Market's view on Longboat Energy
Published on April 2024
- Stock watchers note the company’s valuation as ludicrously low with a market cap under £10m.
- Expectation of a new production deal being announced soon, potentially starting in May, with significant upside due to the company’s current valuation.
- Interest in a Malaysian license, focusing on its potential rather than current cash flow, and enthusiasm for its progress towards drilling.
- Speculation about a significant shareholder selling their shares at a loss, with plans to buy more shares if the price drops further.
- Criticism of the CEO for lacking vision and urgency in securing deals, with concerns about the company’s pace in adapting to market changes towards electric alternatives.
- Positive remarks on the company’s production asset potentially outperforming expectations and a hint at a $100m revolving credit facility which could offer further opportunities.
- Mention of a key focus on a particular Malaysian block, seen as a major growth opportunity, and its potential for high recoverable resources.
- Discussion about the company’s involvement in the Statfjord area and its strategic moves in offshore Malaysia, including potential farm-downs to major E&P players.
- Observations on the company’s recent presentation highlighting plans for increased production and efficient capital management to ensure growth with minimal dilution.
- Expressions of confidence in the company’s strategy and management, despite some setbacks like delayed schedules and cost overruns in specific projects.
- Ongoing interest and discussion about the need for a minor cash raise and the company’s ability to secure it, reflecting a cautiously optimistic outlook on its financial health.