Lekoil Share Discussion Threads

[flawlesskicks] 11/6/2019 13:56

ghhghh - no idea. I guess we will find out in the results shortly what they are getting and what they will need to contribute to get the field up to 20k bopd.

Last set of results showed a healthy net profit and reduction in debt. They can just keep doing that for the moment until they get the funding they need. Debt down, profits up - share price down from 20p to 3.5p? Makes no sense. Looks like a shorting attack but as I have said before, shorters make no money until they close off their shorts! Then BOOM as happened at CASP - 100% in two hours.

It will happen, just patience required and imagination.

[ghhghh] 11/6/2019 13:51

Can someone please clarify.

LEK have an indirect 36% economic interest in Otakikpo but has the (paid back out of future revenues)carry now expired.

So no liability to fund 70% of Phase 2?

[laptop15] 11/6/2019 13:19

https://twitter.com/laptop1515/status/1138419995078287362?s=19Look at how cheap the share price is one year later Could bounce hard from here with positive results

[flawlesskicks] 11/6/2019 13:06

Levy1 - I have 3 million shares in CASP with an average of around 7p. I was well underwater recently when they went down to 4p during a quiet period. Now they are at 11p and looking to move towards 30p over the coming months.

There were horror stories and scare tactics but in the end, patience is what is required. LEK will do well and at this price it is a no brainer to take a position.

[laptop15] 11/6/2019 12:38

Bought myself based on how oversold the chart looks and based on the assets and future potential. I've seen shares drop before results and then a big rise on the results day as results are better than expected

[levy1] 11/6/2019 12:09

Agree with your views flawless. I added a few also around 3.5.

[flawlesskicks] 11/6/2019 12:06

Levy1 - That's the chance you take on AIM. Buy low, sell high. Usually sellers are just spooked PI's running for the hills just as things are about to turn around. That's usually the time to buy in. I'm happy with my 3.96p buy yesterday. Ive sewn the seeds for next year's crop here.

Not expecting miracles overnight but LEK is massively oversold imo.

[sleveen] 11/6/2019 11:51

Go back 5 years, look at the predicted production targets and look whether they met any of them.

[grannyboy] 11/6/2019 11:47

Anyone who believes in broker notes and share price targets need their heads examining ...Numis wouldn't be the company broker by any chance?!!!!

Ho yes they are...funny that.

[sleveen] 11/6/2019 11:27

Wait for the news...I sold around 16p fortunately for a small loss.

[laptop15] 11/6/2019 11:25

Thanks for your thoughts Levi, so are the results due this week?

[laptop15] 11/6/2019 11:03

I'm tempted to buy, what news is due guys?

[levy1] 11/6/2019 11:03

Should be. They just refinanced some credit facilities (with lower interest rate). They are also supposed to receive a substantial amount in prepayment cover from the operator. But this large fall on quite large volume is worrying, specially in front of a result announcement.

[laptop15] 11/6/2019 10:52

What's the cash situation here? Are they ok?

[flawlesskicks] 10/6/2019 18:04

Certainly better than they were with the court case going through.The marginal field is still capable of 20k bopd production and this covers a market cap to $77million on its own.Numis have a buy rating of 22p and currently trading at under 4p. With production that is already profitable and 20k bopd in the works... I can't see anything other than a strong bounce on the way. Today looked pretty solid with lots of buying again.

[flawlesskicks] 10/6/2019 18:04

Certainly better than they were with the court case going through.The marginal field is still capable of 20k bopd production and this covers a market cap to $77million on its own.Numis have a buy rating of 22p and currently trading at under 4p. With production that is already profitable and 20k bopd in the works... I can't see anything other than a strong bounce on the way. Today looked pretty solid with lots of buying again.

[levy1] 10/6/2019 17:53

Just entered this share and trying to catch up on all the history. Seems incredibly cheap based on fundamentals, but I can see the Ogo withdrawal weighting heavily in the share price.

What are your views on the company's possibilities for a license renewal in Ogo?

[flawlesskicks] 10/6/2019 17:37

Another 250k trade gone in at the end of the day - follows the pattern from yesterday. Sensible punters starting to load up at this level imo.

See what tomorrow brings. Hope to see a nice reversal over the coming weeks. Slightest sign and shorts will be running for the hills here to conserve their profits = bounce.

[flawlesskicks] 10/6/2019 15:29

I get the feeling that there has been a short-attack at LEK as we had at CASP. We did 100% there in a couple of hours as the short was closed off.

Same will happen here imo. There is no money in a short unless it gets closed off and I'm sure at this level, brows will be starting to sweat - a reversal from here could be very damaging to a short position.

[flawlesskicks] 10/6/2019 15:26

coxsmn - They are due to release new 3D seismic in the next month or so and to formulate a funding plan after that. Should be able to get asset finance for the increase based on reserves and NPV(10) of $77million. We need to see how much debt has been re-paid over the last six months and how the field is performing.

I think the lack of news has been a share-price killer but the fundamentals don't justify the current share price imo.

Could easily see a 100% rise on the slightest bit of positive news.

[coxsmn] 10/6/2019 15:17

Can the field produce 20kbopd? we were promised 10kbopd and this was never achieved.

[flawlesskicks] 10/6/2019 14:57

"Now that phase one of the field development plan is nearing completion, the company will look to move on to the second phase which would double production to 20,000bopd (7,200bopd net to Lekoil).

In terms of the field economics, production cost per barrel has been reduced to below $30, and the field was independently assessed to have an NPV(10) value of over $77 million, even if oil averaged around $40/barrel for the life of the field. There is of course significant upside at higher average oil prices, which I believe is the more likely scenario."

[flawlesskicks] 10/6/2019 08:11

Taken a position at 3.96p.

6000bopd x 40% = 2400bopd.

$30/cost
$60/sale
= $30 profit per barrel.

$26million a year free cash flow AFTER costs. The market cap = free cash flow (highly undervalued at this point now imo). I was waiting for an entry and the large-scale buying on Friday night was the signal to load up.

Strong buy.

[lukmanpatel] 10/6/2019 06:55

Another troll by the username lsehotdealz haha, share price is stagnant and there’s talks of fundraise at 10p on that board lol desperation has lead to going round posting on different board to prevent share price from dropping, usually ud stay quiet and average down and accumulate if you see huge potential lmaoo he’s spamming all the boards and a newly registered today as a member lol