UK 10:08 Friday, 6 November 2026
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Call it a dead cat bounce. Shares in LGO Energy (LGO) have bounced to 0.5p on news that the bank is not pulling the plug so it is not bust. Yet. Jabba the Hutt, aka David Lenigas, still refuses to saw when he sold most of his shares but it was a good call by Big Dave to get out when he did because the outlook is still grim.
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Comments
Drunken Sailor
Your French is as bad as your English. Le fric is the closest to dosh I can find. Payez vous would be a question not a order, Payez on its own is the order. Good guess on the word for immediately but it is in fact immédiatement. so putting it all together: Où est le fric? Payez immédiatement Monsieur Ritson .
Apart from that, spot on! Without a significant oil price rise in the very near future, LGO is toast or at best diluted out of sight.
TW Thanks DS will change nowDrunken Sailor
Having helped you with your translation perhaps you could check my translation of this bit:
Neil Ritson, LGO’s Chief Executive, commented:
“As the Company and the industry as a whole adjusts to the sustained low oil price environment, we are pleased to have reached this agreement with BNP Paribas. This will provide a firm financial platform for LGO to maintain the momentum of our oil production operations in Trinidad.”
Which I think translates as: “We are still fucked but at least have a bit more time, if I pretend we are home and dry with the frogs, then it will at least suck in some mug punters to create a dead cat bounce.”
Gary Newman
Only going to need about $550k a month from February onwards, plus all their other costs on top of that – and all at the same time as production falling as depletion really kicks in if drilling rate slows down! No position here, but had i been short from when i flagged it as a sell here at 3.5p in January, I wouldn’t be in any rush to close that at the moment!
wildrides
More rubbish from the very frothy Winnifroth as usual . He does not know the reason the NED has resigned , He does not know the cash burn , and he does not know when the company will run out of cash. As for Gary …….. he should know better . Obviously the loan will be paid off and re homed by February over a longer repayment period or a placing or both . The price of any placing is of course unknown . Here Winnifroth uses his undoubted influence to assist the “shorts” of his known associates whilst ignoring the truths that exist . Look at the year of huge cooperation Trinity has received from its lenders . Gary was advising people to buy Trin in the low twenties …………. now its 5p and he is sticking the boot in LGO as a distraction. No such thing as a “technical breach of loan covenants” says Tom …………. whats this then ………….. scots mist I suppose .
Facts are that Tom was wrong about the company going bust and has not the grace to be contrite on the matter . Yet he persists in ramping that POS Stanley Gibbons ……… as ripe a short as you will ever find . Its in Nifty Fifty …..oh dear. Theres only a limited number of people who want to invest in junk like that with assets that are nearly worthless in a fire sale………… stamps ……. I ask you . So transparent Tom ……….. so transparent .
Next you will be ramping KEFI for your old mate from EMED of old . That debarcle ( EMED) was one of your long time tips “frothy” remember that and try to be less transparent .
Hugs & kisses
WR
Drunken Sailor
“The existing covenants, including previous breaches until remedied, and the associated security arrangements will remain in place until all outstanding repayments have been made.”
Scots mist?
LGO breached covenants – fact! nothing technical about it. Froggies call the shots and the shots that the froggies have called is the deal they have done, which gives LGO a little breathing room to set up some sort of diabolical death spiral funding and to get a deeply discounted placing away if they can. Which would get the froggies more of their money back than pulling the plug completely demanding immediate repayment in full (as they are entitled to do once covenants have been breached) and then seizing the assets. Massive dilution or complete toast, if the froggies do not get their money back in the agreed timescales. Where is the upside in this for shareholders?
wildrides
Drunken……………… Its a technical breach full stop …………. thats the correct term used when a loan could be recalled but the bank agrees not to fore close as long as the repayment shedule is met . Many SME trade on OD which can be recalled at any time . Its not unusual . However if they exceed the OD limit the rug MAY be pulled subject to renegotiation of the upper limit .
The up side for share holders is clear . Output is good , the assets are strong , the share price is low (because all the bad news and more is in the price already), the oil price can only go one way from $40 and the company has learned the best method of drilling to use for the assets in question now .
Gary Newman
Wildrides,
Thought we’d already discussed TRIN and way that crashed – and that was despite having around 3,500bopd production!
It should also act as a good example of the ease, or otherwise, with which these companies can secure finance. A lot has changed since i wrote that piece and i would have expected people to react to changes in the fundamentals!!! The lack of any finance deal was ongoing for months (when i wrote my piece talk of JVs was ongoing, as per RNSs) – in that piece i said, and i quote: “There is no doubt that it will need additional funding, but it is hoped that will be done by bringing in a partner for a farm in deal, or through sources of financing other than additional equity.”
Obviously no deal was done and ultimately they walked away from the Centrica blocks which is where a good chunk of potential upside value was.
Totally agree that i got that one wrong (isn’t the first and won’t be the last as can only go on the fundamentals at the time, and for some companies those can change dramatically) – I lost money there myself – but i also wouldn’t expect people to just blindly hold all the way down to the 5p level. I know you know what you’re doing and there is no way that you’d have held LGO from 3-4p level down to current lows, as the available information changed? You’d react to that I’m sure!
In my defence, broker Jefferies had a 75p price target at the time – now we all know those targets tend to be a load of rubbish, but they pay analysts a lot of money to produce those reports and ratings!
Drunken Sailor
Wildes,
So what you are saying is that they were in breach, but now the froggies have decided to give them time rather than foreclosing as they could have it becomes a technical breach. And is still a technical breach until LGO fails to meet one of the payments when the froggies can pull the plug. As the technical breach still remains the froggies could at anytime decide it is no longer a technical breach and a real breach and pull the plug, even if LGO to meet the agreed payments.
