Lekoil Share Discussion Threads

[ianio5691] 23/12/2020 08:54

43% spread!

Looks like they might have upset the MM's as well....

[nick rubens] 23/12/2020 08:16

Back in play though looks red already. Have to see what the New Year brings.

Did anything ever happen over that fake loan scam a while ago? ie anybody caught or the company reimbursed?

That's why the market doesn't trust this company anymore.

[mrshaungcm] 22/12/2020 18:22

rns - nomad appointed

[nick rubens] 22/12/2020 13:41

Yes just seen it. Considering the Nomad resigned and shares are about to be cancelled, I don't think it's even worth my time reading the BS and taking anything seriously from LEK anymore.

I hope I'm wrong but welcome to Nigeria's business hub.

"Rest assured of the Board's continued commitment to engage fully with all shareholders, to promote the success of the Company going forwards."

Rest assured??????????????????????............ not

[nick rubens] 22/12/2020 11:49

Cheers Ianio5691, Yes the same shareholders still own the company on delisting, for now at least.

One negative difference is the trading of the company's shares won't exist and also I suspect RNS communications won't be possible either?

Unless we get a takeover offer, the ideal solution would be some kind of relisting again post EGM. Anything can happen though including administration procedures I suppose.

I've had to accept over the years that investing is really a game of Poker where sincere long term investors with the company's best interests at heart lose every time.

[bakero] 22/12/2020 11:47

Don't need an action group to get behind them and change the board - won't an EGM vote achieve the same?

[ianio5691] 22/12/2020 11:47

Has a date been set for the EGM?

[ianio5691] 22/12/2020 11:46

Then shareholders need to form an action group and get behind Metallon to force the existing Board out.

[bakero] 22/12/2020 11:42

Yes, listing will be cancelled tomorrow if a new NOMAD isn't announced. Current shareholders will still own the company, but liquidity has gone, with no easy way to trade on the market. The reporting requirements of AIM are also gone, so we will hear even less than we do now.

[nick rubens] 22/12/2020 10:53

What happens if the listing gets cancelled tomorrow which looks likely. Post EGM can't they get relisted again with a Nomad and any potential fund raise?

Anyone know the rules because I certainly don't and the fact that a Nomad can simply resign without seemingly any prior forewarning to the Company or the market or any stated due diligence reasons is a little concerning for any future investing. Can you even call it 'investing' on AIM?

Why do Nomads suddenly resign after taking fees for so many years?

The more one learns about 'investing' the more one realises is that it's all a bit scammy.

[dvb99] 22/12/2020 09:38

I have voted for the Metallon proposal

[ianio5691] 22/12/2020 09:38

Is today not the last day for appointing a new NOMAD?
AIM listing will be cancelled tomorrow.

[nick rubens] 22/12/2020 09:22

I'd vote for the resolutions put forth by Metallon. Hopefully this gets through at the EGM, a new nomad appointed and resumption of trading.

[ianio5691] 17/12/2020 13:27

Interesting letter....

Doesn't seem unreasonable either.
Current BoD certainly not acting in shareholders interests......:




Dear fellow shareholders,

Metallon Corporation Limited (“MetallonR21;) is writing to request your support for the proposals we have requisitioned at the forthcoming extraordinary general meeting of Lekoil Limited (“Lekoil”; or “the Company”) including the addition of three non-executive Directors with significant industry, commercial, financial and in-country expertise to significantly bolster the management oversight and governance at the Board.

Metallon is a private natural resources and infrastructure company focused on investing in Africa with a long-term investment horizon. We are the largest shareholder in Lekoil with a 15.10% interest in the Company’s shares. Metallon is categorically not seeking to take control of Lekoil and is not working in concert with any other shareholders. We believe Lekoil’s assets, specifically Otakikpo, are being substantially undervalued by the market and that the value of these assets could be realised if the proposed changes are made to the Lekoil Board.

Since notice of the requisition was given on 19 November, we are aware that a significant number of shareholders have the same concerns regarding the Board’s lack of governance and oversight of management. Furthermore, Metallon is aware that historically shareholders have tried to strengthen the Board and Lekoil has continually found ways to avoid the necessary changes needed to ensure the Board is truly independent from the CEO.

Since our submission we have engaged with the Board to seek the appointment of the nominated directors without the Company incurring the costs of an EGM. However, the Board was unable to reach a decision on the proposed appointments, although we understand that it was broadly supportive of such appointments. We believe the Board has been poorly advised by third parties aimed at highlighting problems, rather than seeking solutions and a stronger more experienced Board would reduce the likelihood of such situations arising in the future. We are very concerned that - underlying the incorrect accusations around a takeover - there is simply a lack of desire by certain Directors to have a Board with proper governance structures and oversight of management.
Our concerns:

1. A lack of accountability of management by the Board has led to shareholder value being destroyed

a. Lekoil has raised over US$264m of equity from shareholders since listing in 2013. The Company’s shares were suspended on 23 November 2020 with a market cap of
US$13m.

