Lekoil Share Discussion Threads

[ppceh] 14/6/2019 19:45

Real hatchet job but can’t argue with it. Doesn’t factor in

2P Reserves

Otakikpo seismic results assuming good!

Ogo licence renewal

Cash inflow/debt reduction if LEK now prioritising debt reduction.

The writing on the wall (re debt) has been obvious for a while and the directors are generally heavy hitters. Surely they have a plan!

My worry is whether now in the death spiral, when all prospective bidders/farm in partners hold back, waiting to feast on the (cheaper) carcass

[sleveen] 14/6/2019 19:28

Lekoil – What will the 2018 year accounts reveal? Yet more red flags?
BY PETER BRAILEY

I have followed Lekoil (LEK) for some years now, and as each year goes by, I’ve become more questioning of the investment case. Like so many Nigerian based oilers, the potential seems high but is the reality ever realised?

[flawlesskicks] 14/6/2019 16:18

ghhghh - yes, it is a punt - most investments on AIM are and when a company is producing 2400 bopd and valued at £15million, there will be other risks.

Look to me like an ii has been selling down their shares. This is the reason for the recent fall at LEK.

The company could do with updating us on the various projects but their job is to run LEK - not to fiddle with the share price.

This is a recovery play at this price. Could end up with nothing, could end up with a 5 x bag. That's AIM and we have to accept that risk.

With the production LEK have, I think they are very cheap. I think their current assets are valued at multiples of their share price.

[flawlesskicks] 14/6/2019 16:13

Last Interims.

Lekan Akinyanmi, LEKOIL's CEO, commented, "Otakikpo is a high quality producing asset, with an impeccable safety record. As a Company, we are looking forward to bringing the field into Phase Two of development as we look to move closer to our goal of achieving production of 20,000 bopd of oil during 2020. As part of our growth strategy, we are eager to commence an appraisal drilling programme for Ogo within the block and subsequently develop this world class field. Within Lekoil, we have the technical and commercial capability to achieve both these objectives and generate significant value for our shareholders, partners and communities. "

[ghhghh] 14/6/2019 16:09

The problem with the Going Concern risk/relatively high debt is what happens if there are any production problems? That 2,400 bopd net is needed to service and extend debt.

Hence you just have to be nervous about the lack of any reassuring newsflow. And the relentless selling a concern, probably just in line with lousy sector sentiment eg SAVP, AMER, SDX, SIA, PMO etc. But risk of insider trading.

So this is not a back up the truck, fill your boots investment, it's a good punt and fingers crossed that worst case, the value of the assets attracts a buyer at premium to current share price!

Hopefully the delay is waiting on Ogo extension

[laptop15] 14/6/2019 15:49

Mms push the stock lower and PI's sell like lemmings that's all that's happening now. The shares only look undervalued after they have had a big rise. So you will just have to wait and see what happens and then we will see who is right ;-)

[upwego] 14/6/2019 15:31

another low no doubt

[upwego] 14/6/2019 15:18

if it`s so undervalued why are people selling at this price and not buying then?

Exactly!!! look at the chart soes it look like an undervalued stock? No
looks like afren back in the days

[flawlesskicks] 14/6/2019 13:42

ghhghh - if there wasn't any risk, you wouldn't be buying at 3p! That's AIM for you. Certainly less risk buying 3p than there was buying 20p but market forces mean that the lower it goes, the less people want to buy - totally backwards and the reason why most lose money on AIM. 3p is a bonkers valuation here with 2400bopd production net and $30 all-in cost of production.

It really is a no brainer and it looks like the market here is beginning to turn.

[ghhghh] 14/6/2019 13:36

I agree that looks cheap on 2P reserves and odds on that Ogg renewed.

However it's risky - look at the Going Concern qualifications in last A/Cs. I've bought more but not loading up, this is not for Granny!

