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That is still my belief....time will tell. In the interim news flow is kicking off...most dismissed the news release yesterday from green energy about OML 11 project commencement. Not trusting the nigerian press but that is the next piece of major news we are waiting for from Lek and that will certainly underpin the next rise.
Baron is under 3% and there will be no further TR1 from him now KnightRider1.
Only the trader, broker and market maker know if they are buys or sells... whatever...yesterdays news was important...it kicked off the recovery...gave direction...dips and scares along the way but we have more chance of reverting back to 5p than 1p.
2.2 million looks like a sell...sub 3p crowd exiting others loading up...each to their own.
Very unfortunate what happened with the QIA, but 600k does not make a dent to the fundamentals, confidence and sentiment have taken a major hit but ultimately the Assets are valued at 23p a share right now and there is room to unlock further value on these assets up to 2.39p a share.
The SP will catch up in due course as the news flows...
The Link for those that missed the news release from Lek Oil partner in the field...
Targeting production increase of 250% so revenue will jump from 50 Million doallars to 175 Million incrementally of the course of this year.
Expect a another RNS from the company in the next few days...traders missing a trick here.
https://www.sunnewsonline.com/firm-commences-works-on-350m-otakikpo-phase-2-field/
This is the next piece of major news we are waiting for to be completed...the MOU was first announced in July 2019 and since then they have been progressing it to get all approvals in place to commence work...the final piece of the puzzle is the Finance which is being brokered by Standard Chartered Bank and provided by Major Oil company which everyone is assuming is Shell.
GL ALL,
OMITC
Looks like approvals granted and preliminary work has started....awaiting the final project finance sign off from the major oil company ...who everybody believes is Shell!
Green Energy must be starting using their own funds from current production revenue...next RNS can not be far off...
OML 11 the next piece of major news we have been waiting for....another RNS coming from the company shortly then...
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.sunnewsonline.com/firm-commences-works-on-350m-otakikpo-phase-2-field/&ved=0ahUKEwiIwPub3ZXnAhWxoFwKHUA-C9QQxfQBCDswBA&usg=AOvVaw1KkWttFtneS4Wp63n15LN7
time to pay for it! still believe a take over will come..Strategic Asset!
Agreed Danker...they would not have granted the extension without some confidence that Lek could achieve this.
just traders exiting...more to come over the coming few weeks...
now that they have enough time to do a decent deal for OPL 310 they can focus some attention on getting the OML 11 MOU concluded and that all important 200% increase to their current production!
So we now have clarity:
1. No Placing
2. No losing the asset
3. Extension granted
4. Finding a funding/ Farm in partner underway- sufficient time to conclude negotiations and exchange contracts
5. Optimum on board with the plan
No we need the OML 11 MOU news to take this to the next level! Share price recovery back to 5.5p levels OML 11 news will push it to new heights....
Well done all holders, so far so good
not a bad assessment, the company is not in a great place right now..but can the next RNS be worse than the last one...yes they could do a placing but what good would that do at current prices...next RNS is either:
1. temporary finance arranged for OPL 310 until permanent funding partner found
2. Farm in partner found
3. No funding sale of OPL 310 for XXX currently on the books at 117 million dollars
Depending on what move they make a take over could also pop up...
Not forgetting the OML 11 production asset which is due an update on the MOU finalization!
Current NAV risked is 142 Million pounds less debt is about 23p per share...just based on their current assets. That does not include the full carrying value of OPL310 to date.
Basically they are worth about 23p to 26p so will they be taken over at a discount to this value i.e 14p -18p or a premium i.e 28p...all speculation until an RNS is issued. They do have assets that others want that is obvious from the history of this company, how much are other prepared to pay for it?
Vultures are circling, if LEK salvage the finance/ Farm in partner then great we move forward if they sell OPL 310 that could also be good depending on the price they get.. or third option they get taken over... targets prices are interesting:
75 million = 14p
100 million = 18.5p
150 Million = 28p
How do the vultures value LEKs assets...will be very interesting few weeks ahead..expect some movement in share price soon...as the market always gets to know before the PI does.
States that the CEO was introduced to seawave "by another industry "player" in Lagos, the people said"
The more I read the more it seems that the scam was more about getting LEK OILs assets on the cheap than about the money...
https://www.ft.com/content/cdd989fe-3955-11ea-a6d3-9a26f8c3cba4
Next RNS is extremely important and will determine the direction of this company and the share price. No rushed RNS, so one can assume that they are putting something decent together? All speculation until we get the next update.
Agree Danker a few of us are looking at this from a wider angle, which is good. People should always think outside the box. I am a analyst by training so when I read .....I read and when someone speaks I listen and I mean I really break it down! Subconsciously all my research has led to these conclusions thus far....could be totally wrong but there is some much more to this than meets the eye!
I wish you well Danker .