b. During this period Lekoil has spent US$129m on G&A and invested US$210m into Oil
& Gas activities but delivered no production growth at Otakikpo since first oil in 2017.

c. The Board has continually missed the market expectations it sets, with production levels at Otakikpo averaging 5,676 barrels of oil per day (“BOPD”) (gross) in H1 2020, despite setting targets of 10,000 BOPD by 2017 year-end and 20,000 BOPD in 2020. Otakikpo, its only asset generating returns, has been starved of investment whilst G&A and other costs remain at extremely elevated levels.

d. Since its listing, the Board has awarded the CEO a total remuneration of over US$10m, close to the current market capitalisation of Lekoil. It also recently entered into a related party transaction to extend a material part of the longstanding US$1.8m Directors loan to the CEO at a time when the Company is short of cash.

2. Corporate governance failures by the Board

a. The entry into a US$187m fake loan agreement in January 2020 was an
embarrassment for everyone involved from management to the Board. Lekoil paid
US$450,000 of fees to a fake intermediary in the process. Inadequate Board oversight and a lack of management accountability are directly responsible for this situation
occurring.

b. The Board promised in March 2020 “to improve its standards of corporate governance”.
However, we understand the extension of the Director loan to the CEO did not follow
the correct process under the AIM rules and ignored a very clear message from
shareholders to the Board, via the previous NOMAD. Ignoring shareholders’ views is
an extremely concerning position for a Board to take and raises questions of its
independence. We understand the Board extended the loan, without obtaining a fair
and reasonable confirmation. We note the CEO’s current interest in the Company’s
shares. Metallon will separately raise this issue of non-compliance with AIM Regulation.

c. We are concerned by the Board’s loose interpretation of the dissemination of price sensitive information in relation to notice of the requisition delivered on 19 November 2020 that was only announced to the market four days later.

d. We sought to impose additional restrictions on the Board in relation to the steps it can take pending a full review of its governance procedures. The Board has – in our opinion – wrongfully rejected this proposed resolution and has not included it within the notice of EGM. This is further evidence of the Board’s blatant disregard for the valid views of shareholders.

e. We are aware of other shareholders in the last six months seeking to strengthen the board with one of the candidates that Metallon has proposed, given their outstanding track record operating in the region. The Board did not adequately engage with
shareholders and avoided making any changes leading us to believe there is a desire
by certain Directors to avoid both the Board and management team being held to
account.

Conclusion and next steps

Metallon believes the poor governance and excessive approach to spending at Lekoil has to stop now.
The Board has categorically failed in its duty to oversee the actions of the Executive team and implement best practice governance to the detriment of all shareholders.
We believe the Board would greatly benefit from the addition Michael Ajukwu and George Maxwell as independent non-executive directors and Thomas Richardson as a non-independent non-executive director representing Metallon, to provide the relevant governance, competence and oversight to ensurethat the Executive team is held to account.

We strongly urge all shareholders to support these proposals by voting FOR the resolutions.

For further information please email [e-mail].

Sincerely,

Metallon Corporation Limited

[ianio5691] 14/12/2020 10:38

If its de-listed, any existing shareholders will be wiped out.

[josephrobert] 11/12/2020 13:17

When was that charlie1712?

Amazing assets absolutely Iani05691 - there is a old video sugegsting what sort of flow rates could be there at 310. Plenty of resource and reserves elsewhere in the portfolio.

At the moment it appears that nobody would fund LEKs share in anything partially becuase of what charlie1712 has said; a new team would give credibility - IMO I think the share price would be higher if it wasn't suspended - these prospective directors are not here for the sake of it.

Always odds on to be delisted following the NOMAD withdrawing - but the central outcome is that it will be relisted when the new directors come on board and bring a pot of money with them - shareholders wil get behind them then. The company will need shareholders to get these assets developed.

I was one of the lucky ones on the flurry to just over 10p, but in retrospect I can surmise that it was a pump and dump, but the assets are still here.

[bakero] 11/12/2020 12:14

No mention of a NOMAD? Will we be on AIM by the EGM? Kicked out the week after next as things stand.

[charlie1712] 11/12/2020 09:57

Mirabaud the company brokers rang 48pc of the shareholders and asked a simple question. Are you supportive of the Ceo rolling his company loan for $1.8m or would you want to see it paid back? 48pc said it shouldn't be there in the first place and it shouldn't for sure be rolled- but paid back. That was 48pc ...100pc of those canvassed - so what did they do - they rolled it. This board is a disgrace the original board members have perpetuated a club, of overpaid execs and massively paid Non-execs, and G and A that is laughable if it wasn't so sad - and they don't even operate. Let's bring on this EGM and back change. George Maxwell wouldn't put up with this scam

[ngms27] 11/12/2020 07:12

It's dead Jim but not as we know it.

[terminator101] 11/12/2020 07:09

Oh dear that's not good. Just as well this is suspended so that more newbies can't be sucked in. There's got to be something really fishy going on if Strand Hanson kicked them out, and this totally stinks.