Leyshon Energy Share Discussion Threads

[boadicea] 19/1/2015 09:36

Scallywag - "If that [selling] is difficult or impossible then you can't claim the loss."

If a security has become of negligible value, cannot be sold or ceases to exist, one may make a "negligible value claim" to HMRC for the loss.
There is a formal list of such companies but it appears not to be a limitation of claim as I have not had such a claim refused or questioned when there is supporting evidence.

I believe the allowed loss is provisional to the extent that where a claimed negligible value asset somehow revives, as happened after the 1970's collapse of Rolls Royce, the whole of the ultimate selling price is treated as a capital gain.

I am not a tax expert, the above is just based on my personal experience, so anyone reading should check it out before planning or acting on it.

[useless23] 17/1/2015 17:51

My shares were in a share isa account so I can't write off the loss.

[scallywag] 17/1/2015 15:47

From a personal taxation perspective, in order to claim a loss you first of all have to execute a sale. If that is difficult or impossible then you can't claim the loss. I'd bet that 99% of holders are in loss - I certainly am.

[flyfisher] 17/1/2015 08:36

Similar situations of delisting and subsequent liquidation occurred recently in both BGBL and 3LEG.
Be aware that not all brokers will hold unlisted stock in their nominee account. Some holders were obliged to either sell or certificate their holding.

[sclper] 17/1/2015 07:09

No, it will still be a limited liability company. It would have to be a partnership for individuals to be liable for losses.

[useless23] 16/1/2015 17:21

As a shareholder in a private company, wouldn't one be liable for losses and liabilities as well as gains?

[scallywag] 16/1/2015 13:28

eastender boy > I guess the answer to your question is that if I sell now I will then be able to register the loss and set it against gains for cgt purposes. If I wait to become a shareholder in the private company, I may or may not profit if the license is sold, but in order to establish the capital loss, I will have to dispose of the shares. It doesn't sound like the matched transaction facility will make being able to sell a foregone conclusion. The best outcome would certainly be a nominal takeover by LRL, but what are the chances that would happen, and what would the value of the license be with oil at it's current price?

[boadicea] 16/1/2015 10:19

I suppose the logical outcome for the resulting private company with minimal assets would be a nominal takeover by LRL to tidy things up.

[eastender boy] 15/1/2015 10:37

Ask yourself the question, why would you sell now when the vote is at the end of Jan, and the min 4.1p will be paid soon after and you will still be a shareholder of a then private company. The Licence is still an asset and can be sold on. current sell price is approx 10% less than what is proposed.

[sclper] 14/1/2015 14:46

If they don't stump the cash they are contracted to spend on developing the asset then they will lose it.

[michmcd] 14/1/2015 14:42

The value outlined for LEN in the RNS is based on cash, minus winding down costs, what about the asset - does anyone know how that is priced in, it may not be worth much but surely its not given back?

[papillon] 13/1/2015 22:05

A good decision to sell today, Useless23.

Boadicea. I don't think FAST will waste their cash. They have already let one licence (onshore gas, Morocco) expire because they couldn't farm it out and they were not prepared to use up their cash going it alone by drilling a well to retain the licence.

[bam bam rubble] 13/1/2015 21:58

The clean way is to distribute cash to shareholders then cancel the listing.

Doing it the other way around means there could be some delay in collection.

[useless23] 13/1/2015 21:53

...which I why I sold up today. I was tempted to stay the course but there's always the possibility of a fvck up which will eat into the cash.

[boadicea] 13/1/2015 21:10

papillon - "I see FAST as a low risk investment as was LEN last week."

I know nothing of FAST but I do know that at no time - and particularly last week - has it been sensible to describe LEN as a low risk investment.
In our state of knowledge last week there was no knowing what desperado scheme the LEN management might have had in mind for their steadily shrinking cash balance. All one can say is that, viewed from today, it may have turned out to be a profitable short term investment. There is still a significant risk that the view may become less rosy within a few weeks.

The management's present conclusion and proposals are (imo) correct in the circumstances - if, with hindsight, a year or two late! I don't underestimate their (rather well rewarded) anguish in eventually arriving at the decision.

[papillon] 13/1/2015 19:42

I was tossing up, on friday, whether to buy FAST or LEN. Both were selling at a similarly very large discount to their cash and both companies were talking of returning their cash to shareholders if they couldn't find something suitable to invest in. Unfortunately I chose FAST, primarily because the share price dropped sharply on Friday due to a large seller! Such is my luck! However I think what has happened today with LEN could easily happen with FAST sometime this year. If so then I will make around a circa 50% return on my FAST investment. However if FAST do find something suitably cheap (in the present climate for oil) to invest in then the Market, if it likes the deal, could very well re-rate the shares anyway. I see FAST as a low risk investment as was LEN last week.

[useless23] 13/1/2015 19:21

As an alternative, wait for crude to fall to 30usd and then buy oil stocks which are cash rich and illiquid. 2015 will be a bad year for oilers but there will be bargains knocking about as a result.

[useless23] 13/1/2015 19:13

My intention is to go long on Brent Crude Oil with a spreadbet if the price drops to 30usd and then just wait. No leverage.

[socktrade1] 13/1/2015 17:36

chasing losses elsewhere in ukog stg and a few others

[socktrade1] 13/1/2015 17:36

chasing losses elsewhere in ukog stg and a few others

[socktrade1] 13/1/2015 17:35

could have got double what i got had i waited... but thats life.. i had not rust in them that the payout would be 4p thought it might drag on.. never mind

[useless23] 13/1/2015 13:14

I've sold out. Got 3.75p. Made a massive loss. Only myself to blame. Should have sold after the debacle with zjs6.

[papillon] 13/1/2015 12:41

I see LEN has given up, is de-listing from AIM and is returning all it's cash to shareholders. LEN share price up circa 50% today on the news. Come on FAST and do the decent thing and return your cash to shareholders!! Lol.

[sos100] 13/1/2015 10:31

rvsy38
13 Jan'15 - 09:03 - 2290 of 2299 0 0

A poster on the Soco International board has given the fall in the share price of various oil companies over the last 5 years :

Premier 53%; Tullow 70 %; Salamander 75% ; Afren 60 %; Cairn 59% ; BG 30 %;
BP 35 %; Bowleven 67% ; Northern Petroleum 92 %.

At the end of 2009 Leyshon Resources share price was around 8.5p but in the last 5 years it peaked at 25p and was considerable higher than 8.5 p for long periods.

Those complaining about the board should perhaps examine their own investment strategies.


not sure why you defend the board so much.If the basin is so complex should have returned cash long ago.

[eastender boy] 13/1/2015 10:28

So what happens to the non cash assets ? ie the licence. ? It gets sold on when a private company.