Member Info for LGO-fan

I think we have no way of knowing which direction this RTO will go. We are just going to have to wait. The last line is reassuring, time will tell. Nothing more you can say. It is a waiting game. Some have said on here this could easily take 2-3 months. Well, one down. Most likely one to go, I would say.

given Your Lordship asked so nicely :-)

Q:Dear Paolo,

I sincerely appreciate you taking the time to respond, though I am somewhat puzzled by your reply.
In your RNS dated 24th January 2020 to announce the directorate change you state: "Mr Lamming supports, and will be voting his 5.5% shareholding in favour of, the Proposed Transaction". That comes across as if there is a line of sight in the not too distant future to the RTO; otherwise why state "he will be voting"?
Am I missing anything?

Kind regards,

A: We’re still at the MOU stage and both parties haven’t fulfilled their conditions precedent to a final transaction.

Russell is in favor of the proposed transaction and will be voting for an RTO when it’s up for a vote.

Rest assured that we’re working towards closing but I’d rather be conservative in our announcements.

Best

Paolo

it i s therefore in their interest to make this work. If the SP moves up sign, they will have done very well. SH interests are aligned here IMHO

I think the BOD should commit to buying all the shares Schroders has sold. They will think twice to raising equity to bring an II on board :-) :-)

As long as the other II mops us the share Schroders is selling, fine. But I really don't want to see another equity raise. Enough shares in circulation as is. Let's not forget the previous equity raises were promised to be SP accretive, and S and SD haven proven that. Far from it.

Deals like WNZ are the way forward. More of those please !

I can't get my head around it Bamps, it goes against everything LK stands for. He loves to sell, to communicate, he loves to share good results. He wants to be the Lion King. So if it is all but a slam dunk, as some say here with lot s of confidence, why not put the minds at ease?

Sharing a reply from Paolo.

Dear XXXXXX,

We signed the MOU and are progressing the placing of the assets for sale prior to entering into the final SPA that would lead us to a future RTO.

As or right now, there isn’t much to report other than we’re working on the year end audit, ensuring we meet the requirements of the MOU (asset divestment in order to have cash for RTO) and conduct due diligence on the proposed assets to drop into the company. Divestment of oil and gas assets is also a long process that involves marketing, showing the assets, due diligence, agreements and only when the authorities allow the transfer, does closing occur.

Until we have something material to update, we continue to work towards a path that leads us to an RTO and brings in a seasoned management team with strong assets.

As soon as we have the SPA conditions fulfilled, we’ll certainly update the shareholders.

Best,
Paolo

No one expected such a period of so little news I think. Why do you think that is?

Not sure if many PI's are selling Faz. Still seems that Schroders is selling given some chunky sells, but WTFDIK.
(Schroders was LK's call, remember. I got chastised here for criticising that move. )

Hi Bamps,
Yes. All true. "What good would it have done to drill Clove first?". I am not an oil man but a couple of things come to mind
1. CERP decided Clove was a target (I didn't and that is a very very good thing :-) )
2. LK stated in Neon's most favorite all team video clip, that there were 2 main risks to Saffron (both geology related). One of them being the "stability" (words to that effect) off the layers above the LC. So I could imagine drilling Clove would have given more insights into that.
3. The drill (a rather essential piece of kit) hadn't been operated in a over a year. So if engineers are nervous about using it on a main drill, than I take note of that certainly given the history at LGO (stuck drill, remember)

Again, all of this started because Y posted a theoretical, and based on the info relayed by CERP, a very valid question. Note that all challenges about Clove are valid, but please direct them to the BOD and ask them why on earth they contemplated such a move in the first place?

"Investors who are familiar with ur posts can easily spot ur sudden tone change hence I said have u sold out to get a lower entry!"

Don't be so infantile. Wouldn't sell now because I would sell at a loss. Been here long enough to know what I am waiting for.

Again, being critical about things in a good thing in life. You, for some reason just can't handle it, and you vent your own frustrations about our SP at those who are critical and calling out the very reasons for the SP being low. Oh, the irony!

Not going to argue for ever on this, Neon. But you highlight one part of that clip. You need to look at all the arguments in the same video (I am referring to the one from July 19). LK also mentions that Clove would have costed half of Saffron. And he also said it would be "quick and easy to drill". We now know, it wasn't quick, nor easy, and given longer than the stated time line 30-45 days, we can logically assume it will be been more expensive than the $ 800k stated. Assuming the cost is more $1mn now than $800k, you are talking about a difference of $600k between Saffron and Clove. A lot of money for CERP.
Y only suggested it may have been better to start with Clove, as less deep, quicker, cheaper, and given these are exploration wells (no production assumed, nor calculated), they could have learned more about the geology. The geology, LISTEN TO THE CLIP IN FULL, was clearly stated by LK as the MAIN RISK to the Saffron drill.

So I really don't understand why you want to argue about this. Y made a sensible, with the benefit of hindsight, comment. Simple as that. And, like it or not, LK has the tendency to be bullish. It's a fact. BWT, nothing of what is being said here will drive the SP up or down, so you can relax about that.

I am critical about LK, always have been, always will be. Why? Because my money is invested here. That's why. I will be critical at 2p, 22p and £2.

you maybe right, but don’t forget that LK and his team selected those 2 targets, including Clove. And if he did, we can safely assume he has higher hopes than you Bamps for Clove.

Let’s also not forget that LK, openly said in front of sh’s at one point, that he was still doubting to either go first for Saffron or Clove. When probed a boy further, he hinted that all the technical guys opted to go for Clove first, as they felt it was a more prudent approach. He also said he really wanted to go for the bigger prize first. Now we know that Lk has a tendency to be a tad too bullish, so again, if Saffron turns out negatively it will be all on him.

So, in conclusion, Y’s comment is far from strange as many at CERP shared exactly the same opinion (and they have a lot more data than any of us, so let’s assume they know what they are saying)

Peeps are very tribal here, Y.
With every other share I invested in, Sh’s challenge the BOD to do better and it is seen as the normal thing to do. If you dare post a challenging view, or simply a different view, posters get nervous and you get all sorts of daft replies. Hey- ho.

end of Q2 is a long time to wait. It’s not like we are swimming in cash, or that our bopd is rising fast. Cost for Saffron must be a lot higher than initially thought. We still are not clear on financial status of the company, nor do we have a view on production.

Can only hope CO2 test is positive, or we will face another equity raise soon. WNZ is still not an short term play either. Spanish court case will take a long time too...Meanwhile Schroders is still likely to offload. Happy to be optimistic but in the circumstances June feels a long time away. So we are def not out of the woods yet.

I quite agree.

In it and not winning for the mo :-)

I know what you mean. I think he needs to suppress his inner “door-to-door vacuum cleaner sales man”. It’s great to be convincing but if you over sell, raise expectations too high, not deliver, than what else can you expect from a SP POV?

Support levels have been broken a couple of times now. All major concerns SHs have (Schroders selling, delays, Saffron?) do not get addressed/answered.... what do we expect?

(No, I haven’t sold out. I call it as I see it.)

The intellectual power of your argumentation is mind blowing.

I will reply in a way you understand: “No”

not sure I am clear on his point