UK 03:42 Wednesday, 7 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.
LGO Energy (LGO) has announced that it has raised £1.36 million in a placing at 0.25p and also that contractors have agreed to take payment of £590,000 of debts at the same price. This is a disastrous snub from the London Markets to David Lenigas as it was he who led this attempted bailout and mug punters were being promised a £5 million raise as you can see in leaked email correspondence below. Neil Ritson the hapless CEO of LGO admits that this is not enough, stating in the release:
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Comments
Duck and Dive
Just recording the LGO share price at the time of your report: 0.26p
TW NOTE: Yes that would be 0.06p lower than when I said sell yesterday and you laughed at me. Do hope you bought you ffing clownDuck and Dive
“even after the placing will owe its banks $10.3 million and owes trade suppliers at least $5 million”
Your maths is way out but I’m sure WR will put you straight.
Incidentally, one of the reasons LGO couldn’t make money in a falling oil market was its swap deal with the froggy bank – which has now been terminated.
“The BNP Paribas facility is a pre-paid oil production swap and has been structured to allow repayment via future sales of oil. Under the facility the Company has sold forward approximately 250,000 barrels of crude oil indexed to the price of West Texas Intermediate (“WTI”). The forward-sold barrels represent approximately 15% of forecast sales from Goudron over the 30 months duration of the agreement.”
With production falling, the swap must have grown to considerably more than 15% of oil production. So the termination will put a lot more oil revenues in LGO’s bank account.
TW Note: D&D Except that LGO has to repay at 610k pcm as of April - from what?NEMESIS
Great work Tom.
Bob the Brush
I was going to say that I couldn’t understand who on earth would put 1.36 mill into a placing for this sort of company when it will clearly not be enough to save it (thus it is just instantly burnt cash) but then I scrolled down to the comments and realized that the terminally deluded like D and D probably did.
wildrides
I see you are still persisting with your tawdry vendetta against your old friend Del boy Lemongas by trying your best to bankrupt LGO with de ramping nonsense . As Duck noted above your Whinni Maths is as inaccurate as ever . Do try and read the RNS instead of skimming over them and getting it all wrong . Oh and by the way the placing clears the path until May 2016 not April.
see RNS today :- “ These funds will allow the Company to bring payments to the Company’s bankers, BNP Paribas, up to date until May 2016 and continue the oil production enhancement work recently announced”
I note you have been 100% wrong in your predication of Zero and your prediction of placings below 0.20p . In fact the placing was at a higher price than my most recent purchases at 0.19 and 0.23 p ( now long sold at a profit ) . In the current climate they have done better than I expected in this placing and this gives them time to carry on turning things around as OIL PRICE recovers . Quite a victory …. leaving you looking vindictive and stupid . Congratulations …….. one would be good but both together is quite an achievement . Oh dont bother pulling Drunk out of your arse to back you up ……… really not interested as I am not currently in . However I will be back in when an entry to make money suits me thanks .
Take a look at 88E ……… loads of shares 3p each and NO PRODUCTION . Take a look at TRINITY production in their last RNS ……….. that is what LGO is capable of . ( Trinity is next door to LGO and has low decline rates )
NEMESIS
BTB
You need to look behind the detail and the spin and call it right.
I think Tom does a fantastic job at exposing these type of things, those emails are pure gold when you have Leni tweeting how great the placing is. Total BS.
But for me Tom sometimes needs to reign it in when it comes to the finer details such as finance where he is non specialist. Imho if he calls that wrong it kinda devalues the great work beforehand, as I think it has here.
Tom Winnifrith
Wildes
The emails are kosher and your guy is rumbled. For once just get over it & STFU
Nemesis, I trained as an oil analyst, the FRC seem to think I understand Finance and calling LGO as a sell at 3.50 suggests I know the odd thing
T
Duck and Dive
“TW Note: D&D Except that LGO has to repay at 610k pcm as of April – from what?”
Since WR hasn’t dropped by* to give you the heads-up on your maths muddle, I’ll help.
Firstly, you need to re-read today’s RNS. It states that the new funds “will allow the Company to bring payments to the Company’s bankers, BNP Paribas, up to date until May 2016 and continue the oil production enhancement work recently announced.” So your statement that “LGO will default on the agreed repayment schedule in April” is wrong.
