Uk Oil & Gas Share Discussion Threads

[funkmasterp12] 16/6/2017 10:33

The drilling of the well was forecasted at £3.6m with other costs on top. Not the whole thing."Stephen Sanderson said site construction, carried out by the former operator, Celtique Energie, cost £1m. Other costs were: drilling the well: £3.6m; completing the well to allow for future production: £0.8m; and flow testing: £1.4m."Flow testing, based on HH-1 costs, refers to the initial tests and not extended.So effectively the money is almost gone after the initial drill and flow test if the above stays accurate. It may be under budget as of today but no indication as to how much, not even a %.

[ileeman] 16/6/2017 10:32

Big move after 1.2p breaks. 1.8p target.


free stock charts from uk.advfn.com

[edgein] 16/6/2017 10:12

Funky,

No one is admitting the cash is running thin as it isn't. Firstly the well is currently under budget. Dry well costs were budgeted at £3.6m. If its non commercial around half of the recent placing is in place for HH testing. If by some chance BB-1 is commercial and requires testing then they'll get 10-14 weeks of revenues from that production, that should lead nicely into HH-1 long term production testing, perhaps even overlap with it. The entire test will cost £800k for well completion and £1.4m for the entire test period. That's within UKOG's current budget, especially as the drilling to date is under budget. Do the management need paying and paying well? Yeah I'd say so given what they've achieved in the weald to date. If BB-1 comes in they should get a significant bonus! Its potentially a game changer/company maker.

Regards,
Ed.

[funkmasterp12] 16/6/2017 09:15

Ed - what you describe is essentially my bull case for UKOG. I don't disagree with anything you've said there. The issue I have is the management of the finances and the company itself. UKOG have consistently failed imo to raise significant funds (and quality of funds) that tell me there's anything in this other than existing from one bucket shop placing to the next. All the while you have a CEO paying himself a huge salary whilst consistently destructing value for holders.If the recent low was the recent low then I doff my cap to your timing sir. But with SS now effectively admitting cash is running thin yet again imo, that may not be the case.

[edgein] 16/6/2017 08:56

Ileeman,

Not very much, CEO suggests each of these wells are worth £40m to UKOG, we've one at HH-1, so there's £40m when you factor in HH1-z and HH-2. Current cap is £34m. In a week or two we could have two of these wells and a regional KL play which would open up pontentially hundreds of well locations over UKOG's acreage in the play. Its certainly not risk free though at this point, BB-1 as it stands is exploration. It may however reveal oil saturated fracture KL from next weeks coring though. We'll find out shortly, after BB-1 the company will test HH-1 this year and also plans are to drill Holmwood which is a stones throw from Brockham which found significant oil saturated fractured limestones and clays.

Regards,
Ed.

[ileeman] 16/6/2017 08:49

I bought in significantly today. Placing overhang was an issue but with the amount of volume over the weeks you would think it is cleared or about to clear.

Can see a big jump in share price as people scramble to get in before results. At 1p what is priced in?

[edgein] 16/6/2017 08:42

Funk,

Don't forget that they already have tested the best performing well in UK onshore production history at HH-1. Outcome of BB-1 won't change the outcome of HH-1, HH1-z nor HH-2, or Holmwood either. So if you want to include the company's past you should recognise that they've not had an unsuccessful KL well to date, in fact a spectacular one so far (their neighbours ANGS seem to have repeated that at Brockham). So given the company's past I'm quite excited about their future, not only BB-1, but also further activity this year at HH and Holmwood.

Regards,
Ed.

[moneymunch] 16/6/2017 08:40

EA flowtest permit expected "very shortly"....Significant upside on confirmation. Gla Tick Tock Boom!!! :-)))

[moneymunch] 16/6/2017 08:39

Pmsl...the bears were predicting sub 0.8p.....how wrong they were!!! :-)))

[moneymunch] 16/6/2017 08:34

Up Up and away!!! Gla holders transformational potential upside on confirmation of free flowing limestones. :-)

[funkmasterp12] 16/6/2017 08:34

Ed - IMO it's entirely relevant, the company's modus operandi to date has been to raise money from its shareholders. Unless that changes, why would the fortunes of the company change? One well does not a company make, especially when it's cash balances are constantly on a knife edge.Mikey - I'm sorry if you don't like what I say, but rather than question my motive you are free to debate any point I raise. There's plenty of examples of stocks where Bears have been silenced because the Bulls don't like it, only for the company to collapse for the exact reasons the Bears said it would. My opinion could easily change and I could happily reinvest in UKOG. By at the moment questions need to be asked about how the company is operating. And no, I clearly am not talking the price down before anyone accuses me of that (as if what I say makes a difference anyway!)

[edgein] 16/6/2017 08:24

mikey,

They're a dime a dozen on ADVFN.

Regards,
Ed.