“including previous breaches until remedied … will remain in place until all outstanding repayments have been made”
Thanks for clearing that matter up. For us simple folk LGO breached the covenants, froggies called the shots, deal now on the table is what the froggies decided. Froggies could still pull the plug at any time because LGO are still in breach. Anyone who wants to insert the word technical in front of the word breach at any point in the sentence above, feel free as it makes no difference to the reality (funny how the company calls them breaches not technical breaches).
wildrides
Drunken …………….. I will keep it simple for you ………. If LGO make the sheduled repayments the loan with be repayed as stipulated . If they dont make the sheduled repayments then the loan will possibly be recalled at short notice . That is the same for any loan with out a “repayment holiday option clause” ie miss a repayment and your in trouble. So far that has not happened and so scare mongering by Tom is ill advised . A short at this level carries considerable risk as this share does continue to have a huge following and a history of sharp recoveries in SP . If you want to bet the farm on it short then go ahead . I am long again and in the money ( just ) with the current trade so we shall see. I dont like to see Tom incorrectly single out companies with a rhetoric and cynical repetition aimed at destroying remaining sentiment because of his personal vendetta with DL and his close associations with shorting pals. He had the opportunity to include balance in his work on this company and failed to make even the slightest concession to that objective .This is not a case of fraud or illegal activity. The oil price has fallen from $105 to $40 dollar under Ritson and despite what Tom says he is doing as well as anyone faced with the same difficult choices. Some times it pays to think about the fact that real people are employed doing real jobs in impoverished countries in such companies and they can have their jobs and lives turned upside down by kicking the dog to death needlessly instead of giving it a chance to recover from injury.
Drunken Sailor
“including previous breaches until remedied … will remain in place until all outstanding repayments have been made”
They are still in breach until they rectify the previous breaches – it is there in Black and White.
The froggies most probably won’t pull the plug if all payments are made on time, why would they? But they could if they wanted to for some bizarre froggie reason because LGO are still in breach.
I don’t know why you have lost objectivity over LGO. It really is quite simple to see that unless the oil price picks up a lot and quite quickly (and there is no sign of that happening) that the best case scenario is a mega diluting placing and some death spiral type funding arrangement. The worst case is 0p.
LGO is, and has been for quite a while, looking into the valley of death. One day they might make it out the other side, but there is a high probability they won’t! Why go on that journey with them? Why not get what you can back and meet them on the other side if they make it.
wildrides
Drunken ……….. because they are at the bottom ……… its called contrarian or bottom fishing . Buy low and sell high . Done it twice with Wres already this year . You of all people should see that .
Scanman
I would not invest in any aim stock , and would not under any circumstance, invest in any stock tipped by Tom, a certain way to lose money.
Drunken Sailor
Wildes
LGO SP seems to have fallen by 10% since you called the bottom.
Still marching headlong into the valley of death as far as I can see, march with them if you want. They are 50% down on what they were when you talked Malcolm (breaking strain of a wet lettuce leaf) Stacey out of his decision to sell.
The company will continue to burn cash until there is a dramatic improvement in oil price and each £ it burns is another step into the valley of death.
Tom Winnifrith
Scanman
you hold onto your LGO and keep losing money by ignoring my oft repeated warnings.
Meanwhile those who are happy to follow my tips are well ahead. #FACT. I guess you are glad you missed out on Optibiotix then.
Enjoy poverty in your council house, chav
t
wildrides
Tom …………Yeah right ………… sure they are ahead , behind the paywall that is “nifty fifty” , but that aint shareprophets tips or HSR tips . No way are those long tips ahead ……….. your deluded in that respect. Shorts ok…. maybe they are , I dont short so I dont follow them. As for LGO …………. you are partly responsible for driving down the price as part of your DL vendetta and world shorting conspiracy !
Drunken …………. your obsessed and wrong . 0.45p to buy today …………. I paid 0.46p Its called the spread the 10% you are talking about ! I have not called the bottom . It could go lower or higher . I said I would not short it from these levels . If Tom keeps up his relentless dis information and wholly biased campaign then it could well go lower . But then he would be abusing his position and power and every extra comment he makes on LGO then makes that more and more transparent to others . It all depends on how he behaves with the power he has . Try not to obsess ……… stocks go up and down day by day . If it goes lower I will buy back lower . I am confident Ritson will turn it around from a yet to be determined level of SP.
I like former council houses ……….. they sell for £300,000 where I live as they are very well built and are spacious by modern modest sized house standards. Tom is such a snob ;-)
Drunken Sailor
“wildrides 29 November 2015, 23:33 Drunken ……….. because they are at the bottom”
Price to buy today 10% lower than on 29 Nov
Price to sell today 10% lower than on 29 Nov
Ritson has nothing to do with it, Tom has nothing to do with it, Jabba the Hutt has nothing to do with it. LGO is burning cash because it is not cash generative at current sustained low oil price. If the oil price turns round to a level where they are cash generative in the next few months maybe they will be able to meet all those payments to the froggies. If the oil price does not turn round (and there is no sign that it is going to for a good while yet) then LGO is headed for 0p. The march into the valley of death continues. It really is that simple.
What sort of debt deal do you think a cash burning business, which is gagging for cash and is at death’s door is going to be able to do? A death spiral? What sort of placing might they be able to get away with bucket shops? A deeply discounted one which brings mega dilution? or maybe no one will touch them at all and they will go to 0p like AFREN.
Best case scenario is a lot further to fall. No where near the bottom. Just like they were no where near the bottom when Malcolm (breaking strain of a wet lettuce leaf) Stacey announced he had resolved to cut his losses and then allowed himself to be talked out of it.