Spot on Oilismygame. We are about to enter the most important Quarter in the company's history (Q1 2014). You have a very good holding coupled with a good average it seems.
Spain is heading towards 140 bopd IMHO, with work overs almost complete, a few weeks ago we were at 118 bopd.
Our Balance sheet is not aligned to the current MC, which is hopefully about to change. I will myself be looking to add another 25% to the core holding I have here, and next week seems to be the ideal time to do it. Some of the luckier ones managed to get more of these for under 0.74 last week, that price to buy may not come again!
I have 9.5m shares here now purchased at a range of between 0.43p and the 1.30's. I will be purchasing another 5m over the next week.
Why on earth would I do this?
The trojectory currently looks exponential. We have gone from less than 100 boepd to nearly 550 in 18 months with substantial increases expected from drilling in the next 3 months and 12months.
2 new wells that could yield over 100boepd each to be drilled in January. Conservative estimate would be 60boepd which would each represent a 10% increase on current production.
There are also another 10 work over wells to come online before the end of december. Again, being conservative, at 6boepd each, that is another 60 boepd pre year end. Add to this 40boepd from the Spain work overs and I expect an exit rate for the year of c600boepd.
Post January when the two new wells are completed I would expect anything from 720 boepd (conservative) to 800 (optimal)
This brings profit per month to the region of £500k - no major increase in fixed costs except the drills themselves.
Two wells currently paid for in full for January. As I stated a few months ago, the deal for the 20m was done it just was not drawn down/used and hence not reported. One idiot on here had a real snipe at me when no RNS came when I had been saying that the deal was due for signature and was one reason I stayed away for a while.
I do happen to know that a better rate is under consideration but there are leo to other alternatives from what I understand being considered. One option is akin to a more conventional RBL facility which would be at much lower than the current mezzanine rates being provided. We will have to wait and see on this.
Original deal last year was for a substantial amount of current market cap. Deal could be announced at any time now the enhancements are completed/almost complete.
We all are aware of the other fields that will potentially add to market cap next year. The court case is a 80:20 in our favour IMO without having seen all of the documents and going only on what I have heard. A strike on that field would be great for LGO.
News in Short Term
I am expecting in December the following:
1. 600boepd to be announced 2. Within the above progress on enhancements in Spain 3. Environmental drill consents for January drills
1. Spudding of wells 2. Drill completions and flow rates for both wells 3. Finance update 4. Potential other deals/Spain/CC 5. Reserves upgrades from drills to 2P and 1P. (Neil Ritzen confirmed this is going to be analysed)
Market cap of 15m and 500k dollars a month of profit. Puts us on a very very low earnings multiple and the first time we will have positive earnings.
Morning all a clear bottom has been established and this has traded sideways. There is clear upside here now in terms of news and technicals, therefore risk is low reward is high. A formula that should make short term investment attractive but also clearly a good medium term return as well once those drills are started
Waiting for a number of things which realistically I see starting from Jan:- Permits some time now Drilling of first well in jan Second well start feb Results of first well feb MOG legal case Loan with meridian I expect at a better rate feb time BOLT deal feb /march If allot of these come off sp could well be >2p
Hello guys, I've been watching lgo since it was 1.20, and was thinking about getting in, kinda glad I never but very interesting at these prices. Dose anyone have any realistic views on what and when we could expect?
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