LGO Energy Share Discussion Threads

[thenorth] 21/4/2017 10:30

Arry I'm loving that post....

[arrynillson] 21/4/2017 10:08

Garnheim - unfortunately 12bn has to be embarrassed into reading or listening to anything up to date on LGO as the turn around in LGO fundamentals does not suit his haters agenda!

12bn only needs to view the LGO Corporate Presentation for March to comprehend the current number of active wells - he might learn much more from it but as the saying goes - you can lead a horse to water!

Talking about comprehension I'm afraid that appears to be another subject that passed 12bn by at school as he has mistakenly deduced from Neil's statement in the rns 22/03/2017 that there are 100 active wells not appreciating that data from wells that have been closed down could have been included in data which Neil could have used to support his assertion!

I'd speculate that if 12bn had bothered to read the 03/10/2011 rns before he posted his original response he would probably have divided the production by 152! ' the current production comes from a small number of active wells out of a total of 152 '

12bn is at least consistent with his misinformation and here I have dealt only with the 100 wells issue - I have yet to deal with the ridiculous logic of the whole post he has attempted to apply based on the 100 number - watch this space!

[12bn] 21/4/2017 09:58

ThickoNorth,did you or did you not have 5m plus shares here? Did you or did you not have them when the share price was 6p plus? (Note I am not saying that you bought them all at 6p). If so, then you have dropped over £300k from the 6.9p peak,'on paper' at least. You may console yourself that by not selling then one day you will be even but in reality you are well down now,whether you sell or not. The cliche that you 'have only lost if you sell' is just a con to keep deluded fools like you happy.

[12bn] 21/4/2017 09:51

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.//////// This is the key bit where NR mentions 100 existing wells,not your 88 and decline rates under 20%. I agree though that the 20% is a smoke n mirrors number designed to imply that decline rates for new wells will be that. I tend to agree that most of the existing wells will decline with very low rates. NR doesn't actually lie he just 'implies facts that aren't true' imo.

[12bn] 21/4/2017 09:44

Garnheim,can you produce evidence for your assertions in post 722? Please read this RNS from a few days ago first./////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:

[garnhiem80] 21/4/2017 08:33

Las presentation was 88 active wells, not all f them are in production at any one time.

The Goudron sands has a depletion rate of 1% from historic production figures to oil in place figures.. Over all I think it's in the region of 2-3% overall (including C-Sands).

[12bn] 21/4/2017 08:23

Who are you trying to fool ThickoNorth,only you are stupid enough to think that you haven't lost anything. Look at your broker statement and see what your LGO shares are worth. You once had at least 5m of these (you claimed) and ,the share price was over 6p once,so those £300k of shares are now worth £5k ish,that is a big paper loss and just holding on to them and saying 'one day Rodney the share price will be 120p' doesn't change the fact that you are around £300k down! (More probably as you bought more as the share price fell). You are an idiot,eos.

[thenorth] 21/4/2017 08:15

Simon it's you and your boyfriend that need to man up... but at least you agree that I have not lost anything until I sell so it proves there is hope...

[12bn] 21/4/2017 08:14

I am suggesting nothing Garnheim,I am saying that LGO has over 100 wells producing 459 bopd despite new wells,work-overs,reperforations, so the new wells must be depleting fast. It is obvious now how NR tried to disguise the depletion rates by citing his 100 field wells depleting at 20% p/a was Goudron depletion rates but he never mentioned that the new wells are likely to deplete faster than 100 old wells. Do the maths,100 wells but production only 459 bopd,under 4.6 bopd per well,the new wells must deplete fast,imo.

[garnhiem80] 21/4/2017 08:00

Are you suggesting one new well can effectively replace 7 legacy wells? Saving at least $30k on yearly cost and without intervention/maintenance/electricity and labour costs?

[12bn] 21/4/2017 07:22

Here it is,LGO did have a lot more than 100 existing wells at Goudron,152 in fact.///////RNS Number : 3713P

Leni Gas & Oil PLC

03 October 2011

Immediate Release, 7 am

3October 2011

Leni Gas & Oil PLC

("LGO" or the "Company")

Major Acquisition in Trinidad and

Completion of a GBP 5 million Equity Line Facility

Leni Gas & Oil plc today announces the acquisition of Goudron E&P Limited ("GEPL"), a company which holds exclusive rights to acquire the Incremental Production Service Contract ("IPSC") for the Petroleum Company of Trinidad Limited ("Petrotrin") owned Goudron Field in onshore south-eastern Trinidad.

