Lochard Energy Share Discussion Threads

[bomfin] 03/4/2013 12:01

I stuck a very small toe into aey at just over 11p/share. About 1/4000th of my worth.

[falklands] 03/4/2013 11:57

Bomfin I guess aey did not work out maybe this is why you come on here again ?

[bomfin] 03/4/2013 11:53

Quite a lot of info about 9/17 here



Seems to be quite a lot of ponderables (risk factors) what do you like so much about the prospect c & c? Be interested to hear your views.

I'm missed how confident lhd were about their farm out of these licences. Seemingly DECC have only got to agree!?

[falklands] 03/4/2013 11:29

Alex yes I just read that On trap thread seems the infant Pro has been trying to stalk me for the past few months arr if only he knew where else I put my loot.

I can see it now rented semi photos on the bedroom wall of us. His twitter site posts basically everything of mine as a sell serious problems in the head I might throw a few Wobblies in just for some humour.

I cannot still stop laughing about the fogl experience when he Ramped it 24/7 and everyone sold before him leaving him the can I don't think anyone takes his views seriously as clone paperpal.

Sqz comes to mind as well sucked a few trap in at 18p

[rapier686] 03/4/2013 11:19

Sure Falk to some extent - but I only took up the tone I did because of your claim that Trap have debt. When, as you well know, they don't yet. And if they do subsequently draw down the facility then it will be to fund investment which one hopes will be worth doing.
Pro's comparison methodology pretty much sums up my perspective. Which is not to say LHD will do badly, and indeed if Athena does well then the higher gearing of LHD may make up for the poorer valuation.
Or if the 9/17 appraisal opportunity is really good and valuable - over to you cashandcard

[alex hawk] 03/4/2013 11:15

TRAP is a mouse trap at best.Scotney is the cheese - the risky mice will take a gamble and risk their life for all the reward.The clever mice will pile in after the Scotney Trap has gone off and the intial risky mouse has taken one for the team.A lot of panic around TRAP even Pro is back for a final ramp - LHD is a safer bet right now - not in either.

[utrecht_00] 03/4/2013 11:10

Rapier- yep doubt we will get 20 million barrels. In any case royalty won't start until mid 2015 and Gemini costs including royalty are classed as production costs so deducted from costs- better for tax. If Lhd get 20 million barrels I would be very happy to pay 2.5% as company would have about $1.5 billion in the bank and be worth £14 a share!

[falklands] 03/4/2013 10:58

Rapier your playing games as others I have a feeling your on twitter.

Even Paul Curits did an interesting article on fool oil companies thread on what the outcome of trap would be medium term if trap next exploration is a duffer cough aey experience anyone ?

As for lhd debt it's reducing and hardly no one wants to sell at the present even the ex CEO of lhd is buying in, more to the point I tried three times to top up and there are none about in volume.

[bomfin] 03/4/2013 10:57

c & c I'd be interested to know more about 9/17 opportunity. Is that one of the blocks they are trying to farm out? If so anyone know how that's going?

[rapier686] 03/4/2013 10:56

If payments to Gemini currently have my interest, I'll discuss them here if you don't mind. Thankfully they're irrelevant on the other thread you mention aren't they?

[falklands] 03/4/2013 10:44

In all fairness discuss this on your own trap thread trap posters your preaching to lhd converted.

[rapier686] 03/4/2013 10:44

See what you mean utrecht, I'd been going on:
To fund part of Lochard's participation in the Athena field Lochard's previous management borrowed US$14 million from Gemini Oil & Gas Fund II, L.P. ("Gemini"). Under the terms of the Gemini loan agreement Lochard is required to repay Gemini US$28 million plus a 5% residual royalty on gross production ("Gemini Royalty").
The first US$14 million is repayable at the rate of 50 per cent of production revenue, after which the repayment rate falls to 20 per cent of production revenues until $28 million is repaid, after which the Gemini Royalty is due.

I now see the Prelims said
hereafter a royalty of 5 per cent of gross production income is payable to Gemini until in aggregate Lochard has received payment for 20 million barrels when the royalty falls to 2.5 per cent in perpetuity

It does strike me that Lochard receiving payment for 20 million barrels is somewhat implausible, given they're expecting around 10% of that.

It also strikes me that the royalty is on Gross production, so Lochard gets 95% of the revenue but 100% of the costs. With opex chewing up around 30% of the receipts this makes Gemini's entitlement more valuable than 5%.

[cashandcard] 03/4/2013 10:38

bomfin,

Interesting discussion. In all fairness, Trap is better because the debt is lower and they have more of Athena.

However, I would rather have LHD's 9/17 oil appraisal opportunity than every asset in Traps portfolio except Orchid. Yes, I consider it better/more valuable than Trent East, bias towards oil is clear.

Cash

[rapier686] 03/4/2013 10:35

Of course explo wells stand a decent chance of being duffers. Sometimes they're not though and not even you know which way the next one will fall.
Is it that you're jealous an E&P can actually fund drilling exploration wells? Especially without paying?

[bomfin] 03/4/2013 10:34

correction.

Falklands,

Tell us about lhd's (free carried :-)) exploration prospects.

[bomfin] 03/4/2013 10:32

Falklands.

Tell us about lhd's exploration prospects.

Fair point utrecht. If we get that far down the road we will all be happy I think :-)

[utrecht_00] 03/4/2013 10:29

rapier- the 5% royalty is tied to a production target a long way off that we would never get to if you believe Trap's assessment of the recoverable barrels in Athena.....if we are picking hairs..

[falklands] 03/4/2013 10:28

Really ? Just wait till next duffer soon.

You lot will be hiding like normal

[bomfin] 03/4/2013 10:24

987,

Just how is it possible for anyone to get everything so wrong?

You stated something false about Trap and I corrected you.

[rapier686] 03/4/2013 10:23

Sensitive are we? Twas you who started it with deliberate (you know perfectly well the difference between a facility and drawing it down) misrepresentation.

I presume your point with "look at YOUR SP" is that it's on the low side.

Personally I find that an attraction.

[bomfin] 03/4/2013 10:23

Thanks sea7.
Thanks for the correction Rapier686 also. Trap have 1.58% Lhd's interest in Athena.

[falklands] 03/4/2013 10:19

Frankly trap boys go back to your own thread if it's so brillant you don't need to come and rubbish lhd.

You always seem to start a fight again over trap look at YOUR share price what is it with you lot non of us go and rubbish on trap thread even if we have views ?

We can all stay here and wait for a nice big pay day takeover while what have you got ? Duff well no takeover and lots of aey type prospects.

[rapier686] 03/4/2013 10:11

If we're getting pedantic about trivia like whether Trap actually have debt or a facility to draw down debt should the need arise, then should also rub in Gemini's ongoing 5% royalty. Which means Trap have 1.58 times the same asset.

[sea7] 03/4/2013 10:08

bomfin, Yes, the loan is non recourse and is tied to production levels. So any money banked is retained by lochard. The levels of payments will increase/decrease depending on the number of barrels produced each month and the loan has been classed as a production cost.

[bomfin] 03/4/2013 09:41

I should mention for lhd holders or at least check with them.

My understanding is that the punative terms of their borrowing with Gemini has a silver lining in that they they don't have to repay the loan if Athena stops providing revenues to repay the loan. So when they are on 80% revenues that money is ring fenced. Is that correct?