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Based on this update. Why are we messing around with these puddles of oil with $100M at hand. We should be focused on multi 000s bbls production (IMHO)
Licence awards are out today, I guess we’ll see an RNS tomorrow about the licence for Longboat, it looks like it’s a part in one licence, hope it’s a good one.
https://www.regjeringen.no/en/aktuelt/62-new-production-licences-offered-in-the-apa-2023-licensing-round/id3021963/
I think we are going to move to higher highs and move away from sub 20p range
Awards of licences are due soon, maybe this week but more likely early next week around 9th Jan.
Could see some decent awards for Longboat Japex Norge.
https://www.sodir.no/en/whats-new/news/general-news/2023/apa-2023-still-significant-interest-for-exploration-in-mature-areas/
Agreed! Really looking forward to this playing out throughout 24
Promises to be a pivotal year for LBE. Production and exploration. Pockets stuffed with cash I am expecting a good size production deal Vs mkt cap H1 also farm in to all those TCFs ..;-) off Malaysia
Everything to play for #LBE
Https://total-market-solutions.com/2023/12/10-oil-and-gas-companies-to-follow-in-2024/
While the team are really really busy working on all these deals, I'd like to see them all on special exercise bikes wired up to generate electricity, at least to try and cover some of their xmas do costs💡
Fingers crossed Zebbo.
I'm just showing my frustration at being here for 4 years +
Production deal will close in Jan. I expect net production to be 500 bbls per day, now the infills are complete
I also expect the next prod deal to land H1 24 with possible farm down in Asia. Not at all worried, 2024 will be the "maker" year for LBE
I agree Mommor. I'd like to see a bit of urgency now to secure cash flow. The wage bill is ever increasing!
Tom Cross over at Parkmead showed them the way, when operating Faroes Petroleum - Charity bash at the Marcliffe Hotel in Aberdeen was always the venue for the congregation.
Its difficult picking the diamonds from the rough - gone are the days of Anthony Craven Walker at Monument Oil & Gas and Serica. Still considering adding just not happy with the wage bill and as always with this team dilution.
4 years and counting...
Deeko. But are the prestigious, well-paid, Longboat team interested in being involved or are they just merrily watching this year tick by... organising a top notch Christmas bash though of course.
Tick tock Helgey...
Took another chunk in prep for the new year!
The way I see this is;
Var Energi are going through portfolio optimisation and divestments.
Wintershell are divesting and optisiming portfolio for gas production.
Equinor are divesting certain assets and focusing on specific areas
Inpex seem to be working collaboratively with Longboat I.e farming in to assets and divesting others
Lots of transactions going on at the minute in Norway and Longboat have cash available!
Don’t forget results of this year’s APA 2023 licensing rounds will be announced in early Jan next year.
I would expect LBE will get some decent blocks as the new partnership Longboat JAPEX Norge AS is stronger in both departments technically and financially, together with experience, all the criteria that Norway consider when making the awards.
The area is expanded this year too.
https://www.regjeringen.no/en/aktuelt/applicant-for-production-licenses-on-the-norwegian-continental-shelf/id2992409/
Upland living rent free in so many heads at the moment. Don't let it eat you up so much guys, it's not healthy.
Spot on Zengas. I have a big holding here and see LBE multi bagging over the next 24 mths
Market does not appreciate the opportunities on offer here at a rock bottom price. When this moves North for real, it will not be a couple of pence
In essence not just one prize on offer for LBE!
Just because the share price is tooing and froing a penny here and there - over 51% is held by directors and instutions and how many HNWs hold a fair view ? - meaning the real free float is very low and that is the real reason for a buy and hold strategy once you have them.
UPL has a m/cap of £51m - LBE £10m. I know where the greatest risk reward lies. At current valuations, one's a punt the others a measured approach when it comes to risk reward imo.
Does anybody even bother to put pen to paper anymore in sussing out, valuing the assets and potential on hand instead of chasing something thats not underpinned just because they think the action is somewhere else right now ?? (but good luck to them).They're paying over 10 times the price at UPL compared to a year ago and 7 times the last placing barely 8 months ago.
UPL no psc awarded yet for the 45% study of the 6700 km2 SK334. Little cash, no 3D seismic to help define any prospects. They've signed letters of intent only for a rig but that wouln't instill confidence in me where they're going to stick a hole whenever the PSC is awarded and at what percentage they end up with or if they farm out reducing the as yet unknown prize.
At 4.3p valued today at £51m - what is there to fall back on if the first drill fails ? PIs neither know at this minute what the prize on offer is and what they might farm out to hold on to ?
At least LBE are underpinned on the assets they have. They may have access up to $200m of financing in Norway. A company like Japex doesn't get involved without dd and some level of comfort.The initial acquisition for the JV will have one year of contributions from the effective transaction date of 1/1/23.
"Based on Longboat Norge's internal estimates, at current commodity price levels the Transaction is anticipated to reach payback in under two years" - "the Transaction is expected to unlock material tax synergies within Longboat Norge associated with historic corporation tax losses"
Around 600 boepd is expected shortly. They paid $8.20 per P2 barrel.
Based on using $50m of the ($100m) JAPEX funding and $50m subordinated debt they could realistically pick up over 12 mmboe P2 and 4,500 boepd to give about 20 mmboe in the JV and around 5k boepd in total and maybe with a similar pay back of which they could go again as its a 5 year facility and thats only looking at using half those funds.What will 'punters', 'herdsmen' or investors think when they see 9 TCF estimated recoverable for Kertang in an exploration hot spot, gas coming from the structure and amplitude brights and covered by 3D when it draws closer.
There's 2 other prospects half the size also covered by 3D - imo maybe 3TCF each which could likely bring it up to 15 TCF but there are multiple prospects all over the block. They've got 52.5% and in the recent interview they expected a farm down where a partner would be seeking 25-30% and if so would leave LBE with 20% minimum - a 3 TCF/500 mmboe prize or some $1.5b of potential at $3/boe or versus 56.7m shares now or even 100m down the road - possibly a tenner a share if that came in but at least the risk is backed up by the assets/production we currently have and will have - that i think could value us well in excess of £2 from Norway on its own.
The unknown is the financing of new production deals in S.E Asia but again a JV route may be the way to go as they've stated they intend to minimise shareholder dilution.
@Garcy
What nonesense. Getting costs covered is good. That's how these things work.
Whats makes you say a fundraise is on its way? Or is it that you've sold so now talk it down. Funny how today's news makes you sell.
Ridiculous interpretation. The last webcast literally stated that they would be looking at farm outs to minimise the risk of exploration (literally the words were ‘we’ll use someone else’s money’) drilling and focusing on production and development acquisitions.
I dont think its good news as the sp has barely moved. No cash obtained for the farm-in deals only a carry on for future drilling costs. not the best of deals.
My guess is a fundraise is coming soon, Company is running out of money so i sold out.. GLA
So is this good or not so good news?
less interest in potential future production
Longboat Energy PLC - Farm-down of two exploration licences in Norway #LBE
https://www.voxmarkets.co.uk/rns/announcement/43373f94-39e0-4226-bb90-6cc86e93a745 #voxmarkets