LGo announced that its first well to be completed at the Goudron Sandstone, hab een free flowing naturally at 60 bopd for 60 days. This is indeed a good feat considering the fact that the Goudron sandstone is a much shallower reservoir.
With such a consistent flow, LGO will fast track their drilling to the Goudron Sandstone. At least 10 sites have been identified for this purpose which will be carried out by year end.
My disclosure: I own shares of LGO.
Sunday, September 27, 2015
Wednesday, September 23, 2015
LEG FY2015 RESULTS
Suffered a loss of 470,00 pounds from its investment vs a profit of 901,000 Pounds in FY2014.
Current Ratio 6.18
Debt to Equity Ratio 0.04
LEG investments into mining and resources based companies have taken a hit in the year due to lower commodity prices.
However there were some good news too, especially where Virtual stock is concerned. LEG has increased its holdings in Virtual Stock to 7.0%. Virtual Stock is moving into the non retail arena having signed a contract with the NHS.
Elsewhere, its investment into Bosques Energeticos is progressing well, having increased it total land from 11 hectares to 18 hectares.
If you can afford a 3 -5 year time line in your investment then this is the share to own. With a price of 0.0008 pence vs a director's option of 0.002 pence and above, the eventual listing of either Virtual Stock and Bosques Energeticos will provide the catalyst for multi-folds gain.
My disclosure: I own shares of LEG.
Current Ratio 6.18
Debt to Equity Ratio 0.04
LEG investments into mining and resources based companies have taken a hit in the year due to lower commodity prices.
However there were some good news too, especially where Virtual stock is concerned. LEG has increased its holdings in Virtual Stock to 7.0%. Virtual Stock is moving into the non retail arena having signed a contract with the NHS.
Elsewhere, its investment into Bosques Energeticos is progressing well, having increased it total land from 11 hectares to 18 hectares.
If you can afford a 3 -5 year time line in your investment then this is the share to own. With a price of 0.0008 pence vs a director's option of 0.002 pence and above, the eventual listing of either Virtual Stock and Bosques Energeticos will provide the catalyst for multi-folds gain.
My disclosure: I own shares of LEG.
REGAL REIT H12015 RESULTS
Revenue increased 4.6%
Business was somewhat affected by the Occupy Hong Kong movement and reduction from mainland Chinese tourists. As a result occupancy dropped to 83.0% during the period vs 92.9% last year.
Profit (including property value gains) -530.8%
Profit (excluding property value gains) 3.6%
You can see the huge difference between profit before and profit after adjustment for property value gains. Always remember that the CORE PROFIT from operations is the MOST important. Property value gains has no impact on the bottom line of the REIT unless it is sold.
Current Ratio 0.57
Gearing 0.36
Distribution of HK$0.0704 for H12015. If we take into consideration of the FY2014 distribution of HK$0.1620 and based on today's closing of HK$1.93, this represents a distribution yield of 8.4%.
However, as its current ratio is weak, I will recommend HOLD until it is improved.
My disclosure: I own shares of Regal REIT.
BOSSINI FY 2015 RESULTS
Revenue down 1.0%
Profit down 9.2%
Current Ratio 2.68
Debt to Equity Ratio 0.43
Cash and Equivalents HK$475M
FY Dividend HK$0.0708 or 10.9% based on current price of HK$0.65 per share
Revenue and Profit are down due to the reduction in visitorship form mainland China to Macau and Hong Kong. Revenue from other regions performed well, mitigating the shortfall in Macau and Hongkong
Nevertheless the company has continued to add on to its cash position, strengthening its overall balance sheet.
At HK$0.65 it is a BUY due to its dividend yield.
My disclosure: I do not own shares of Bossini.
Profit down 9.2%
Current Ratio 2.68
Debt to Equity Ratio 0.43
Cash and Equivalents HK$475M
FY Dividend HK$0.0708 or 10.9% based on current price of HK$0.65 per share
Revenue and Profit are down due to the reduction in visitorship form mainland China to Macau and Hong Kong. Revenue from other regions performed well, mitigating the shortfall in Macau and Hongkong
Nevertheless the company has continued to add on to its cash position, strengthening its overall balance sheet.
At HK$0.65 it is a BUY due to its dividend yield.
My disclosure: I do not own shares of Bossini.
Saturday, September 19, 2015
US OIL RIGS COUNT
Total number of oil rigs in the US declined by 8 to 644 rigs fr the week ending 18 September, 2015.
Oil price declined to US$44.68 per barrel, losing 4.73% on demand fears.
Oil price declined to US$44.68 per barrel, losing 4.73% on demand fears.
LGO UPDATE
In its H1 2015 report, LGO also announced that its application for a licence to drill another 30 wells has been approved. This means at LGO now has 45 well to drill in the Goudron Field.
Friday, September 18, 2015
LGO H1 2015 RESULTS
Revenue increased 105%. 6.610M Pounds in H1 2015 vs 3.230M Pounds in 2014.
