Lekoil Share Discussion Threads

[laptop15] 18/6/2019 10:05

https://twitter.com/laptop1515/status/1140907704669655043?s=19HUGE VOLUME TODAY.... NEWS INCOMING.....IS THE WORD OUT??

[flawlesskicks] 18/6/2019 09:31

Looking about ready to bounce now. LEK is a 10p share currently trading at 3.3p due to ii selling down. Golden chance to buy on the cheap imo but dyor as obviously there are risks!

[ny boy] 17/6/2019 21:12

Junk status here, another AIM mugging of gullible lemmings! 🤦🏻‍♂️

At least (C4XD) is heading in the right direction but don’t tell too many people!

[upwego] 17/6/2019 21:02

I decided to take the risk it has been dropping for many months now and if it
is purely down to of loading we could see a jump regardless due to the distressed
seller.

However I made some good money shorting and even if it goes to Zero I lose £750

But If there is bad news along the way I believe much is already in the share price
if there is not bad news then we have great potential recovery play on the cards.

Worth the punt at these levels.

Good luck all

[flawlesskicks] 17/6/2019 17:16

Lek starting to show some St's ility at this level. Even an ii will have a level below which they won't sell. Could bd a depressed price for a while if they are clearing stock or news may move the price if good.I doubt that there are many pi sellers at this level.Strong buy.

[laptop15] 17/6/2019 16:53

But its good to see you think its undervalued as a few of us have been saying...welcome to the party!! Just need some news and were off :)

[laptop15] 17/6/2019 16:52

Lol....you were deramping the share just a few days back and now you have bought in. I did say watch people change their tune ;-)

[upwego] 17/6/2019 16:19

Got to be worth a punt

Took £250 Per point can`t go down much more and even if it does another penny
its £250 the downside risk verses the upside risk is in favour!!

Lets see some dancing then!! hopefully upwards

[laptop15] 17/6/2019 12:50

Breakout coming soon

[laptop15] 17/6/2019 11:04

Results must be this week, I'm in comms with the company also. Can't believe how cheap the shares are. Bottom forming on chart imo.

[laptop15] 17/6/2019 09:06

https://twitter.com/laptop1515/status/1140530881309880320?s=19

[grannyboy] 17/6/2019 09:02

Very good RNS from RBD/UJO this morning...Could have found the largest onshore gas field in the UK , logging also showing liquid hydrocarbons....

Great to be invested in a company in a stable enviroment..

[levy1] 17/6/2019 09:02

See for example the latest investor presentation here:
hxxps://www.lekoil.com/investor-presentations-article/investor-presentation-200

See slide 13.

[levy1] 17/6/2019 08:49

ghhghh, I think you have a good point there.

However, as far as my understanding from previous interim results they already had established a syndicate which was ready to provide financing for the Ogo development?

Has there been any news regarding financing or is it just based on an assumption that there is none available?

[ghhghh] 17/6/2019 08:33

flawless

It is obvious that the Govt will ONLY award Licence if LEK can demonstrate a firm commitment to drill. Optimum have been pressurising LEK for over 2 years, claiming LEK the roadblock.

LEK are going to really really struggle, especially as they have to fund 70% with only 40% interest. And they don't currently own the Licence!!!

I'm afraid Ogo looks toast.

Can they claim for past costs lost through Govt intransigence? I suspect Govt will wriggle out.

[flawlesskicks] 17/6/2019 07:29

Great research over the weekend and an insight into the future for LEK with 1 million barrel storage facility and Government on-side with our partner for energy production plant.

ii seller creating bargain conditions here as happened at BMN and BCN - both have multi-bagged since. Fill ya boots imo but obviously dyor first!

[flawlesskicks] 16/6/2019 13:15

Nope. They don't need it right away. They need to come up with project finance just as anyone else would and it will take some time. Look at how long hur or rkh have taken to get funding. These thing take a long time obviously... Nothing in this game is done overnight as you are implying. The point is that 20k bopd will open up the ability to project finance OPL310 from next year.Strong buy.

[ppceh] 16/6/2019 13:02

But LEK need the funding for Ogo now. Govt aren’t going to wait around. They clearly want immediate progress and will only award Licence to someone who can commit to this.

I’m hanging my hat on the considerable Otakikpo 2P reserves and the seismic not disappointing.

[flawlesskicks] 16/6/2019 09:47

Big week coming up guys. Green Energy gaining approval for massive oil storage facility... Now why would they be applying for that? Answers on a postcard. LolI think we all know that 20k bopd is about to go from seismic to drilling and production.The. Lek will have the money to develop OPL310 and should get their licence back.Strong buy. Ii selling... Fill ya boots as distressed seller clearing stock means bargain conditions.

[laptop15] 15/6/2019 22:07

https://www.vanguardngr.com/2019/06/fg-grants-green-energy-licence-to-generate-40mw-electricity/

[ppceh] 15/6/2019 13:44

Thinking about Ogo I’m now much more dubious re renewal.

I fear that the reason Nigerian Govt has played hard ball is that LEK can’t fund their share. Optimum want to start aggressive drill campaign and LEK can’t deliver their share. From memory they have to cough up 70% but only a 40% economic interest.

It’s pretty obvious that the Nigerians won’t renew unless LEK can prove they can progress the asset?

[king_doms] 15/6/2019 12:25

Current analysis/perspective:

Share price has fallen due to:

- OPL 310 licence expiry (although this is likely to be renewed/ turned to OML)
- 23% OPL 310 portion for Afren's previously owned portion has been reverted back to the government due to the petroleum act and will require ministerial consent (the President of Nigeria is the current minister of petroleum, as previous ministers have been corrupt in the position so a new one has not been appointed. Therefore approval is needed by him)
- Current CFO is leaving at the end of the month to San Leon (taking up the position of the current San Leon CFO who is also leaving at month's end - thus is unlikely due to any Lekoil related decision, but a choice to move to a larger company)
- Jennison associates (an institutional holder) who previously held 4.5% of the total shares have reduced their position to 3.98% over the past weeks/months - on the negative side they still hold 21 million shares so may continue to cause the share price to decline further until they have fully sold - on the positive side, the sharp fall in share price is likely due to this and nothing to do with the company's fundamentals

Company fundamentals based on the 2018 interim report:
- yoy revenue increase from $6.9m 2017 to $22.3m 2018
- yoy net income (attributable to shareholders) increase from -$14m 2017 to $1.2m
- 2400 bopd net to Lekoil
- reduction of current liabilities from $58m to $44m
- net assets of $208m
- cash increase from $6.9 to $9.8m

Potential positives in annual report/ expected news:
- increased or maintained 2400 bopd from Otakikpo
- full revenue roughly $42m+ compared to previous year $30.8 m
- $38m or less current liabilities (based on a $6m semi-annual reduction)
- update on 3d seismic report

Potential negatives in the annual report:
- impairment charge based on OPL 310 licence expiry

[laptop15] 15/6/2019 11:13

https://m.thenigerianvoice.com/news/277714/fg-approves-one-million-barrel-onshore-terminal-for-otakikpo.htmlNot sure if anyone read this article but very interesting as it mentions LEKs partner green energy at the otakikpo field.LEK has 40% in this licence Strange that this info wasn't in an RNS

[flawlesskicks] 15/6/2019 05:23

If the reason for the drop is an ii reducing exposure, then this could be a great buy. As long as it is an internal decision and not something more sinister, it is usually a way to pick up shares at well below market value. Same happened at bmn and recently bcn. Both have now recovered to multi bag from their low levels.All will depend on how the results go next week but it is nice to see that this drop I'm more than likely overdone due to ii selling.