[laptop15] 14/6/2019 10:54

Yes agreed Flawless on all points, undervalued, bots have been pulling down share price on the algorithm set up. Will turn soon they also do and the same panic sellers that sold buy back in higher. The mms have this game perfected and in a short time frame a sudden sharp change in direction and all the bottom waiters jump in. RESULTS ARE OUT NEXT WEEK TO WHICH WILL UPDATE THE MARKET ON PRODUCTION FIGURES ETC AS THEY ALWAYS DO. BIG CATALYST IN MY OPINION.ALSO the 310 LICENCE as that's written off in the share price Already. I believe they will get it reinstated as that's that's why they dropped the court case on the minister. The president will make it happen imo

[flawlesskicks] 14/6/2019 10:33

This is one of those situations where people will look back in 12 months and wish they had bought the 3-4p area. How could they have missed such value - it was so obvious but instead they listened to random trolls and stayed away.

Same old story every time.

[flawlesskicks] 14/6/2019 10:29

Laptop - Have you noticed that the share has been taken down by bots? Ihave watched and literally the auto trades have been hammering the price. Nothing to do with company progress or future potential - just bots following a trend. Once this hits the bottom (It may well have done so already), the bots will change direction and off we go.

As happened at CASP - people didn't understand that the share price has very little to do with the company or its assets on AIM. It is a rigged market to make money for the city. What goes down must come back up if there is no fundamental reason for the drop - and from where I am standing, there is very little evidence of anything other than a quiet news period and bots programmed to kill private investors who are in from a much higher level.

Strong buy on fundamentals.

[flawlesskicks] 14/6/2019 10:19

Laptop...leave them to it. Current assets without OPL310 are valued in region of 10p.

Any good news on the licence or production increase and LEK will fly.

Buy low, sell high. In 12 months from now, 20p+?

[laptop15] 14/6/2019 09:59

You guys knocking the share are so obviously looking to buy and put others off....lol.It's so funny to watch, lets see if you change your tune when you buy in??? Then all of a sudden this will be the best thing since sliced bread...lolThe company is so obviously UNDERVALUED yet still some people don't see it.

[upwego] 14/6/2019 09:42

no buyers even at 3p somethings not right expecting some serious bad news here

[newtothisgame3] 14/6/2019 09:08

#Lekoil’s (#LEK) “Buy” Rating Reaffirmed at Numis Securities 22p … via @RatingsNetwork

[flawlesskicks] 14/6/2019 07:40

The OPL 310 license originally ended in February, but Lekoil has applied for the license to be extended due to regulatory issues. The Department for Petroleum Resources has recommended that the extension be granted, although it is still awaiting presidential approval.

“The company believes that the OPL 310 license is still in good standing given that the extension is in process and there has been no communication from the regulators to indicate that an extension will not be granted,” Akinyanmi said.

[flawlesskicks] 14/6/2019 07:37

Just so it is clear, LEKOIL still own a 17% stake in OPL310 even without the Afren stake. I can see this all sorting itself out over the coming months with licence re-award and the President/Oil Minister allowing the move of Afren's stake to LEKOIL.

One to buy now and stick in the bottom drawer until this is all sorted.

Fair value is still around 10p for current assets - with OPL310, 20p+.

[newtothisgame3] 14/6/2019 07:12

Your welcome

[levy1] 14/6/2019 07:07

This is indeed fantastic news!!!! Significantly improves the likelyhood of reaward in Ogo but also introduces a possibility for enormous compensation if such is not given. Thanks newtothisgame!

[flawlesskicks] 14/6/2019 07:04

I think Nigeria will think very carefully about denying the OPL310 licence to LEK after this decision. They could be fined heavily after the investment that has been made in the licence over the years and the fact that it is now a major discovery potentially worth several billion $.

They need to start playing by the rules and I imagine that they will.

[newtothisgame3] 14/6/2019 06:55

#LEKOIL #LEK FANTASTIC NEWS
$9billion Judgment Debt: UK court decides Nigeria’s fate today

[newtothisgame3] 14/6/2019 06:54

#LEKOIL #LEK FANTASTIC NEWS Nigeria To Lose $9 Billion Assets Over Aborted Gas Project | Sahara Reporters