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Even a few of our detractors have now come around
Touchstone Exploration (TXP) is a company that I’ve covered here several times before and which I believe has a lot of potential, and the latest drill results certainly seem to support that still being the case.
On 17 September 2011, it was announced that Simon “Harry” Potter was to become CEO of Bahamas Petroleum (BPC) with the shares ending that day at c9.3p. Last year, Potter trousered £375,000 as CEO so it is fair to say that his nine and a half year gig has cemented his position as a millionaire. But what of those dirty grubby peasants the shareholders? How have the hoi poloi prospered? Over the years, I have repeatedly warned about the ramping of the shares, the extremely suspect financing arrangements and Harry – watch me make your ISA disappear, its magic – Potter’s ample rewards for failure.
Touchstone Exploration (TXP) has fallen out of favour with investors in recent days following testing news at one of its wells which the market took badly and caused the share price to drop by more than 30%.
People often try to tell me that it isn’t possible to make money by actually investing in AIM oil and gas companies and that they are only worth trading, but I would have to disagree based on some of those that I’ve picked out over the years as having long term potential.
Columbus Energy (CERP) “is pleased to announce the start of Phase 2 of the CO₂ Pilot Project in the Trinity Inniss field”...
Columbus Energy Resources (CERP) has updated on the Trinity Inniss field in Trinidad and funding...
Columbus Energy Resources (CERP) has updated on its measures with it “actively working to make itself resilient during the current downturn” and “optimistic that it will emerge well placed for the future”…
Updating on Columbus Energy Resources (CERP) last week, we noted the potential Saffron well catalyst is with there also current production and other potential. Now a “Operational Update - Trinity Inniss”…
Columbus Energy Resources (CERP) has announced licence extensions and the appointment of a new CEO…
Columbus Energy Resources (CERP) “is pleased to confirm the spud of the Saffron prospect… expects to advance to drilling with the 8½ inch pilot hole in the next few days”…
Columbus Energy Resources (CERP) “is pleased to provide further information on its planned drilling campaign in the South West Peninsula, Trinidad”. This includes…
Columbus Energy Resources (CERP) has updated including it “has now successfully completed workover operations to survey downhole the AT-4 and AT-13 wells on the Inniss-Trinity IPSC in preparation for future CO₂ injection and enhanced oil production” as it continues to advance a pilot project it believes has the potential to transform oil & gas operations in the field and in similar fields in Trinidad…
Columbus Energy Resources (CERP) has updated that it “has successfully completed workover operations to survey downhole the AT-5X well in preparation for future CO₂ injection and enhanced oil production”…
Columbus Energy Resources (CERP) has updated on activity towards drilling in the South West Peninsula, Trinidad…
Columbus Energy Resources (CERP) has announced 2018 results and that “in particular, the company is looking forward to commencing our exciting drilling campaign in the SWP during the second half of 2019”…
These days I tend to avoid oil companies at the bottom end of the AIM market as usually the risks aren’t worth the rewards, and the majority of them do nothing but fleece investors over a number of years without ever achieving anything of note.
Columbus Energy Resources (CERP) has updated on the third quarter of 2018, including that it “has incorporated Steeldrum's business performance into Columbus' financial accounts with effect from 13 July 2018, the effective date of the acquisition… (and) adding significant optionality to increasing production going forward”...
Over the years the one area of growth where Range Resources (RRL) has really excelled has been the number of shares in issue, with 8.5 billion of them now trading following the latest placing. The oil and gas company, which has interests in Trinidad and Indonesia, announced last week that it has completed yet another placing, and this time it raised £1 million at a share price of 0.11p.
Those who have been around the AIM market for a while will probably remember a company called Range Resources (RRL), and its infamous CEO Peter Landau.
Shares are valued on the basis of what is to come. that is to say future earnings ( or lack of them). Not historic losses, profits or performance. But shares in Columbus (CERP), the former LGO Energy have been marked a tad lower after an operational update as punters looked in the rear view mirror. Their error = your opportunity.
We tipped these shares a couple of weeks ago for a third time. The shares are now 2.7p in the middle and so even at the bid we are up on this one. But our target to sell at 3.5p+ so there is more to go for. Our original share tip reads:
It takes two to tango or, rather, two to make a market. I am not exactly a great fan of LGO Energy (LGO) having called this as a teddy to perfection. But Andrew Monk of VSA reckons it is time to bottom fish and since I believe in free speech I am happy to publish his reasoning from his morning email.
An RNS from LGO Energy (LGO) late yesterday announces that hapless CEO Neil Ritson is presenting at yet another conference in Trinidad. Boy that guy must have some air miles. The presentation which you can download HERE is truthful but misleading in respect to the calamitous decline in output. I refer you to page 2 which is below. This is a shocker.
LGO Energy (LGO) has all sorts of problems. It is almost out of cash, it is burning cash, it is drowning in debt and it has a management credibility issue. But its real problem? Its assets in Trinidad are shite. The company has never come clean on how rapidly new wells go into decline but here is the raw data and it is pretty terrifying. It is based on RNS releases for each of its Goudron wells.
Thanks to reader BobbyChariot who has captured proof that David Lenigas is rushing from Cuba following the disastrous Lenigas Cuba (CUBA) IPO to Trinidad to check out the LGO Energy (LGO) train wreck. Its not a good day for either company but Big Dave is on the case , working hard for shareholders. Feel free to supply a suitable caption in the comments section below
The share price of LGO Energy (LGO) has plummeted recently, but I still think it looks over-valued and wouldn’t be buying. At the start of the year I gave a sell recommendation on the company when the share price was around 3.5p, giving a market cap of circa £100 million, and since then it has fallen to its current level of 1.55p on the ask.
