Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
I posted this on the 14 Jan '22 when the price was 0.365p. The shares are now trading around 1 years cash flow.
It is set up to be a good year for NTOG!
The oil price is looking solid at current levels or recent lows and continues to push up against recent highs.
Additional production is on the horizon and with recent reported production of around 128 bopd (if my memory serves me correctly) NTOG could be producing at consistently it's highest rate ever.
Whilst there is always the potential for an equity raise I think it is unlikely due to cash flow from operations, the available bank facility to draw down funds, and with an increasing share price the various options/ warrants that investors hold could be exercised bringing in further funds.
The share price based on the current oil price and rate of production is significantly undervalued and with the potential of more oil production to come if either 1 or 4 more wells are drilled this year per the recent stated plan for 2022.
Whilst I know there are Lofgran detractors out there I don't think this year will be the year in which the familiar criticisms will prevail.
At $95/bbl WTI there is plenty of run room in this share based on fundamental valuation. Just to re-iterate my original post on this thread:
It is set up to be a good year for NTOG!
The oil price is looking solid at current levels or recent lows and continues to push up against recent highs.
Additional production is on the horizon and with recent reported production of around 128 bopd (if my memory serves me correctly) NTOG could be producing at consistently it's highest rate ever.
Whilst there is always the potential for an equity raise I think it is unlikely due to cash flow from operations, the available bank facility to draw down funds, and with an increasing share price the various options/ warrants that investors hold could be exercised bringing in further funds.
The share price based on the current oil price and rate of production is significantly undervalued and with the potential of more oil production to come if either 1 or 4 more wells are drilled this year per the recent stated plan for 2022.
Whilst I know there are Lofgran detractors out there I don't think this year will be the year in which the familiar criticisms will prevail.
ADME is a tough investment. It is interesting all this debate about the asset but I am more fundamental than that and don't see how there is any control. It is all agreements within agreements and an indirect interest.
In addition it is likely that there will be equity raise after equity raise after equity raise. That's fine if control exists and the size of the prize is such that a successful outcome brings shareholders significantly into profit. But I don't see that.
As an investor the best thing to do is to monitor the share and if the building blocks and progress of the projects should change then reassess.
I agree and the upward sp movement has been on modest volume.
The current year has the potential to achieve the highest level of $ oil sales ever achieved by NTOG.
Not only that for those who do calculations the sp is under valued in my opinion.
Not sure I agree, there still exists a dispute between a loan provider and the Company.
That has to be resolved or the loan provider could take further action. That means either repaying the loan or rolling the loan on new terms. The very issue which led to the GM.
It seems to me that ADME is no further forward.
It is set up to be a good year for NTOG!
The oil price is looking solid at current levels or recent lows and continues to push up against recent highs.
Additional production is on the horizon and with recent reported production of around 128 bopd (if my memory serves me correctly) NTOG could be producing at consistently it's highest rate ever.
Whilst there is always the potential for an equity raise I think it is unlikely due to cash flow from operations, the available bank facility to draw down funds, and with an increasing share price the various options/ warrants that investors hold could be exercised bringing in further funds.
The share price based on the current oil price and rate of production is significantly undervalued and with the potential of more oil production to come if either 1 or 4 more wells are drilled this year per the recent stated plan for 2022.
Whilst I know there are Lofgran detractors out there I don't think this year will be the year in which the familiar criticisms will prevail.
I think the idea is that along with the steady growth in USA production from organic growth and acquisitions material upside can be a part of the portfolio. For example like Corcel (CRCL) which today's research report suggests a 900% upside to the share price.
No doubt it is to do both not one or the other. They are not mutually exclusive.
That said we still need to know what the Tunisian asset is.
I don't think political instability is an issue. The key is your entry and exit point. One of the companies mentioned GKP went from a low of a few pence per share to over £4.
Well you certainly used words which weren't a cut and paste or a quote which made various accusations.
I thought this was good reading and a reminder of the potential consequences
https://www.bbc.co.uk/news/uk-northern-ireland-57684497
It's simply not true. It's sensationalism.
