Member Info for E_AL

Sam,
SP should bounce, rsi is 10% (Extremely oversold) so we'll see some sp recovery before closing.

Hold your shares :)

Nice buying pressure building here, £110K & £240K buys just gone through

They held 2 days ago when the sp was in the 3.00-3.2p range :/

ripley94 - Thanks for sharing this,

This morning was a great opportunity for me to average down, I'd expect to see some share price recovery towards the closing or very likely tomorrow morning after the CEO presents at the UK Investor City Forum this evening.

2020 should be a transformation year for the company !!

"The greatest threat to I3E realizing its full potential is a hostile bid and the purchase of the company."

Over 60% of the companies shares are in the hands of institutional investors and BOD which means they forms the majority of voting rights. As you all know their holding average is multiples to the current share price so unless the takeover is financially beneficial to them they will not approve it.

Sorry but this 8p placing doesnt make sense . II paid 35p recently to buy in and has warrant exercisable at 40p, 40.7p, 55.5p & 56.85p. Neither BOD nor IIs accept raising at 8p or even 20p. At the time the sp was 12.5, II paid 35p to get 14,285,715 shares.

I think someone in the know is loading up on the cheap here and the current sp is a bargain for the patience ones...........

Nothing available to buy over the last 10-15 mins ? :/

Danker, Lekoil's share price is DETACHED FROM REALITY and has been savagely punished by the market for falling a victim of a scam. I see many "exploration O&G companies listed on AIM with 0% production but getting 10, 20 and 30% spikes every now and then because of a charismatic director interview telling the market what holders want to hear & other companies sitting at unrealistic share price because of the potential of their assets while on the other hand we have LEKOIL a company in production with world class strategic assets according to other pioneers in the O&G sector & a MASSIVE potential at a bargain cheap entry.

1 x Producing asset: Otakikpo marginal field (LEKOIL: 40% interest)
2x Appraisal assets: Ogo discovery and OPL 310 (LEKOIL: 17.14% interest) & OPL 276 (LEKOIL: 45% interest)
1 x Exploration asset: OPL 325 (LEKOIL: 62% interest) ONLY 50km away to the south of Lekoil's OPL 310 asset.

On top of all that we got LEKGAS which is a wholly-owned subsidiary of LEKOIL. LEKGAS is the gas midstream vehicle of LEKOIL, building strategic, commercial and technical partnerships with world-class companies to unlock gas and gas-to-power opportunities.

OPL 310 block has enough gas to produce 20% of Nigeria’s power generation & its close to the $900m , 421-mile long regional high-pressure gas West African Gas Pipeline (WAGP) .

All of the above for under 4p/share in a company with over 50% of its shares in BOD & institutional hands

The share price will not be sitting here for longer, I strongly believe that someone is taking advantage of the impatient holders and loading up on the cheap. Lekoil can't hold the overdue updates for any longer to allow mates rates topups & we will see change in the market's sentiment once the news is out.

StockTracker thanks for the group invitation but unfortunately I am not active on social media. However, feel free to share my posts on the twitter group if you like.

Nice buying pressure building up since the morning on the L2, Otakikpo 2nd oil lifting should be anytime within the next two weeks (No later than 10th of March) and I'd expect the company to release the Dahomey Basin survey report shortly (OPL 310 Ogo discovery which is the largest discovery in Nigeria over the past 10 years, the gas reserve at the OPL 310 block is quite substantial and according to the CEO it will be enough gas to produce 20% of Nigeria’s power generation).

Many things going on in the background, it's like compressing a spring to its complete tightness and then releasing it to spring forth into its full potential to regain the market's confidence. I can't see anything that concerns in the short term so the current sp level should be a bargain for the bottom feeders and new value investors/traders.

It was an attempt to drop the ASK, nice chunky buys gone through since then:

09:00:53 3.1843 300,000 £9,553
08:44:31 3.185 225,000 £7,166
08:43:24 3.19 250,000 £7,975
08:36:26 3.09 153,888 £4,755
08:34:34 3.0967 250,000 £7,742

2/2

*What is the current state of exploration in Nigeria and how can the government promote more exploration?

When I came back to Nigeria in 2011, the first thing I said was that Africa and Nigeria is underexplored. Today, I still think the country is clearly underexplored. The only way for Nigeria to promote exploration activities is to improve fiscal terms. The challenge is that when our fiscal terms are priced based on existing production, it is not attractive enough for exploration. I also believe that there has to be sanctity of contracts to make exploration in Nigeria more attractive. Deals cannot be changed after discovery as this does not help to encourage investment. I hope that the PIB will address fiscal terms and that the enforcement of the bill will promote sanctity of contracts.

