Lekoil Share Discussion Threads

[gregpeck7] 24/6/2019 16:21

Pumping buys through on nex by the look of it...

[jungmana] 24/6/2019 14:35

back to 7p soon where she was just 8 weeks back as looks like seller is nearly done. opl 325 licence alone warrants more than todays market cap not to mention the rest of the company ( 2000+bopd production from otakikpo licence ml 11, licence opl 310, etc)

[gregpeck7] 24/6/2019 14:33

Been waiting for this to move. Looks interesting now.

[upwego] 24/6/2019 14:29

Take off!!

[upwego] 24/6/2019 14:02

Not selling anyway!

Wont hold this for too long an instition buying a load would make a difference

[sapper2476] 24/6/2019 13:48

The large spread is through NEX always. Will dwindle off eventually.

[upwego] 24/6/2019 13:46

What`s interesting is there trying hard to disguise the buys I mean

The trade goes through as 3.372p and it shows the bid was 3p and the offer 5p
making it show up in the sell column..

Why????

[sapper2476] 24/6/2019 13:31

Completely controlled by AT trades. No idea why. Been like it for a few days. Always feel someone has an agenda when this starts. However I’d like to think this is towards the bottom end of the curve.

[laptop15] 24/6/2019 13:29

I reckon we will get an afternoon rally

[ianio5691] 24/6/2019 11:05

Think the traders from last week have exited Fri pm / this morning as it didn't have the explosive bounce they were expecting.

Think this is still very oversold on the back of a large seller though - who now seems to have cleared.

A relief rally to 5p is very possible in the short term.

[jungmana] 24/6/2019 10:50

Am going to predict 5p by end of week. I think seller should clear soon if not done so already

[ahmedbin69] 24/6/2019 10:37

Failed ramp by the twitterarti crew

[nick rubens] 24/6/2019 10:12

Ultimately this share is only worth what it can deliver for shareholders. Not sure what the tactics are for any mm's in between.Isn't demand and supply responsible for the share price movement with automated trades or are their mm's manually playing the price around?

Is it possible that Uk shareholders can make a return from oil in Nigeria (as in profits and dividends and a growing company)?

How many are trying for just a quick speculative trade/punt?

[sapper2476] 24/6/2019 09:45

An exact repeat of Friday. Send it up. Get some buyers and sink it again. I expect a 3.2 finish.

[josephrobert] 24/6/2019 08:48

The other thing I think could be worth mentioning is that some people would have noted / been frustrated with the timing of phase 2. Well, from what I can see this was largely impacted by what the JV had come across in point 2 above - 'The initial target of 10,000 bopd was not achieved due to compartmentalisation issues on Well -003 and another area as revealed from the newly acquired 3D seismic.'

If phase 1 wasn't complete in it's main task - i.e. to pay off debt and development costs from the share of the oil production, i.e. cost recovery barrels - then the JV had too much debt to tackle phase 2. That meant phase 2 had to be done later.

The timing of phase 2 was largely out of the company's control, but there now appears evidence of phase 2 - such as in point 7 above. I think there was a bit of luck with the oil price, and the company's communication could have perhaps been better, but it appears we have something to look for.

[newtothisgame3] 23/6/2019 16:38

#LEK #LEKOIL We also continue to advance towards the start of the appraisal drilling programme on Ogo in OPL 310. Published June 23, 2019

[laptop15] 23/6/2019 15:16

https://twitter.com/laptop1515/status/1142796939815206919A little video presentation I made on LEK for new investors to help get the word out about how undervalued and oversold this company really is

[newtothisgame3] 23/6/2019 07:32

#LEK #LEKOIL We also continue to advance towards the start of the appraisal drilling programme on Ogo in OPL 310. Published June 23, 2019

[jungmana] 22/6/2019 11:15

Good post there. Thanks. As the CEO said next few months will be very important with phase 2 development of Otakikpo

[josephrobert] 22/6/2019 10:00

As for the timing of phase 2, that looks clear from the summary I made above, ie point 6 and 7.

[josephrobert] 22/6/2019 09:57

sleveen 21 Jun '19 - I haven't seen the note but it sounds like the NPV for the assets that are currently producing. NPV takes into account of the timing of those cash flows, so if it produces over 1 or 111 years it means the same. I don't know what the discount factor is and if it is appropriate but it underlines how much this company is worth.

[newtothisgame3] 22/6/2019 07:58

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@smallcappick
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#Lekoil’s (#LEK) Buy Rating Reaffirmed at Numis Securities

[ppceh] 21/6/2019 20:41

‘We continue to look at new, promising opportunities in-country that are consistent with LEKOIL's original portfolio strategy of securing assets with robust production and exploration upside. The Group will continue to focus on new ventures-driven growth for producing or near producing assets.'

But where are they getting the dosh from! Sounds crazy unless they have partner in tow/farm out or something?

Better to sort out Otakikpo Phase 2 funding first.

[josephrobert] 21/6/2019 19:54

Following on from the departure of the CFO it is reassuring that there is nothing untoward in the results. That said, I haven't looked at the statements and notes but there are a few points worth summarising imo -

1. Net debt reduction - this is the value the company has added - $10m in 6 months. Recent net debt levels:

Results to 31/12/17 US$64m
Results to 30/06/18 US$40m
Results to 31/12/18 US$31m


2. Contrary to some comments, while it has been higher at times, production has been stable in Otakikpo:

Results to 31/12/17 average production was 5,547 bopd
Results to 30/06/18 average production was 5,047 bopd
Results to 31/12/18 average production was 5,345 bopd

'The initial target of 10,000 bopd was not achieved due to compartmentalisation issues on Well -003 and another area as revealed from the newly acquired 3D seismic.'


3. As mentioned before the general and administrative costs seem bloated - however the board are now Targeting a 25% reduction of general and administrative costs annually, including Board remuneration. I would have thought the departure of the CIO and the focus away from OPL 310 - both board, other personnel and legal costs - would contribute to most of this.


4. Underlying cost of sales went down US$18.1 million or US$23.2/bbl (2017: US$15.9 million or US$25.5/bbl).


5. OPL 310 and OPL 325 can be ignored until we hear something to the contrary.


6. 'The Company also intends to publish an operational update and financial guidance for FY2019 in short order.' 'We continue to look at new, promising opportunities in-country that are consistent with LEKOIL's original portfolio strategy of securing assets with robust production and exploration upside. The Group will continue to focus on new ventures-driven growth for producing or near producing assets.'


7. 'In anticipation of increased production levels, we plan to upgrade our existing production facilities and construct additional onshore storage. Location preparation is underway at selected well locations.' That ties in with