UK 08:12 Friday, 6 November 2026
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As we know, having failed to get away a £6 million placing a few weeks ago (raising just £1.3 million) LGO Energy (LGO) will not be able to make its scheduled bank repayment in May and so faces another insolvency risk. Hence it is ramping for all its worth to issue yet more confetti, now that it had permissions to issue 1.6 billion more shares. And thus today's pitiful release below. It is what hapless CEO Neil Ritson does NOT say that matters.
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Comments
Simon Hodges
On 8th December 2014, LGO announced they encountered 244 feet of net pay in the C-Sand interval for GY-671 and nothing in the GS.
“LGO today announces that its eighth well, GY-671, has reached total depth at 3,598 feet measured depth (“MD”) on 6 December and has been electrically logged and has been cased for completion as a C-sand producer….A net oil pay interval of 244 feet has been measured on the electric logs in the C-sand of GY-671”
http://www.lgo-energy.com/rns-detail?id=13065509
Then on 6th January 2015, they stated that GY-671 had already been perforated over a 171 foot interval.
“Well GY-671, the Company’s seventh newly drilled well, was perforated over a 171-foot interval of oil bearing C-sands on 17 December 2014 and has flowed at restricted rates up to 216 bopd and well-head flowing pressures of up to 900 psi with a 12/32-inch choke. The well has intermittently produced quantities of gas and has also produced up to 0.3-percent of sand. In view of the short length of the sump between the lowest perforations and the current total depth of the well, and the risk of the well sanding up, it has been decided to retrieve the tubing-conveyed guns used to complete the well and to recomplete the well with a conventional production string. “
http://www.lgo-energy.com/rns-detail?id=13085656
According to LGO’s data there is not 208 feet of previously un-perforated net pay to perforate. There would be a maximum of 73 feet available. GY-50 and GY-671 seem to be very flexible wells. On 31st March 2016, despite only having 73 feet of net pay available, Neil claimed that there were intervals of 180 and 100 feet of Net pay to be exploited “This program includes the perforation of 180-feet of net pay in the upper C-sand in well GY-671 and the perforation of a 100-foot interval of Goudron sandstone net oil pay in legacy well GY-50, neither of which have previously been produced”
http://www.lgo-energy.com/rns-detail?id=13339013
In less than a month 73 feet of available unexploited net pay has grown from 180 feet to 208 feet. Quite some feat really. Similarly an interval of 100 foot of net pay in GY-50 has now grown to an interval of 164 feet from a total now of 223 of previously un-perforated GS. This seems curious in that the average net pay in the GS that LGO reported for their 15 C-Sand well program was around 190 feet. This suggests that GY-50 must have at least 400+ feet of net pay originally.
Since 18th September 2015, despite £millions in placings and practically doubling the number of shares in issue, this company has achieved absolutely nothing and with NR trying to raise new money by conjuring net pay out of thin air then there will be even thinner jam tomorrow.
I remember when Neil Ritson was telling us that net pay was not a good indicator of productive output anyway and he was right. For instance the 1085 bopd gusher GY-670 had just 242 feet of net pay in the C-Sands which is 4.5 times greater than well GY-664 which produced 240 bopd from 300 feet of net pay. It is only since the loss of GY-678 with its 479 feet of net pay that Ritson has been bigging up the importance of net pay as he doesn’t have anything else to sell.
A rare table of net pay and other drilling results is given in the appendix of the RNS below.
http://www.lgo-energy.com/rns-detail?id=13065509
wildrides
Good grief Whinny Froth ……… even you can be thick at times . They needed new permits to recomplete wells in different zones and this RNS just confirms that some of the permits have now arrived allowing work to start and also confirms what others are being be applied for near term .
Thats why its called an “Operational Update” ………dowaah
WTI is now $41 – 42 range and improving . The tide is turning .