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Anyone know what's the financial position like here now? Doesn't appear like there is funding in place to bring it to production just yet?
Looks like they have some very interesting prospects.
Eddie
It has to be Shell... There is a fairly recent RNS stating the repayment of a loan (which was guaranteed by Shell). Around Christmas time I think.
A very basic benchmark will need to be the value of loan finance.
Mcap should re-rate to this value in coming weeks/months in my opinion, which would give value of 30p per share. This is still a very conservative and basic estimate - Qataris must evaluate the company at many multiples of this amount in order to feel comfortable with security of the loan.
Have been thinking a little about the recent financing package for LEK and what it means for the underlying value of the company.....
In order to get the loan, Lek would have demonstrated value many multiples of the loan value. I think it would also have to be tangible value i.e. lofty projections of potential oil that may or may not be in the ground would not cut it. I think the tangible value point is backed up by the reasonable interest rate.
Despite upward movement in recent days Mcap is still c.55m. In my mind, if I am correct with above (and I do think I am) the current re-rate will continue at an increased rate in coming weeks.
Thoughts on this welcome.
Qataris loaned us £184m
It's a minor shake... This stock is very much on an upward curve. I would not worry one bit about small intraday drops, that is only natural in all openly traded markets.
I expect continued blue for rest of week. A great time to hold shares in LEK, and I am very happy to be here!
Best of luck all.
Also, I would expect the signed MOU will be released very shortly - I cannot imagine the Qataris giving £180m to a relatively small oiler without having something pretty concrete to go on.
All the best!
Agreed SuperRoty, the MOU with Shell is massive and it was the reason LEK came on my radar a few months back.
Combine this with the funding now in place, the fact that LEK is currently producing oil and generating revenue (not to mention the other prospects LEK have) and the future looks very promising.
Once the cooperation with Shell is confirmed I expect this will rocket, but time will tell I guess!
Great to get the rise yesterday, but this still has to be one of the most undervalued companies on AIM.
We have serious financial backing, are supported by an oil major, have a producing asset and what seems to be a focussed and capable board. The current Mcap this not reflect all the positives here imo.
Looking forward to watching Lek push on to bigger things this year!
Thank you GMC, very informative.
I have been watching this company with interest, and it looks undervalued relative to its assets.
Does anyone have an idea of the cash balance of the company now? I do not see much reference to a financing plan in newsfeed to date.
I have been watching this company with interest, and looks to have prospective assets.
I understood Matd was fully funded for drilling program in 2019.
Now that this is behind us, does anyone have an of the cash position of the company?