What you are effectively saying is that all the disclosures that are required either in the accounts or as a consequence of the AIM rules have never been adhered. That poses an issue for both the auditor of the accounts or AIM. They would both have to make enquiries to verify the actual position. No statement in the accounts or by AIM has been made to alter what NTOG has stated because what was alleged is not true.
Also what is purported as evidence doesn't exist. You cannot find anything that might support what is alleged.
I haven't been on this board but that doesn't mean I haven't been in NTOG and indeed followed the RNS's.
There are specific points made but as seems often the case there doesn't seem to be a desire to address the points.
I see that there is a belief that money is only made by Lofgran or the board. Clearly, the other holders that we know about (Miton, Bolitho, Marr) who combined have around 22% of NTOG have either made money or are around breakeven and with upside from the options they hold. Seems like a sound position to be in. I know from personal conversations I have with my partner that I apparently do Jack for my salary.
Lofgran owns around 6% of NTOG, He has paid for all of that in cash. Lofgran's holding has suffered from dilution along with that experienced by other shareholders. I am not aware of any underhand dealings, loans that he has with NTOG, insider trading or why legal positioning with federal has any bearing on ownership?
That has already happened the pine mills farm-in well came into production in 2021 and the 2020 results only have 3 months of the acquisition. On that basis 2021 already has higher production. Hopefully more to come with the 2nd pine mills well in the near future and maybe even a further acquisition. .
We also don't know exactly what the Tunisian asset is and this could even on a risked basis be very valuable we just have to wait and see.
If anyone follows Red Rock Resources then a company it has an interest in Elephant Oil is to be become a public company (floated) which I believe Matt Lofgran is a director/shareholder in and has assets on trend with the Nigerian oilfields.
I believe that Matt Lofgran also added to his shareholding in 2020 (I guess around £80k) and has never sold.
As well as building up the cash flow delivery of NTOG there will also hopefully be exposure to interesting upside in Tunisia.
NTOG is currently undervalued and the market will decide how to respond.
Personally I like overlooked stocks and in particular where there has been and continues to be negative sentiment.
I continue to add as I have been doing for a number of years.
The price paid to access the acreage was to the land owner. It was not for a developed field or wells. If the effort by an oil company is successful usually the land owner then receives a percentage (royalty) of each barrel of oil produced. To get to that stage many risk dollars have to be spent. The landowner doesn't want to take that risk and therefore leases the land to the oil company.
I am not sure if the mesquite licence is still valid.
This is from the 8th January 2018 RNS
'The Facility is not restricted to geographical region. Nostra Terra can deploy funds from the Facility for operational purposes and acquisitions in its current areas of operation, in the USA and Egypt, or in other areas should the opportunity arise.'
The current funds provided by the facility were not provided to do an acquisition the funds were provided on the assets NTOG already had. Clearly, if WAFD agrees then further funds could be deployed to enable NTOG to do an acquisition. Any increase or decrease of the funds that can be drawn down outside of doing an acquisition is based on the performance of those exisiting oil fields/ wells and oil price. The funds can be used as NTOG determines. WAFD takes security over the oil fields/ wells and is only concerned about that as a last resort.
I have not posted for a while and have watched the debate go back and forth.
I think NTOG is in a better position now to pre Covid as it has more assets/ production and the oil price is a the top of the traded range over the last few years.
My recollection was that WAFD provided funding on the basis that it could be spent as the Company deemed fit.
I do not see a link between WAFD providing funds to NTOG and an increased facility ending up in WAFDs pocket. I understand that interest has to be paid and ultimately the principle paid back but there seems to be an implication that the asset will be forfeit ?
I make it 103 net (as stated in the rns) which means after royalty plus 32.5 before royalty so all net around 128 bopd. This is before the additional incremental production they think they can get from the new well.
Plus with the recent fundraise and exercise of warrants they will have around $1mm of new additional cash. I expect to see further increases in production from here. Hopefully they will at some point state plans for 2021 and how these funds will be used to achieve further increase in production.