Describing itself as an “oil and gas exploration and production company with a focus on Nigeria and West Africa” despite having admitted principal subsidiary, Lekoil Nigeria, “has stated it will no longer fund any of the costs of the company from the cash flow generated from its producing asset, Otakikpo”, Lekoil (LEK) has now made a “Director Loan – Update”-titled announcement. Now why don’t I think this is going to be good news?...
I previously wrote on supposedly “oil and gas exploration and production company with a focus on Nigeria and West Africa” Lekoil (LEK) in June, noting SHOCKER AGAIN!; from fake sheikhs to now subsidiary CEO farce… you couldn’t make it up!. That was with the company’s recent CEO Olalekan Akinyanmi having “without the prior knowledge or consent of the company, entered into an employment contract with Lekoil Nigeria Limited, to act as its Chief Executive Officer, with effect from 1 January 2021” – Lekoil Nigeria Limited supposedly being Lekoil’s principal subsidiary! Now Lekoil reckons it “is pleased to provide” a corporate & operational update...but the shares are further lower...
The CEO, a NED and the CFO has gone. Lekoil Nigeria - 40% owned by Lekoil PLC (LEK) - accuses the AIM-listed PLC of lying about the reasons for delaying results. The company is downing in debt. What more could go wrong? Oh yes: the pesky Nigerians have half-inched the corporate website.
First it was the CEO, then a NED and now the CFO has quit, drowning in debt, AIM dog Lekoil (LEK) of fake sheikh infamy. But the resignation letter of Edward During is dynamite. Lekoil itself has not put out a statement on this matter but Lekoil Nigeria, which it owns 40% of and seems to be at war with, has. Kerboom. How long can these shares remain unsuspended? Is the Nomad, hapless SP Angel of the fraud MySquar infamy, not considering whether to walk? It should be but, then again, it is morally bankrupt.
The comedy continues at AIM uber-dog Lekoil (LEK) of fake sheikh scam infamy. Three directors of Lekoil have today resigned and have written to AIM Regulation asking those crack regulators to investigate the company. Cripes do they not know about the Oxymorons? You may remember that on June 10 Lekoil fired its CEO, Mr. Olalekan Akinyanmi. On the grounds that he was also CEO of Lekoil Nigeria in which the AIM dog has a 40% stake.
Supposedly “oil and gas exploration and production company with a focus on Nigeria and West Africa” Lekoil (LEK) seems more focused on providing followers comedy farce. After last year apparent funding agreement sheikhs turned out to be fakes, now a “Corporate Update” including that the company’s CEO until last week Olalekan Akinyanmi had “without the prior knowledge or consent of the company, entered into an employment contract with Lekoil Nigeria Limited, to act as its Chief Executive Officer, with effect from 1 January 2021”!
It can't be very entertaining being a shareholder in Lekoil (LEK), but get your beer and popcorn at the ready for it sure is entertaining watching from the sidelines as this company goes down the plughole.
Lekoil (LEK) RNS’ed late yesterday that a significant shareholder (Metallon Corporation Limited), which holds 15.4% of the company equity has called for an EGM. It’s proposing three interesting new directors be elected to the board. With the shares suspended and the balance sheet a train wreck, the Lekoil board has the audacity to claim this is an attempt to control the company on the cheap!...
Lekoil (LEK) – the AIM casino company of fake sheikh infamy – has today announced that its Nomad, Strand Hanson, will quit with effect from 20 November, that is to say Friday. But fear not, discussions with another Nomad – one would assume the joint broker SP Angel which will act for anyone at all, no questions asked – are “advanced”.
A “Joint Broker Appointment” announcement from Lekoil (LEK), with a 2.95p share price giving a market cap of £15.8 million. Hmmm...
