Lekoil Share Discussion Threads

[flawlesskicks] 12/6/2019 10:12

No, the Petroleum Minister is not the President. The President made a decree in LEK's favour on the purchase of the Afren stake - however, the Petroleum Minister had not given the go ahead and the High Court ruled that the President can not make a judgement ahead of the Petroleum Minister. This is why LEK were going to Court and had a reasonable case. However, they feel that having the Petroleum Minister on side is the best way forward and that taking him to court is not the way forward.

It was a really stupid idea to be honest. Don't bite the hand that feeds you imo.

[levy1] 12/6/2019 10:05

Flawless, forgive me if ive misunderstood something, but my understanding was that the current president is also petroleum minister?

[flawlesskicks] 12/6/2019 09:05

Levy1 - I don't think anything will happen there. LEK are in a strong position to move forward on their own at Ogo. What they need is to get back on side with the Petroleum Minister. They have presidential backing but the Oil Minister makes the call on licence awards etc.

I think this is what they are now trying to do.

[levy1] 12/6/2019 09:02

No surprise a rebound, and also very comforting given that the result is approaching.

Any thoughts regarding the developments in MX Oil and its new strategy / investor? Can LEK be an attractive potential partner?

MX owns in Aje license which is next to the Ogo.

[flawlesskicks] 12/6/2019 09:01

The worm has turned. Let's see how quickly everyone rushes back in and also how quickly opinion on the boards and twitter changes. This company is currently making around $40million in revenue and priced at $20million? Crazy!

[laptop15] 12/6/2019 08:57

https://twitter.com/laptop1515/status/1138695000533929986?s=19Here is the chart

[laptop15] 12/6/2019 08:56

Yes agreed flawless it is INSANELY #UNDERVALUED and very oversold RSI in 20s and Williams Indicator % at -100.A bounce had to come at some point and with good news share price could easily go up 3 to 4 times currently lowly beaten levels

[flawlesskicks] 12/6/2019 08:54

Laptop - I think so. We are just far too low. Looks like a capitulation move yesterday and mms had a quick fish on the open for shares and now moving up. Fair value here is around 10p.

If we get the OPL310 licence back - we should be trading back at around 20p.

[laptop15] 12/6/2019 08:49

The bounce in on lots of buys this morning

[flawlesskicks] 11/6/2019 16:26

"The Company has decided to withdraw legal action. The Company will also continue engagements with the regulator and Optimum Petroleum Development Company Limited, the operator of OPL 310, to conclude agreements and resolve all outstanding issues. Further updates will be provided as and when necessary."

Not a dead duck - If OPL310 is given back to LEK and Optimum, there will be a monumental re-rate from this level!

Certainly one to just buy and tuck away for a few months to see how things unfold.

ghhghh - Yes, the delays are hitting the price hard as wild stories and rumors are spread about. That's generally when I like to buy into a play. Let the mugs sell at 3p, I will be the one selling at 10p/20p if things go as I think they will.

[ghhghh] 11/6/2019 16:21

Only the plus side, the Board look reputable and I’d be surprised if LEK don’t get their original stake in Ogo renewed.

Why the delay in announcing seismic? Always makes me a bit nervous. Good news tends to come out much quicker than bad news!

[flawlesskicks] 11/6/2019 16:04

ghhghh - I would say a drop from 20p - 3.5p includes A LOT of bad news built in. The figures may be lower than 6000bopd - probably our share of production is 2000bopd+

That's around $30million a year after production cost but before admin etc.

Plenty there to reduce debt over the year and also plenty to secure new finance to increase production to the 20k bopd next year.

They are a bit useless at updating the market. They don't do a monthly update - just update at results time by the look of it.

I can't see that it is a cause for concern. A lot of sentiment driven selling but nothing based on anything factual.

I am waiting for progress report at results. I expect them to be positive and will give insight on 2020 progress.

[ghhghh] 11/6/2019 15:54

The problems are the debt, hopefully now significantly reduced, and Ogo carry assuming they renew licence. They have to find a carry/finance for their share plus their own obligation to carry? I've got this right?

Plus ? over that 6,000. Is it still flowing at that rate. Directors not too bothered about updating investors. No news normally = bad news!

[flawlesskicks] 11/6/2019 15:45

They have a field at 6000bopd production looking to increase to 20k bopd... I would say they are already valued well below peanuts all things considered.

My view is that true value is around 10p currently and I will wait for that.

So so glad you are negative on LEK ngms, that makes me super confident of a result here! lol

Your prediction at CASP was about the worst call I have ever seen hahaha

[ngms27] 11/6/2019 15:29

Weak share price is down to the potential loss of the licence that was shared with Afren and from whom they thought they had acquired a much larger share which contains a major discovery.Lose that and they are worth peanuts.

[flawlesskicks] 11/6/2019 15:22

MATD - No oil, loads of waisted money, no production and £53million market cap.

LEK - Millions of barrels of PROVED reserves, production net of 2400bopd and profitable with licences containing potentially BILLIONS of barrels - market cap £19million.

Strong buy.

[flawlesskicks] 11/6/2019 14:59

ghhghh - Can't see any reason to be trading at this level when they are already in production and profitable production at that! Deep asset with potentially billions of barrels and debt being paid off. Ramp up to 20k bopd is expected by next year. See what they have to say about that in the next couple of weeks.

Strong buy.

[ghhghh] 11/6/2019 14:56

Checked it out.

LEK funded 100% but only to first oil.

Should have been fully repaid by now (88% of Revenues)

Hence now appear to only need to fund their 40% (but their net share is 36% in real life).

[laptop15] 11/6/2019 14:32

Thanks flawless, appreciate it

[flawlesskicks] 11/6/2019 14:26

Laptop15 - everyone is expecting results this week or next.

A detailed report of the year just gone with forward looking statement.

Plenty in the pipeline to interest new punters at this level.

[flawlesskicks] 11/6/2019 14:25

grannyboy - Just about every possible technical indicator is at oversold.

The shares will bounce hard when they 'stop falling' so it is a case of take a position where you feel comfortable for the medium term.

Strong buy - on fundamentals - not speculation.

[laptop15] 11/6/2019 14:22

Have they announced a date for the results?

[grannyboy] 11/6/2019 14:20

"Resistance when we do start to move is at around 9/10p"

The shares haven't stopped falling yet...

And the oversold statement is a personnel view..

[flawlesskicks] 11/6/2019 13:58

Resistance when we do start to move is at around 9/10p. Then a HUGE gap to 20p by the look of it.

Strong buy - very oversold.