*In addition to fiscal uncertainty, what challenges does Lekoil face in Nigeria?

Lekoil’s onshore business is quite close to the coast and we have been able to leverage this in terms of evacuation in case of security emergencies. The reason why our evacuation has 95% uptime and minimal losses is because we built our own infrastructure. The entire industry has challenges and the best is thus to preempt. Before Lekoil started operations, we took time to understand the communities, put a MOU in place, and found a way to align community interest with ours. The oil and gas industry is long term and therefore we have to think ahead.

*Is Lekoil looking to get involved in the renewable energy space?

If you look at the growth trajectory of the world, we are going to reach a point where the fossil fuel industry will actually not be able to keep up with global demand. From a Lekoil perspective, the energy mix includes gas and I believe that moving forward, the mix is going to shift more towards gas. This is very beneficial to the company as gas is a major part of our resource base. It will be necessary to update the physical and legal infrastructure to support the country’s move to gas. Lekoil’s vision has always been to be the world’s leading E&P company focused on Africa. We are trying to achieve our goals in terms of skill in production and our impact on the community. We want to make a difference in the lives of the people in the communities we operate in.

https://www.gbreports.com/interview/lekan-akinyanmi

1/2

Global Business Reports - February 2020

Lekan Akinyanmi - CEO, LEKOIL

*Can you give a brief overview of Lekoil and the company milestones over the last 10 years?

We have four assets of which our flagship is OPL 310, which has both oil and gas. The OPL 310 asset is offshore, 20 km from Lagos and contains the Ogo discovery which is the LARGEST discovery in Nigeria over the past 10 years, producing about 770 million barrels.

Another important asset to note is OPL 325 of which we own 62%. This is an exploration block approximately 100 km south of Lagos. We have not yet drilled this block but have access to 3D seismic data over 740 km2. A preliminary review of the prospects suggests oil in volumes of up to 5.7 billion barrels with an estimated 2 billion barrels recoverable based on analogues.

Our third asset is the Otakikpo marginal field, which is a producing field delivering 6 000 barrels per day (bpd). The asset was discovered in 2014 and was brought into production within two years. Three wells drilled in the field encountered hydrocarbons at multiple intervals. 2D and 3D seismic analysis revealed reserve estimates considerably in excess of those available at the time of acquisition in May 2014. We have also put a unique evacuation infrastructure in place so that we have more than 95% uptime and no losses.

Our final asset is OPL 276 on which we have a 45% participating interest in. This asset was acquired in 2019. Historically, four wells have been drilled in the licence area, resulting in four discoveries (two oil and two gas) with preliminary resource estimates of gross recoverable volumes of 29 million barrels of oil and 333 Bcf of gas, with upside of 33 million barrels of oil and 476 Bcf of gas (recoverable). We are currently waiting to renew the license on the asset to start working on the block.

*Can you elaborate more on Lekoil’s flagship asset OPL 310?

OPL 310 is located in the Dahomey Basin and has both oil and gas reserves. The main prospects are in water depths ranging from 100 m to 800 m and are within close proximity to the West Africa Gas Pipeline. Lekoil is just starting to develop the asset and we will continue with exploration activities and appraisal planning in 2020. The gas reserve at the OPL 310 block is quite substantial ——->and we have enough gas to produce 20% of Nigeria’s power generation.< ——-

Not the best day to release an update, almost all of my watch list in red. Many large sells gone through between 8-10am but it didn’t drop the bid which appears to be MMs exchanging books. 500k on the bid @3.1 for the impatient ones ha

First email I sent to IR was 2 weeks ago and I got a reply next day confirming the appointment of the new CFO , I then sent them another email a couple of days ago asking if they received the $7m from Shell but they didn’t reply. In my opinion they should have received the payment by now so I’m guessing they are holding the news of receiving the payment and the appointment of the new CFO to the board to maximize the value of the series of updates coming soon.

LekOil will also have to pay Optimum the sum of US$2.0M on or before 20 March 2020 and I believe it shouldn’t be an issue because they’ll have that money from the 1st & 2nd oil liftings (2nd lifting will take place before the 10th of March).