Also wrong is your statement that LGO “even after the placing will owe its banks $10.3 million and owes trade suppliers at least $5 million”. The 24 Feb RNS told us that bank debt had been reduced by $4m (to $6.4m) due to the bank taking back that amount which had been drawn down to pay creditors. The March repayment of $100k will have reduced the current bank debt to $6.3m which is due to be repaid over 18 months at $350k per month (of which the April and May instalments are presumably covered by today’s fundraising).
So the outstanding questions are: can LGO find $350k per month from June; and can the trade payables be kept sweet and/or paid in shares?
The 24 Feb RNS said that LGO were generating net cash of $8-10 per barrel. Since then crude prices have risen by over 25% so let’s make the current net $12pb. If group production has dropped to 600bopd from the Q4 average of 658bopd, that’s $7200 net per day or $216000 net per month. If the current workover program increases production to 800bopd, that figure rises to $288000 net per month. If, as predicted, crude rises to $50pb by then, that figure rises to $552000 net per month.
If the remaining trade debtors demand cash and/or if LGO want more cash for new wells to take production over 1000bopd, they will need another placing; but that should be achievable if it looks as though the bank debt is being managed.
So, not as grim as you would have us believe.
(Spin it how you like but yesterday’s SP rose 7% or thereabouts after you (again) told readers to sell. Today is a different game and will be judged at the close of play…And, no, I wouldn’t touch LGO with a bargepole — but my cleaning lady tells me she bought some at 1p, against my advice.)
*He hadn’t when I first posted this but due to a technical malfunction, it disappeared into the ether.
Tom Winnifrith
D&D
After your innumeracy on FJET it is no surprise that you have misread BOTH RNS releases badly. Will explain why you are again wrong in a piece tomorrow – will write it up on train so can post early.
T
Duck and Dive
Delighted to see you can now spell “innumeracy”. I look forward your corrections.
But, hey, the big news here is that the SP actually fell for once after one of your doom and gloom rants — from 0.260p (per my 10:45am comment) to 0.255p, so congratulations. 0.005p is not to be sniffed at.
Drunken Sailor
A bucket shop placing that has already been flipped into the earlier ramp, which keeps the lights on for 2 months is nothing to cheer about.
The froggies could easily say well done, we will have what you did not pay us in March and because we think you won’t pay everything in May we will have half of that too as the April payment. They are in control and what they say goes.
More interestingly “better potential deal than some of the other big deals they are being offered” really has big Dave really told the yanks to stick their $20m where the sun does not shine? or have the yanks said not on your life Jabba?
“BNP debt currently $10.25m, of which $4m is held in treasury, therefore debt equals = £4.4m”
Really?
LGO RNS of 26 Nov:
“GEPL has entered into an indicative schedule of repayments which envisages the next three months (December 2015 to February 2016 inclusive) being at a reduced rate of US$75,000 per month, after which the remaining outstanding balance will be recovered over the following 19 months at a rate of approximately 5% per month”
$500k = 5% $500k x 19 = $9.5m so where is the $4m in treasury?
RNS of 24/2:
“BNPP have retained funds of US$4 million drawn down by GEPL for the purposes of paying local contractors against a total balance due to the Bank of approximately US$10.4 million. Local creditors currently amount to approximately US$6.5 million”
Ah so the money is for paying local contractors and not money sat there already paid off reducing the debt.
So £5m does not get rid of “the nasty bank” at all. looks like Big Dave was a bit hasty telling those dumb yanks to stick their $20m where the sun does not shine.
“costs of $20 p/b” What is included in these costs? not PLC costs that is for sure and not maintenance CAPEX either. I have seen loads of well work over programmes deliver only a fraction of the production boost expected.
What were the production figures for Feb – they must have them by now, but funnily enough no ramptastic RNS has bothered to mention them. I would not mind betting that they are closer to 500 BOPD than 600 BOPD and certainly no where near 800 BOPD.
Even with all the ramptastic lies in Jason’s e-mail, only the bucket shops have taken shares and they did not feel confident that they could flip them all for a profit. How big a discount and how little will be raised in the next keep the lights on placing?
