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Frequently Asked Questions

FAQs

  • 1. Finance - Is the refinancing affordable?

     Yes. A key factor in agreeing the terms of the transaction was that it should be affordable from the Goudron Field’s free cashflow. Goudron free cashflow can comfortably pay the …Read More

  • 2. Finance - How does the refinancing payments work?

     As set out in the RNS on the 7th December, every month for 24 months or until the loan has been repaid in full, LGO can elect the method of …Read More

  • 3. Finance - At what price can Lind convert? Updated 27/02/2017

    Lind can elect to convert any portion on the loan balance to equity and the price will always be at 0.15p. The planned share consolidation, if approved, will lead to …Read More

  • 4. Finance - Who decides future drawdowns on the loan?

     Lind can elect the second drawdown to a maximum of US$750,000. After that, further drawdown to a maximum of US$8.6 million in total, are solely by mutual agreement.

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  • 5. Finance - What are the Board of Directors individual holdings in LGO Shares? Updated as of 09.03.2017

     As with all public companies LGO’s Directors declare their direct and indirect holdings, and any dealings, in the Company’s shares. No Director has traded in LGO shares since the last …Read More

  • 6. Finance - Are the Board able to purchase shares in the company?

    On occasions when the Directors are considered by the NOMAD to be “open for trading” they may buy or sell the securities of the Company.  Such periods are usually limited …Read More

  • 7. Finance - Can you explain how Trinidad Supplemental Petroleum Tax (SPT) works?

    SPT is a tax that is charged on the revenue from sales of crude oil. It is applied to net revenue, after accounting for royalty payments to the government and …Read More

  • 8. Finance - What cost cutting measures are being implemented to preserve shareholder value?

    LGO’s management and Board are engaged in a stringent cost cutting exercise, however, it should be noted that LGO has a small workforce and there are limited short term measures …Read More

  • 9. Finance - Can we survive a $20/barrel price drop?
    The underlying business has been tested to $20/barrel and below and is indeed sustainable at those levels.
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  • 10. Finance - What are LGO doing to protect investor value, what confidence can LGO give shareholders?

    The Management and Board of LGO is naturally doing all that it considers appropriate to preserve and grow value for all shareholders. New investment is being sought and in the …Read More

  • 11. Finance - What is included in the cost of sales in the income statement of the annual report and accounts?

     There is a regulatory requirement that the cost of sales (COS) includes all cash and non-cash costs associated with the sales. For oil and gas producers, this includes the actual …Read More

  • 12. Finance - Has LGO paid SPT in 2016 and does it anticipate paying this in 2017?

      SPT is a tax that is charged on oil sales above $50/bbl. It is actually charged on a quarterly basis and so the average quarterly price needs to be …Read More

  • 13. Corporate - Why has the Chairman and CEO’s roles been combined?

     The previous chairman was due to retire having helped the Company through a difficult period in 2016 and at the same time it was seen as important to bring the …Read More

  • 14. Corporate - Will there be a reduction in governance at the LGO Board by combining the chairman and CEO?

     After the changes announced in January 2017 the LGO Board will still consist of five members two of whom are non-executives and who will chair the key Board committees, so …Read More

  • 15. Corporate - Who will chair the Board’s committees?

    Following a Board Meeting on the 12 January 2017 it is intended that Michael Douglas will continue to chair the remuneration committee and be a member of the audit committee. …Read More

  • 16. Corporate - Is LGO a going concern?

     LGO’s Board are naturally keeping the company’s finances and future business prospects under close review with its advisors.  At this time the Board see every reason to consider the Company …Read More

  • 17. Corporate- Why do you not provide monthly/bi monthly production updates? (Updated 20.06.16)

    The Company does not get final verified production and sales numbers until after month end, sometimes not for up to 45 days after month end, and therefore has adopted a …Read More

  • 18. Corporate - Will LGO Energy respond to allegations of insider dealings on various message boards?

