UK 17:38 Friday, 23 October 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.
In the wake of the recent dismal interim numbers LGO Energy (LGO) head honcho Neil Ritson yesterday gave a presentation at an investor conference and he rather gave the game away. When’s the placing Neil, my son?
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Comments
wildrides
But the placing might not be heavily discounted ……….. e.g it might be the average of the last 10 trading days , at any date in the future , weeks , months , years away . You are making an assumption both on price and timing which is not in the quote . He may wait for oil price to reach tipping point and start rising , in which case buying now would be “getting in at the bottom” rather than a discounted higher price . The last placing was not a material bargain for those taking part at the time if my memory serves me correctly .
DUCK AND DIVE
Howcan they produce a 25pp investor presentation without mentioning current production from Goudron? That’s quite hard to do – especially as they do mention production rates from Cedros and Spain.
And not a dicky bird about decline rates. Aren’t investors interested in decline rates?
Smoke and mirrors…
David
Tom
I think you’re spot on with LGO and it’s shares represent a sub-optimal investment. It is still loss-making and it’s cash in flows of £8.3 million from the issue of shares for the 6 months to 30 June is just about propping up what is already a weak balance sheet. The financial jiggery pokery on the balance sheet makes me even less confident in the accuracy of PPE and intangibles than I was before.
RTN
Isn’t your point a) missing a rather crucial “NOT” ?
wildrides
I think if you read todays RNS from LGO with care you will see that it plans to drill low cost wells for the remainder of this year at shallow depth horizons with its own rig , from current cashflow at 400k dollars a throw . The first of which has produced 60 bopd for the last 40 days by natural pressure un pumped . This new horizon being targeted has a well on it that is still producing at 24 BOPD that was drilled in 1958 ……….. yes 1958 . So decline rates on this particular reservoir are LOW. ( pay attention Gary) . Meanwhile Trinity next door is drilling nothing in the entire year . Get in while its cheap !
DUCK AND DIVE
And just when all seemed lost, up pops an RNS this morning to break exciting news about new/bonus production from the previously untapped shallow sandstone layer. “Up to” 60 bopd unaided from a quick/cheap drill. But damn those weasel words. “Up to” could mean averaged production of 10 or 20 bopd. But there goes the ‘phone and it’s Neil Ritson on the rampline – http://brrmedia.co.uk/event/140351/neil-ritson – telling us that output is “roughly” 60 bopd so that’s all right then. Hopefully.
Anyway, the BBMs seem to be latching onto the revelation that these cheap/quick sandstone wells will be funded out of cash flow. So, whoopee, no placing – even though they cost $400k apiece!
I’d like to get a bet on. Could we have one of those ShareProphets polls listing the runners and riders in the LGO Placing Stakes? The runners are: within a week; within a month; within 3 months; within 6 months; not in the foreseeable future.
wildrides
Duck ……….. any good LGO news is like water off a Ducks back to you ;-)
DUCK AND DIVE
WR – to be fair, I am cynical about almost all AIM BoD’s…including the few I am invested in. In fact, some of the stocks I wax most cynically about are in my portfolio – but I did buy them cheaply, knowing they were shite.