After eight years, tens of millions of dollars spent, the building of an “airport”, a failed two well drill campaign, an oil to water controversy, an absurd contemplated plan to drill in pirate infested waters and one of the most hyped stock promotions in recent years Range Resources (RRL) has announced this morning that it is pulling out of Puntland. Shareholders are left with nothing, other than a greatly overvalued stock price.
LGO Energy (LGO) the Trinidad focused oil production company announced last week another positive update on their 2015 drill campaign at the producing Goudron oilfield, Trinidad. So what do the maths really look like?
Trinity Exploration and Production (TRIN) has looked undervalued for a long time, but that could soon be about to change. The AIM-listed, Trinidad-based oil and gas company had previously looked cheap compared to its peers even when oil was at much higher prices, and since crude tumbled late last year it has been hit harder than others in the region.
Today’s epic disaster of an annual report from Range Resources (RRL) cannot have come as a shock to anyone. Worse is still to come. By any stretch of the imagination Range is vastly overvalued. At 1.07p (last seen), Range is valued at £53.4million. The company has just announced a $102.5million loss, has never been able to cover its costs, has substantially written down the value of its “assets” and has just been forced to borrow another $15million (what happened to the “game-changing” LandOcean deal?!). To top it all off Chief Executive Rory Scott Russell made the hugely embarrassing admission the company is “unlikely to meet [his] previously stated target of an exit rate of 1,000 barrels of oil a day by the end of 2014”. Apparently Mr Scott Russell is now confident of achieving this goal in H1 of 2015. Given the steaming mountain of manure he has had to shovel his way through since he took charge of Range in February, perhaps Mr Scott Russell has earned a little leeway in hitting his production target. This doesn’t change Range’s overvaluation problem. Nor does it solve the cash flow problems. Nor does it answer a far more relevant question. Just what has happened to all of Range’s money?
Range Resources’ (RRL) CEO Rory Scott Russell has one hell of a job ahead of him. The latest quarterly production figures won’t have come as much of a shock to anyone who has followed the company closely. I must admit I hadn’t seen the bulletin board disappointment at the release of the country’s production figures from January to May this year, by the Trinidadian Ministry of Energy and Energy Affairs. However, Range has now confirmed that Q2 this year was another very disappointing quarter production wise. In his accompanying statement, Mr Scott Russell talked of a “transformational quarter”, but like his repeated claim of “world class assets” in May’s conference call, there is only so long the market will continue to buy this hype. At 1.81p, Range is valued at £91.35million and it is very hard to see fundamental reasons to justify this.
Range Resources (RRL) has seen a dramatic turn-around recently, but now needs to start delivering. As recently as mid-April it was sat at an all-time low of just 0.61p and there were fears for its future as it struggled to re-pay debts that were due. Then along came a financing deal with Abraham Limited which cleared pretty much all of the money owed and triggered a change in sentiment.
Commissioned researcher Edison has published an enthusiastic note on Leni Gas & Oil (LGO) at 4.1p arguing that recent Trinidad success is just the beginning.
I see my old sparring partner ''David'' Leni Gas & Oil (LGO) has released yet another RNS, which means not only are we at a baker’s dozen plus in little over a month now (!!!), but also that each one creates less and less impact. A lot of the news is surely already priced in and is even, arguably, overpriced into today’s share price.
After the recent big rises on Leni Gas and Oil (LGO), banking at least some profit looks to be the sensible move. When you consider that the share price was a little over 0.7p as recently as April and has now risen to close to 4p, adding nearly £75 million to the company’s market cap, this one looks a little on the ripe side.
David Lenigas popped by earlier in the week for a chat on a number of matters. As ever the great man had a lot to say on a range of issues. But a few points stick in the mind.
Today I close out what has been one of ShareProphets best tips over the last few months. In March I made a call on Leni Gas and Oil (LGO) as a stonking buy even though the board had royally cocked up with the court case. The share price was 0.69p and people called me bonkers, an idiot, and a fool.
The solid tip of the week went up earlier HERE, now for a bit of fun and a trading share tip of the week. Run by the marmite character that is David Lenigas, AIM listed Leni Gas & Oil (LGO) trades at 1.17p valuing it at £28 million but ahead of a potential game changer week in Trinidad, that may well be far too low: the shares are a trading buy.
Apparently I damned Range Resources (RRL) with faint praise yesterday. While the ramping brigade worked themselves up into a lather over what an incredible deal the $12million placement is, the realists recognised that 1p is a pretty dreadful price. The market clearly agrees. Only about £980,000 worth of stock changed hands (c.130million shares). It remains to be seen what Range’s new management team does with the slender lifeline it now clings to, but assuming it can genuinely turn the company around, then there is still a massive prize to play for in a few years time; Puntland.
What better way to shut up a pair of loud mouth agitators than to announce a $12million funding package? And at a 49% premium to the previous close no less! The headlines are certainly impressive enough that even the travelling clown parade employed at Buchanan couldn’t anti-spin these into another PR disaster for the company. Even so, the underlying numbers do require closer examination. The muted market reaction confirms that all is still not entirely well aboard the good ship Range (RRL), but at least it looks like she isn’t going to sink. Yet.
On February 3rd this year, Peter Landau stepped down as Chief Executive of Range Resources (RRL) and became a non-executive director. On Wednesday morning, Range will host a live web conference call with its beleaguered investors. Whether or not this call will be a white wash remains to be seen, but I’m fairly certain that the directors will not deal with arguably the most important question facing the company. Is it time for Mr Landau to step down from Range Resources?
Trinidad seems to be flavour of the month for oil juniors but how to play the game? The two obvious candidates on AIM are Range Resources (RRL) and Leni Gas & Oil (LGO) both of which have served up production updates of late – Leni, today. It seems to me that the obvious trade is to sell Range and buy Leni and here is why.