Highlights:

-- The Goudron Field was originally developed by Texaco

-- The existing producing zones have reserves of proven 1.9 mmbbls and estimated 3P reserve of 21.8 mmbbls

-- The concession covers a total of 2,875 acres (11.4 sq km) which more than doubles LGO's land holding in Trinidad

-- The current production comes from a small number of active wells out of a total of 152

-- Production potential has been estimated to be in the range 1,000 to 4,000 bopd

-- The drilling of new infill wells could commence in early 2012

-- Additional undeveloped reservoirs in the Gros Morne (Upper Cruse) and Lower Cruse formations provide considerable opportunities for future reserves growth

-- Much of the concession is underexplored and significant exploration opportunities exist

-- LGO is acquiring 100% of the rights under the IPSC and will become operator

The Gourdon Field lies between the East Moruga, and Beach Marcelle fields in south-eastern Trinidad and has direct access to the Petrotrin oil export pipeline to the Pointe-a-Pierre refinery in western Trinidad. The field was originally discovered by Trinidad Leaseholding Limited in 1927 and was developed in its current form by Texaco between 1956 and 1986 when it passed to Petrotrin. A field reactivation contract was signed in late 2009.

The field has had very little investment over the last 25 years, and the existing production comes from about 30 wells, of which 12 are on production with beam pumps and the others flow naturally or are periodically swabbed. Recent production has ranged between 100 and over 200 bopd. The oil reservoirs are generally between 300 and 3,500 feet below surface and the oil is light low sulphur crude with an API gravity ranging between 25 and 55 degrees and a mean of 32 degrees. GOR is variable and generally higher in the deeper Gros Morne (Cruse equivalent) reservoir zones.

GEPL was previously owned by Sorgenia Trinidad and Tobago Holdings Limited ("Sorgenia"), and based on studies carried out by Sorgenia the oil in place in the existing producing zones is estimated to be between 120 and 225 million barrels STOIIP, with a P50 estimate of 166 mmbbls. Proven reserves of 1.9 mmbbls are currently estimated within the field area and can be recovered using existing wells and a small number of infill wells. Proven and Probable reserves are estimated at 8.0 mmbbls. Additional recoverable reserves which can be produced from hydraulically fractured wells add a further 13.8 mmbbls. Contingent Resources are also attributed to future potential water injection or other EOR schemes.

Cumulative historic production from the field has totaled only 4.8 mmbbls, most of that between 1956 and 1980 when Texaco were actively operating the field and during which time most of the field wells were drilled. Studies by various companies have concluded that the existing field has the immediate potential for roughly 40 routine simple work-overs, up to 20 recompletions and numerous possible hydraulic fracturing operations. Further areas of unswept and undeveloped oil pay could be developed with infill wells.

LGO has assessed the opportunity for an initial work-over programme aimed at improving the production from up to 50 existing wells and estimates that production can be raised to 450-500 bopd through work involving well clean out (sand removal), limited reperforation and the installation of additional electrical pumps (either beam and downhole PCP). A preliminary estimate of the cost of that programme, which could take 12 to 18 months to execute, is US$4 million.

During their operations Texaco hydraulically fractured 23 wells in the main Goudron Sands and a further 5 wells in the deeper Cruse equivalents. These wells had average production increases of between 5 and 10 fold after fraccing and it is anticipated that with modern hydraulic fraccing techniques, especially on new wells, better results can be obtained due to the significant advances in technology over the last 50 years.

Additional potential in deeper reservoirs and in underexplored portions of the concession add considerable further reserves potential. There is also potential for gas production which was previously unexploited due to the absence of a local market, but which could now be exported through existing infrastructure. Petroleum rights under the IPSC extend down to 5,000 feet subsea. The current term of the IPSC has 8 years remaining and the IPSC contains an extension period of 10 years running to 2030.

GEPL was incorporated in March 2011 as a special purpose vehicle in Trinidad to hold the IPSC option rights and had no accounts.

The assignment of the IPSC requires the approval of both Petrotrin and the Trinidad and Tobago Ministry of Energy and Energy Affairs. The application process was started in August and it is anticipated to take up to a further 3 months to conclude.

Mr. Alex Almandoz, a Trinidadian with 26 years of experience in the oil and gas industry and owner of Altech Services Limited, a local rig service company, has been appointed as LGO's Country Manager in Trinidad and will be directly responsible for all LGO activities.

In early 2011 the Company indicated that it wished to increase its portfolio in Trinidad. Since that time LGO has acquired leases to 815 acres of previously unexplored prospective land adjacent to the Icacos Field where the Company owns a 50% interest, and has farmed-in to the Advance Oil Company (Trinidad) Limited Moruga North leases with a view to drilling up to 9 wells in the next two to three years. The first well is anticipated to be spudded in spring 2012. The acquisition of the rights to be assigned the operatorship of the Goudron Field considerably enhances the Company's position in Trinidad.

