LGO Energy Share Discussion Threads

[edgein] 18/4/2017 07:42

Great result, that's free flowing oil at almost twice the previous well and a good time to happen when oil is above $50/bbl again. Looks like NR's prediction of doubling production by year end is well on track. Once the pressure support wells come on in the C sands that'll likely lead to gradually increasing production from many wells as they repressurise. Looking very cheap now at today's cap.

Regards,
Ed.

[brasso3] 18/4/2017 07:35

That must lift LGO to 550 - 600 BOPD now.

550 x ($52 - $20) x 365 = $6.4m annual cash flow.

3 - 5 more wells should see us comfortably up to 800 BOPD

[12bn] 18/4/2017 07:23

I remember when well 670 came in with an initial open flow rate of 6000 bopd!!!! Hard to believe but true,I wouldn't put much faith in initial flow rates,where are the settled flow rates? We will not hear anything about them until about the end of September, when it will be likely that everyone will know the initial flow rates didn't last long,imo.

[thenorth] 18/4/2017 07:22

TG I'd say we all are that are LTH....Stay cool old bean our time will come.. the oil is there...

[12bn] 18/4/2017 07:14

No info on the previous wells flow rate now I see! Same old NR,put out an RNS on initial flow rates and then nothing on later flow rates when the flow drops off dramatically! Why do I think this stinks?

[12bn] 18/4/2017 07:10

RNS Number : 5397C

LGO Energy PLC

18 April 2017

For Immediate Release, 7am

18 April 2017

LGO ENERGY PLC

("LGO" or the "Company")

Well GY-683 on initial production at 80 bopd - significantly ahead of the pre-drill expectation

LGO is pleased to announce that its second development well, GY-683, in the new drilling campaign on the Company's Goudron Field, which was drilled to a total depth of 1,250 feet measured depth and perforated over a 269-foot interval of net oil pay within the Mayaro Sandstone reservoir, is now on production.

The well was completed on 9 April 2017 and is free flowing (i.e. without pumping) with an initial rate of 80 barrels of oil per day ("bopd") of dry oil with API gravity of approximately 44 degrees and initial well-head flowing pressure of 40 psi through a 7/64-inch choke. It is anticipated that once the natural flow period ends, the well will be placed on pump at an initial stabilised rate estimated to be approximately 65 bopd.

Fergus Jenkins, LGO's Chief Operating Officer, commented:

"As with the first well GY-682, this second well has come in ahead of the average expected for initial production rate, giving confidence that the new drilling campaign is on track to substantially increase production from Goudron over the year. The initial free flowing dry oil nature of the well suggests a high quality reservoir and higher than anticipated inflow rates which is a very positive outcome."

GY-683 is the second of a programme of up to 10 infill wells planned for the Mayaro Sandstone in 2017 and early 2018. Each well is forecast to have average initial pumped production rates of 45 bopd of light sweet crude, with the field historically demonstrating low decline rates consistently less than 20% per annum, as evidenced in over 100 existing wells at Mayaro Sandstone level.

The Company has approvals in place for the next three wells in the campaign and is currently evaluating the necessary drilling contracts prior to embarking on the next 3 to 5 wells in the planned programme. With improved oil prices and rising production, on which incremental opex is approximately US$2 per barrel, the Company is continuing to increase its revenue generation.

Qualified Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Chairman for LGO Energy plc, who has over 38 years of relevant experience in the oil industry. Mr. Ritson is a member of the Society of Petroleum Engineers (SPE), an Active Member of the American Association of Petroleum Geologists (AAPG) and is a Fellow of the Geological Society of London (FGS).

Enquiries:

[brasso3] 18/4/2017 07:10

Great result.

[jcgswims] 18/4/2017 07:08

RNS out

Well GY-683 on initial production at 80 bopd - significantly ahead of the pre-drill expectation

LGO is pleased to announce that its second development well, GY-683, in the new drilling campaign on the Company's Goudron Field, which was drilled to a total depth of 1,250 feet measured depth and perforated over a 269-foot interval of net oil pay within the Mayaro Sandstone reservoir, is now on production.

The well was completed on 9 April 2017 and is free flowing (i.e. without pumping) with an initial rate of 80 barrels of oil per day ("bopd") of dry oil with API gravity of approximately 44 degrees and initial well-head flowing pressure of 40 psi through a 7/64-inch choke. It is anticipated that once the natural flow period ends, the well will be placed on pump at an initial stabilised rate estimated to be approximately 65 bopd.

Fergus Jenkins, LGO's Chief Operating Officer, commented:

"As with the first well GY-682, this second well has come in ahead of the average expected for initial production rate, giving confidence that the new drilling campaign is on track to substantially increase production from Goudron over the year. The initial free flowing dry oil nature of the well suggests a high quality reservoir and higher than anticipated inflow rates which is a very positive outcome."

