Today’s Small-Cap Winners: LGO Energy PLC And Learning Technologies Group PLC

Lgo Energy

Today’s update from Lgo Energy (LSE: LGO) is yet more upbeat news flow for investors and highlights that the company continues to deliver positive results from its Goudron field in Trinidad. Indeed, Lgo has reported that well GY-667, the fourth well of the current 30 well development programme, has been successfully recompleted in the upper C-sand reservoir.

It is now flowing at a stabilised rate of 350 bopd (it had been as high as 1030 bopd – the best performance from any of the wells that have been drilled at the field) from a 186 feet net oil pay and Lgo will continue to utilise restricted flow rates in order to manage long term reservoir potential. This is because the Goudron field has never had wells that have produced at such high levels and the company is keen to preserve the oil bearing formations from being over produced.

In addition, Lgo has announced that it is in the process of making an application for a new 5,000 barrel sales tank at Goudron so as to increase sales capacity following ongoing positive well results. This is because current sales capacity is only expected to be sufficient until the third quarter of 2015, with total production from Trinidad currently exceeding 1,000 bopd and Lgo expecting further increases before the year-end.  

Clearly, the news from Lgo is positive and shows that the company is making excellent progress at its Goudron field. However, shares in the company have not reacted particularly positively and are up just marginally today, which could indicate that the market has already priced in upbeat news flow regarding the company’s near-term operations.

As such, and while Lgo is undoubtedly delivering on its potential, much of the company’s future prospects may already be priced in, since shares have risen by a whopping 481% in 2014. Therefore, investors may wish to watch, rather than buy a slice of, Lgo Energy for the time being.

Learning Technologies

Shares in Learning Technologies (LSE: LTG) are up 11% today as the market seems to be gaining interest in online education stocks, with it being seen as a potential growth area and it being a key reason why shares in Learning Technologies are up 83% year-to-date.

Of course, the market for online education is growing at a rapid rate and is already a considerable size, with it being estimated that around half of all training courses are provided digitally across the developed world. A major reason for this is the increased flexibility and lower costs than traditional methods and, with regulations becoming more demanding across a range of industries, it seems as though the long-term outlook for the sector (and for Learning Technologies) could be a rather bright one.

Indeed, the company is in the midst of an upbeat period, with it being forecast to grow its bottom line at an impressive pace over the next couple of years. For example, earnings per share (EPS) are expected to grow by 23% in the current year, and by a further 25% next year. Certainly, Learning Technologies has a rather rich rating, with its shares having a price to earnings (P/E) ratio of 37.5. However, when its excellent growth forecasts are taken into account, a price to earnings growth (PEG) ratio of just 1.1 holds much more appeal.

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Peter Stephens has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.