Loss widened by 21.0%. 3.540M Pounds 2015 vs 2.925M Pounds in 2014.
Loss mainly due to:
1) Finance charges of 1.327M Pounds in H1 2015 vs 0.148M Pounds in H1 2014, of which 0.730M Pounds was due to the unrealised fair value loss pertaining to the BNP loan facility.
2) Forex loss of 0.848M Pounds in H1 2015 vs 0.406M Pounds in H1 2014.
Excluding these two amounts, Loss was 1.912M Pounds in H1 2015 vs 2.519M Pounds in H1 2014.
EPS of (0.09) Pence in H1 2015 vs (0.11) Pence in H1 2014. The lower loss per share was due to the dilution of shares which negate the impact of a wider Net Loss.
On the plus side, Admin Expenses fell 23.4% from 3.233M Pound sin H1 2014 to 2.475M Pounds in H1 2015. This may signify that LGO is cutting costs in view of the lower oil price.
Current Ratio 1.50. However its Trade Payables were more than its Trade Receivables by a ratio of 2.1 to 1.0. This could impact upon LGO's current cash position.
Debt to Equity Ratio 0.65
Gearing 0.20. I've added in Gearing to further gauge the extent of Borrowings vs the Total Assets.
Important notes:
1) In view of the low oil price environment management to ensure that an optimum management strategy is implemented based on the extensive well testing undertaken.
2) Medium term guidance of 1,500 bopd from 2,000 bopd due to the low oil price.
3) Company has no intention to further draw down the loan facility from BNP as it is not beneficial in a low oil price environment.
4) In Q3, submitted application to extend LGO's licence in the Ayoluengo Field to Spanish authorities.
5) Well GY678 encountered obstruction at 1,800 feet which prevented the well from being completed. Company will assess options to do a side track.
6) In order to provide data on the Goudron Sandstone Well GY672 has been recompleted at the Goudron Sandstone delivering 60 bopd.
7) 10 locations had been identified to commence drilling, targeting the Goudron Sandstone.
Key Targets for H2 201
Loss widened by 21.0%. 3.540M Pounds 2015 vs 2.925M Pounds in 2014.
Loss mainly due to:
1) Finance charges of 1.327M Pounds in H1 2015 vs 0.148M Pounds in H1 2014, of which 0.730M Pounds was due to the unrealised fair value loss pertaining to the BNP loan facility.
2) Forex loss of 0.848M Pounds in H1 2015 vs 0.406M Pounds in H1 2014.
Excluding these two amounts, Loss was 1.912M Pounds in H1 2015 vs 2.519M Pounds in H1 2014.
EPS of (0.09) Pence in H1 2015 vs (0.11) Pence in H1 2014. The lower loss per share was due to the dilution of shares which negate the impact of a wider Net Loss.
On the plus side, Admin Expenses fell 23.4% from 3.233M Pound sin H1 2014 to 2.475M Pounds in H1 2015. This may signify that LGO is cutting costs in view of the lower oil price.
Current Ratio 1.50. However its Trade Payables were more than its Trade Receivables by a ratio of 2.1 to 1.0. This could impact upon LGO's current cash position.
Debt to Equity Ratio 0.65
Gearing 0.20. I've added in Gearing to further gauge the extent of Borrowings vs the Total Assets.
Important notes:
1) In view of the low oil price environment management to ensure that an optimum management strategy is implemented based on the extensive well testing undertaken.
2) Medium term guidance of 1,500 bopd from 2,000 bopd due to the low oil price.
3) Company has no intention to further draw down the loan facility from BNP as it is not beneficial in a low oil price environment.
4) In Q3, submitted application to extend LGO's licence in the Ayoluengo Field to Spanish authorities.
5) Well GY678 encountered obstruction at 1,800 feet which prevented the well from being completed. Company will assess options to do a side track.
6) In order to provide data on the Goudron Sandstone Well GY672 has been recompleted at the Goudron Sandstone delivering 60 bopd.
7) 10 locations had been identified to commence drilling, targeting the Goudron Sandstone.
Key Targets for H2 201
1) Complete and bring on to production all seven 2015 C-sand wells at the Goudron Field.
2) Manage Goudron production for maximum long-term value, by preserving reservoir integrity and developing the necessary infrastructure to facilitate growth as needed.
3) Managing the business with low operating costs to provide a platform for economic growth despite continued low oil price.
4) Progress the Cedros Peninsular interests in Trinidad to ensure medium-term growth is maintained and long-term value is created
5) Maintain the Spanish assets for value in advance of the granting of the extension of the La Lora Concession
6) Seek further opportunities to expand the portfolio within the existing strategy, to provide longer-term diversified growth
LGO's share succumbed to heavy short selling upon the release of the H1 2015 results, mainly because of the obstruction encountered in GY678 where many had placed hope that it would boost production.
In the meantime, it is best to abstain from any purchase or averaging down as it would mean locking in your capital for a longer duration due to the low oil price environment.
My disclosure: I own shares of LGO.
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