I am also expecting another important update about securing project finance debt facility (not fundraising) for Otakikpo‘s phase 2:

“27 Jan RNS : increase Otakikpo production up to 20,000 bopd , 8,000 bopd net to LOGL (Up till Q1 2020 production from Otakikpo was 5,860 bopd gross with 2,344 bopd net to LOGL.) . The phased development plan for the project consists of drilling between five (5) and seven (7) new wells as well as the expansion of processing infrastructure which will be financed by a project finance debt facility.

A further update on the progress of this project will be provided SHORTLY.”

On another matter and in regards to March & May’s payments to Optimum: “ Failure to make this payment on time may result in Lekoil and Optimum jointly seeking, and agreeing on, a willing buyer to whom the transfer of Lekoil's 17.14% participating interest in OPL 310, as well as all the financial obligations related to OPL 310, can be made.”

So I consider this as LEKOIL/shareholders safety net if they failed to pay in time (very unlikely) .. again no fundraising to make these payments, they’ll sell their share in the oilfield which should pay all outstanding debts and make some profit as well.

Of course all of the above won’t matter anymore if the reason behind the company’s silence was an ongoing takeover negotiation by Addax Petroleum (A subsidiary of Sinopec Group the 3rd largest worldwide third &the biggest oil refiner in Asia ) which LEKOIL’s new CFO was their previous CFO for the past 10 years!

"RNS- Investigation Committee

The Board has appointed Mark Simmonds and Tony Hawkins, who are Independent Non-Executive Directors of the Company, to investigate the origination and execution of the Facility Agreement, what steps can be taken to retrieve any monies already paid in association with the Transaction and the Company's wider corporate governance practices.

The Company notes that Mr Simmonds and Mr Hawkins were appointed to the Board after the signature of the Facility Agreement and did not have any connection with the origination or execution of the Transaction, making them suitable, in the wider Board's opinion, to lead a fully independent review. They will be assisted by third party forensic investigators and legal counsel, as appropriate. "

Hi Hullaballoola, I can understand your point of you but Mark Simmonds is a powerful person and has being paid to be a part-time Non-Executive Director in Lekoil so I would like to see him assisting the company with the ongoing investigation whenever needed and to facilitate access to financial bodies and institutions beyond the UK-Nigerian jurisdictions to locate the fraudsters and/or to recover the fees paid to them, something a small O&G Nigerian company can not do via its local resources.

Anyway, Thursday is Lekoil's board meeting day so let's hope that we'll get a couple of updates tomorrow morning : ) ...they've been very quiet since the 27th of Jan which is unusual knowing that since April 2018 they released at least 1 RNS per month so I am expecting update(s) from Lekoil to drop VERY soon.

You're all welcome !

I think the market has already punished LekOil for the QIA fraud&losing $600K, hence our share price lost over 60% of its value but what if they are able to recover the money knowing UK ex-Foreign Office minister is involved in tracking the fraudsters ;)

As I said before many things have been going in the background & the new BOD must be very busy at the moment after last month's agreement with Optimum Petroleum, there are several imminent catalysts on the way, confirming cargo lift &new CFO appointment RNSs should land anytime very soon

The company has been listed on AIM for 7 years and since 2013 it only fell below 4p on two occasions, once last June before it bounced back up in July and last week so its a waiting game atm for the patient ones but very much worth the reward in my humble opinion !

work already commenced in Otakikpo and a very supportive partner in a world class strategic asset. Sooner or later the share price should see recovery from the current heavily undervalued level:

Engr. Yusuf K. N'jie, Managing Director, Optimum Petroleum Development Company, commented, "We are pleased to continue to support LEKOIL by deferring their obligations which were due this quarter.

We remain confident in LEKOIL's ability to by July this year, raise the financing that is required for the commencement of the appraisal drilling programme for OPL 310

which we truly believe is a world class strategic asset."

Edward brings a wealth of knowledge & experience to LekOil. He was the CFO of Addax petroleum for 10 years which is a subsidiary of the Sinopec Group, one of the largest oil and gas producers in China, the biggest oil refiner in Asia and the third largest worldwide ! He must saw something special in LekOil that made him quit his prestigious job and move to LekOil.

Again, I do believe many things going in the background & appointing Edward During Addax Petroleum's CFO for the past 10 years as the new CFO of LeKoil is to conduct pre-acquisition due diligence from within "the seller's" business.

