Longboat Energy Share Discussion Threads

[stockhunters] 17/6/2024 15:17

UPL CPR has been talked about for ages but never delivered so if LBE CPR comes out before and what looks to be even larger where does that leave UPL, but good for LBE

[juliemara] 17/6/2024 15:07

Anyone else jumped?

[divmad] 17/6/2024 14:33

Excellent post, Zengas.

[zengas] 17/6/2024 14:15

Better than expected.
No dilution. $2.5m/circa £2m cash. Debt free.

57.11m shares @ 11p is £6.25 m/cap.

Provisionally awarded a cluster of several material undeveloped gas fields (and as i pointed out Topaz Energy set up at companies house barely 8 weeks ago to take these.) Too small for the majors and mid size Cos but these will be material to us - material ! They have numerous times said awarded at no cost based on a credible plan.

By comparrison, imagine instead being awarded acreage that was virgin, awaiting to be drilled and raising money for such as many Cos do and then the discovery drives the share price. The discovery is already made.

Likely RBL with an approved dev plan put forward to Petronas pre award.

The CPR will be interesting but it seems to be just on the Kertang prospect for now but from what's been described re other structures and that visually available in the past slides and the annnouncement on 29/5/24 block 2A could be well in excess of a 15 TCF opportunity.

They've consistently flagged and said Kertang is beleived to have a 9 TCF recoverable figure given it's size (2/2/24 - At about 17 mins into the interview James Menzies says they beleive there could be in excess of 9 TCF recoverable for Kertang and at 18:30 he states that 'there are multiple structures surrounding Kertang that are also extremely big - it's just that they are dwarfed by this giant.').

And 29/5/24 "recently completed a key exploration review gate with PETRONAS where additional, SIGNIFICANT prospectivity on Block 2A has been identified.
Two areas of interest have been delineated: firstly surrounding the Kertang structure, where several large structural closures analogous to Kertang have been mapped and secondly in shallow water, in the southwest of the block, where the continuation of a play that has seen several notable recent gas discoveries made in younger, shallower horizons to the south of 2A.

I'd be surprised that at least two of the largest structures when viewed in the presentation don't have in excess of 3 TCF each and then the additional shallow water play.

"Multiple large companies have approached Longboat regarding Block 2A"

With significant major interest in a farmout and operatorship, it just might attract a future cash payment to ourselves to bolster our finances significantly when considering how we take the DROs forward. It's a world class size play and market hotspot.

1) Farm-out and carry to a possible major from 52.5% down to a remaining 15-20% and a possible cash payment ?

2) It could be fairly easy to sell down a further 5% for cash to someone else when such a deal is done (who would be effectively carried as well by the major partner/operator).

The addition of industry stalwart Geraldine Murphy last month who i said might have already looked over the strategy and had her input long before her announcement was a big pointer to the ambitious plan and possible change of direction.

[jungmana] 17/6/2024 14:15

Make most of the opportunity, sold some he1 which i bought last week and increased my holding over 100% today..Looking forward to CPR about AGM time

[ohisay] 17/6/2024 13:50

Round numbers ...
My estimates

UPL EV 36m£
LBE EV 2.5M£

How bonkers is that .

[ripvanwinkle3] 17/6/2024 12:59

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 12:59

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 12:57

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

[jailbird] 17/6/2024 12:48

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 12:33

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 12:09

Cove mark 2

[arcteryx] 17/6/2024 12:05

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 12:00

"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 11:59

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

[professoraim] 17/6/2024 11:48

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

[arcteryx] 17/6/2024 11:47

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 11:40

Imo LBE should be valued more than UPL

[arcteryx] 17/6/2024 11:29

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 11:28

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

[blakesmith] 17/6/2024 11:21

Taken a long onnthisnone

[professoraim] 17/6/2024 11:21

This looks ridiculous mcap compared to UPL

[professoraim] 17/6/2024 11:21

Taken some at 11

[jungmana] 17/6/2024 11:16

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