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.
You cannot say I did not warn you about LGO Energy (LGO). After today's news I ask if it could go to zero? The answer is yes and the shares are a stonking sell still. But the wider David Lenigas brand is also badly tarnished. I will have another dynamite revelation on Lenigas Cuba (CUBA) shortly, Afriag (AFRI) needs a placing big time and the Horse Hill hype is being shown to be just that so UK Oil & Gas (UKOG) has real issues. It is not a happy Monday for Big Dave.
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Comments
wildrides
Oh Tom ………. what a load of bias rubbish you spout on LGO today . You were wrong about a placing coming ……..non was announced today ……. a downhole mechanical failure causing temporary well abandonment.That is what went wrong . Banking covenants have been breached on oil output due to the abandonment ……….. not a failure to make the debt repayment . LGO has raised money already to drill new shallow horizon wells before Xmas to replace the output lost ( the last small placing ) LGO is nothing to do with Del Boy Lemongas anymore . he is just a share holder . The share price represents an opportunity today and if you look at the buying going on opposite sells you will see what I mean . The bank will not pull in the loan because it is still getting paid . It is a technical breach . LGO can simply place to meet the loan repayment . Do try and maintain a portion of objectivity in relation to this share in your future outpourings of bile . I know you hate the share but objectivity is totally absent in your coverage here , just as it is blind in the case of NIPT . Readers should sell NIPT and buy back on the share price collapse just prior to the court case in October 2016. Losing the case ( which they will ) will result in ZERO share price .
Barford
With Lgo energy these unexpected events can be the start of ‘the straw that broke the camels back’ situation, will they survive? Probably kick the can down the road time (if they allowed to)!
To be fair and balanced David Lenigas is involved with REM and they seem in a good position as long as he doesn’t become toxic…
Only time will tell……
warun boofit
I enjoy reading oil company RNSs for a laugh and todays did not dissapoint . My interest in oil companies was sparked a few years ago after very foolishly taking a punt on Antrim Energy then watching as I lost a lot of money, I decided that in future I would actually do some reading up before pressing the buy button but all this has done is convince me that most explorers are shit and will never come right. Even after the prolonged low oil price most of these shit companies are still extracting cash from investors, you would think by now there would be no one left daft enough to put money into them but clearly there are plenty of green horn mug punters out there just desperate to have their udders milked. Todays RNS is hilarious, they have ‘lost’ $1.5M worth of equipment down a 9 inch diameter hole then decided to bung it up with concrete having spent another $1.9M trying to get the ‘equipment’ out .What the fuck is worth $1.5M with a 9inch diameter , what did they do stuff a Bugati Veyron down the hole ? It must be obvious I know fuck all about drilling for oil but I would like to give David Lenigas some free advice, send for Red Adair, hes a man that knew his onions from his turnips and if you can contact him he may be the only person that can now help you out of the pickle you find yourself in.
wildrides
Boofit ……….ever heard of diamonds …… the hardest substance known to man for drilling . You can get wedding rings that price . Then there is the down hole logging equipment . Stuff like that costs big money ( as its patent protected tech ) and remember its dollars not £ ;-)
P/s Lenigas is nowt to do with LGO these days , he is just a share holder like the rest of us .
DUCK AND DIVE
I do think AIM would be a better place without Toxic Dave – and judging by his new-found love for ISDX, it looks like AIM is finally driving him away. But, like Joe Bugner, he will doubtless make a comeback…hopefully after I have hung up my gloves.
As for LGO, surely they knew about their potential downhole liabilities a fortnight ago, when they raised £1m at 0.9p? Placees might sue as they have had no opportunity to flip or pre-flip.
But I don’t understand why LGO is liable for some local drilling contractor (Well Services Petroleum Company) losing something down a hole. Surely the liability is the contractor’s – who will be insured against such losses? And even if it is somehow LGO’s liability then it should again be covered by insurance. Am I missing something? It’s all sounding a bit like a smokescreen.
wildrides
Duck ……….. the stuck equipment was announced back in Sept 15 AND consequent non production until remedial action . I believe the contractor moved on to other work hoping to come back later and retrieve . Looks like LGO went in with the work over rig they own to try and retrieve reading between the lines . Shit like this happens all the time in drilling so maybe not insured as it would be massively costly . No doubt they will side track it at some point so all the drilling costs are not lost but in the meanwhile they are using the work over drill to drill new wells in a shallow res for a quick fix before Xmas to the production output , at only $400,000 a well ( the recent placing was for the first of these)
Striebs
Barford ,
Take a look at the market cap of Lithium juniors on the TSX and compare them with London listed REM and BCN .
DUCK AND DIVE
WR, today’s RNS says that the rig has now been released – which makes it sound very much like a contractor’s rig to me. And I thought that LGO’s own rig was being serviced/upgraded in readiness to tackle the shallow drills…