Could someone please remind me when the first well is expected to be spudded. What with all the talk of court case and appeals I have lost track of progress on that front. Anytime now if I remember correctly. Esox.
Leni Gas & Oil plc (LGO) says it is “very enthusiastic about the oil potential of the Cedros Peninsula” in a statement on the London Stock Exchange (LSE). LGO Chief Executive Officer Neil Ritson said: “We are very enthusiastic about the oil potential of the Cedros Peninsula and have now completed an initial review of the data we acquired from Beach Oilfield Limited (BOLT).
“In LGO’s technical view there is undoubtedly significant untested potential in proven reservoirs and in a structural style that is simpler than much of onshore Trinidad relating more closely to the prolific East Venezuelan Basin. As new data is collected and integrated with the existing data that we have acquired from BOLT it is anticipated that a number of potentially large drillable prospects will be mapped.” In late 2013, LGO and BOLT concluded agreements to proceed jointly on studies in the area
I'm in two minds with regard to entering an appeal. From what I've read on this bb it seems to me that the judge was out of order. He must of understood the jist of the LGO complaint but it seems that he disregarded Neil Ritson's evidence. Why? It must of been clear to all in the courtroom that Dr Higgs was acting in a snidey way and then bragging about what he'd got for $1. LGO did not get justice - and I'm not even sure that they got the law.Makes you think that there were more sinister things going on here - old school tie - freemasonary ?
Quote RNS Dec "The additional funding arrangements ensure that the drilling programme can be carried out and that 2014 will be very exciting year as these new wells start to unlock the true potential of Goudron."
The drilling programme is the 30 wells, so I believe the funding in place covers all 30 wells
I have read the RNS's. I am just not 100% sure that the funding is currently in place for the entire 30 well programme. My interpretation of the "ongoing oil production program" is that it refers to the 7 wells with Rig 20. Also, as far as I am aware, it has not been 100% confirmed that the drilling programme will result in the 30 wells being spudded continuously. I think that this will be confirmed at a later date.
I did not believe for one minute that the court case would affect Spain, as it is self sufficient. However, in relation to Trinidad, there are several ways of the costs not affecting the future drilling. LGO could take out a loan that it otherwise needed not to have done, a placing, etc.
Whatever the outcome of the costs, it will not have a massive impact on LGO in the long run (after the campaign), as the costs will be seen as peanuts in the bigger scheme of things. I am pretty sure that LGO would have been aware of the potential costs of a loss, and have been prepared for this eventuality before commencing with the case.
I am a holder of LGO and have been so for about 18 months. I have been to a couple of NRs presentations (and hope to be going to the one on 24th April) and posted my notes on this board. I am not a deramper, but I think that it is also important that people are aware of the pros and cons of the decisions that LGO BOD may take. I believe that by discussing these things in a debate, it takes away the ammunition from the derampers, and people are prepared for different eventualities.
I think that it is unlikely that a placing will occur, but people should be aware that there is always a possibility that it may - this is a option frequently used by companies on AIM (and twice by LGO in 2013) to raise cash. The BOD may feel that they could minimise their court costs by continuing with an appeal, and so make more funding available to LGO. Or maybe, they will draw a line under the distraction, and let FJ get on with getting the oil out of the ground. I believe that the (what I am hoping to be massive) revenue funds from a successful campaign will almost totally negate the need for future dilution.
Read the last RNS mate "The potential cost liability had already been provided for by the Company in its cash flow forecasts and will not have any material impact on LGO's ongoing oil production programs in either Trinidad or Spain"
The court case liabilities have been taken into account when looking at future cost and expenditures, so NO impact on drilling campaign!
I really wish people would read what the company puts out!
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.