Member Info for haggis_trap

So reading between the lines I think one possible outcome is that Helge is going to work for JAPEX?

That part of the business will be handed over (for a small fee?) and what is left will focus on Malaysia.

Terrible update - but over sold at 8p.

Terrible update....

Not least given all seemed to be well following the JAPEX deal.

Hopefully just a case of new CEO sand bagging all the bad news in one go.

Now at a stage where the directors need to stop drawing a salary and pay themselves in shares.

The only small positives:

i) The issues with Statfjord are operational rather than geological.

This is unlucky and out with LBE control (but has impacted them negatively)

ii) The finance facility has been adapted to deal with the challenges

For now japex remain on board.

Iii) Kveijke has value (especially if the fully funded q4 drill delivers)

Much of the potential still exists longer term - all be it with cloud hanging over it.

Hopefully company will now seriously cut costs and actually deliver on some its stated aims and goals.

> 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)