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its a temporary suspension pending an announcement, so they cannot take very long to confirm with the QIA that the Loan is not valid. They will update the market soon enough, but how are they going to recover their credibility..
The point of my e-mail is that this is not a one trick pony... for certain the share price is going to tank when it opens back up but to what level 4.65p prior to this news so may well settle in that area until further news.
I think lawyers handled that aspect Roty, but still it takes us PI 10 minutes to look at the website and figure out it is a dud.
forgot to add the CEO should so the honorable thing and fall on his sword because you cannot be so stupid.
no point slinging mud...some are more optimistic than other on the outcome and everyone is entitled to their opinion. I am look at it from the worst case scenario based on the information I have and right now:
1. There is no funding from QIA
2. LEK have lost 600k
3. We started the OPL 310 Survey (We need to pay for it)
4. They better get their heads back in the game and try to salvage this with an alternative arrangement
5. OML 11 deal brokered by Standard Chartered Bank could be announce any day
6. They are producing OIL from OML 11
7. They plan to increase current OML 11 production by 250%
There is enough positive aspects of the company to stabilize the price and rebuild but short term we are going to take a hit and based on how they move the above assets forward we could recover...
all down to the company now...
restore some credibility to the company...even if he was conned, he was negligent had to do more due diligence before signing any agreement and making any payment. There should be other parties on the chopping block too.
OML 11 deal together with some resignations could restore some credibility...
Lekan Akinyanmi
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@lekan_akinyanmi
21 Aug 2016
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When your goat goes missing, the aroma of your neighbor's stew can be suspicious.
#AfricanProverbs
more appropriate right now....
That is being brokered by standard chartered...can they get that done shortly after the suspension is lifted...?
my first question is how far is the share price going to fall once the company confirm there is no funding and secondly what the next steps for this development OPL 310 and how far is the OML 311 deal which is at least being brokered by Standard Chartered Bank! The next steps from the company will determine the share price recovery...if there is one to these levels.. but AIM you cannot make it up...they could be taken over, they could strike a new deal..
No mazik, just the Qatar Funding RNS, everything else is still in place, except the funding for OPL 310 and the CEO reputation.
"PURPORTING TO BE THE QIA" exactly there is no doubt LEK got conned...
Based on the RNS and the info available so far...I believe there is no QIA funding in place. so back to pre-news share price. That I have come to terms with..my next step will be based on what alternative they have or what stage they are at with OML 11. I will take my decision when the next set of RNS announcements are made.
Right now it is not good, but what alternatives to the funding...take over is an option attractive asset base...cheap price...what price?
I am working on the worst case scenario, which is no funding in place.
The appointments I think are for the Shell deal on OML 11, which should be announced shortly. I think the CEO got duped big time..in a rush to get this potential monster off the ground. If they can secure alternative funding for OPL 310 then that will be good but the damage has been done.. and the alternative funding will not happen overnight.
I await and see how the company intend to recover from this...
how they intend to recover from this...ceo and team must be very red faced. Look like they have been done over but the cost was only 600k loss which they will try to recover...but will end up writing off. The suspension is temporary pending a further announcement which I expect shortly.
The question now is...how will they move forward? Will they immediately start engaging with reputable finance partners to get this moving again...will they focus instead on OML11 which is being handled by Standard Chartered Bank (at least that is reputable)..
All speculation at the moment, bit i have to admit that I was fooled by that RNS as were many and I will probably have to swallow a 30 to 50% loss is I chose to sell immediately after suspension is lifted or wait and see what alternatives the company come up with.
The oil production and the assets are there..unfortunately the funding is not.
Lets see what happens over the coming days, they cant take that long to establish that the loan is not valid.
OMITC
All the research points to the "Major Oil Company being SHELL...they will finance part of the OML 11 drilling program together with other finance partners. So the question I have who will be the other finance partners, based on the last funding RNS for OPL311 I think that Qatar Investment Authority may just dip their toes in this one too...why not it is the current production asset and further secures the companies future with increased production and revenue.
That is the news I am waiting for as that will unlock significant upside to OML11 which their oil producing asset. 100% increase in production is the first target and then an increase to 20,000 barrels as infrastructure is upgraded to handle the increased oil production.
According to the last RNS, they were just waiting for the final costing before fiance sign off that was in October so that news could really drop any day from now.
possibly another large delayed buy, we shall see shortly...people wanting in sub 10p..buyers are back and sellers are drying up...bodes well for the share price.
This was good day trade on the break out but for me there will be more value over the coming weeks as a swing trade in the direction of the new trend. This has been in a down trend for over 2 years based on the legal issues with OPL 311, but with that fully resolved in the last quarter and funding sorted from Qatar only a few months later this is only going in one direction.
The next news for OML11 should fully underpin the move back to the high teens low twenties.
In full agreement with Nikcel on this one, I have done my research and have full confidence in my position.
GL ALL,
OMITC
7.5 p are a bit ****ed now... you cannot predict every move of the market, there are ranges and if you can buy or sell in that specific target range then that is good enough. Taking a position at the exact bottom of a dip or exiting a position at the exact top of a rise are very difficult to do...