UK 21:47 Monday, 21 September 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.
Leni Gas & Oil (LGO) has traditionally been something of a tough cookie for technical analysts to bite into. Penny stocks are usually problematic, but good old Leni can be particularly problematic. This is not only due to liquidity issues, but also because of the volatility that stems from most companies in the resources space.
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Comments
roger allways
Are you being serious? LGO has just spectacularly lost its court case against MOG and is facing a huge bill for costs it may not have the cash to settle. Are you sure LGO is such a good bet? In your book are actual events – eg the appointment of an administrator – irrelevant when one is looking at charts? You said this last year (your facts were wrong – why didn’t you check them before giving people your one sided version of events a high judge had no hesitation in dismissing as no better than a try-on?). Here’s the final line of his judgment: “To borrow the oil industry terminology explained above, it may have seemed to LGO that the prospectivity for these proceedings and the amount at stake were such that the economics of this litigation were positive. However, litigation like the oil business is a high risk activity and LGO has failed to strike oil” ).
Share Prophets last year:
“The legal battle between Aim listed Mediterranean Oil & Gas (MOG) and AIM listed Leni Gas & Oil (LGO) is shaping up to be a barrel of laughs for neutral observers but, not – I suspect – for Mediterranean and its CEO Dr Bill Higgs. Sources close to Leni Gas have steered us towards what appears to be a bit of a smoking gun.
By way of background: Leni sold its 10% stake in a Maltese exploration block to Mediterranean for $1 on August 1st. 23 days later Mediterranean announced a farm in deal with mighty Genel which analysts reckon valued the Leni stake at $9 million. Leni is suing claiming that Dr Higgs misrepresented the position on August 1st. This is not a case about contract law – the claim made by Leni is of misrepresentation.
Firstly it is pointed out that Leni Gas never offered to sell its shares for $1. That was the offer made by Dr Higgs in an email dated 11th July which we understand has been filed with the courts. And that can thus be verified. We understand that that email came on the back of an unprompted phone call made by Dr Higgs to Leni director Neil Ritson on 10th July. We understand that only one party kept full contemporaneous notes of that conversation and that party is Mr. Ritson.
Our sources also tell us that there are various emails relating to that conversation which Leni Gas is ready to use and that these all tally with its version of the story.
Leni Gas declined to offer comment on these suggestions but we understand that it has demanded access to all Mediterranean emails both internal and to its broker and advisers relating to the call of 10th July and to its negotiations with Genel as part of the disclosure process. That documentation should be delivered during the next couple of months.
On the basis of what our sources tell us it does seem more than possible that Leni Gas will win this case. If it loses it can fund its costs. If it wins then $9 million is base case damages as if Genel finds oil with a well later this year Leni would clearly increase its claim. If Mediterranean loses then clearly it has a financial headache but to lose such a case would surely call into question the ability of Bill Higgs to retain his position.
This is a high stakes game for Mediterranean. For neutral observers on the sidelines it is entertaining but I fail to see how this dispute would make me want to hold Mediterranean stock”.
wildrides
Err ………………… your commenting on an old Mac Zir
piece from 14th Feb .
Charting ……… its just witch craft and jiggery pokery .
roger allways
Yes – I know. I suppose I was just saying it makes sense – if you are a fan of charts – to occasionally check to see if anything’s happening (like a receiver being appointed) that might cause the witchcraft not to work properly! The court case I referred to has been overhanging the company since late 2012 and an unfavorable outcome (which LGO got) was always going to floor the company.