UK 17:14 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.
Naturally anyone associated with David Lenigas must be a respected industry figure whose integrity is beyond doubt. You can trust every word said by men such as Steve “I said that there were 100 billion barrels on camera but deny that I said it” Sanderson of UK Oil & Gas (UKOG). And so it is a given that LGO Energy (LGO) has been upfront about its Goudron 678 well issues is it not?
Already a member? Sign in
• All premium articles
• Tom Winnifrith’s Bearcast
• Access to all the entire nearly 13 year archive
• ShareProphets Daily Newsletter
Cancel any time
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments
wildrides
What a complete load of bullshit from you again Winnifroth . The report of the blocked well was not hidden ……… you just did not read it . Six of the seven wells were successful and one has a problem . plenty of companies drill only one well and get a duster . The expensive drilling is over now for this year so you cant possibly know the cash burn for the next six months , but it WILL be less than when drilling was going ahead . Money has been raised to drill the new shallow well campaign already as you well know . You keep mixing pounds and dollars ………. try at least to talk all in one currency . The company is not run by Del Boy Lemon Gas any more and he is not a director or shadow director ……..just a share holder . Obviously the company did not update until now because it was still working to free the stuck component with the rig . The rig has just moved on ,if you read the RNS . Really ,your reporting of this has been like reading the SUN newspaper . Try at least to squeeze a small amount of objectivity into your bias hate campaign against LGO . The share price looks as though it is attracting bargain hunters during the day today and is now a good recovery punt so try and base your analysis on known facts, not what you think cash burn will be in the next six months and what you think oil price and income will be in the same period . You do not know what the next six months will bring regards oil price and you dont know what changes management will make in response .You do know that cash burn is very often not equal over the year with oil explorers and can infact vary enormously from quarter to quarter depending on what activities are being carried out. Stick with facts like me :- NIPT is going to court in October 2016 and the share price will collapse prior to that because if it loses it will be worth zero .
Hugs and Kisses and good luck on Thursday.
turbograndad
What ever, this has Lemon gases name attached to it, I would not be in on that basis, let alone the oil sector as well, just too much potential grief, mitigate angst, avoid, confirmation bias abounds, good luck Wilders.
Ben Turney
@wildrides – I am really surprised at your analysis of this one. You lay into Tom (normally something I would support wholeheartedly!!!), but completely fail to acknowledge the issue of the broken banking covenants. At absolute best that means another placement is right around the corner to make up the shortfall. At worst, it’s Goodnight Vienna as BNP Paribas says thank you very much, calls in the loan and takes over the lot
wildrides
Ben ………. its a technical breach ………. no payments have been missed ……..and they wont be …………. why would the bank do that ? Their business is banking not running oil fields or disposing of oil assets in an oil price depression. This is not Hibu where a loan payment was missed deliberately by the board to trigger a default for the lenders to take control .
Toms coverage of LGO has been a vendetta , heavy with bias and personal . Why do I support what LGO are trying to do ?
They are a real oil company trying very hard to make a go of it in the worst conditions for oil in decades . They have not sat back , they have drilled alot of wells with oil strikes and are learning from each one . This is not a director gravy train doing nothing and taking the fees . They are working hard on the ground and providing many jobs for locals in Trinidad . Tom is using his high profile to repeatedly kick chunks out of them in a vindictive manner to try and trash the SP . One suspects this is more about his clash with DL than anything . They dont deserve this deluge of bile . The accusation of hiding the drill blockage when it was announced last September was beyond the pail . If your going to trash a company daily multiple times at least do it on FACTS ……….. not your projections of cash burn , income and future oil price ………. areas which INFACT you know nothing concrete what so ever .
Hugs and Kisses
Tom Winnifrith
Wildes
FFS – no payments have been due yet. They are soon. A breach of covenants means the loan could be called at any time & LGO could not pay. Its life thus hangs on a thread, dependent on the froggies playing ball. They can demand what they want. Do you not realise how serious this is?
as for vendetta..really. I just pointed out that the shares were a storming sell. You should have listened as I was – again – spot on.
T
Love & kisses, etc, etc.
wildrides
You dont know that LGO could not raise funds to pay should the bank call in the loan . In any case it is a technical covenant that has been breached ………not a missed payment . The lender is unlikely to fore close if payments are still being made on time . Look at Trinity ……… covenants breached and lender still co operating . Fifty local people are employed by LGO and your talk of 0 pence by Xmas is not helping their job prospects . As and when LGO miss a sheduled loan payment or the bank calls in the loan and LGO cant raise alternative funding then it is fair to say O pence is coming .
Ben Turney
@Wildrides – In my piece on this the other week, I spelled out why it was in trouble, based on the likely cash flow forecast. Sure that relied on a degree of speculation, but the company had little to no room for anything to go wrong. Now something has gone seriously wrong.
As for the company being a model citizen (OK I am being provocative), are you not at all concerned about its disclosure standards?
The initial flow rates which it loves to trot out have been deeply distorting and its handling of the GY-678 calamity is extremely suspect. That warning in the interim figures really wasn’t good enough. To be honest, my feeling is the company should have requested a suspension long before it dropped yesterday’s bomb shell.
Even if our coverage of LGO hadn’t been consistently negative and we’d been perma-bullish about the stock it wouldn’t have changed anything. Instead I believe we’ve been right to point out the pitfalls of this marginal producer in such a dire climate.