UK 19:27 Friday, 23 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
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 make this two confetti issues by floundering LGO Energy (LGO) in the three months since Jabba The Hutt, aka David Lenigas, dissed me on twitter for saying a placing was inevitable. The bad news is that there is a far larger share issue still needed. The good news, for the fat Aussie share ramper at least, is that he sold most of his LGO shares (if not all) last year without disclosing it as he should have done. So it is not his problem.
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Comments
Daniel Victor
What’s the record for most shares in issue of a company on AIM ? Could LGO break that ?
Drunken Sailor
So all these hapless suppliers need to do is short the shares now to depress the issue price and could make more than the £900k owed, very nice.
wildrides
You should stop printing rubbish you just make up and tell us what you intend to do about your TEATHERS tip SUSPENDED today and effectively ZERO . That is ZERO for the avoidance of doubt , yes ZERO . Just like MDC it will never come back . The Drummond boys strike again . Poor shareholders , Poor tip followers .
What the LGO RNS actually says is that rather then use remaining cash drawn down previously from the loan to pay previous drilling costs they are paying these bills with shares in order to fund new drills with the cash on the shallow horizon with good outputs ( as previously announced) It is clearly an action taken to enable the new strategy announced in the last two RNS to be implemented ie a program of new low cost wells ( see previous RNS ) I applaud Ritson for his work on the necessary changes to the business to cope with oil price fall from $105 down to $40 per barrel .
Steve
Wildrides – did you miss the company update from 3rd November..
“The Group is continuing with the planning work required for a program of activity in the shallow Goudron Sandstone where ubiquitous oil pay has been observed in all 15 wells drilled in the last two years. This work will be conducted using the funds recently raised for that purpose, though the Company anticipates that, until the strategic funding exercise is complete, this work will concentrate on lower cost work-overs and recompletions in the Goudron Sandstone rather than the drilling of new wells.”
There are no new wells being drilled until the strategic funding – aka massive discounting placing – is completed. They are going to do some poxy workovers which probably increase production by about 20bopd per well.
Drunken Sailor
When companies pay bills with shares it is a clear indication of major cash problems. The price of the issue will be “based on” not at a still to be determined mid price. All that has happened is that rather than doing a discounted placing with bucket shops to raise cash to pay the bills they have cut out the bucket shops and will do a discounted placing with creditors.
TEA is not a zero and is unlikely to become a zero. The worse case scenario is they get booted off AIM in 6 months and return cash to investors – they have cash to return unless it all gets stolen and therefore not a zero now or in the future. Having said that, I think all shitty little AIM investment companies are bargepoles and there is a strong possibility that those who invested in TEA will end up nursing heavy losses, just not complete wipeout.
LGO is not a zero now, but as its march into the valley of death continues, it could become a zero.