The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Much easier to make money elsewhere Whirlaw
I'm certainly not selling now. Although, I'll only add on sustained drops now, rather than continuing to drip money in as I have done previously.
WhirlawStones, I think there were a lot of PIs who bought in here on the basis of acquiring production and associated cashflows. An exploration deal wouldn't meet that.
Certainly, that's exactly why I bought in, but I'm lucky enough that I can allow my stock to sit here a bit longer even though it doesn't really fit with my initial plan for the position on my book.
Markets down generally due to inflationary pressures and likely interest rate rises in 2023 as announced by the Fed.
Also I think some seed investors who did not participate in the latest fundraise looking for an exit.
I'm not selling a gift for new investors and tops up.
^ the first 18 months were dull as a dishwater.
however I really don't see why anyone would sell now...
the longboat is finally ready to sail.
as I see it
1) The institutions think this is a good share price to buy in.
2) Equinor are a solid partner with good drilling record.
3) The drilling targets are in 8x different locations with Norwegian tax benefits.
4) Plenty clues there is another production deal to come.
and why is that then mozzabezza?
Someone has clearly got fed up and sold down today. It's a shame, but TBH I can kind of see why.
Significant paper losses r us!
Let's hope for success on first drill!
Well I was wrong about the placing price being the floor....sigh!
Nice one, many thanks
Hi Paul,
You might need to login to access it, but here is a link anyway:
https://www.investormeetcompany.com/investor/company/longboat-energy-plc
Mozza are the 'Investor Meet' details on the website yet? I can't seem to find them.
Thanks.
^ it has taken longer than expected but the reasons to invest remain.
management are well incentivised to get the share price to £2 (see RNS below) within a 3 year period.
https://www.lse.co.uk/rns/LBE/founders-incentive-plan-awards-eti542raki865i2.html
"Seed investors" including some of us private investors considered an inaugural deal would have occurred within months of original listing due to the ex-Faroe management team's proven track-record and contacts and a premium on RTO was a probable outcome.
Forward 18 months and entry point is less than original placing..."NO reward" for seed investors, in fact a significant loss.
Of course we all know the main reasons for this, namely the unprecedented pandemic and global lockdowns resulting in the collapse of oil and gas prices due to lack of demand resulting in energy companies battening down their doors instantly killing M&A activity.
As the world emerges from lockdowns with the success of the vaccination programs we are now clearly seeing a significant increase in M&A activity and hopefully Longboat can deliver what it set out to do - become a significantNorth Sea-focused E&P business.
With a highly tax efficient near-term 3 x bi-lateral farm-in exploration programs agreed (subject to approval of a Norwegian licence) lets hope LBE next acquire cashflow generative production deal(s).
It is what it is....
I think/hope you’re right daveri, because with the best will in the world it will take some time to discover, appraise & swap assets and that’s assuming they’re successful.
As Mozza points out the cash flow in that scenario is not “near-term” so you’d think they have other deals being worked on that fit the original strategy.
I think we’d just like to hear confirmation of that from the horse’s mouth.
It's all about the timing as we have all discussed.....
Both exploration and production are both as important as each other for LBE to significantly grow and maximise shareholder value....so it's my view we are half way there.
Expecting to see more exploration deals and a number of accretive production deals.....I do not believe there has been a shift in strategy.
Very true and I think if you read between the lines that's ultimately the direction they seem to be heading in, but the problem is on a time frame scale, because the possibility of cashflows in two years isn't worth as much as cash flows today, even if today those cashflows might be expensive to buy.
There is of course the argument that if they’re successful with some of these exploration wells and do manage to swap them for some meaningful production, it would have been an EXTREMELY cheap way to acquire that production. It would also avoid diluting any further at this stage.
A riskier strategy but with potentially much higher rewards.
Very helpful! Thanks for passing that on.
TBH, I'll be surprised if I get a reply - I don't think I came across as a particularly happy bunny!
I'll be very specific.
Don't get me wrong this is a very good exploration deal. However, it's not a production deal and that has been the calling card of this firm since the IPO and I feel they need to address this properly rather than skirt around the edges.
Mozza I’ve now had a response to my email from Ben Brewerton at FTI Consulting - looks like they have hired a PR firm to fob us off instead now!!
With regards to the first point they were vague and said they’re still looking to become a full E&P company and will either do asset swaps or buy the right deal.
With regards to your second question they said “the intended increase in the directors remuneration was set down in both the original Admission document and the Remuneration Report contained in the Annual Report as approved by shareholders”.
I signalled by disapproval of the latter and told them they could quite easily have deferred the pay increases until such time as they have delivered shareholder value (citing Andrew Austin as a good example of running a company for shareholders and not the directors’ gravy train). It will fall on deaf ears but I feel better pointing it out!
I think if you want anything other than a vague response regarding a production asset in the near-term, the question is going to have to be quite specific or they will skirt around it.
Perhaps “are you currently involved in any processes to acquire production assets and has there been any progress on this since the last update in March?”.
It’s the one thing we all want to know but getting it out of them is the key!
You're probably right there, Daveri.
It will be nice to quiz the BOD a bit using the Investor Meet system for the AGM. Two immediate questions for me:
1. Are they still looking to do a production deal in the shorter term?
2. How does the BOD justify the substantial increase in salaries in-light of the fact that they haven't acquired cashflow producing assets?
Question 1 I think will be answered, question 2 on the other hand I suspect will be ignored.
Regarding PR at this stage, I think they are holding back for their Norwegian Licence to be approved which is pivotal for the farm-in transactions to complete.
To appoint a qualified account with post qualification 10 years experience is not cheap and definitely an over-kill at this stage when a book-keeper would be more than adequate to do the job....Another "See to Duty" requirement or may be the Executive team know what's coming near-term and have an eye on a future potential CFO.
Hope so haggis. To be honest I’d be annoyed at the directors doubling their salaries at this stage if a production deal is not in the pipeline.
There were 2 main objectives when they launched:
1. Acquire a production asset with near-term cash flow.
2. Create shareholder value.
A
So far they have failed to meet either objective so a doubling of salary at this stage seems extremely greedy unless there is something up their sleeve that we don’t know about.
I’m more than happy for them to reap the rewards if they can get the share price to £2/3/4/5 etc but not at 75p.
You would expect a little PR before the new shares come to market? Also : the recruitment campaign surely means there are plans in progress to add on production (i.e revenue) ?
A little good news should see tick up nicely given limited free float not in institutional hands.