Member Info for Danker

E AL , interesting times ....

All rather exciting.
Pieces of information , snippets, recent trading patterns, hours of research .....the jigsaw pieces continues to form the picture , for the 16Mcap LEK , quite unbelievable.

Interesting post Jenny, short term using the existing infrastructure increased production to 12000 bopd at OML 11, currently circa $7M due for 20 days in Jan, , 10-14M short term based on above ,could be in excess of 100M revenue stream short term 2020, rather ‘transformational ‘then longer aim treble as total production aims for 20,000bopd.(lek 40% 8000) however , need to finance $68M for OML11 either debt equity from above , as we all know 310 options.
This could if structured correctly result in a similar share price prior to the error rather quickly , rectifying the SP , and OML11 comfortably funded for future expansion and focus on to 325.
Not forgetting the 276 option in the mix.
So many options , guess that is why two new non execs and a new CFO have joined.

Would not want to be out of the this on a Wednesday evening ha
GLA
Great research by all , may we all win handsomely.

GLA

Taff, it was not me , if it was I would just say ,
I would like you to pop back occasionally and let us know how wrong we were in our views.

You think 2.5p which is your opinion and is very valid through your eyes, conversely I think different, I would suggest 3.5p within two weeks , currently at 3p let the race begin....
GLA
All constitutive opinions with substance should be welcomed as it just gives a 360 view to us all

Taff, you said you were not coming back until 2.5p
Touch early .....
All the best as May never see you again
GLA

Few little A trades always welcome

Oh and my post at 10.40 to Amers may have an element of truth at Metro , sudden surge , no surprise , very odd trading this morning metro as stated.
Anyway Lek let’s be having that RNS that would make sparks fly ??.

OMITC 2nd paragraph exactly was what I was thinking E AL ha looks like we had the same sentimentBridge summarised nicelyHelps me when I reflect, thank you or Danke I do tend to waffle and do need a larger phone screen, excuse any grammar errors.

Alcira , understand and appreciate your view, sorry to hear that you got caught at 70p, you raise some good points.
You could argue that now though is a prime time to invest as the 75M, 5 years for Otakikpo to reach production has been done, so now producing circa 2300 bopd 7M revenue for the company based on one month January 2020,
With the increased production and joint venture now planning 8000 bopd for Lek so multiplying the output and potential revenue x 3, this could be ‘transformational’ for Lek for a 68M investment required for the JV sounds in principle a reasonable investment.

Understand your views on bringing into production, you mention 310 and the costs, time, Lek have paid for the license in Nov for 3 years , also paid 13M for Afren share 22% being worked on on the farm in, potential as you know 232million barrels of oil P50 to Lek
They would not lose the asset but reduce the stake or sell in completion , the question is , if that happened what price would someone pay for the 232mmb p50 which is Lek 17 % (plus the additional disputed 22%) , would that affect the share price ?

325 is a monster 5067 million barrels of oil, potential, clearly as you stated takes many years of investment and collaboration, Lek have 62% stake, although not in production but identified, clearly there is value in having a 62% in such an asset, again you take a guess at the value someone may pay.

So I would always suggest to new investors to do their own research , take a 360 view and opinions , never invest more than you can afford to lose and if the above looks attractive then invest on their terms.

The debt was 19M, with 7M due soon , another 7m due in 4-6 weeks you can see why Otakikpo is a solid foundation for Lek , if they secure the 68M which produces 7M in one month and potential 20M if you used the same metrics on the new JV
So not ramping just my view, all depends if they can secure finance , with two new non execs and a new cfo.
Who knows but it is exciting ..
GL

Likewise for me Amers , my comments are based on my research.
Don’t get paid to post that for sure ,
Just think this is one of those shares that will catch people out quite sudden, you can wait until the RNS of course it is everyone’s choice. But I sincerely hope people make money and their lives easier.

Not ramping others but have a feeling of these depressed shares will come good, Lek is one , as you know Amers , Metro , unusual trading today would you say , is another imo.
Expecting Lek RNS this week just a gut feeling I may be wrong.
GLA

E AL
I know quite unbelievable, when the selling drys up from the ii. Then it is time.

