Longboat Energy Share Discussion Threads

[katsy] 01/5/2024 11:54

We should get news of daily production reaching 700-800bopd in May, and hopefully 1000bopd in June.

[chutes01] 01/5/2024 11:36

Indeed
Will we see 40p this month

[zengas] 01/5/2024 11:01

One way of looking at this is we expanded the operations to S.E Asia and a larger team to manage that and take on acquistions as seen in the recent annual report.

They talked of cost cutting.

2 directors are standing down and won't be replaced in the immediate future.

Brent Cheshire £70k.
Jorunn Saetre £50k.

Nick Ingrassia was on 230k and moves up to CEO replacing Helge Hammer who was on £300k.

The current Chairman of LBE is on 95k.

Helge leaves to become chairman of LBE/Japex - will there be a pay cut to a more modest Chairman salary or still remain on £300k ?
Either way, Helges salary would be 49% met by the Japex ownership portion of the JV so if he remains on £300k this would be a net cost to us of £153k saving LBE £147k.

Cost cutting of around £200k at least to perhaps £300k depending on what Helges salary at LBE/Japex is.
Also if Nicks salary is not as large in taking over as the previous CEO it might increase the savings.

[ripvanwinkle3] 01/5/2024 07:49

chutes you appeared to call this two weeks ago with your "bye bye Helge"

[bumpa33] 01/5/2024 07:38

Helge moves over, Nick takes over CEO - Malaysia moving more into focus. Good to see imo, think this marks a step change in dynamism…

[chutes01] 30/4/2024 10:58

Additional Prod deal news due, should see a significant re-rate here, ahead of free carry drills ahead.
£10 Mio gift

[ohisay] 29/4/2024 12:56

Look at the wording here .

In Norway, we are focused on delivering a transaction to add material production volumes to the relatively small initial production position we acquired in January 2024 in the Statfjord Satellites.
We will make use of the Acquisition Financing Facility provided by JAPEX which will assist Longboat JAPEX's participation in NCS sales processes.

Then you have the 15% free carry on Lotus in Q3 and the icing on the cake at Kertang .This is a very investable company at this market cap.

[katsy] 29/4/2024 12:46

Perhaps some money from UPL coming here. Valued at 3 times more than LBE despite a fall of 25% today.

[chutes01] 26/4/2024 19:17

A few bargains around but this is just too cheap
Expect a bonza deal soon ££

[katsy] 26/4/2024 16:34

I was eyeing buying 50k at sub .165p but it would've meant selling another stock, but that stock has just woken up this week, so I need to let that role. This is under £10m market cap, ludicrous valuation.

[chutes01] 26/4/2024 14:19

expect market to get wind of the next prod deal next week, start of May, excellent upside to be had here. £9Mio ??

[cashandcard] 22/4/2024 14:18

Nice to see some old experienced handles here. This is an accumulation target for me after I was tipped this. Not interested in the cashflow, but good they have it. It's all about that Malay license. Really want to see that progress to drilling. If I may repay the favour, folks look into exposure in Namibia/South-Africa. GALPs announcement yesterday, well, ...speechless.





Cash

[ripvanwinkle3] 16/4/2024 15:03

Alistair not prepared to wait any longer for his Brucie bonus, it seems

[pol123] 15/4/2024 22:42

I picked up a further 275k today. share price is again super cheap IMO. With possible drill late 24 early 25 in Malaysia (as stated in the interview). If statements like that are being made partners must be being lined up now. Petro are desperate to drill the prospect. Our production asset now looks like it will over deliver (tick). Then the $100m revolving credit facility......Opportunity abound
Now tell me LBE is not cheap.
I will add further on any weakness. Good job Helge is a rubbish sales person, or should I say not the most charismatic of people. I honestly see LBE c50p in 12 months time given the right news flow

[chutes01] 15/4/2024 13:14

Bye bye Helga

[ripvanwinkle3] 15/4/2024 13:13

Looks like we have another one of the large holders exiting, at a huge loss. Gonna see how low it goes then take the opportunity to further average down. Madness

[hamid1970] 13/4/2024 17:26

We need a CEO with more vision, deals are hardly flying in. By the time H and team pull their finger out, the world will have turned electric

[bomber13] 13/4/2024 08:14

Thanks Zengas .

Page 8 of the presentation has Longboat’s 1000 bpd from Statfjord being reached by mid-June , so no wonder this factor and others support their confidence of repaying the $17m Japex drawdown by end 2024 . As they say in their going concern statement this is a base case assumption on cash flows this year . The Statfjord interest was acquired for $12.75m in mid-2023 , and still looks well on course for payback within 2 years , as they stated at the time .

[zengas] 12/4/2024 12:45

Decent presentation.

I invested at the outset, but you have to bear in mind it was an out and out exploration play back then (as for that matter UPL is now).

For all that, LBE have still made a number of discoveries from that early strategy which the partners are saying you mightn't have heard much about them but they are of importance and will hear of them as development plans for them grow.

