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Where does the timing for the drill come from ?
I have seen approx 60 days for a dry well, but have not managed to find any drill timings
23p was the May 2023 high shortly after the Japex deal was announced. This week LBE bounced directly off this level.
I’ve bookmarked the following from the Japex news release:
“Regarding this transaction, we expect to invest approximately 150 million USD over the course of the next three years at this moment, for the exploration, development, and the acquisition of new interests”
Looking good
Volume increasing👀
Again, in bargin basement territory. MMs trying to shake the last few sellers out. Expect to start moving higher soon
Velocette is a gas-condensate prospect in production license 1016 and could be the largest Norwegian discovery this year!
Approx 45 km from the Equinor-operated Aasta Hansteen gas-condensate field and in 465 m of water so could be an easy tie in for accelerated production!
Spud August 8th - drilling could continue for up to 61 days in the event of a discovery!
Hoping for a positive RNS in Early October!
More news to come from Velocette (PL1016) exploration well in Norway.
And it will lose the contingent payment/kicker from JAPEX, so it's a drawn
If the deal doesn't close (which it will) then the JV gets $12.75 million back. Win Win.
Yes, but still, it is not a producer until all conditions are met and the deal is officially closed.
Deal is to be back-dated to 01.01.2023 so LBE will be earning from the barrels that are now being produced at these fields again.
LBE is not a producer, the deal isn't yet closed
Nice little RNS this morning - LBE is now officially a producer :-)
I think the market has been sleeping to the announcement.
300-500 barrels / day for LBE is certainly a very small production deal.
But should be worth £3-5 million per year profit.
Current market cap is just £13 million !?
.... and production is forecast to double within 2 years.
Says to me that success (or failure) on Velocette well not yet priced into todays share price.
Interesting times ahead.
Good to hear Helge state that they are currently "very busy in the M&A market", and not waiting to first find out the result of the Velocette well.
Hoping to hear news of a sizable production or development deal in the coming weeks.
New 5 minutes interview with Helge released today.
Onward and upward.
https://www.youtube.com/watch?v=7QUS4LMRuqQ
And what are you doing trolling on the LBE board?
Excuse me, Tony, but are you in the real world?
What has a comment made by Oilman Jim 4 weeks ago got to do with a comment made by me 1 hour ago?
Tnord is a failed accountant and stock market loser who stalks me around the boards believing that I am Oilman Jim, who he says once blocked him on Twitter. Sensible people ignore tnord.
On to more intelligent contributions, dai2belts brings up the gross/net sands point which I mentioned on the PRD board yesterday (most of the posts by me and others were removed this morning).
Reporting gross sands and not the net figure has clearly misled many investors (see the PRD message board posts) and is surprising behaviour from a listed company.
It's one if the reasons I believe PRD is for short term trading only.
PRD, drilled their 4th well, yet to test, gross sands but no net given from logging, that would make me nervous.
But he is not trolling LBE ?
Yes, as Jim says, it's a nicely geared play.
Agree, the Japex/ inpex relationship/collaboration hints at exponential growth possibilities with partnership developments of existing finds linked with new discoveries,and with additional tie ups/ bringing together or partner assets What it does show also is that financing projects going forward is much more assured now. Not many picked up on this with the possibility hinted at of further third party financing on a recent presentation Q&A with co
Positive comments from Oilman Jim today
https://oilnews.substack.com/p/exploration-news-13-august-2023
Agee on this 100%
Purchase of ‘initial’ production asset from Inpex provides the clues
Inpex being ‘Japan’s’ largest E AND P co. And just so happens … by coincidence Japex signs a jv with Lbe and then Japex buys assets off the Japanese firm Inpex.
The same Inpex that’s partnering on current drill.
The same Inpex that formed a jv with indemitsu in 2021 to gain greater exposure to ‘Norwegian’ assets.
The Jv has clearly opened a new door into Inpex large asset base. But also offers a tie up for upcoming licenses and a partner for development and acquisitions in Norway.
Should velocette be a success it would transform the share price. On a poor result the share price will drop as usual but I can see any weakness being bought up in anticipation for fureher assets.
As I see it : the current market cap (~£15 million) just about covers the cash in bank, kveijke and recent small production deal. Vellocete drill is not priced in and almost a free hit - successful drill result could be a company maker in terms of reserves and possible further £30 million from JAPEX joint venture. It is this gearing that now makes it such a fascinating drill. It's risky, but upside potential is huge.
However: LBE is no longer a one trick pony. Thanks to JAPEX everything now in place to allow it to become full cycle E&P company. The Norwegian tax breaks make exploration a tax free hit. Which in theory gives LBE multiple opportunities to hit a bullseye (... with Norwegian gov collecting tax once production begins). If you believe in the model then you need to stay invested for the exploration periods.
The ideal scenario would LBE using the £100 million finance facility to purchase existing production before Vellocete results announced. You to have wonder if they already had assets in mind before signing JAPEX deal?