Also 310 LEK paid 13Million for 22% yet to be worked out

Next RNS imo is the debt equity finance for $68M required by Lek (all parties need to raise 170M in total) for Otakikpo JV
Then as Lek Oil state this will treble production in Otakikpo ‘transformational’ is the words they use, to 20000 bopd , 8000bopd for Lek , (who are due 7m for 2344 barrels and another in 4-6 weeks) so significant cash flow improvement circa $20M per month (4-6 weeks) as opposed to $7M, on debt equity finance.
Last RNS states update project update ‘shortly’ whatever shortly is, but normally Lek are prompt at responding. ( exclude the fook up !)

All about the finance now as we all know
New CFO not announced although on LinkedIn
New two non execs

Why would these kind of high profile people join little 16Mcap Lek.

Patience , although frustrating,

out of interest Jenny
Which way are you betting ?

Bridge great summary ...

Is this really undervalued ? Mcap circa 16M.
So LEK based on 2200 circa bopd equals $7M (20days) 2020 OML311

$7M due now , and another $7M in 4-6 weeks OML11

OML11 planned ramp up production to 8000 bopd for Lek circa 21M ( per 4-6weeks based on the above ) when up and producing 20000bopd,

in total all parties have to raise $170M , as LEK have an equity stake of 40% therefore as stated $68M debt equity should not be too difficult based on the above.

OPL310 potential if funding secured 232 million barrels of oil to Lek, yes work that out based on the 2000bopd guage above, spud planned for H2 2020 then into OML (mining license)
Also Lek paid $13Million for Afren 22% stake of 310 (above is the 17%) but lawsuit dropped to the Nigerian ministry and this is being worked out on the farm in agreed by Lek and Optimum, this probably will play a part

OPL325 asset potentially huge , estimated unrisked 5067 million barrels of oil , LEK has an equity stake of 62% share,

Even Longer term Namibia 2415B exploration
Existing 276 asset.

E AL ‘It makes you think why the the Chief Financial Officer of Addax Petroleum , a subsidiary of Sinopec Group the third largest worldwide third & the biggest oil refiner in Asia joined a small O&G company in Nigeria?’
New CFO not yet announced and from Addax ( thanks OMITC EAL Mr Bel)

Appreciate, debt , opex, license fees, capex, low market confidence but look at the above and ask yourself is this under valued, do LEK have world class assets.
Sabotage, human error whatever the root cause., currently 3 pence..........

7M circa 2344bopd in first 20 days
Same again in 4-6weeks 7M

Plan is to take that to 8000 bopd ! For Lek, up and running circa 21M equivalent versus the above , they have to fund 68M on a debt equity scheme should not be that difficult

‘to increase production on the field up to 20,000 bopd (8,000 bopd net to LOGL). The phased development plan for the project consists of drilling between five (5) and seven (7) new wells’

Plus 310 is huge
Also have 276

Someone may just buy this quick and on the cheap whilst they can , as Lek has huge potential .

Well that is a good start,7 million circa to LEK with similar quantity in next 4-6weeks...
plus the other news due, .

‘LOGL expects to receive cash proceeds from this crude oil lifting of c. US$7.0 million. The next lifting, of a similar quantity, is expected to occur within the next four to six weeks.

Just keeping the shareholders in the loop, as we all said recovery play now underway, more RNS to come

Just imagine going onto that listing now at the current SP and with a view of trebling production.
They as in Lek were ‘ seriously considering’

https://www.google.co.uk/amp/s/www.bloomberg.com/amp/news/articles/2019-07-09/lekoil-contemplates-nigeria-listing-as-output-seen-to-triple

Thanks All, especially OMITC. E AL. Mr B

Going to be an interesting next couple of months

New CFO
New non execs
Cargo lift X million due
311 increased output , JV major , increased cash flow
New asset management system
310 farm in partner
2020 spud 310
Funding
325 potential
Increased comms

Recovery play in under way, ignore the noise and 10% day swings , long game .....

Now do a comparison to Lek potential and current output v Eland prior to T/O

https://www.google.co.uk/amp/s/www.proactiveinvestors.co.uk/companies/amp/news/904794

Haha Scruff , wise words ...