Consideration:

-- LGO has paid Sorgenia US$1 million to acquire 100% of the outstanding shares in GEPL

-- Contingent on the successful completion of the transfer of the IPSC to LGO a further consideration of US$1 million will be paid to Sorgenia International BV for the geological, reservoir engineering and environmental studies conducted on the field

-- Conditional payments to Sorgenia International BV will also be payable when and if field production reaches 1,000bopd (US$1 million) and 2,000 bopd (US$2 million). Based on initial field redevelopment plans these levels will be reached in early 2013 and in 2014 respectively

-- A payment of up to a maximum of US$4 million will also be due on transfer of the IPSC

The Company also announces that it has secured a three year Equity Line Facility ("ELF") of up to GBP5 million with Dutchess Opportunity Cayman Fund Ltd ("Dutchess"). The ELF has been arranged by First Columbus LLP ("First Columbus"), Dutchess's joint venture partner in the UK.

The ELF offers the Company ongoing access to capital as it enables the Company to obtain funding from Dutchess at any time during the next three years by way of subscription for new ordinary shares in the Company. Subscriptions will be priced at a 5 per cent discount to the market price and will take place at timings and intervals and in sizes solely determined by the Company, subject to the agreed mechanisms specified under the ELF.

The ELF may be drawn down in tranches linked to the Company's average daily trading volume in the three days prior to the notice of draw down or in other specified amounts. The Company is able to specify a minimum acceptable price for each tranche to prevent shares being sold in the market at an unacceptable discount. Currently LGO has not drawn on the ELF facility.

The Company expects to provide an update on its ongoing operations in Spain shortly.

Neil Ritson, LGO's Chief Executive, commented:

"We are delighted to have been able to acquire the rights to the Goudron Field since we feel this offers an exciting opportunity for LGO to make a step change in its growth in Trinidad through both incremental production and exploration.

Experience gained elsewhere, especially in Spain, will allow us to maximize the opportunities in this field. The simultaneous acquisition of the comprehensive recent studies allows us to move very quickly to exploit these opportunities. The provision of a standby equity facility will provide access to working capital if needed. "

Competent Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Leni Gas & Oil Plc who has 35 years of relevant experience in the oil industry. Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.

Notes to Editors:

In addition to the assignment of the Goudron IPSC, the Company holds the following assets in Trinidad.

Icacos Field: a 50% interest in the Private Petroleum Licence area covering a total of 1,900 acres including the producing Icacos oilfield in the Cedros Peninsula onshore in south western Trinidad. The Icacos Field is operated by Primera Oil and Gas Limited, now a subsidiary of Touchstone Exploration Inc. Production from the Miocene Upper Cruse Formation in the field is currently derived from just three of the 14 wells and year to date production has averaged 18 bopd net to LGO's interest. A production enhancement programme aimed at lifting gross production to over 150 bopd has been under consideration for some time. Deeper exploration targets within the East Venezuelan Basin below the shallow producing Cruse are also of significant interest.

Cedros Leases: LGO holds a 100% interest in a number of new leases totaling 815 acres to private lands adjacent to the Icacos Field to which the subsurface rights have been assigned to the Company. Additional areas are under negotiation and once these are secured a Private Petroleum Licence will be applied for from the Ministry of Energy and Energy Affairs covering all these leases, with work anticipated to commence in 2012.

Moruga North: in July 2011 the Company signed a binding Heads of Agreement with Advance Oil Company (Trinidad) Limited ("AOCL") to farm-in to AOCL's leases in the Moruga area of central southern Trinidad totaling 1,223 acres of partially explored lands between the West Moruga and Innis, Antilles and Trinity fields. LGO has committed to the drilling of three exploration wells and up to six appraisal/development wells over a 3 year period. The Company will be assigned an initial 49% interest and operatorship in the leases and anticipates earning in to between 33 % and 45% of the reserves and production through the completion of the agreed work programme. The location of the first exploration well has been selected and it is planned to spud that well in the spring of 2012. In addition, LGO will work over two existing productive wells, MN-44 and MN-209, which are hoped to be on stream by end 2011 and to provide gross production of 120 bopd.

About Dutchess Capital

Dutchess Capital was founded in 2000. Since then, Dutchess has been a market leader and innovator in providing ELFs and other unique financing structures for publicly-traded companies.

Dutchess has transacted over $2 billion in ELF commitments globally. Dutchess has over 10 years of experience assisting companies throughout the process, as well as the financial wherewithal to fund the company throughout the entire commitment. Dutchess sources worldwide investment opportunities, with offices in Boston, New York, London, Seoul and Beijing.

