Lekoil Share Discussion Threads

[ghhghh] 11/12/2014 12:58

The CEO not receiving salary so is this a tax saving plan?

Be interesting to see if he now buys some shares although may be inside. Dec YE will be closed.

Bottom line is that Lekoil has a major oil discovery in shallow (90m) water close to shore. Had about $60m cash and should still have most of this left. Otakikpo should be dropped unless economics compelling. This will free up the cash pile.

The most important bit the the quality of the BoD. Are they a corrupt bunch of theiving liars or top drawer. My view, as far as I can tell, is that they are pretty top drawer for a company of this size.

Hence imo the 'only' risk is Nigeria imploding if oil price goes too low too long. Otherwise I'm just price averaging down since will bounce. Last month went to 31p and immediately bounced to 40p. Then wait for oil to recover, my guess by Q2 2015

[foxx999] 11/12/2014 12:54

Not in the Quindell league, but it's stumped me a bit... Especially...."Other than a bonus, from May 2013 until November 2014, Lekan Akinyanmi received no remuneration in cash from Lekoil."So he's previously received no cash, well apart from some of course and other benefits... I just find the timing strange. I wonder if he's gonna buy shares with it... Wouldn't surprise me but at the same time, it would annoy me to find out in two stages....

[ngms27] 11/12/2014 11:52

That's a big red flag against management if I ever saw one

[odvod] 11/12/2014 10:28

Take loan share price falls lend the cash to the friend and buy cheap shares. not a job to do.

[ntbb] 11/12/2014 10:26

i would of thought these directors get paid very well, this is the problem with these companys you only need to look at russians company where directors take loan and dont pay back, scums

[foxx999] 11/12/2014 10:21

Just seems like particularly bad timing for me. What's he need the cash for - all in one slug. Not sure what to make of it to be honest.

[zengas] 11/12/2014 10:03

Bit of a bad time to be taking a loan considering we are seeking debt financing and I don't like it either.

This means technically we have to seek $1.5m more than we would otherwise need because that loan to the director is for 3 years. It will be interesting to see what our debt financing costs us (if achieved) compared to the interest charged on the directors loan.

[stun12] 11/12/2014 09:43

ntbb, I don't particularly like it either, but LEK is sitting on a fair amount of cash which it's not burning yet. Cash earns nothing in the current ZIRP environment, so at least the company gets a return on it. The statement that the director hadn't been taking any remuneration from the company also suggests that the loan will be gradually repaid using what will be owed to him, IMO, though the RNS was vague enough to allow other interpretations.

[ntbb] 11/12/2014 09:27

why is the bloody director taking loan from the company?

[oil man] 11/12/2014 08:55

In for some more!!

Many thanks 31.25 27.75p 23.75p Average 26p

Many thanks

[foxx999] 11/12/2014 08:16

T... Timing is Everything

[oil man] 10/12/2014 23:36

Wonder if we will rally before Christmas funny thing is oil is dropping a few
percent every day and the companies dropping 10% day after day.

There will be a mighty bounce at some point this can not keep continuing

[bhoytrader] 10/12/2014 21:36

I think General Danjuma may have other ideas for Afren to be honest......

He's been very quiet and early in the new year he can come in with a low ball offer (i.e. 3 months from his previous purchases in the 90p - 105p area so no need to match that price).

Just a hunch.

[zengas] 10/12/2014 21:33

Afren had $720m of 'net' debt at June 30th when boe prices were average $90/b in their h/yr results figures. I'd say AFR could be more of a takeover. Personally don't see how a merger would benefit either 2 companies and particularly not LEK.

Maybe the likes of Africas Seplat on similar revenues/production to AFR

"Strong financial position - cash at bank US$435 million with a further US$453 million placed as a refundable deposit against potential investment; debt repayment of US$39 million in Q3 reduced gross debt to US$590 million".

[foxx999] 10/12/2014 21:21

Lekoil do have $60mm cash in the bank. That should be more than enough to get Afren in a week to two the way it's going....

[foxx999] 10/12/2014 21:15

Thats a good call cox. Hope so

[coxsmn] 10/12/2014 19:31

My suggestion is for Afren to acquire/merge with Lek oil then the CEO of Lek to manage the enlarged group, would be win win.

[mike_f] 10/12/2014 11:09

AFR has started to recover very slightly today, are we going to follow suit? Broker ratings are currently miles above current price however the POO is a factor.

Lekoil (LON:LEK) had its target price cut by Westhouse Securities from GBX 86 ($1.35) to GBX 83 ($1.30) in a report issued on Friday. They currently have a buy rating on the stock.
Shares of Lekoil (LON:LEK) opened at 36.00 on Friday. Lekoil has a 52 week low of GBX 34.75 and a 52 week high of GBX 81.407. The stock has a 50-day moving average of GBX 49.25 and a 200-day moving average of GBX 63.5.
A number of other analysts have also recently weighed in on LEK. Analysts at Investec initiated coverage on shares of Lekoil in a research note on Thursday, October 16th. They set a buy rating and a GBX 90 ($1.41) price target on the stock. Separately, analysts at Morgan Stanley raised their price target on shares of Lekoil from GBX 95 ($1.49) to GBX 105 ($1.65) in a research note on Thursday, October 2nd. They now have an overweight rating on the stock. Finally, analysts at Oriel Securities Ltd reiterated a buy rating on shares of Lekoil in a research note on Tuesday, September 30th. They now have a GBX 105 ($1.65) price target on the stock. Two analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Lekoil has a consensus rating of Buy and a consensus target price of GBX 91.60 ($1.44).
Lekoil Ltd is a Africa-based oil and gas exploration and production company. The Company holds interests offshore Nigeria and offshore Namibia.

[mike_f] 10/12/2014 10:20

Bought back in today. GLA

[fraserdean] 09/12/2014 11:28

Yep, oil is cyclical, seems to come as a surprise every time though.

[oil man] 08/12/2014 23:25

Foxx999 Remember it like yesterday oil falling rig prices dropping cutting
exploration then the rigs being booked again and everything bouncing and
wondering what all the fuss was about. Don`t think them gains are out there
again butdo agree and drop from here will be short lived.

As soon as oil bounces the big boys that are sitting on the fence will be piling
in again.

Good luck all.

Op310 resuts will be interesting that`s for sure.

[foxx999] 08/12/2014 22:28

Let's hope so Oilman. I watch oil very closely (for my job) as I did in 2008. Even when the financial world was imploding and front month dropped sub $40, the curve barely fell sub $70. Anything could happen of course, but I'd be suprised if we saw oil in the 50s for a prolonged spell.If you believe in what the long term marginal price of crude is then you'd be filling your boots with some of these oil stocks now I reckon.

[foxx999] 08/12/2014 22:24

I watch oil very closely, and I did in 2008. Even when

[oil man] 08/12/2014 22:16

Never say never but the last time oil saw silly prices in 2009 in the crunch I
made more money from 3 stocks than I have made in 5 years since. bought heavy
in AFR GKP PTR all done me very proud.

Difference is I don`t think I will make that much again but convinced a good
pay day is on the way with this one in due course every 15% 20% drop from here
I will add more shares till the bottom is caught and trade them along the way

Good luck as they say the worm will turn.

[foxx999] 08/12/2014 21:34

I did too Oilman, totally agree. I think the oil curve longer term hasn't got too much more downside personally.