Member Info for E_AL

Fingers crossed Danker, I think plenty of imminent updates in the way, yesterday's rns was very encouraging and should have given us all peace of mind on the future of Otakikpo, LekOil's PRODUCING asset!

Amers, if you were referring to me in your post then could you please clarify what piece of information which I shared on here wasn't true? The details in my previous post were taken straight from the company's website !!

I just cant wait for Baron to bugger off, honestly selling at 3p is an insult to a company like LekOil with an outstanding portfolio of assets:

1- PRODUCING asset : OTAKIKPO MARGINAL FIELD :Reserve Estimates resources estimated at 48.6 mmbbls : (LEKOIL: 40% interest)

2- Appraisal asset : OPL 310 Ogo field gross recoverable resources identified as 774 mmboe (P50) 774mmboe (LEKOIL: 17.14% interest)

3- Appraisal asset : OPL 276 (LEKOIL: 45% interest) : Based on data from the four wells, 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).

4-Exploration asset – known basins OPL 325 (LEKOIL: 62% interest) : Based on an independent study commissioned by LEKOIL, suggests oil in place volumes of up to 5.7 billion barrels with an estimated 2 billion barrels recoverable based on analogues.

*mmbbls : Millions of Barrels of crude oil
mmboe : million barrels of crude oil equivalent

https://www.lekoil.com/our-assets-summary

Many listed company with only "exploration asset(s)" in their portfolio has multiple times LekOil's current Mcap which doesnt make any sense!

Well, personally I did and I am very happy to top up at such a ridiculously cheap price !!

Jenny
The more chunky sells the better, as soon as Baron is out LEK will benefit from share price correction.

Frankly I am not sure why he isn't out by now!

I don't think baron capital holds a fair few shares to be honest, they had 15.036 Million shares on the 14/01 and they've been selling persistently since.

They should be out or almost out by now...........

SP is ridiculously low due to Baron's constant selling when they cash out the sp will recover.

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

Happy new CHINESE year Danker ;)

Yes gmcc, so far Otakiko produces 2344 bopd x 27 days = 63,288? bop net for LOGL in 2020

Good business, right ?

You're all welcome :)

As I said before many things going in the background & the new BOD must be very busy at the moment after last week's agreement with Optimum Petroleum , there are several imminent catalysts on the way, confirming cargo lift & new CFO appointment RNSs should land anytime next week and provide shareholders with a noticeable recovery in the share price from this ridiculous level.

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 not more than a waiting game for the patient ones but very much worth the reward in my humble opinion !

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?

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 and Mozambique. SINOPEC and CNOOC are well established in Nigeria and 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 2 million barrels of oil a day and has a goal of producing 3 million 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 November 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 and 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 January 2019 and guarantee withdrawn.

They Chinese have good presence in Nigeria for and 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 and processing operations contract. They liked company and 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 within "the seller's" business.

Smashing news !!

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.

From linkedIn: Edwards During, a leader with strong finance and people management skills, with a track record of leading and developing high calibre finance and commercial teams in challenging environments. UK Chartered Accountant, with over 30 years UK and international experience in the oil and gas industry. Currently working for Lekoil Limited since January 2020 as their CFO. Prior to that worked for Addax Petroleum (a subsidiary of China’s SINOPEC) for 10 years in various leadership positions, including General Manager Business Services, Director Finance and Administration and CFO for all Addax companies in Nigeria. Prior to that, held several leadership finance positions in Marathon Oil Corporation, in various countries for 20 years, including UK, US, Gabon & Indonesia, overseeing: Finance and Accounting, Commercial, IT, HR, Administration, SCM, Regulatory Affairs (PSC & JOA) & CSR.

Previous position:

Chief Financial Officer
Addax Petroleum
Jul 2009 – Dec 201910 years 6 months
Lagos, Nigeria
Held various leadership positions including General Manager Business Services, Director Finance and Administration and lastly as the CFO for all Addax companies in Nigeria (SINOPEC group company). Led the organization's Accounting and Finance, Commercial, Business Planning, Insurance and Risk Management, Internal Control and Audit and IT functions. Member of the Board of Directors, the Leadership team, and the Tender Board.
Held various leadership positions including General Manager Business Services, Director Finance and Administration and lastly as the CFO for all Addax companies in Nigeria (SINOPEC group company). Led the organization's Accounting and Finance, Commercial, Business Planning, Insurance and Risk Management, Internal Control and Audit and IT functions. Member of the Board of Directors, the Leadership team, and the Tender Board.

I am expecting a lot this year from the newly appointed BOD, those directors are experienced & very well connected in the O&G sector.. 2020 will be a transformational year for LekOil !

An interesting article to read for all you guys new to LEK Oil:

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 AIM’s typical overreacting very soon.

“ Baron investments just tweeted , obviously interested or still invested

2) #LEK agreeing a deferral with Optimum. I expect the business will update on value of cargo lift in due course and how much last reported cash balances are inflated by. Should also clarify net debt adjustment post quarterly re-scheduled payment and working cap position”

Danker , I noticed people replying to the tweet but Baron didn’t comment .. It looks like he wanted to ramp the company to sell the rest of his shares. Taking note of all the high buy/sell volumes traded in the last hour before eod , I’d like to think that he is completely out by now .

"TaffEvans
Posted in: LEK
Posts: 8,557
Price: 3.05

Warning21 Jan 2020 08:04
Do not be left holding the baby. Leave that reward to the crazy bottom feeder rampers on this chat board. This company has never ever delivered on any of its promises. Just read the RNSs if you don't believe me "

Could you be kind enough to explain why you've changed your mind in 3 days about Lek Oil from "Do not be left holding the baby" to a strong buy ? Was it to get 0.05p cheaper entry???

You’re welcome Danker .. The last three Fridays on the trot, have seen this closing higher than the previous day so fingers crossed today won’t be an exception ha

You’re welcome :)

If you noticed in the screenshot 40m shares were traded before the RNS day plus whatever volume traded on the 14/01 so if one tenth of the overall volume sold by Baron’s then they should be out by now. As I said earlier today the chunky blocks of shares which have been offloaded to the market at ridiculous cheap price (below 3.3p) could only be from ii, most likely Baron

The buy/sell volumes showing on here are not accurate, some of the buys were sells & vice versa but as you can see from the screenshot attached, since the RNS day 73m shares were traded:

https://i.imgur.com/MJGkLOE_d.jpg?maxwidth=640&shape=thumb&fidelity=medium

Hi Danker, I use LSE’s L2

MrBelfort

Market makers (MMs) are large banks or financial institutions buys and sells securities for their own accounts, at prices they display next to their initials on the exchange trading system. They are the big players in the market who competes for customer order flow by displaying buy and sell quotations for a guaranteed number of shares but you also have individuals & brokers who buy/sell shares at prices mostly between the MMs buy/sell quotations so what you saw earlier was probably a buy/sell quotation from a private investor, trader or a broker.