[edgein] 16/6/2017 08:23

Funky,

I'm not too bothered by the past, its not relevant it never makes old Ed any money. The future does though and I knew you'd be delighted with the well on schedule and UNDER budget today. As I stated couldn't be going any more smoothly. Hopefully it'll continue in this vein next week with the coring operations. Also good to see the CEO suggesting that reserves on this play could see UKOG into mid cap territory that will be exciting for investors able to pick these up at around £30m cap.

Regards,
Ed.

[mikeygit] 16/6/2017 08:10

Funky--I have no desire to filter anyone, if I feel p---d off by anyones comments I just ignore them. However --one last comment to you, is that I find it very odd that you seem to get a kick out of pulling, seemingly, positives posts and comments, to bits. Seems to me you get a buzz out of posting 100% negative comments about a share you have no interest in any more. What a waste of time???

[rayrac] 16/6/2017 08:08

Stupid comment from a stupid fellow.

[funkmasterp12] 16/6/2017 08:03

"Things couldn't be going any more smoothly so far for the company"Other than the share price being over 80% down from its peak, the ballooning number of shares in issue and a history of discounted placings to bucket shops?

[edgein] 16/6/2017 07:54

Always nice to see operations on any well on schedule and UNDER budget. Things couldn't be going any more smoothly so far for the company. Coring scheduled for next week! Interesting articles MM that the CEO thinks these wells will open up similar reserves to mid-sized O&G companies. A mid cap would look well here. :)

Regards,
Ed.

[moneymunch] 16/6/2017 07:44

Stephen Sanderson, UKOG's Executive Chairman, commented: 5th August 2016 following Pedl234's ( Broadford Bridge ) acquisition.

"This is a transformational step for the Company and its position in the new Weald Kimmeridge Limestone oil resource play. The transaction more than doubles our net acreage position and potential recoverable resource base in the most prospective part of the play, all at a very reasonable entry price. The transaction makes UKOG the leading player and acreage holder in Kimmeridge oil and a significant player in the UK onshore oil industry.

The acquisition is an entirely logical step after the very positive flow test at HH-1. It fits perfectly into our overall 2-year strategy to de-risk and push the Kimmeridge play to the point of commercial development. The drill-ready and permitted BB-1 site, along with the permitted Holmwood-1 well immediately to the north-east, should, by the end of 2017, give us the opportunity to demonstrate the replicability of the HH-1 Kimmeridge results over a more significant area of the Weald Basin. In parallel, we will be pushing HH-1 towards first oil with planned long-term production tests, appraisal wells and 3D seismic.

The potential "cherry on the cake" from this acquisition is the opportunity to appraise the conventional Godley Bridge gas discovery 30+ years after its discovery and, most importantly, at the same time to test the underlying Kimmeridge limestones through a single dual-purpose well. We look forward to Nutech's Kimmeridge oil in the ground and the Godley Bridge net gas resource findings and their impact upon the Licence's value shortly.

2016 sees major progress in the Company's exciting journey to establish the Kimmeridge Limestone oil play and its economic potential for the south-east and the UK."

[moneymunch] 16/6/2017 07:38

Gas to boot!!! Gla holders.....the detractors can't stand it.....;-)))

The Portland at BB is gas.....Ukog's objective on current drill is to target and test the Kimmeridge, and to re-appraise/test the gas discovery within the Portland next year.

Godley Bridge

Godley Bridge lies within onshore licence PEDL234, as per Broadford Bridge.

Technical studies by Xodus and UKOG show that the Godley Bridge-1 ("GB-1") Portland gas discovery likely extends into the north of PEDL234. More importantly, Nutech's petrophysical analysis of the GB-1 well also indicates that significant oil potential lies within the Kimmeridge underlying the Portland gas accumulation.

The Kimmeridge section encountered by the GB-1 well is thicker and more deeply buried than at Horse Hill, indicating the possibility for greater oil generation per unit volume of Kimmeridge shale than at Horse Hill. The Godley Bridge discovery also lies along a pronounced east-west faulted structural flexure, some 15 km in extent, and which is a prime candidate for the development of an associated significant fracture-network within both limestones and shales. Wet gas and oil shows were recorded throughout the Kimmeridge in GB-1 as is the case at the HH-1 discovery.

KOGL has started work on the selection of a well site and an associated planning application to drill a well in the first half of 2018. The well would both further appraise the Portland gas discovery and test the deeper KL1 -KL4.

[funkmasterp12] 16/6/2017 07:18

"Under budget" - Ha, I wonder if they read the discussion here. Given SS was happy to give the numbers in a rampy interview, he could at least have the courtesy to say how much under budget. Even if it's as much as £1m it doesn't really change much as they'll still be nearly out of cash by the time EWT starts, if those numbers given by SS were correct.

[funkmasterp12] 15/6/2017 13:58

Mikey - I've been a holder of UKOG previously when HH-1 spudded.

You have the option to filter me if you wish.