Today’s news from LGO Energy continues to underline not only the opportunity that exists within Trinidad, but also the solidity of LGO’s structured engineering led approach to the development. We have said previously that:
| While other independents have larger positions in Trinidad, the application of engineering know-how has revitalised we believe has made LGO Energy the stand out operator in Trinidad, which continue to be reflected in the unwinding of its the discount between its inherent asset valuation and its “market worth.” |
Although this programme has taken some time to get here, the results of preparatory drilling and subsequent development drilling have started to bear the fruits of its investment, not only in reserves upgrades, but also in free cash flow generation.
Now the programme is in its development phase, it should continue to deliver results, which in turn will precipitate the unwinding of the Company’s discount between its inherent asset valuation and its “market worth.” In that respect, the proof positive of the investment that the Company has made is now in the “pudding’s eating,” i.e. production, reserves and cash flow growth.