GY-683 is the second of a programme of up to 10 infill wells planned for the Mayaro Sandstone in 2017 and early 2018. Each well is forecast to have average initial pumped production rates of 45 bopd of light sweet crude, with the field historically demonstrating low decline rates consistently less than 20% per annum, as evidenced in over 100 existing wells at Mayaro Sandstone level.

The Company has approvals in place for the next three wells in the campaign and is currently evaluating the necessary drilling contracts prior to embarking on the next 3 to 5 wells in the planned programme. With improved oil prices and rising production, on which incremental opex is approximately US$2 per barrel, the Company is continuing to increase its revenue generation.

[nexus7] 17/4/2017 17:13

Bullish Oil Bets Gain on Signs OPEC Cuts to Outdo U.S. Boom

→ Money managers’ WTI net-longs increase for second week: CFTC
→ WTI oil tops $53 a barrel; U.S. crude supply drops from record

OPEC is finally making some headway in its race against the tide of surging U.S. supplies, and speculators are giving the group greater credence.

Hedge funds boosted bets on higher West Texas Intermediate crude prices a second week as futures topped $53 a barrel for the first time in a month, U.S. Commodity Futures Trading Commission data show. While more OPEC members are seen ready to extend output cuts, U.S. crude stockpiles dropped from a record. Fuel supplies are shrinking week after week at a time refineries are stepping up their crude processing ahead of the summer driving season...

[nexus7] 17/4/2017 17:01

Iran Ready To Join OPEC’s Production Cut Extension

By Irina Slav - Apr 17, 2017, 10:22 AM CDT

Iran, which has been exempted from the OPEC oil production cut agreement closed last November, is now ready to join the initiative as long as there is consensus among the cartel’s members. That’s what Oil Minister Bijan Zanganeh told media yesterday, adding that most OPEC members seem to be already in favor of the extension...

[simon1955] 16/4/2017 20:15

1.5p coming very soon, what a sorry state of affairs. I cannot see this company being cash positive anytime soon if ever.More shares, more consolidation, more debt, more hype and promises that is the future for LGO - and the past pmsl I have to hand it to Ritsons, how he manages to convince mug punters to support his ever growing number of survival placings is beyond me.

[nexus7] 16/4/2017 18:57

OPEC Sees a World That Still Has Too Much Oil
By Julian Lee

April 15, 2017 2:00 AM EDT (Updated April 16, 2017 3:15 AM EDT )
The oil market is tipping slowly from glut to equilibrium, as output cuts from OPEC and 11 non-OPEC countries start to reduce crude flows.It's not quite there yet. Indeed, the grand "re-balancing" of supply and demand has yet to take place, although the International Energy Agency does at least believe "that the market is already very close to balance," according to its latest monthly report...

[12bn] 15/4/2017 08:09

The Guardian14 Apr '17 - 22:12 - 7621 of 7621 0 0
Mostro
14 Apr '17 - 09:54 - 7619 of 7620 Problem here I think is too many day/very short term traders into this stock!!

Agreed and the problem is how to change that. If the price stays low and NR keeps on raising funds like he has done in the past, we will be ready for another consolidation before the decade is out.////// Good post,I can see dilution taking the share price lower and lower and then another consolidation is possible. 6p to 0.12p then 20:1 consolidation then back to 2.5p followed by a rampathon to 4p and now a slow drift back to 0.12p? Rinse and repeat Ritson? LOL

[the guardian] 14/4/2017 22:12

Mostro
14 Apr '17 - 09:54 - 7619 of 7620 Problem here I think is too many day/very short term traders into this stock!!

Agreed and the problem is how to change that. If the price stays low and NR keeps on raising funds like he has done in the past, we will be ready for another consolidation before the decade is out.

[brasso3] 14/4/2017 11:28

I doubt it was Nexus own post. He normally copies them off someone on the LSE forum.

[mostro] 14/4/2017 09:54

LGO is currently the biggest faller on my 'Buy on Drop' virtual portfolio at -51%, just ahead of SOLO at -43%.....
Dont think much of the SOLO latest few Rns so will look to get back into LGO on tuesday, hopefully around 1.90 ish.
I like the NEXUS7 earlier post detailing why he will continue holding.

There may well be a glimmer of light at the end of the pipeline!
Problem here I think is too many day/very short term traders into this stock!!

Gla

[thenorth] 13/4/2017 21:56

Arry indeed.... our resident rodent has a huge issue with understanding facts... I admire your attempt to reeducate him... in doing so drives more water into the quicksand he is stuck in... bless his cotton little socks...

[brasso3] 13/4/2017 17:41

The over hang will not start to clear until the share price hits 2.4p.