Lekoil Share Discussion Threads

[bakero] 24/9/2020 14:44

AGM tomorrow, and the Optimum payment due next week. Perhaps some kind of news in the morning?

[ianio5691] 28/8/2020 08:03

1.3m buy posted after the close....

Someone is accumulating in a big way.

Interesting times ahead.

News on refinancing within the next month I would imagine, as they have an Optimum payment of $2m due at the end of Sept.

News on a finance deal would certainly light a rocket.

[ianio5691] 27/8/2020 13:31

Ooooh 2 votes down for that one!

Can we get to 3?

Wonder if its Alamaison?

[ianio5691] 27/8/2020 12:50

Hilarious how someone gives a thumbs down to every post whether positive or negative....

Come out, come out whoever you are....

Some cranks on here!

[ianio5691] 27/8/2020 12:40

Positive interpretation on Proactive.....

Company News

Lekoil* (AIM:LEK): FY19 results, strong operational progression

Share price: 2.6p, Market Cap: £14m

LEK’s FY19 results saw a 13.7% drop in net revenues to US$42.0m (FY18: US$48.7m) despite a small average increase in production tempered by prevailing commodity pricing.

This led to FY19 a loss of US$12.0m (FY18: loss of US$7.8m) and ended the period with cash and bank balances of US$2.7m (FY18: US$10.4m).

Total outstanding debt financing net of cash was US$16.5m (FY18: US$10.1m).

In March 2019, documentation for the partial refinancing and re-denomination of the outstanding Naira Debt Facilities, totalling N3.1bn, into one new US$8.6m facility with FBNQ MB was completed.

The new facility priced at LIBOR + 10%, had a six-month principal repayment moratorium effective June 2018 followed by quarterly principal repayments.

As part of the transaction, the tenor on facilities with FBNQ MB (including the existing USD facility, amounting to US$5.0m) was extended to 30 June 2021 from 30 June 2019.

This partial refinancing and re-denomination transaction was undertaken to reduce the high financing costs of local currency debt.

Further debt capital of US$11.5m was raised in October 2019 to fund Licence extension fees on OPL 310 and OPL 276 and to fully repay the outstanding balance on Shell Western Supply and Trading Limited Prepayment Facility.

The facility has a maturity of four years and is repayable quarterly with a margin of LIBOR + 10%.

Earlier this month, it was announced that the existing three interest-bearing term bank loans were restructured into one secured loan with FBNQuest Merchant Bank.

The restructuring provided an extension of loan tenor with new term loan maturity date of 31 March 2024 representing an increase on the average maturity of the three existing bank loans by 15 months.

A cash saving of over US$3.0m over the next 15 months was also delivered from the new sculpted loan principal repayment schedule compared to the previous loan structure.

Operationally, the Company reported average FY19 production volumes of 2,122bopd net (FY18: 2,076bopd net).

The year saw a deliberate effort to reduce the cost of sales to achieve a lower cost of production at the Otakikpo marginal field which remains the sole revenue source.

In 2019, underlying cost of sales were reduced by 22%, and the Company has confirmed it intends to progress the work programmes in OPL 310 and OPL 276 to bring them to commercial production.

In terms of outlook at Otakikpo, Phase Two plans underway, subject to the securing of funding, for a five to seven well drilling programme, targeting the increase of production to around gross 15,000 to 20,000bopd (6,000-8,000bopd net to LEK).

Operations are also progressing at OPL 310 which contains the significant Ogo discovery.

LEK and its partners have advanced plans for the Ogo appraisal drilling programme with well locations selected. Funding discussions currently underway with industry partners.

The Company also executed a legally binding Cost and Revenue Sharing Agreement to progress the appraisal and development programme activities at the Ogo discovery and conversion to an Oil Mining Licence (OML).

In addition, the OPL 310 Licence was extended to 2 August 2022, following the payment of an extension fee by LEK.

Our take: Shareholders will be encouraged by the preservation of a stable production base at Otakikpo which underpins the Company’s advancement of the drilling programmes at both Otakikpo and Ogo in OPL 310. The next two years could therefore prove to be transformative and provide key catalysts as LEK progresses its multiple appraisal campaigns whilst simultaneously growing its production base.

[ianio5691] 26/8/2020 08:08

RNS Final Results.

Makes pretty grim reading....

Pertinent points to me -



Following the payment to Optimum due in March 2020 of US$2.0 million, Optimum and LEKOIL further agreed to a deferred payment schedule for the final payment due in May 2020 of US$7.6 million as follows:

· The sum of US$1.0 million to be paid on or before 15 July 2020;

· The sum of US$2.0 million to be paid on or before 30 September 2020; and

· The sum of US$4.6 million to be paid on or before 30 November 2020


Cash balance at 31 July 2020 of US$0.6 million




So we need to find $2m by end of September and a further $4.6m by end of November.

Not looking good is it?

[ianio5691] 18/8/2020 11:06

normal service resumed... back to 26.5% spread! :-(

[ngms27] 18/8/2020 09:47

Lights are on but no ones in

[ianio5691] 18/8/2020 09:38

Up again on very little volume...

Something going on.

Am I the only one watching?

[ianio5691] 18/8/2020 08:19

Another tick up....

[ianio5691] 18/8/2020 07:59

A bit more activity this morning, feels like this might be coming back to life.

Slightest whiff of news and this could be off to the races.

[ianio5691] 17/8/2020 12:06

A bit of life and a flurry of buys....

Nice to see for a change.

[ianio5691] 17/8/2020 08:44

RNS

Loans restructured.

Is this a positive or just rearranging the deckchairs on the Titanic?

We need some significant news and updates on what is happening with timescales.

This just feels to be in a holding pattern whilst someone accumulates.

Corruption at its finest!

[josephrobert] 15/7/2020 08:00

The RNS of the 13th confirms that there is no project finance available and they will try to develop the project from cash flows. This means that it will take a lot longer to develop the JV. Maybe there is a drill next year. No catalysts for share price improvement, just commitments to spend. Certainly could do with a farm in. The share price is cheap but it will stay cheap until they have money to grow.

[ianio5691] 15/7/2020 07:11

Wonder what Metallon's motivation is for the recent increase in their holding from 60m to 70m ?

If this were as doomed as some would have you believe - why invest another £300k?

Interesting to see how this plays out, and might catch a few unawares.

[ianio5691] 13/7/2020 07:34

2 decent RNS's over the last two days....

Looks like we have an ii buyer in the background.
Would explain the reason for the ridiculous spread as corrupt MM's are complicit in keeping the share price down whilst they fill their orders.

Interesting that it still seems all systems go at Otakikpo…!

Seems very oversold still.

Hopefully a bit of a correction is due.

[bmwman3] 08/7/2020 20:52

Massive rise tomorrow

[paleales] 27/6/2020 10:47

Lekoil Cost Cutting Successful - Shares in Lekoil were up 15% at 2.71 pence in London on Friday afternoon.

[paleales] 27/6/2020 06:38

LEK Partnership scouting rig for offshore Nigeria wells
Optimum Petroleum Development Co. and partner Lekoil have completed a site survey over the OPL 310 license offshore Nigeria, ahead of a planned two-well appraisal drilling program

[bakero] 23/6/2020 11:03

Are we expecting results tomorrow?

[ianio5691] 16/6/2020 08:42

It certainly feels like someone accumulating under the radar.

Could get interesting if so.

Newsflow used to be pretty regular - An update would be nice.