Is Jabba coming back as CEO now he has failed to raise the money, which would not have been enough anyway, or is he going to let Ritson carry on being his fall guy?
NEMESIS
Tom
Thank you for your reply.
My comments are meant to be constructive and I’m sure they have been taken that way. What I’m trying to say is if you had stopped half way in the above it would have been at least twice as good. Now the excellent news is clouded by people’s interpretation of the financials.
As for your LGO call at 3.5p, at that time you could have made the same call with any small/ midcap oilie and it would have been 80-90% down in the same period.
To finish off I’d like to just made a macro oil call. I don’t think the situation has changed fundamentally at all with the Russians pulling out of Syria, if anything I envisage further oversupply.On that basis I see oil back at $30 a barrel in the summer. The Saudi’s and OPEC won’t change their current strategy in the interim.
Tachyon
Nemesis
regarding your macro oil call, how does the all-time low in the US rig count figure in that call? OPEC’s pricing power has been drastically weakened by the US fracking boom and disunity amongst OPEC producers. obviously there are a lot of uncompleted wells in the US which will continue to stifle the oil price but it’s hard to argue nothing has changed fundamentally.
NEMESIS
Tachyon
The US rig count imo is not that relevant, they can always come back as prices rise, and all the time fracking technology is increasing in efficiency and taking it’s place.
Fracking has resulted a fundamental shift, and as I see it mainly politically. No longer has the West the necessity to intervene to the massive extent it did in the Middle East to safeguard oil supplies. Unfortunately this hasn’t been good news for the Syrians.
The main player is OPEC, notably Saudi Arabia. They built up the biggest foreign reserves in the good times of over $1trillion, are probably somewhere around half of that now, and whilst admittedly eating into this at maybe $100m a month they still have a lot left. Their direct enemies, notably Iran meanwhile are having problems.
This has done the region a lot of good, it’s brought Iran to the negotiating table in order to lift sanctions, I don’t think they had much choice myself. For Russia it’s very much the same, I think Russia depends on 45% of its oil revenues for budgetary expenditure, has/ had quoted large reserves although many were spurious. When Russia first went into Syria i think they saw it like an opportunity to exert geopolitical influence at zero cost, because I reckon it’d expect that the cost of the war would be offset by a reduction in the oil supply and thus increase in oil price and these would net off. (OK, not exactly but you can appreciate the rationale!). Putin finally saw what he was doing was not working and pulled out.
Overall I see it as the Saudi’s (and OPEC) wanting to keep prices low as they have been, there’s no point in them agreeing to cuts and increase in the oil price if all it does is put money into the hands of your enemies. The Saudi’s have the deepest pockets and if things remain as they are Iran and Russia will be in deep s*** in 12 months time, they’ll all but run out of money. Will this result in political change? We can’t tell at this stage, but the Saudi’s will be hoping that more accountable stable governments are formed around them.
I see that the oil price is up yet again this morning but imo it’s a false dawn, imo it’ll go back down.
BTW: if you want to ever know if the il price is up on a particular day just look on Leni’s twitter feed. If it’s up he tells you, if it drops he keeps quiet. lol.
Scampi
Nemesis
The oil price fall was directed by the men behind the curtain (AKA the Bilderberg Group (AKA the New World Order)) IMO. The drop started within a couple of weeks of the break up of the 2014 Bilderberg meeting.
NOW, the attention of the evil globalists has been taken by the rise of Trump and all of their efforts are being expended in trying to stop him as he poses a great threat to their agenda of 1 world government (AKA dictatorship/the final slavery of mankind) hence, the oil price has been allowed to rise as the globalist chokehold on the throat of the oil producers has necessarily been released whilst the kitchen sink is thrown at Trump (I predict either a summer of George Soros funded breakdown in US society which could end up in the imposition of martial law and the cancellation of the election – they are that desperate to stop him or they will take him out in the same way as they stopped JFK).
We live in interesting times! The world is waking up – A Brexit would be another devastating blow to the globalist agenda.
All fans of oilers should say Viva Trump!!
Duck and Dive
@DS – your calculations are based on an old RNS. The bank agreement was updated in the 4 March RNS.