It's not a matter of if it's going to happen, it's a matter of when it's going to happen. I can't stress enough on how undervalued LekOil is at this level for the assets it holds.

The sp should have settled at least above 4p without news.

They have their board meeting on Thursdays so based on the recent volumes and several pending imminent updates I am guessing we'll get RNS today afternoon or tomorrow.

*First piece of news should be, and I'll quote their IR email to me from last Thursday " we can confirm that a candidate has been identified and the appointment process is being finalized. An announcement will be made once this appointment (which includes an appointment to the Board) is complete"

**I also expect them to confirm receiving 7M USD from Shell Petroleum for Otakikpo's 1st oil lifting.

An interesting article about LekOil for the new holders:

https://businessday.ng/analysis-sub/article/resolute-in-the-face-of-setback/

I found it very informative and gave me confidence that the company will recover from its current heavily undervalued level very soon.

OMITC,
Thanks for bringing this up, I think it’s worth to repost my previous research &thoughts about the new CFO for the newbies on here:

It makes you think why the the Chief Financial Officer of Addax Petroleum, a subsidiary of Sinopec Group the 3rd largest worldwide third &the biggest oil refiner in Asia joined a small O&G company in Nigeria?

If you check Addax's website you'll find that they have a very interesting portfolio of valuable assets in Nigeria:

ONSHORE
•OML 124 100% -Operator: Addax Petroleum

OFFSHORE
•OML 123 Working Interest 100% -Operator: Addax Petroleum
•OML 126 Working Interest 100% -Operator: Addax Petroleum
•OML 137 Working Interest 100% -Operator: Addax Petroleum
•Okwok Working Interest 12% 12.00 -Operator :Oriental

The level of China's investment in the continent of Africa has been increasing at a steady rate &Mining and oil remain a primary focus of China's investments. There are three key players taking an almost equal share in the forecasted US$15 billion development and production capital expenditure in Africa’s upstream sector:

1-The China National Petroleum Corporation (CNPC)
2-The China National Offshore Oil Corporation (CNOOC)
>>>3-The China Petroleum & Chemical Corporation (SINOPEC) <<<

Coa Chai, an upstream analyst at data and analytics company GlobalData, says, “Around two-thirds of the spending is in Nigeria, Angola, Uganda &Mozambique. SINOPEC and CNOOC are well established in Nigeria& Angola, while CNPC has a stake in the Rovuma LNG project in Mozambique.”

One of China's largest trade partners is Africa's largest oil producing nation, Nigeria. Nigeria currently pumps 2M barrels of oil a day & has a goal of producing 3M barrels per day by 2023. As China’s domestic oil production continues to decline, experts predict that in the next 15 years up to 80% of China’s crude oil supply will be imported.

Back in Nov 2018 the 3D seismic acquisition and processing operations undertaken by Sinopec at Otakikpo
was completed to optimise the planned Phase Two development. First Bank Nigeria Plc issued a guarantee on behalf of Otakikpo Joint Operation (LEKOIL &GEIL) in favour of SINOPEC towards the release of final report on the 3D seismic data acquired from the Otakikpo marginal field. The obligation on the SINOPEC contract was fully settled in Jan 2019 &guarantee withdrawn.

The Chinese have good presence in Nigeria for &I do believe they had their eyes on LekOil for quite long time. They are known for being pragmatic when it comes to business so I think Sinopec tested the water with LekOil in Otakikpo's 3D seismic acquisition &processing operations contract. They liked company &waited for the best opportunity to potentially take over the company while the share price is on its knees.

I do believe there is alot going in the background & appointing Edward During Addax Petroleum's CFO for the past 10 years as the new CFO of LeKoil is to conduct pre-acquisition due diligence from w

"@middleEastMoney: if you believe any of the rubbish spouted by the CEO after all the drivel, broken promises of the last 4+ years, more fool you.

Have you read all the RNS about increasing production, NOT ONE HAS COME TO FRUITION"

Then why did you "@middleEastMoney: I have taken a sizeable position already at average 3.34p" ?!! haha

If I was you I'd cash out then come back again after the CEO resigns

"@middleEastMoney: I am not wasting anymore time swopping insults with you."

What the ?! It seems like it's hard for you to have a civilised conversation with others on here.

Anyway goodbye or "ma alsalamah" however you say it in the MiddleEast.

My buying order was filled, thanks to Baron or whoever was selling ;)

09:12:25
3.12
138,000
£4,306