It’s not in RKH’s interest to settle the tax issue with the FIG until they are in production. It’s an unknown to potential predators which may deter takeover bids at lowball prices.
Best to keep it complicated for now as a form of protection.
Thanks SH - in line with what LTT reported.
Judging by other cases the outcome could take anything from a few weeks to 12 months but hopefully by the end of the year.
Still no news on the sale of the award being signed off but I’m sure that’s just a formality.
Thanks Mogger. Good to hear the EIS has now been submitted - a lot still to do on the FIG end by the sound of things but all being well things should be in place for project sanction by the end of the year.
I’m still holding and have also averaged down a bit Whirlaw. I do agree with a fair amount of what you say, but I think management performance has been extremely poor to date. I think it’s undervalued at the moment given the licenses they have in Norway and the prospects in Malaysia, and I’m hopeful that the JAPEX backing will enable them to create some shareholder value.
I just think it’s important to be honest about how the company has performed to date, and an 84% drop in the share price since the IPO tells its own story. That is pure destruction of shareholder value.
I share in the hope they can turn this around Zengas, but we are now waiting for them to pull a rabbit out of the hat.
They have a lot to do to convince this whole setup isn’t purely designed to line the board’s own pockets, but we will see.
It’s not putting words in your mouth, it’s what you’ve said!
Like it or not Zengas, Longboat Energy has been nothing but a failure so far. The share price has dropped from £1 to 16p which should tell you everything you need to know but for the benefit of others I shall provide the history.
Longboat launched with the objective of securing production assets in Norway (predominantly gas). When the pandemic hit and energy prices dropped significantly they tried to negotiate too hard and subsequently lost out on doing a deal when commodity prices were at historic lows (no foresight).
After the pandemic energy prices spiked which meant the Longboat management were definitely now unwilling to pay the market prices for production assets. They ended up instead getting desperate and securing a portfolio of exploration prospects, boasting at the time that Norway had a 50% success rate at exploration and these prospects were carefully chosen by their expert technical team. Well that technical team turned out to be utterly useless - out of 10 prospects (Rodhette, Egyptian Vulture, Mugnetind, Ginny, Hermine, Cambozola, Copernicus, Oswig, Velocette & Kveikje), only one of them found commercial hydrocarbons. Their technical team would have had better success throwing darts at a wall - 10% success compared to an industry average of 50%. The only successful well had an over 50% CoS as well!
Having wasted all their money on a failed exploration programme it’s no wonder several of their institutional investors wanted out and weren’t prepared to back them further.
They were between a rock and a hard place but thankfully managed to do a deal with JAPEX and they have now secured a small production deal but even that has had cost overruns that would have been disastrous had JAPEX not come on board.
Now I’m not saying they can’t go on to be successful, and I’m hopeful that they can. But don’t kid yourself or others, it’s been a total disaster thus far.
You can disagree all you like but the market agrees with me, hence a share price of 16p despite the Kveikje discovery & nearby license area, the JAPEX deal and the Malaysian exploration prospects. Sentiment is in the toilet and for good reason.
These comparisons are a bit pointless given the difference tax regimes, 2P reserves and decline rates.
Lots of different factors will come into play, not just production levels.
So what you’re essentially saying Zengas is that the Longboat management started the company with the aim of acquiring production assets, only to realise afterwards that they could not compete with private equity after setting it up and needed the JAPEX deal to be competitive.
That would mean they were totally incompetent from the start.
Maybe you’re right!
You’re new here and it shows Zengas. Don’t attempt to give me a lesson on it, I know the LBE history only too well.
Read back through the reports and listen to the old presentations - the board have admitted there were deals to be done although obviously I don’t know the specifics of them.
I know exactly how Sval Energy grew and I’m not saying that Longboat could and would have grown to the same extent, but they were making acquisitions at a time when you appear to be claiming there weren’t any to be done.
Zengas on the one hand you are suggesting there were no deals to be done, and on the other admitting that Sval have turned into a billion dollar company “through a series of acquisitions” during exactly the same time period.
Simply saying they can’t compete with private equity is a poor excuse.
Zengas, have a look at what Sval Energy have achieved during the same time period.
There were deals to be done but the LBE management weren’t up to it.
The share price is 16p because the market has zero confidence in them. Should they put the JAPEX funds to good use I will be both pleased and relieved, but the first 5 years of Longboat’s existence have seen nothing but the erosion of shareholder value - that’s a fact.
Zengas it was never supposed to be an exploration play - that was not the original strategy but they bottled doing a deal during the pandemic and then energy prices spiked leaving them nowhere to go.
You say it beggars belief but £1 to 16p tells you all you need to know.
Chart patterns are relevant to virtually all companies.
To say “this share does not follow charts” is true in that it doesn’t ‘follow’ anything (no share does) but charts are certainly relevant.
They’ve been “actively participating” in deal processes for 5 years now - they just can’t get anything significant over the line. Everything they’ve touched has gone bad so far.
Is it a 2 day hearing LTT? Did you get that information from RKH (can’t see it in the public domain)?
More of the same.
Spend spend spend and no production deal yet.
These lot really are useless.
Let’s hope they can pull a rabbit out of the hat.
We need to see an exploration well in what he coined “the marlon sump”. If that’s full of oil then Isobel is bigger than Sea Lion.
That’s only because Gozzie copies and pastes from here. I don’t think he’s ever got over being banned and now he’s stuck in the asylum where he belongs.
Finley isn’t as switched on as Godders. His level of intellect suggests it could be that drunk bloke gozzie who got booted off a few years ago and now frequents ADVFN.
Whoever it is it’s a very poor effort it has to be said.
Finley - repeat after me: “nobody is expecting to get hundreds of millions out of the Italians”.
Rockhopper have sold the award - what part of that do you not understand? The Italians are irrelevant now, it’s all down to ICSID.
You’d be better off pretending to be clever if you’d done your research first.
No I’m not bitterly upset or angry at all. I’m just amused at clueless amateurs arriving on here thinking they know more than they do.
You’ve already shown us in a handful of posts that you know very little and have nothing to add so nobody is going to listen to you.
You can try being childish as per your last couple of messages but trust me it will get you nowhere here.