UK 13:29 Friday, 6 November 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’ve spent a fair amount of time today wondering whether or not life is too short to get involved in the David Lenigas debate. After the fiery “we love/we hate Rare Earth Minerals (REM)” schoolyard spat this week, whatever I say runs the risk of pouring fuel on the fire. But I can’t ignore today’s Leni Gas and Oil (LGO) placement. It has a bit of everything.
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Comments
Duck and Dive
Congrats to Doc for being on the money. And I will bare my bum in Trafalgar Square if this placing hasn’t been pre-flipped by the placees over the past couple of weeks.
But that’s par for the course in the great AIM swine trough. What sets this one apart is Lenigas’ bare-faced effrontery/manipulation in not mentioning 24 hours ago that a placement was even an option — when it must have been done and dusted by then. In the context of AIM’s quickest-ever volte-face, today’s RNS takes the biscuit — and Lenigas doesn’t even accord his shareholders the common courtesy of an explanation.
If I were a shareholder (I’m not and never have been), I would, from this day forth, take everything Lenigas says — even in an RNS — with a huge pinch of salt.
And I would be demanding to know what the current flow rate is from Goudron — especially after learning that the Fram field has been in decline for 56 years, current wells average just 5-6 bopd and no-one deemed it worth drilling any new wells in the last 38 years, even though they’re fairly cheap.
But most of all, beware the sudden announcement of a new asset just days or weeks before the current project will be judged by the market. It’s very often a sign that the jewel in the crown is flawed.
Mark
Lgo have not announced a goudron total daily production figure for over 8 months, they bark on with constant rns’s, all these “milestones reached” yet since the total group production reaching 500bopd(including Spain production) they have NEVER released an rns simply saying 500bopd at goudron has been reached, with the silly not worthy of an rns rns’s get released wouldn’t you think a “500+bopd at goudron” would have joined the long list, my guess is they have passed this level, but with clues in a previous rns regards the sales to petrofin , my guess is that production was very much declining until the recent drilling campaign , but that sort of news is not worthy of an Rns, lenigas,“we won’t be placing” chat you had last month, just shows, you can’t trust anyone within AIM
Ben Turney
@Duck and Dive – wise words there.
@Mark – the lack of updated production figures is certainly a major concern. Like I said, I do plan to revisit this and I hope the company will be forthcoming with information.
Duck and Dive
IF Goudron wells are producing 200+bopd, why would Lenigas not want to throw his spare £5m at Goudron to speed up development with less borrowing? The fact that he has instead elected to spend it on a played-out Fram where wells are producing 5 bopd and even in their long gone heyday produced only 120 bopd says more about Goudron than it does about Fram.
andrew brown
Duck and Dive – Goudron is a tiny pimple of a site in T&T cf to RRL fields and its in a national park – perhaps that’s why he doesn’t spend 5mn on it. Also he already has said he is commissioning a 2nd rig before with existing money? He only has about 24 more to drill so a bit pointless to get more rigs don’t you agree? An update on BOPD would be useful I agree.
Duck and Dive
andrew brown – allegedly, the 30-well development program at Goudron is just the starter for 7mboe. LGO claim to be just warming up for a water flood campaign to get at the 60mboe contingent resource. So, the sooner they can knock off the initial 30 wells, the sooner they can get to the bigger prize. Allegedly.
So, all being kosher, Goudron looks a better candidate for the £5m than Fram’s unloved reject.