focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
> 2. Japex buy out LBEs stake (they have H to do the Norwegian deals, which is what they wanted all along)
That is certainly one possible outcome.
Helge goes to work for JAPEX and LBE get a pay out.
Fine by me so long as value added for share holders.
There is a lot going on. Makes sense to divide and conquer. Sub divided the tasks. Hopefully today's RNS pre empts some progress in Norway / Malaysia to follow
> So the 600 bopd have cost 17m.....so far
Another view: the deal will be paid for and cash generative in ~2.5 years.
Less if they can increase production as probable.
Wow, 25% drop.
That drop is bonkers based on a very positive RNS.
Lots to be positive about here (japex funding, malaysia, statfjord 600 boepd, kveijke).
Looks to me like a single large seller has moved the share price?
No doubt your perspective here depends on when you bought in.
Those who got in early at IPO (£1) will rightly be furious with the 5 year performance.
Those who go in more recently should be very optimistic about future growth now the ducks are now finally lined up.
FWIW: I lost money on the way down here. But was lucky enough to get back when it dropped back to 10p as it looked massively oversold at that point. Good luck all! Now is not a time to be spooked into selling.
> Absolutely agree Savv, a poor performance to date.
Agree, poor performance to date.
However, it does feel like the ducks are now lined up (i,e JAPEX / Malaysia) to deliver on the plan.
The next news feels like it needs to be something significant.
@zengas : excellent summary of potential here. A reminder why I am invested. My comment was more rhetorical question why the share price suddenly moving now. Would agree that 40p a fair price based on progress to date (Japex deal, Stratford production, Norwegian discoveries and Malaysian potential)
Doesn't take much volume to move price here.
The obvious question is why this is suddenly motoring now?
News leaked of incoming deal?
> When is it Longboats turn?
It seems reasonable JAPEX jumped aboard because there was an opportunity and something was brewing (requiring their finance)
> This has been their focus for nearly 5 years now!!
The difference now is they have the Japex funding to execute on transactions
> Both RNSs relate to Norwegian-related transactions.
Apology - I stand corrected.
The farm down on Kjøttkake/Lotus & Jasmine and Sjøkreps was just on those Norwgian assets.
Serves me right for skim reading first thing in the morning.
Couple of nice RNS this morning
i) Completion of the Statfjord satellites means we are now a producer. Should pay for itself in 2-3 years. Reduces any concern about cash burn. Market cap should now be cemented at these levels
ii) The farm down of Malaysian assets is a nice surprise. Looks like a smart move and reduces risk moving forward.
Onward and upward!
.... Was hoping / expecting news the small production deal would close by month end. A big milestone as it would cement the current market cap
These little "puddles of oil" could each be worth many multiples of the current market cap (a paltry £12 million). Which of course is what makes this such an interesting investment. A modicum of success should see share price fly from these levels
Not sure what to think of this morning's RNS. Farm down reduces cost for LBE but also potential upside. Does this indicate a change in strategy from exploration to acquiring production?
Decent wee RNS.
Good to know the small production deal expected to close.
But - yet more patience required....
Veloctette was indeed a boot in the balls. Could have been a company maker. However current market cap (sub £10 million) doesn't even cover the small Statfjord production deal. 300 barrels per day could be worth £3 million/year (say $30 profit per barrel?). Production meant to double by 2024. Plus there is all the other stuff going on : Kveikje, Malaysia and the finance facility to purchase production. Share price should be more like 30p...
Velocette result disappointing. However JAPEX deal (£100 million finance) means that this still has potential to multibag in next 6 months. A small drop in share price inevitable. However today's price (23p) basically covers the small production deal and nothing more. Definitely a time to hold
Meh : not the result we hoped for. Though I would argue success at Vellocettte was not priced into share price. The £100 million finance facility remains good reason to remain invested (plus other irons in fire)
Just catching up with presentation over lunch.
Essential viewing and very up beat.
Summary:
- Kertang has very promising seismic and potential giants.
- The 2 new recruits loo very well qualified with excellent local connections.
- Cost to drill will be ~£50million. Will likely require a partner by 52% holding means no dilution.
The plan for LBE seems to be to do a deal in Norway with JAPEX.
Then hopefully use the proceeds to fund something potentially even larger in SE Asia.
While patience will be required it is exciting to see the company has irons in so many different fires.
Fingers crossed for Velocette - however other potential routes to success clearly exist.
Nice little RNS this morning - LBE is now officially a producer :-)
I think the market has been sleeping to the announcement.
300-500 barrels / day for LBE is certainly a very small production deal.
But should be worth £3-5 million per year profit.
Current market cap is just £13 million !?
.... and production is forecast to double within 2 years.
Says to me that success (or failure) on Velocette well not yet priced into todays share price.
Interesting times ahead.