    For reasons that should be readily apparent the Company cannot respond to unsubstantiated rumours and allegations made on unregulated media.  Please note that the directors and employees are fully aware …Read More

  • 19. Corporate - What is the Company doing regarding shorting of LGO stock and alleged leaks of equity raises and forthcoming corporate activity?

     All discussions with third parties are conducted under confidentiality agreements and all parties are made aware of their obligations to ensure inside information is kept confidential. Should individuals have evidence …Read More

  • 20. Operations Trinidad - Could LGO use CO2 EOR?

     This has been considered and is currently not seen as an optimum process given the oil quality and viscosity at Goudron, and also the location of the field relative to …Read More

  • 21. Operations Trinidad - How does the Company plan to fund waterflood activity at Goudron?

    The Company is actively working on an initial pilot phase which, subject to all relevant approvals, could start in 2017 using a small number of existing wells and water sourced …Read More

  • 22. Operations Trinidad - Why are we contracting Bedrock Drilling Company for the upcoming drilling campaign?

     The Board has determined that on the shallow wells a contracting manager should be used to provide the most cost effective way of managing the program whilst reducing the risks …Read More

  • 23. Operations Trinidad - Is the Goudron Field within any environmentally sensitive area? What is required to approve well sites?

     The Goudron Field lies in a densely forested area on State lands in the south-east of Trinidad adjacent to the Trinity Hills Wildlife Reserve. Approval is required from the Forestry …Read More

  • 24. Operations Trinidad - Why has Rig#18, capable of drilling to over 4,000ft, been selected for the Mayaro shallow drilling?

    GEPL has contracted Sadhna Drilling on a fixed price turnkey basis, including site preparation, to execute the first two wells in the Mayaro programme and Sadhna have negotiated to rent …Read More

  • 25. Operations Trinidad - Has LGO contacted the new Energy Minister Franklin Khan, and has he offered any better fiscal terms for LGO?

    LGO have indicated to the new Minister our availability to contribute to ongoing dialogue on all aspects of the industry, including fiscal terms. We will ensure our opinions are known …Read More

  • 26. Operations Trinidad - What is the current situation concerning acquiring BOLT ? (Updated 20.02.17)

    Under the terms of the BOLT deep rights agreement with Leni Trinidad Limited (LTL), a wholly owned subsidiary of LGO, we have a further payment of US$1.9 million to make …Read More

  • 27. * Operation Tinindad - Why are Goudron oil production and sales volumes sometimes different?

    LGO measures production by means of testing each well by flowing it individually to oil tanks. These are gauged by dipping after a period, typically 24 hours, at which time …Read More

  • 28. Operations Spain - What is the status of the licences LGO holds in Spain? (Updated 20.02.2017)

    The extension of the main licence in Spain, La Lora, from 31st January 2017 was not granted. LGO intends to apply for a new concession and is requesting the Ministry …Read More

  • 29. Operations Spain - Will LGO continue to hold interests in the Hontomin field, given the expiry of La Lora? (Updated 20/02/2017)

    Our application for the Hontomin production concession was made on the basis of using the La Lora production facilities. It is therefore necessary to obtain a new concession at La …Read More

  • 30. Administration - The response to my query is signed 'LGO Energy', why?

    We welcome queries from our shareholders and other interested parties. These queries may be addressed by different staff in the Company, as appropriate, but all responses are made on behalf …Read More

  • 31. Administration - What's the best way for my query to reach LGO?

     All queries and questions should be submitted in writing to the following email address only: info@lgo-energy.com.

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  • 32. Administration - How do I apply for a job in your company?

    Any job vacancies will be advertised on our website or through a third party recruitment agency. LGO will not make job offers without interview and therefore any such offer received …Read More

  • 33. Administration - Can I have the contact details for specific staff to contact them directly?

    No, for security reasons we are unable to give out staff contact telephone numbers.

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