Member Info for haggis_trap

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.

New 5 minutes interview with Helge released today.

Onward and upward.

https://www.youtube.com/watch?v=7QUS4LMRuqQ

As I see it : the current market cap (~£15 million) just about covers the cash in bank, kveijke and recent small production deal. Vellocete drill is not priced in and almost a free hit - successful drill result could be a company maker in terms of reserves and possible further £30 million from JAPEX joint venture. It is this gearing that now makes it such a fascinating drill. It's risky, but upside potential is huge.

However: LBE is no longer a one trick pony. Thanks to JAPEX everything now in place to allow it to become full cycle E&P company. The Norwegian tax breaks make exploration a tax free hit. Which in theory gives LBE multiple opportunities to hit a bullseye (... with Norwegian gov collecting tax once production begins). If you believe in the model then you need to stay invested for the exploration periods.

The ideal scenario would LBE using the £100 million finance facility to purchase existing production before Vellocete results announced. You to have wonder if they already had assets in mind before signing JAPEX deal?

> When the IPO was £1 it’s a disgrace to be honest.

Generally I tend to agree... These options simply replace previous incentive schemes which were previously at much higher price (£1.5-2). However : the most important thing is that management interest remains aligned with that of share holders.

Unfortunately we are where we are - lack of funding meant that LBE had something of a false start to life.

Helge will also have lost out as an initial investor at £1. Its not ideal - but if they can build on the impressive JAPEX deal then I don't grudge them future success as part of that ride. Closed period will have prevented the management from loading up at recent low prices.

The UK government has destroyed the north sea industry with 75% tax on oil companies.

The real scandal is that

- oil prices returned to pre Ukraine war levels

- the energy bill support scheme ended

- the tax not been invested into renewables.

Contrast with Norway. The taxes are still high but the rebates set upto support exploration. LBE have spotted this : we are now very well placed to take advantage....

Thanks for interview link. Fascinating insight to a remarkable character

Good news this morning. For sure : it's a very small production deal (just 300 bopd) : but it ends the cash burn and can be offset against existing tax losses. Turns LBE into cash generative company and justifies the wages which is important.

Basically means LBE are fully funded to go exploring and hit a jackpot in future.... Norwegian tax breaks on exploration make this relatively low risk (no tax on dry holes). Smart strategy.

A small deal that generates revenue and justifies the wages being paid each month. Plus it can be offset against existing exploration tax loses. Smart move that ends the cash burn.

I notice Graham Stewart has a new venture (Curium Resources) focussing on southern North Sea gas. He is still on the board at LBE - though never been active in presentations. Obviously saw some opportunities that didn't fit with Longboats norwegian focus.

https://www.energyvoice.com/oilandgas/north-sea/exploration-production/515848/curium-resources-north-sea/

https://curiumresources.com/

Great presentation. Lots now to be positive about ...

In retrospect the slow start to Longboats journey was down to lack of financial firepower rather than geological competence. With JAPEX backing those concerns now gone. At these low prices the potential for success on Velocette is clearly not priced in. In many ways that has become a free hit. Though LBE is no longer a 1 trick pony. Reading between the lines I expect a small production deal to be announced shortly...

Rns in the morning? I think so...

£1 easily achievable as described above.

Getting there quickly depends on Vellocete drill success.

However with JAPEX backing this is no longer a risky one trick pony.

Senseman. As fellow ex-shareholder can I thank you for all the hardwork over the years. Sadly the bad guys won here.

I am surprised at todays drop : results looked financially very good to me... Ultimately this has been crippled by windfall taxes. Though concerns about production also lingering.

Thoughts? At these prices I am thinking about dipping a toe back in.

Clearly the company sees more value in drilling adjacent Lotus than selling Kveikje alone. JAPEX deal has put them in position of power to make such strategic decisions. Today's RNS a simple reminder than LBE is not a one trick pony.

This is not a get rich quick traders share - however those with modicum of patience will be rewarded

Clearly the company sees more value in drilling adjacent Oswig than selling Kveikje alone. JAPEX deal has put them in position of power to make such strategic decisions. Today's RNS a simple reminder than LBE is not a one trick pony.

This is not a get rich quick traders share - however those with modicum of patience will be rewarded

£1 definitely achievable in short term *if* Vellocete drill delivers. The £30 million potential Japex bonus is 3x today's market cap alone.

However the real reason to invest is the £100 million finance facility. That is plenty fire power to deliver significant production deal that would blow current share price out the water

Current price is crazy... LBE is valued at less of a premium, vs cash in bank, that it was before the JAPEX deal was announced! Certainly much is still riding on Velocette. However with JAPEX backing that is no longer a binary drill. Arguably none of the future potential upside yet to be priced into share price. The biggest risk isn't this dropping to 15p but missing the significant re-rate that should, hopefully, come over next 6-12 months with moderate success.

Kistos have done very well but been crucified by windfall tax in UK and Netherlands. The fact they have moved for a deal in Norway shows the LBE are well placed. Over next 3 years I suspect that LBE might do very well (not that it is a competition, Andrew Austin is top drawer). Norway is a great sector to be invested given geopolitical and uncertainty and exploration tax breaks.