Longboat Energy Share Discussion Threads

[ohisay] 17/6/2024 12:50

Round numbers ...
My estimates

UPL EV 36m£
LBE EV 2.5M£

How bonkers is that .

[ripvanwinkle3] 17/6/2024 11:59

Taking Upland Resources as the much-discussed example of valuations for SE Asia focused companies, added to what Longboat are telling us (and acting upon) with regard how they see growth prospects in Malaysia Vs Norway, it seems that perhaps Norway was seen by many investors as just a big risky cost overhead. It was always seen as a better bet than the UK NCS, but Malaysia sounds a way easier place for a small oil and gas company to do business. In the meantime can they also get a production sharing agreement funded by debt?

[katsy] 17/6/2024 11:59

jailbird, I'm hoping any farm out deals will include cash to help us move along. However if the share price can get back to at least 20p then a fund raise at 15p wouldn't be quite so bad. Prior to today the market was pricing in a fund raise of probably at least $10m at 5p.

[divmad] 17/6/2024 11:57

In July, or wait until September, for the inevitable placing?

[jailbird] 17/6/2024 11:48

Market behaves in strange ways Let's take 20p as the norm before today with Norway and Kertang and £100m JAPEX. Now we just have Kertang , will the market price this higher than 20p ?Unless it looked the Norway etc as a big cost overhead Other thing if LBE needs funding within 6 months , since cash raises I would expect well before cash runs out , I would rather they do this ASAP.Best to go into JV with position of financial strength than weakness

[ripvanwinkle3] 17/6/2024 11:33

Would be interesting to see some new large shareholders jump on board now we have a 100% SE Asia focus. It always felt like the Norwegian presence was a weight around the company's neck, considering float was 100p and last fundraiser was 75p

[jungmana] 17/6/2024 11:09

Cove mark 2

[arcteryx] 17/6/2024 11:05

From the JAPEX RNS it seems clear that this was a strategic decision taken by Nick Ingrassia and James Menzies :

"1. Reasons of acquisition of shares
Following change in the management of LBE in May 2024, there has been a reconsideration of the Norwegian business policy, and as a result of discussions with LBE regarding the future management policy for LJN, JAPEX has decided to expand its Norwegian business by making LJN a subsidiary "

[paulscb] 17/6/2024 11:00

"If the Transaction does not complete, as previously announced by the Company, Longboat is forecast to have limited liquidity during H2 2024 and will require additional funding."In addition the next accounts will show a minimum loss of 12 million after the write off on these assets. Placings incoming

[upl_investor] 17/6/2024 10:59

See some in here still can't stop thinking about UPL. Obsessed

[professoraim] 17/6/2024 10:48

The herd havent even caught on as no telegram groups or twitter are talking about this.

[arcteryx] 17/6/2024 10:47

Hopefully there is a bidding war for a share of Kertang, with the result being we get free carry + cash.
James Menzies hinted at that possiblity at a recent shareholder presentation.
Looking very much forward to the presentation on the 27th.
With Kertang the sky is the limit from here

[jungmana] 17/6/2024 10:40

Imo LBE should be valued more than UPL

[arcteryx] 17/6/2024 10:29

Malcy called this a couple of weeks ago.
Look out for further insights from the big man - and hopefully an interview with James Menzies

[someuwin] 17/6/2024 10:28

Shares in issue 57.1 million. So at 11p, mkt cap is just £6.2m

[blakesmith] 17/6/2024 10:21

Taken a long onnthisnone

[professoraim] 17/6/2024 10:21

This looks ridiculous mcap compared to UPL

[professoraim] 17/6/2024 10:21

Taken some at 11

[jungmana] 17/6/2024 10:16

Should be trading at 20p+ after today's news imo.

[bumpa33] 17/6/2024 09:51

That CPR should bring a lot more eyes on this with the kind of numbers we’re expecting. They’ll have it by the time of the Proactive 27th talk. Until then there is a window of opportunity open…

[stockhunters] 17/6/2024 09:37

If you include all cash then all assets currently only valued at £1.5-£2million

[katsy] 17/6/2024 09:32

Didn't Zengas find that they registered Topaz energy or something like that at companies house, maybe that's what they'll change their name to, seeing as we don't have anything to do with Norway anymore.

[bumpa33] 17/6/2024 09:25

Value proposition is insane and better than any other oiler I know at this price point. Yes Norway was a failure, but we are a new entity from here on in, clear of any liability from Norway and clear of the funding questions arising from that. New CEO and board, new geographical and operational focus, huge prospects and a clear pipeline of upcoming news. Time for a name change, time to look to the (not too distant) future.

[someuwin] 17/6/2024 09:20

Cavendish...

LONGBOAT ENERGY JV Holding Sale and Norway Exit

In light of the near-term working capital challenges and the continued absence of value-accretive acquisition opportunities, LBE has announced the divestment of its 50.1% shareholding in the Longboat Japex Norge JV to its JV partner JAPEX and its exit from Norway. In consideration, JAPEX will pay LBE US$2.5m in cash and will assume LBE’s share of the drawn debt under the JAPEX acquisition facility (US$8.5m net), for an aggregate consideration of US$11m. The proceeds will be directed to fund LBE’s working capital and operations in Malaysia, where LBE has greater value-creation potential. Key to this value proposition is the Kertang prospect – one of the largest undrilled structures offshore Malaysia.

- An Undrilled Giant: LBE has a 52.5% operated interest in Block 2A, offshore Sarawak. Block 2A contains the Kertang prospect, one of the largest undrilled structures in Malaysia at >200sqkm and estimated to contain 8-10Tcf of gas. Given the potential scale of Kertang, and the existing industry interest, LBE intends to run a farm-out process during H2/24 to identify a partner. LBE is expected to release an updated competent persons report (CPR) on the prospect at the end of June.

- Follow on Opportunities: LBE has provisionally been awarded acreage in shallow water offshore Sarawak containing several gas discoveries capable of near-term development. While details are limited at this stage, we expect to see this type of low-cost resource capture going forward giving the business significant optionality to grow its portfolio through its strategic positioning.

- A Proven SE Asian Track Record: Through CEO Nick Ingrassia, Executive Chairman James Menzies and EVP Corporate & Business Development Dr. Pierre Eliet, LBE has extensive experience and network in the SE Asia region. Nick and James were previously at Salamander Energy, a >14,000boepd, London-listed SE Asia focussed E&P company which was acquired by Ophir Energy for £314m in 2015.

- Right Sizing the Business: The strategic pivot away from Norway allows LBE to streamline and reset its cost base, including a reduced board and management team. These measures are anticipated to result in annual savings in excess of US$$1.25m from the start of 2025. These savings, combined with the consideration from the sale of LBE’s interest in Longboat Japex, are forecast to provide sufficient capital through to the end of Q1/25 and we expect LBE will seek to further reduce its cost base.

- A Strong Macro Story: Between 2012-22, primary energy consumption growth in SE Asia has increased by c2.6% pa; this is the highest of any region globally. Equally, there is a huge carbon emissions reduction opportunity in SE Asia by using natural gas as a replacement for coal, which currently makes up 47% of SE Asia’s primary energy consumption. Further, SE Asia has been a hotspot for M&A activity in recent years, as the independents look to secure assets from the supermajors (e.g. Hibiscus’s acquisition of TotalEnergies’ interest in Block B, offshore Brunei).

- Valuation Under Review: We place our valuation under review pending the release of the announced CPR at Kertang – expected at the end of June around the time of the AGM.