I also bought in on the new strategy.

The ridiculous comments about everything they've touched eleswhere has gone bad beggars belief.

The Japex JV $100m financing deal with the possibility of doubling that via debt rbl financing.

The Initial acquisition of 300 boepd which we were waiting on reaching 600 boepd. The delay was outside our control when we are minority partners. I don't hear many picking up on the expectation that it should now reach circa 1,000 boepd which would be 66% upside to our initial conditioning. The Operator has said there is potential to increase the RF = reserves increase but i'm sure this is all lost amongst the short term moaning and those who don't see what has been put together.

They've landed one of the biggest undrilled blocks (52.5%/2A) with a whopping 50% 3D coverage that would cost $millions with multiple large prospects. Just one having 1.5 billion boe recoverable estimate with the rest potentailly adding up to a multiple of that imo. There's about $500m - $1b of possible value (ie c $3/boe on 150 - 300 mmboe on a remaining 10-20% post farm out for Kertang alone if that size discovery is found, with other structures as a future follow on.

Upland languished at .2 then .4 of a penny for 5 years and now with it's Sarawak block, half the size of ours, still not awarded but expected, no 3D, no recoverable estimates and no known net perecentage share to them - yet now at 4.3p today and 4.7p recently on 1.211 b shares = £53-£57m m/cap and about another 150m cheap warrants still to dilute, little cash and crucially not enjoying any income whatsoever.

As for us picking up a a so called small interest. Aet picked up a similar sized producing interest from Ina of barely 150 boepd but it's what you do with them. They languished at under 10p or £22m m/cap and have picked up 3 debt funded interests under a new strategy that took time to execute and are not far of £100m m/cap at 47p today.

At current prices and short ramp up timescale there should be $25m - $28m JV revenue on that 1,000 boepd.

If they can add the right deal on the financing available they could be a 10,000+ boepd producer in Norway. That has to be passed by Japex too what they want to approve not just LBEs management.

A mention that they could land some Sarawak fallow offshore shallow water existing discoveries for development at no cost which imo could add considerable 2C and reclassified to 2P on a dev plan so that's a major one to watch as that team/region has to justify it's formation and growth over an above just block 2A - which will be a second growth arm.

[ohisay] 12/4/2024 04:39

Investor meet video..

[bomber13] 11/4/2024 19:01

Thanks Darcon .

The narrative was thankfully reassuring on Statfjord .

The CEO's point about the significant extra costs incurred being pre-tax in nature so that 78% of them come back as a tax credit next year perhaps should have been put in the RNS to placate the naysayers ? Indeed Longboat seemed so confident of expecting two decades worth of stable production at Statfjord , that the company declared itself interested in buying another 5% to 10% of the satellites , if available .

Offshore Malaysia sounds a hot area for deal-making right now , so farming down Block 2A to a big boy should not be difficult . Having ambitions to add interests in shallower smaller prospects does also seem to go hand in hand with yet another hint at a Japex type funding deal being sought in the region .

Which might explain the CEO's assurance that Longboat was poised to get bigger with as little dilution as possible .

[darcon] 11/4/2024 16:36

According to their presentation today production from the Statfjord Satellites is anticipated to rise to 1,000 boepd net to the JV once the two additional infill wells are brought on. Only minor work is needed for that. Also, the payback period for the transaction hasn't materially deteriorated according to Helge in the presentation as a result of the additional cost associated with the infill drilling. So overall still looks like a good accretive small production M&A deal for LBE Japex Norge and it's good that the JV had the Japex facility to draw on to address the working capital shortfall that arose.

[darcon] 11/4/2024 16:30

Link to today's Longboat presentation:

[darcon] 11/4/2024 10:09

LBE announced the Statfjord Satellites acquisition on 3 July 2023. LBE said then that with the planned in-fill drilling production was anticipated to double in 2024 to ~600 boepd net to LBE Norge.

LBE said the anticipated payback on the transaction was under two years. The transaction also brought tax benefits to LBE and an additional $4m payment.

Subsequently some doubts about the likely success of the in-fill drilling were raised when OKEA postponed the close of its earlier announced Statfjord acquisition from Equinor. However, OKEA ultimately chose to proceed with its acquisition and it subsequently completed at the end of 2023 and it now holds 14%.

As at 1 Feb 2024 LBE/Japex's net production at the Statfjord Satellites was ~370boepd and we were still waiting to see the results of the production ramp-up. Uncertainty remained as to whether the operator would be successful in doubling production as predicted and LBE had walked down the production expectation from doubling to a significant increase.

So I think today's announcement confirming that production has indeed been successfully doubled is fantastic news. I'm very pleased with that.

However, the news about cost inflation and cost overruns also shows the risk of being a small non-operator in such assets. Not much LBE/Japex can do post-acquisition if the project cost overruns or difficulties arise because of conditions deep underground that require more money to be spent.

[katsy] 11/4/2024 09:44

Does 600boe per day not count for anything nowadays?