Previously writing on Lekoil (LEK), it included noting the sheikhs indeed fakes! Another massive scandal on AIM. Now the company announces “the following results of the Investigation: • The facility agreement was a part of a fraud perpetrated against the company”… Er, yep! and…
Previously writing on Lekoil (LEK), it was updates at 6:04pm… the sheikhs indeed fakes! Another massive scandal on AIM. Now it’s an intra-day, 2:29pm, “OPL 310 Project Update”…
Other than shareholders, few could have failed to be amused and appalled in equal measure by Lekoil (LEK) - which has repeatedly referred to itself as an indigenous Nigerian oil company - falling for the long running Nigerian e-mail scam of the ”we have loads of money..send us a deposit and we will make you rich..” type. By itself this incredible incompetence merits my original award of a Vomit list backup place. But we know now about partner payments and obligations after yesterday’s RNS and that merits a hurl to a full blown Vomit List place...
Just over a week ago, Peter Brailey wrote on this website on AIM-listed, Nigeria and West Africa oil and gas-focused, Lekoil (LEK) it’s a good deal for the Partner and CEO..but is it for shareholders?, concluding it is simply not a business that I could invest in at the current time. This followed him having earlier included it as a back-up for the Vomit List. He might want to consider ‘promoting’ it to the list after an update on the ‘funding deal’ today – though it’ll require the shares' return from suspension first!...
Lekoil (LEK) shares have really motored this year, posting a 100% gain in two days on the back of funding news for the Ogo asset in Nigeria. The realignment of interests with its partner (Optimum Petroleum Development Company) announced back in August 2019, was clearly a good deal for Optimum. This funding deal sees the asset move forward without costing it a penny and Lekoil’s CEO in particular does well from the deal, but is it a good deal for Lekoil shareholders?
After pontificating on the position of Lekoil (LEK) prior to the results, it merits a review now that the results have been issued. So how did I do with my crystal ball, and where does it leave the company?
I have followed Lekoil (LEK) for some years now, and as each year goes by, I’ve become more questioning of the investment case. Like so many Nigerian based oilers, the potential seems high but is the reality ever realised?
Many AIM oil companies promise the earth, yet in most cases are still no nearer to actually producing anything despite a number of years having passed since their initial discoveries, so it is refreshing to see that there are exceptions to this trend.
It might appear that shares in Lekoil (LEK) make a somewhat unusual choice for a Bull Call of the Day, especially as it is difficult to imagine what the big fundamental driver here may be for a significant upward move in the share price.
Lekoil (LEK) has had the misfortune to be tainted by the whole Afren (AFR) saga, but looks to be making good progress. Its share price had been on the decline anyway thanks to the falling oil price, but it really took a hit at the start of this year when the full extent of the problems that Afren were having came to light.
Lekoil (LEK) made one of the largest new oil discoveries of 2013 but since then its share price has dropped back to pre-discovery levels. The oil explorer is mainly focused on Nigeria and its Ogo-1 discovery on the OPL310 block, in which it holds a 30% interest alongside Afren (whose license Lekoil farmed into) and Optimum Petroleum.
I have been watching Lek Oil (LEK) for some time and think the drop in the share price due to the problems at farm in partner Afren (AFR) is overdone. From Afren’s results last week we know that there will still be a well drilled in OPL 310 in 4Q this year. Lek will benefit from Afren’s troubles as investors switch hot money into the “safer” play.
Not all placements and not all of AIM is rotten. There are plenty of honest companies out there and honest boards of directors, genuinely committed to value creation. Lekoil (LEK) looks like a perfect case in point. This morning, the company announced a £22.4million placement and the market has responded positively. Lekoil’s shares are up 93% over the last twelve months and the question is can the company build on this success with the new funds at its disposal?
I have been looking to cover Lekoil (LEK) from a charting perspective for some weeks now, but was waiting for the right amount of historical data – less than 6 months can be difficult.
Season’s greetings to one and all. Today I embark on the future vision of what I hope to be the shares to buy for 2014.
Shares in AIM listed oil junior Lekoil (LEK) are currently trading just off year lows of 35p. You may say that this is not unusual in the current climate but hang on, let’s review what is actually going on here for the company which is now capitalised at £84 million.
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