Lekoil Share Discussion Threads

[woolybadger62] 02/7/2019 08:06

Now red falling fast

[charlesjames1] 02/7/2019 08:06

Clueless this morning 6-6.8 spread. Get a grip

[woolybadger62] 02/7/2019 08:05

Dropping fast

[upwego] 02/7/2019 08:03

10p huge volume today watch

[jungmana] 02/7/2019 08:02

Onwards and upwards back to 10p this week imo.

[bradbury3559] 02/7/2019 08:01

This will fly today

[cudmore] 02/7/2019 07:59

7.5p at close???

[ssrover] 02/7/2019 07:53

LEK going to 8-9p today... should see a seller cleared RNS then onto double figures.. market cap far to low on yesterdays news.

[upwego] 02/7/2019 07:20

Shell and Schulmurger

Need i say more!Get ready for fireworks today!

[h2owater] 02/7/2019 07:11

2018 target 36p: If things fall into place!!

Mirabaud analyst reckons Lekoil shares could double over the next year
13:15 03 Jul 2018

Lekoil's shares currently trade at around 18p, but Mirabaud analyst James Midgley thinks they are worth at least 36p, and possibly more if a few things fall into place.

Once that is all sorted, Lekoil expects to finalise its funding plans for the drilling programme.

“Naturally, while question marks remain over Lekoil’s ultimate interest in the licence, any new partnering discussions have been conceptual at best,” explained Midgley.

“Given the scale of the opportunity however (774 mmboe, gross recoverable P50 resources), and the work done in maturing the project (including GE’s commitment to provide US$1bn of development finance subject to successful appraisal of the field), a resolution to the partnership issue, in Lekoil’s favour or otherwise, could be the catalyst for a farm out in short order.”

Analyst forecasts
The analyst has trimmed his production guidance for the next couple of years slightly to 5,750 bopd and 8,813 bopd in FY18 and FY19 respectively.

He has also included the higher oil price environment into his calculations, which offsets some small rises in operating.

“On our numbers we expect Lekoil to generate c.US$37.5m of adjusted operating cash flow over the course of 2018.

“This is equivalent to an EV/NCF multiple of 4.5x. On this basis alone Lekoil offers good value for money, however any developments on the regulatory approval for the increased stake in Ogo could surprise on the upside, with virtually nothing currently in the price for the discovery which we value at almost £1/shr, unrisked.”

Midgley repeated his ‘buy’ recommendation and target price of 36p.

[...]

www.proactiveinvestors.co.uk/companies/news/200050/mirabaud-analyst-reckons-lekoil-shares-could-double-over-the-next-year-200050.html

[levy1] 02/7/2019 06:07

The stock used to be a bargain at 3, but with today's its a complete steal at 6.4 imho.

Has anyone looked at what the cash flows will be after phase 2?
If we assume 6k net to Lekoil, the annual production will be about 2 mill boe.
Assuming an oil price at 65 and lifting cost at 15 (rough estimate), the company will bag approximately 100 MILL USD pr year in free cash flow before admin costs etc!

And also imho, the likelihood for Ogo renewal / further licenses has definately increased after this news.

[cudmore] 01/7/2019 23:40

All the signals are there.....moving up over the week to 10p+

[ssrover] 01/7/2019 22:53

#LEK a picture paints a thousand words. Everything breaking out - volume, 9EMA breach, 50MA breach. This now has clear blue skies to at least 10p where the 200MA is currently sat. Expecting another high volume day with no brakes this time to take us to double figures.

[ruedolf] 01/7/2019 19:59

20p a share equates to a 100m market cap which is still cheap for a company producing 8000 per day.

eland have a 256m market cap and averaged 8000 bod last year.

[ssrover] 01/7/2019 19:40

Fukurokuju79
Posts: 743
Price: 6.38
No Opinion
MOU and valueToday 17:46
I assume this MOU relates to the intention to increase production to around 15,000 to 20,000 barrells?
And that 6,000 barrels at the lower production rate (40% of 15 barrels a day) would be attributable to lek.
So at 65$ a barrel that would mean annual revenue of over £112 million pounds to lek lower case and they already are producing.
Also have the news about resolving the issues on the other license.
Furthermore the MOU says its sold to the major that's involved.
I can defo see 20p being possible here with the IIs being sold, or largely sold, albeit not totally formalised.

[ssrover] 01/7/2019 19:39

LEK... look at what the cash flows will be after phase 2
assume 6k net to Lekoil annual production will be about 2 mill boe.
Assume an oil price at 65 and lifting cost at 15 , the company will bag approximately 100 MILL USD pr year in free cash flow before admin costs...12p+ easy

[ssrover] 01/7/2019 19:39

Sold my TOM today at break even after many negative comments on the BOD.. added more here

[cudmore] 01/7/2019 18:07

Cracking day. Just one of many in the rerate that’s taking place on today’s excellent update. To add an extra twist.....we haven’t even had confirmation of the seller being out 👍 Can see this week hitting 10p+ easily here. GLA

[andymunchkin] 01/7/2019 17:29

andymunchkin19 Jul '17 - 19:21 - 3897 of 5441 Edit
0 0 0
pump no.2 byAlmaison etal
moneytree120 Jul '17 - 09:47 - 3898 of 5441
0 0 1
you cant pump a stock like this.

[upwego] 01/7/2019 17:06

Missed again peter never mind cant catchem all!

Good luck with your short.

[peterbarnet] 01/7/2019 17:00

You said 7p you imbecile ? :) this will be ripe for a short tomorrow now

[momentum1] 01/7/2019 16:54

LEK differnet leauge to TOM. each to their own but fundmanetals and managemnet here are different class. Many a time I've sold out early to chase another stock only to find that sitting and holding was the best thing. Will not be making that mistake again.

[tidy 2] 01/7/2019 16:50

Yip brilliant turn around. I started buying some Tom today also. Was 14p before the delay. Given full goahead today for next week. Only 3.4p.