing business in the present volatile energy environment.”

Mr Koot said he believed oil would trade between $45 and $65 in the long term, albeit with some short-lived spikes thrown in.

He said: “In the short term we will see a lot of volatility, a lot of ups and downs. In the next two years there may be an oil peak because of a lack of investment. The whole world has stopped investing so that will affect supply, which will drop below demand – we will see panic from traders driving up prices.

“But that’s not a solid assumption to use as a foundation. We will only invest in businesses that are robust in our price band.”

[fardels bear] 10/5/2017 19:13

This is the "I told you so" post.

[brasso3] 10/5/2017 18:58

Watched that presentation twice now.

This guy oozes class and could not be further apart from NR!

[j284] 10/5/2017 17:54

Ozz, no comment on the departure of CEO of the year who I was so negative about?I was there today, ritson is simply woeful when compared to the credentials and potential of his replacement. NR should have gone ages ago.

[ccr1958] 10/5/2017 17:26

Now I am all for a new `broom`, but how`s the financial position looking ?

[nexus7] 10/5/2017 16:37

LGO Energy - Investors strategy briefing
Leo Koot
Wed, 10 May 2017, 6:00am GMT+1

[jcgswims] 10/5/2017 16:22

No problem, I've cleared the header a little also. Not sure what will happen to the bb once LGO changes it's name. If it doesn't swap automatically I'll set up a new bb once the name change goes through.

[carpadium] 10/5/2017 16:12

jcg..many thanks for adding today's live webcast onto thread, shall listen in tonight.

[jcgswims] 10/5/2017 15:53

From bigmj

RE: Today's meeting Today 15:47

Yes for sure he will bring in more of his own team. I asked Leo why someone with his CV and his choice of jobs chose LGO, he was very direct with his answer and said the assets and potential of the company are outstanding and he believes there is an amazing amount of previously unaccounted for oil there.

[bsg] 10/5/2017 15:47

The only way this will multi bag is if they find some decent amounts of oil and cut the drilling costs.

[j284] 10/5/2017 15:46

Which two were the "big" guys at the presentation?

[jcgswims] 10/5/2017 15:41

From bigmj

Today's meeting
On my way back from the meeting now, attended with BigDouble and enjoyed meeting the new team. Very happy with the team and their plans and stayed for a few 1 to 1s after it finished . I truly believe that we are well set for recovery now and share price for sure will multi bag from here. Don't need to ramp and never have but will most likely put my money where my mouth is and top up again soon

From bigdouble

Can confirm bigmj post, seems we have an excellent team in charge of LGO. Looking forward to increasing holding soon.

[j284] 10/5/2017 15:36

Genuinely for the first time ever I'm not bothered if the share price dips a bit, it's a good chance to buy some more in my view. For the first time in over two years I am now optimistic.

[nervousnovice] 10/5/2017 15:34

Well that rally fizzled out quick

[nexus7] 10/5/2017 15:27

From ross Today 15:12
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Did like that he
had such a clear view on Spain. Hoping that he sits down with the FD, has a good look at where the money goes and makes quite a few more decisions like that. He certainly talked a good game - if I was an LTH I would be cautiously optimistic.

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From ross Today 15:17
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Share price reactionsuggests that things may be a little boring for a while, but that's not necessarily a bad thing. When asked about Cedros he could have given it all that but he chose not to. Not a Lenigas man, obviously!

[nexus7] 10/5/2017 15:20

From longtrader Today 14:56
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Encouraging to hear
The words "Shareholder value" spoken from Leo. He has had a month to gauge opinion and get a handle on the fundamental problems of the past. Already looking at cutting away the dead wood in Spain and concentrating on core value assets. Well done to BigMike for letting the room know what a lot of us think of the way this has been mismanaged in the past.

[nexus7] 10/5/2017 15:17

From harhoo Today 14:50
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impressed
clearly keen to enhance shareholder value and not just use placings - increased oil production will underpin future growth - billions of $ of oil and now a plan to realise the resource - thought kooty was very credible and well briefed.

[j284] 10/5/2017 15:17

Just left the presentation, the new fella is serious quality. I suspect he is going to make some fundamental changes. I'm far happier than I was this time yesterday.

[nexus7] 10/5/2017 15:16

From steward1 Today 14:50
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I'm happy Good first impression. Sounds as if he knows his stuff, has a good reputation, has done his own due diligence and he's got a plan. Looking good.

[nexus7] 10/5/2017 15:14

From JR710 Today 14:46
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Great start, Welcome LeoSo we are going to do a mix & match approach including some of the excellently valued stuff (cheap) as in H2 2016 where for approx 500k we saw off, a possible drop in production of 120-150 bopd. ie 135 ave bopd for 500k instead of the 80/90 bopd for a mill. I think he's got it. Love it when a plan comes together. whoop whoop !! gla JR

[edgein] 10/5/2017 15:11

TRIN have a huge workforce to pay, that's part of the reason their $40m cash balance went to practically zero even when they were producing similar levels in the past.

Dodge, I hope that wasn't you that got raped at 1.96p a few minutes ago. The new engineer chap is heading straight over to T&T to get stuck in and get the pump optimizations to peak rates. New CEO is quite confident that production can increase from little spend. Once their list of priorities is in hand its gonna be all guns blazing. He already said they're gonna hit the ground running and after a month getting familiar with the assets he's ready to go.

Regards,
Ed.