Solo Oil Share Discussion Threads

[datait] 14/2/2017 08:29

UKOG volume will now start to increase watch this space folks market makers have been consolidating and now time to move up.

[datait] 14/2/2017 08:23

Looking very good UKOG is another one about to take off, news expected by 23rd

[edgein] 14/2/2017 08:23

Mill,

Sounds like you're a very poorly researched "holder". I'll answer your questions even before you edited. TDCC pays $3.07/Mcf as well as the pipelines. Yes the national 800MMcfd cap line is just 20km or so away. Solo own just a little less than SOU at 25%. The jvp pays the drilling costs, but then they already have production from KN-1 to help out, possibly soon production from HH as well. They warrant it as they've just drilled their best well to date exceeding expectations in terms of pay and pressure. 3.5m of pay at NT-1 flowed at 20mmcfd, it'll be interesting to see what 30m flows at NT-2. Its coming soon. Its not high risk exploration either, its appraisal drilling. As JB and NR commented in a recent interview, NT-1 commercial in its own right and it and NT-2 could be developed in months rather than years.

Regards,
Ed.

[millse] 14/2/2017 08:09

Edge, who is going to buy the gas and what price can they get?
Are they close to any pipelines?
How much they own?
Who's paying for drills etc?

I just noticed solo in the biggest risers a day or 2 ago, I've not kept up to date with progress, would be nice for a rerate of the shares should it warrant it.

[datait] 14/2/2017 07:58

Its now solo time to move on up 10p this year very possible if not more.

[edgein] 14/2/2017 07:53

You better dust off your SOLO as they've the potential for multi TCF of free flowing gas (no need for mechanical stimulation of this reservoir), due to the fact that its coming in exceeding expectations at this point. Have you seen the size of this prospect from the AEX presenations. Good also that they can develop NT-1 and NT-2 in the near term for cash flow.

Regards,
Ed.

[edgein] 14/2/2017 07:51

O/T,

SOU looks like an Italian discovery priced in already. No way to they can justify an asset valued at £1.6bn for Morocco approx based on a couple of wells, that's multiples of ENQ and PMO and they've a lot more than that.

Regards,
Ed.

[datait] 14/2/2017 07:44

Next zip up this morning folks.

[millse] 13/2/2017 18:37

Edge, sou has got potential to multibag on what it's already found in morocco, Italy will be a bonus?
I've still got a small amount of solo from years back gathering dust, I sold most with a good profit but left a small amount riding.
I hope they do well and recent news has been good, time will tell.

[greatfull dead] 13/2/2017 18:18

These 3 trades of 3,128,803 @ 0.6390p @ 16:14:20 + 3,405,513 @ 0.6405p @ 16:30:02 + the 3,415,070 @ 0.6440p @ 16:24:11 look like they were worked by the MM.

Just thinking out loud.

Enjoy the evening all.
GD

[edgein] 13/2/2017 17:29

O/T,

Mill, OK granted they've a 1 in 5 shot Italian expo target and about 4Bcf of 2P. Not as good as HH nor Arreton in my book. But I'll give them that.

Regards,
Ed.

[datait] 13/2/2017 16:12

will break 400m easy should see a surge in the morning at the open.

[greatfull dead] 13/2/2017 16:10

10,197,552 is a very serious buy.

GLA,
GD

[c31161] 13/2/2017 16:09

Be nice to finish on a high

[c31161] 13/2/2017 16:07

Nice10m buy just gone through

[millse] 13/2/2017 15:55

Edge, sou own a lot more than 27% in morocco, and it's alot of proven gas (very likely multi TCF)
I wouldn't call sou hype, but some might.

[c31161] 13/2/2017 15:31

See if we can have a late rush and break 400m volume

[edgein] 13/2/2017 15:20

The Lung,

To get a £500m cap here similar to SOU, they'll either need significant hype or significant 2P. I'd rather they get there with significant 2P, I've a good idea how SOU managed it though. :) NT-2 and the potential of NT-3 could start that process though. If NT-3 delivers and exceed expectations we'll be well on our way.

Regards,
Ed.

[thelung] 13/2/2017 15:18

Nice. Thanks

[edgein] 13/2/2017 15:18

The Lung,

Yes that would be the equivalent, don't see it happening even if NT-3 is spectacular. Would need to be on NT-10 or so imo. I'm sticking with this one as long as they keep delivering. And we'll follow this up with some HH action too.

Regards,
Ed.

[thelung] 13/2/2017 15:13

Ed. - 10 times current value to get on par with SOU, if SOLO's % comes near to 300 Bscf?

SOU have 300 to 500 Bscf of original gas in place (gross) but they have 9-31TCF internal unrisked estimates, some of which must be priced into their £500m mcap?

[edgein] 13/2/2017 14:45

Whoppy,

True, he said it could add £50, £60, £70m to the cap here, before the well came in above expectations in terms of thickness and reservoir quality. I'm just giving an example of what a company with a similar asset is valued at. Although I don't see them wanting to try mechanical well stimulation on this well like they did with SOU or they could end up in Mozambique. :)

Regards,
Ed.

[whoppy] 13/2/2017 14:41

Sure. It's what Neil Ritson said though. It could be more considering the appraisal well is much better than expectations. It could be £200m depending on reservoir quality ,Pressure, flow rates, oil etc.

[edgein] 13/2/2017 14:31

Whoppy,

That would still look tiny compared to some. SOU 27.5% of their discovery, SOLO 25% of Ntorya. SOU capped around £500m valuing their asset in Morocco with a couple of wells around a staggering £1.6bn undeveloped. We're about to test our second well and as the partners have said this can be developed within months not years with these few wells. That could provide SOLO and of course AEX with significant cash flow to gather more seismic and plan for NT-4. NT-2 will have opened up other low risk targets within 1-2kms of these first two wells. It depends on how much they want to bring to market. Lets see how much they get from NT-2 first I guess.

Regards,
Ed.