For more information, visit: www.dutchesscapital.com

Enquiries

[12bn] 21/4/2017 07:08

-- Four well recompletions; GY-671, GY-50, GY-673 and GY-277, have been successfully carried out at Goudron supporting 1H2016 production which averaged 418 bopd (1H2015: 1,191 bopd)///// From 28th Sept 2016 RNS,note the production drop in 1 year,1,191 bopd to 418 bopd!

[12bn] 21/4/2017 06:56

LGO has done surveys and spent £Xm doing them but the info gathered years ago has not helped them to get production up Garnheim,they were producing 459 bopd group but I expect that will be lower now despite work-overs,new wells and re-perforations. It is the high gas levels that produce the good initial flow rates in some wells,670 had an initial open flow of 6000 bopd but the flow rapidly falls. NR says 100 wells over the Goudron field but GROUP production was only 459 bopd,do the maths,all these new wells at high initial production numbers,why aren't LGO producing more than under 4.6 bopd per well? (It is probably even lower than that,I will see if I can find reference to the number of wells on the Goudron site elsewhere in the RNSs as I think the actual number was much higher).

[garnhiem80] 20/4/2017 21:35

12bn, Texaco never carried out tests anything like what LGO have done.. it was just a simple case o punching a hole and take the oil! Petrotrin were the ones that kept any type of drill numbers, wells on production and production output.. most likely why the importance of 2014/15 drilling for core and oil samples."To apply the IPR methods, obtain test information, which includes production rates, flowing bottomhole pressures, and an estimate of the average reservoir pressure. Vogel's IPR is a single-rate relationship, and the highest test rate is used to demonstrate this IPR. The data obtained at the largest pressure drawdown can be used with Eq. 1 to solve for the maximum oil-production rate.Once the petroleum engineer has estimated the current productive capacity of a well, it is often desired to predict future performance for planning purposes. Standing[11] was one of the first to address the prediction of future well performance from IPRs. He used Vogel's IPR with a modified multiphase productivity index to relate current well performance to future performance. Unfortunately, his relationship requires knowledge of fluid properties and relative permeability behavior. This makes Standing's method difficult to use because one must estimate saturations, relative permeabilities, and fluid properties at a future reservoir pressure.http://petrowiki.org/Oil_well_performanceWith the data LGO now holds they can confidently predict future new shallow well production outputs.GY669 is an interesting one? Higher gas to oil ratio. Last we heard it was only perforated over 30ft!

[simon1955] 20/4/2017 20:36

TheNorth - trying to hide your enormous losses by saying it is not a loss until you sell, true but your problem is LGO are more likely to go bust than you ever selling your increasingly diluted miniscule holding for anything more than peanuts,man up and admit you have been well and truly shafted by Ritsons, you will feel much better when you are out.

[12bn] 20/4/2017 17:50

This is the relevant bit arry........GY-682 is one of a programme of planned Mayaro infill wells, each of which is forecast to have average initial production rates of 45 bopd of light sweet crude, with historically low decline rates shown by over 100 existing field wells to be consistently less than 20% per annum. The second well, GY-683, is anticipated to spud in the next few days and is targeting a similar interval of proven oil pay in the Mayaro Sandstone./////////NR is citing over 100 existing field wells,many will have long since declined to under 10 bopd and may decline slowly now,from a very low base! This does not mean that the new wells are likely to do the same,he is comparing old wells to new wells,apples to pears,imo! The last RNS that mentioned total group production had it at 459 bopd,do the maths! Divide that by 100 and you have under 4.6 bopd per well on average and that is if LGO only has 100 wells (if I remember correctly they had over 170 wells at Goudron alone)!

[12bn] 20/4/2017 17:36

Why don't you cut n paste the RNS arry? Is it beyond your abilities?

[arrynillson] 20/4/2017 15:43

12bn - all I'm saying is if you think Neil is lying in the rns post your evidence.

BTW the rns didn't guarantee future decline rates merely gave factual information from the past - bit like your cut n paste accounts.

You are now ' guessing NR was vague ' - it's an rns - I'm sure he has the evidence to support his assertion- he needs to - bulletin board posters think they don't need to - that's the difference!

[12bn] 20/4/2017 15:33

Arry,I bet that you cannot get any info on well 682 present flow rates,NR WILL NOT GIVE OUT THAT INFO,eos. Arry,cut n paste the stats from the legal document,if you know how to. My guess is NR was vague and giving his opinion on well flow rate declines from Mayaro,he couldn't possibly guarantee a mere 20% decline,imo!

[12bn] 20/4/2017 15:28

You sound upset TheNorth. It is true that you don't have any 6p shares now,they are under 2p! Also where you had 5m shares you now have 250k shares,you have lost a fortune here, eos. Think of the jars of vaseline you and your boyfriend could have enjoyed! You could have even paid for a holiday to Brighton with a cruise around the boys toilets! :)