Member Info for LayLadyLay

I wouldn't expect you to understand in4cedros. I see you quoting soundbites on the other forum ... accretive... lol

South West Peninsula, Trinidad Tuesday, Jan 24, 2017 LGO and its local subsidiary, Leni Trinidad Limited ("LTL"), have reached agreement with Beach Oil Field Limited ("BOLT") on the terms of a final sale and purchase agreement ("SPA") for BOLT's interests in the South West Peninsula ("SWP"). The agreement will see LTL acquire the remaining 75% of the shareholding in BOLT for a final one-off payment of US$50,000 and will supersede the previously announced Deep Rights Agreement signed in 2013 on which a residual payment of US$1.4 million would have been due. Through this transaction LTL's shareholding in BOLT will increase from 25% to 100%, and LTL will gain rights to all shallow and deep leases held by BOLT. Completion of the ownership of the leases requires the completion of an existing agreement between BOLT and Petrotrin through the payment of US$89,000, and various minor payments to leaseholders and third-parties likely to total approximately US$45,000. BOLT currently has a loan with a Caribbean bank for approximately US$1.1 million and as part of the transaction this will refinanced in the local market or repaid as appropriate. Why is the new agreement better? CERP is now relinquishing it's 25% holding in BOLT which it had previously paid US$250,000 for. Instead of CERP completing the takeover of BOLT at minimal up front cost the company has agreed to pay US$450,000 up front, plus US$500,000 upon the development of any field (other than the Bonasse Field) situated within the Existing Lease, plus a royalty of 3% on net production from a development of the SWP licence (excluding the Bonasse Field). The royalty is payable on net production exceeding 10 million barrels of oil ("mmbbl") and capped at US$1.25 million per annum. They go on to say, (NB. previous arrangements envisaged a royalty (or equity) of 7.5% payable from first production with no cap), which doeswn't make much sense if CERP owned 100% of BOLT. The acquisition of BOLT would have meant that the US$1.1 million loan outstanding would have to be refinanced or paid off (via Lind perhaps?) but it seems that CERP have sold off some of the family jewels to avoid taking on that debt and may end up paying up to US$1.25 per annum which would have been avoided by completing the BOLT acquisition as negotiated by NR in January 2017. The US$89,000 due to Petrotrin is the same amount due before and after this renegotiation.

Ho ho ho, Emily ;)

I didn't say anything about an investment decision, Emily. It will be 18 months before you see meaningful financial data from which to judge success or failure of the current plan.

* sharp suit It's about time we had an edit facility.

Remember all the optimism at this time in 2015? Talk of 10p Xmas party etc.. Modern techniques would increase production? Jam tomorrow? But it never happened and the sp began to fall inexorably and at each stage of decline the rampers kept stating this is the floor and get ready for the ride north. Well the ride north was very much south and even though the sp was decimated and LTHs were diluted again and again, there were those same voices that proclaimed the future is bright. We hear the same rhetoric today. I remain to be convinced that the man in the sharp sit will do any better than his predecessor for LTHs. If he manages to pull off a coup (note the word coup) then let's see how this will manifest for holders. What is good for the company is not always good for holders.

Currently WTI is down almost 4% on the day.

" i would suggest that Leo had not properly considered all the info at that time as you will recall that he didn't grasp the significance of my question about deep drilling on Cedros and didn't appear to know we were committed to the BOLT purchase" That's not very reassuring given that people were eulogising about how he had done 5 weeks due diligence before committing to take over the reins. I will be interested to see how things unfold and whether the new regime can achieve anything more than the outgoing one. As I suggested some time ago, maybe NR wanted out and has sold Leo a pup. Only time will tell. The name change is cosmetic. Let's see if there is anything that Leo can bring to the table that doesn't obliterate existing holders. It's going to take something radical to make this company profitable IMHO.

"It would not surprise me greatly if, after full examination, Leo doesn't start getting interested in Spain as if no one bids for the concession it's a definite further loss for us, minimally, of over $300000 plus possible extra costs of decommissioning - quite a gamble to ignore and would be something he will need to debate with the front row if that is the plan." in4cedros ... I suggest you revisit the strategy briefing video and note Leo's body language when Spain is brought up.

LK says they have decided to cancel the lease on the Jermyn Street offices because the offices are nice but too expensive. That raises a question about the Lind loan as the lease in question forms part of the security. It suggests that either Lind agrees to a revision of the security or maybe LK intends to repay Lind and terminate the agreement, perhaps replacing Lind with an alternative provider of finance or raise funds in the market by way of placing.

Joe ... agree with what you say. I also think expectations of what can be achieved with a few tweaks at Goudron are likely to leave some people disappointed. I don't think there is a magic bullet that will provide a massive uplift in production and that's what is needed if free cash flow to fund organic growth is the way forward. I still expect some form of dilution to provide the funds necessary to get the ball rolling in the right direction. It's early days for the new regime so we need to give them time to formulate a working plan of action. I don't see a quick fix in the short term so expectations will have to be realistic.

Billy Bremner, Eddie Gray, Peter Lorimer, Jimmy Johnstone, Jim Baxter, Denis Law and many more. Scotland produced many top players in the 60's and 70's.

Ches ... as I punched the ball clear I 'accidentally' followed through and caught free. He'll probably have a black eye in the morning. I'm not sorry though. He shouldn't have said my girlfriend is filthy and drinks her own bath water! I look after my girl!

The selling point Neil used about Goudron was that LGO would be using modern techniques that weren't available in the 60's/70's and thereby make Goudron viable. Leo is saying 'back to basics' whatever that means. Perhaps he just thinks Neil has missed something obvious. Time will tell if he has. But if he hasn't then Leo may find himself in the same position Neil did, battling against decline. Another thing people are doing is taking 'deep wedge' to be the missing gusher and I am reminded as to how Puka3 at Kea was drilled into the sweet spot only to find that it was mostly water. The oil exploration business is fraught with risk so don't count your chickens just yet.

Never rule out possibilities. Thinking outside of the box is a good habit to develop. I can see how many of you have bought into Leo's track record and already decided that he can't fail. Hopefully he will do a good job but it's all in the melting pot for me. Let's see what happens over the next few weeks. Decline waits for no man so something has to start moving to maintain current production levels, let alone increase them.

I think by comments made that there is a bit of Shell v BP rivalry going on between the pair of them. It's going to be a fascinating few weeks ahead. I can't wait to see how things will unfold.

We all know Neil talks a good game and has a track record of being able to sell the jam tomorrow concept to the likes of BNPP and Lind. What if Neil decided some time ago he wanted out because he couldn't see a way to make LGO work? Is it possible he has worked his magic on Leo and effectively sold him a pup? Only time will tell if Leo can do any better than Neil.

"LLL, Not Kay adulation, Filthy girl. Drinks her own bath water." Who are you talking about free? Who is Kay?

Must be going up substantially with new people coming on board and NR acting as senior consultant.

in4cedros ... did you ask Leo if he is planning to keep you on or will he bring in his own spin doctor.? You have been devoted to your task of defending Neil at every turn and I'm sure that it will be an easy transition for you to do the same for Leo. The king is dead, long live the king!