By HotStockRockets | Thursday 11 May 2017
Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. 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 chairman and CEO Neil Ritson has stepped down with immediate effect to make way for Leo Koot. Leo who? He is very tall, he's Dutch, he sleeps for just two hours a night and he is massive big hitter in the world of oil. Why on earth did he go for LGO?
The RNS says of Leo: With over 28 years of industry experience and he brings both financial and technical expertise to the Company. During his extensive career, he has run oil and energy businesses as well as been an active board member, most recently with AIM listed Sterling Energy PLC as Senior Independent Non-Executive Director. Leo's global energy experience includes his role as Managing Partner of MENA Gulf Investment Partners (Abu Dhabi), President of Abu Dhabi National Energy Company (TAQA) and Managing Director of TAQA UK where he built the organisation from a few people to an organisation of over 2,000 staff and contractors and delivered a mature E&P operating company that managed 60,000 barrels/day production with US$1.7 billion in annual revenues. Prior to TAQA, Leo was CEO of Energy Development Partners an oil and gas business creating ways to match capital and resources with developing production, for which he helped raise a US$350 million private equity fund. Leo has a Master in Petroleum Engineering and a business degree from Harvard Business School.
The company is also changing its name to Columbus Energy Resources plc. This shows it really is all change. Leo states in the RNS:
"I am excited about the inherent value that I see in this business and look forward to implementing a strategy to unlock that value. The Company's current asset portfolio is strong, we are growing our production and generating cash. We are seeing ever more investment flowing back in to the sector. These are excellent fundamentals from which to grow the business and I look forward to sharing my vision in more detail at the Investor Strategy Briefing later today."
Now look at Leo's package. He has agreed to take half his fees for the first 12 month in the form of company stock to be issued at the end of first year at a price of 2.2p per share, being the price at the time of the last placement in March 2017 and broadly equivalent to yesterday's mid-market closing price of 2.18p. In addition he gets options as follows:
3 million shares strike at 2.2p vesting at 4p
3 million shares strike at 4p vesting at 8p
3 million shares strike at 6p vesting at 12p
3 million shares strike at 8p vesting at 16p
3 million shares strike at 10p vesting at 20p
Is this just dreaming? Well perhaps a bit of it is but remember that house broker VSA Capital reckons that this stock could hit 22p! So maybe Leo will get all his options.
Over at VSA they are frothing and planning to take Koot to meet a raft of institutional investors over the next few weeks as well as hosting a big investor session. VSA head honcho Andrew Monk states:
This is now a very serious Company!!! LGO is your 10 bagger today and you buy as much as you can sub 3p today – fill yer boots.
We recently tipped these shares at a 1.8p offer and told you to hurry. They are now above our 2p Limit Buy Price but hang on tight - there is far more to go for. Watch this space!
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