UK 09:23 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.
I showed quite clearly yesterday that the latest investor presentation given by Neil Ritson, the hapless CEO of LGO Energy (TOAST) was misleading. Now I move on to show that this is not a one-off, this company - whose shares are worth 0p - has serious "form."
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Comments
Drunken Sailor
Spanish production in H1 was 86 BOPD. By Sep it had hit over 180 BOPD. They ramped up production temporarily to support the licence applications they made in Aug – Hey look Manuel we produce lots of oil for you to take your royalties and spend lots of money on Spanish service firms to get production up, please can we have a 10 year extension to our licence and a new licence for another field.
How much has been spent since the drill bit got stuck. An old field can be stimulated for a short period but will always drop back as soon as you stop squeezing the sponge. I assumed an average of 135 BOPD from Spain in Q3 whilst the ramp up is continuing and I assumed 90 BOPD for Q4 when assessing what Q4 production might really be. Obviously it would be better to have accurate data from the company and not have to assume so much in analysis, but if the company will not live up to its obligations to inform the market and only cherry picks the data it wants to give what is one to do? Bury ones head in the sand and slag off anyone who attempts to create estimates based on available data and sensible assumptions. Sorry Wildes that just plays into the hands of a company that cherry picks its figures with the clear intent of misleading investors. And sorry D&D it can’t all be blamed on getting a drill bit stuck in one well.
Steve
Tom,
O/T but the update from Fox Marble was not only disappointing overall but contained this update..
“Convertible loan note held by Amati Global Investors Limited that was entered into at the Company’s IPO in August 2012 at the initial annual interest rate of 8%, is incurring annual interest at a rate of 25% since 1 September 2015, and maturing in August 2017. The Company is in negotiation to replace this loan note with a long-term loan with a significantly reduced interest rate.”
However on 12th May 2015 the company raised £2million and stated..
“Subject to negotiations, the net proceeds of the Placing will be applied to repay the outstanding convertible loan of £1.1 million with Amati Global that was entered into at the Company’s IPO in August 2012.”
So why was it not applied? If it was because negotiations were not successful surely FOX should have updated the market to indicate that as it was stated to be the primary reason for the fundraising.
I liked the FOX story but this is now bargepole for me.
wildrides
More Whinny maths and vendetta DL hatred . What a load of rubbish you spout ……… your forgetting their drilling contractor got the drill bit stuck down hole and they were forced to abandon a well they were expecting up to 1000 bopd from . Budgets are budgets and shite happens to thwart them . Your forgetting that oil price dropped from $110 dollars to 27 in the period so that plans to keep drilling continuously from free cash were thus abandoned . They have a former BP employee of 27 years as a director, who was in charge of BP drilling worldwide so I think they know a bit more than you . What matters is not your obsession with old cut and paste presentations with preparation errors in . They were made for talks Ritson gave yonks ago . Your just trying to reinstate your tattered reputation after the appalling Whini maths gaffs you made twice , once on Share Price and then once more on decline rates you made recently . No ……what matters is the oil price in the next three months , The new cash burn after the latest business operational changes set against oil sales income . You dont know any of those things and so you are pissing in the wind . I dont know either so we will just have to wait for the information to be released .
What I do know is that Paul Scott announced that he is now buying oil stocks as he feels we are close to the bottom . The market is only 10 % in surplus + or – which will quickly correct as supply drops . This will lead to shortage and a massive spike in oil price .Experts are saying 80% of all the worlds producers are now out of the money at $30. Be negative and “out” if you want , but you godda be in it to win it and you will be left behind .
Drunken Sailor
Wildes,
The presentations all come from before they knew they had lost the well.
They use very selective data to deliberately mislead – it is no preparation error. It is only by delving into the detail and doing analysis that you can spot that the decline rates are much worse than they ever anticipated. Their forecasts were continually being revised downwards, which shows that what they expect and what they get never match by a long way. Presenting conservative estimates should mean forecasts are nearly always exceeded. Making excuses for the company will not stop it being completely fucked when they can’t pay the froggies in March. The mug punter investors who used to put money into oil on a good story without checking the facts have gone bust / are in dire financial difficulty. Savvy investors looking for bargain assets will do the due diligence and will find all the problems Tom has exposed and more.
I find your attitude totally hypocritical. You are happy to applaud when Tom slags of a company you are not interested in. You are happy to slag of Tom’s tips, may be you are justified in doing so – I mostly agree with you on TEA, but as soon as he has a go at a stock you are interested in you cry vendetta. Have you apologised to Malcolm (breaking strain of a wet lettuce leaf) Stacey for talking him out of selling LGO at 0.9p? No you have not. You continue to spout the same old nonsense. If LGO could survive for another 12 months then maybe your oil price argument might hold some water, but it would still not change the fact that the assets are not as good as they were cracked up to be. LGO has until March to raise serious cash or it is doomed. The cost of raising serious cash in the current environment would probably still doom the company.
The reason Tom has a go at a lot of Lenigas related companies is because they all display the same traits. I saw that he was a wrongun a long time ago when he was at Lonrho and dramatically dropped the price of options for him and other directors to below the prevailing market price, exercised and sold. I never invest in a Lenigas company, but equally I would not short one either as he used to be the ramp master general. Tom used to be mates with “big Dave”, as he was known before he was reassigned Evil’s Jabba the Hutt identity. Tom is making up for lost time now the rose tinted specs have been removed. It would only be a vendetta if he had some personal reason to make up and exaggerate things. Tom clearly still has a grudging respect for big Dave despite the torrent of banal twitter abuse he has put out about Tom, because he can’t answer the valid questions Tom poses.
wildrides
Drunk
The presentations all come prior the well loss …….. exactly . So forwards targets were not met or even possible after that event .
I dont know whether you are drunk or just a bit thick or infact normal but what I do know is that you dont read what I write . I am not a fan of Del Boy Lemon Gas ( hence the name I gave him ) I never have been . I was a critic infact years ago when Whinny and he were best mates . Whinny now likes to twist the truth and promote a picture that I support DL by making obscene remarks about me . That is the sort of chap he is . My interest is in a couple of EX Lenigas outfits . I believe they have some merit as businesses , are underdogs , and unfairly picked on . I am not currently in LGO as it happens . But that wont stop me commenting on Whinnys shoddy behavior towards them or other companies when I see it . The man is very good at finding serious fraud ( along with several others ) but that is all he is good at . So dont put him on a pedestal and worship him like a god . He is ALL the things he crits others in the market for . . He does all the same things ( except for fraud ) that he rebukes others for regularly and with venom .
You should focus on the future for oil …….. the oil price is spiking as I mentioned yesterday ………… not the past . I think LGO has a future , has good assets in the fresh areas currently unexploited , and as such may turn out to be cheap now . Thats my opinion and I am not presenting it as fact like some others I could mention who should know better .