Lekoil Share Discussion Threads

[stun12] 06/3/2015 17:12

It seems like very odd speculation to me. LEK has some money in the bank, admittedly, but will need it soon enough for OGO etc. We were always the junior partner and the smaller company - odd to think that LEK's market cap is now larger than Afren's.

[coxsmn] 06/3/2015 15:57

06-03-15

Financial Times article on Afren with mention of Lekoil formulating deal to inject capital:

"People familiar with the company’s options, say that Nigerian oil and gas players, Oando and Lekoil, are also developing their own proposals to inject capital into Afren."





What could this mean? what if Lek were to give Afren £xx million and in return either get a larger share of OPL 310 or some better financial terms for existing commitments. Any thoughts?

[rogen83] 18/2/2015 08:45

Perky first thing

[rogen83] 18/2/2015 08:38

not unless Seplat shift their focus.....OGO is a massive field, it will be of interest to bigger fish

[ngms27] 16/2/2015 17:20

Afren equity is as dead as a dodo. Best they can hope for is the bond holders injecting cash and doing at debt for equity sway at 1p or at a large push 2p.

Either way big downside from here still.

Might be worth a look following the wipeout of existing equity.

The read through to LEK is that at the very least there is likely to be delay on anything requiring CAPEX where Afren are the operator, so I see some continued weakness here.

[rogen83] 16/2/2015 17:12

LEK firmly in play now Seplat have hit a brick wall with Afren

[coxsmn] 29/1/2015 21:50

It's a definite possibility, Seplat has the cash among others. I'm not sure the management of Lek would want to sell as profits are expected to be robust even at a low oil price and they have ambition to grow as an independant. I believe they could be eligible for a 5yr tax break which should also help the bottom line dyor

[rogen83] 23/1/2015 08:47

One has to wonder if LEK might be a takeover target for one of the many indigenous company's looking for assets or those yet to achieve an AIM listing, like T5 Oil & Gas(former Tullow guys)

[odvod] 14/1/2015 13:07

might slowly start buying again if 20 holds

[fangorn2] 13/1/2015 21:40

And thats related to LekOil how Lightfield - other than to ramp your end of day long position in Affers? After saying buyers at 28 would burn early afternoon(after you'd sold at 27)

[lightfield] 13/1/2015 21:39

After hours news!!!

AFREN COUNTER bid coming!! Financial Times

[h4rvs87] 13/1/2015 21:38

Hi guys,Been researching this for s little bit now, and apart from market sentiment bringing it down, I can't seem to see anything but positive?Fully funded to get to production, and with a bit of luck, when they get to production the poo should be at a more favourable level? Even if it's not they estimate a very low level to produce per barrel.Hoping AFR gets taken out so I can take a chunk hereAtbHarvs

[ghhghh] 07/1/2015 10:27

Oriel updated their universe with oil at $60 to see who the top buys are

Their top three small cap picks are Lekoil (Otakikpo very low cost and underpins valuation with Ogo pretty much for free), Faroe (defensive since cash) and Wentworth (defensive since fixed gas price).

[oil man] 28/12/2014 09:48

Hi Coxmn, absolutely no reason why we cant achieve £1 still no debt money in
the bank only negative is the poo. But that will change in a flash. Maybe a
slow rise on poo from here. But chances like this is where the prudent investor
reaps the rewards. Lek have a couple of quality assets and if we can get into
production it`s happy days and some debt facility that would be great news.

Maybe This asset is a bit better than some have thought we will see when we
get into production, But I`m pretty sure they know what they are doing.

The Ogo is what I`m really here for long term it`s a winner Ogo is huge World
Class Jewel in the crown It would be silly not having some shares riding all
the way through for this asset alone I`m expecting the new seismic data to
throw up more leads more prospects with 10 billions potential which could dwarf
Tullows Ghana discovery up the road.

I personally think providing Poo rises evenly gently through 2015 to a more
reasonable level of $77 to $97 pb I would expect the previous high to be matched
and possibly surpassed.

Poo is hampering most companies at the minute but sentiment is fickle and it
changes often just like the wind.

Some bargains out there at the minute bough heavily in a few companies which I
feel have massive potential and growth looking at buying some Afren as well
and that will be portofolio complete.

Good Luck for 2015!

[coxsmn] 24/12/2014 11:03

Oilman, whats your LEK share price prediction for 2015?

[oil man] 24/12/2014 07:50

Merry Christmas to all! and a Prosperous 2015 for all!!

[ntbb] 22/12/2014 14:29

some good buys goin at 28p

[bhoytrader] 22/12/2014 09:49

He mean Afren has announced they have been approached this morning. Expect it to flush out more interest in Afren.

[ngms27] 22/12/2014 09:41

Why would Afren want to takeover a company they farmed out acreage to?
Afren haven't got the monies to takeover LEK either they have a large liquidity issue at $60 oil

[rogen83] 22/12/2014 09:34

Afren takeover

[ngms27] 22/12/2014 09:32

My oh my LEK cannot be compared to Afren!

[ntbb] 22/12/2014 09:25

see what happened to afren, this should be rising as its got a joint venture with afren

[ntbb] 21/12/2014 12:14

Leoneobull 21 Dec'14 - 09:09 - 22637 of 22646 1 0

Drama - voted u up twice this w/end. unusually good posts!

Why oil price plunge could be short-lived
Matt DiLallo, The Motley Fool 3:57 p.m. EST December 19, 2014
hxxp://www.usatoday.com/story/money/markets/2014/12/19/oil-price-plunge/20639881/

OPEC has decided against reducing output, so the plunge in oil prices is likely to continue. The market looks like it will be oversupplied by 1 million to 1.5 million barrels of oil per day next year, as long as OPEC refuses to budge. However, the supply and demand situation could shift the other way rather quickly, driving the price of oil back up before too long.

Demand has trended up

The world needs only meager demand growth for oil to eliminate the current supply glut. As the following slide from a recent Whiting Petroleum (WLL) investor presentation shows, just maintaining the current global demand growth trajectory would require 7 million additional barrels of oil per day of supply by the end of the decade.

It won't take long to sop up the oversupply in the market as long as demand maintains its historical growth rate of 1% per year. Should demand for oil increase to 2% we'd need an extra 14 million barrels of oil per day by the end of the decade. For perspective, North Dakota's Bakken shale play, where Whiting Petroleum operates, only produces about 1 million barrels of oil daily, so the world would need 14 more Bakken-sized plays to meet that increased demand.

The other thing to keep in mind is that U.S. oil demand has picked up in recent years -- up 4% (about 750,000 barrels per day) in less than two years ending in September, as shown in this slide.

Falling oil prices are driving down the cost of gas, That eases the strain on American drivers who are paying less at the pump. This could create even more demand for oil and gasoline, as drivers are less likely to let gas prices impact driving decisions. This is why it's quite possible that demand for oil will trend higher than its most recent historical growth rate.

The supply story is boom or bust

The other side of the oil story is supply, which has surged in the U.S. thanks to shale. From 2009 to 2014, the United States added a stunning 5.5 million barrels of oil production per day. The Bakken shale alone contributed nearly 1 million barrels daily to this increase, as this chart shows.

It is worth noting that if not for surging U.S. oil supplies we'd probably be in a whole lot of trouble, as global oil supplies from several key producing regions have steadily fallen over that same time frame. As we see in this next slide, production is down about 10% across several major oil production centers.

These declines will likely continue, as regions noted on that slide don't have a whole lot of production growth left. The North Sea has been an awfully tough area for producers as legacy oil fields continue to decline, while it's quite costly to bring on new supplies. Brazil has faced its own challenges in bringing new oil supplies online. Finally, OPEC member Venezuela is struggling financially and had pushed for the cartel to cut production to support the high oil prices it needs to fund its economy and to invest in new oil production. Basically, the supply picture outside the U.S. is rather questionable at the moment, and that will only grow worse if oil prices remain low.

Investor takeaway

Right now, the oil market is oversupplied by about 1.5 million barrels of oil per day. However, that glut of oil should be sopped up by demand growth very shortly. Meanwhile, supplies around the world are declining, and could fall further due to lower oil prices. This all suggests the plunge in oil prices could be short-lived; supply and demand could flip faster than anyone expects.

[dreggspicker] 20/12/2014 20:19

The world better get used to having only half the oil produced daily at $60, because the other half will be shortly left in the ground as no bank will lend to these companies, that is why it will not stay at $60 for long, $80 would be more stable.....

[dan158] 20/12/2014 15:16

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