Uk Oil & Gas Share Discussion Threads

[robbie1424] 27/4/2016 12:51

Your all getting too far ahead
1, they have bought a further stake in HH - positive
2,they need government approval to flow test for the 90 days
3,they may take a further stake in mpet- if they do they will have to place to meet drilling costs

Until we hear that they can flow test long term this is going no where.
Then and only then can we all start dreaming of they get great flows.

It's a punt from us and the bod but they have the qualifications to assess the data and gleen other vital information from other companies that have dealt with tight oil plays.

We can argue all day about what's right and wrong but until gov give the green light it's all speculation.

They may well be sitting on billions bo but it's still whether it it can be extracted in large quantities to make it pay.
Also if it can they have an issue to get it to market which the bod will have to inform pis of their plan of action.

But first flow tests.

This is going to take a while to sort out at HH before we know some real facts about the play and that also goes for the bod as their is still a huge risk associated that it can/or cannot be extracted

The big positive is the bod have taken the option to increase their % stake so they are positive about the outcome.

If they take mpets further stake it would show they are very confident but still very risky unless they know things that the market/us don't.

[beebong1] 27/4/2016 11:52

The only Director who holds shares is Kiran Morzaria

23-Oct-15 Notification of Holding Trade Notifier Information for UK Oil & Gas Investments Kiran Morzaria 0 0 4508178

www.directorsholdings.com/company/UKOG/

They need to declare any dealings including share schemes and options.

[moneymunch] 27/4/2016 10:26

Lol....let's wait and see what Nutech and Xodus have to say, and what the 90 day production flowtest concludes.....Schlumberger have already stated 124 billion across the Kimmeridge and so it looks like DL and SS have been correct in their assumptions. Didn't you lot say HH wouldn't flow and we would be lucky to get one barrel a day from the Kimmeridge.....pmsl...gla longs :-)

[funkmasterp12] 27/4/2016 10:20

Not envious of him at all. I strongly object to his methods and the way he appears to push the truth somewhat with investors. Remember the 100bn barrel claim? (made by SS actually, which I note in your PR spiel above moneymunch he has now revised down rather significantly).

People believe AIM stocks are the way to riches. They are - but not for you.

[moneymunch] 27/4/2016 10:19

Brent still heading north at $46.70, all bodes well for a stellar reserves upgrade on the expectations of oil heading back to $50 plus plus this year. Gl :-)

[hazl] 27/4/2016 10:12

good posts guys....there is certainly constant interest here anyway....positive or negative.....!

[gismo] 27/4/2016 10:05

Precisely, ticking up again slowly, I am eager to see the recovery rate!

[moneymunch] 27/4/2016 10:02

Lol....ah, the classic "Why aren't the Directors buying shares" pitch from someone who is incessantly negative and appears to be a bit envious and jealous of DL......lots of reasons as highlighted by Simon8, DL still holds shed loads and we don't know who excercised their c £400k worth of warrants recently ( 2 batches) and we don't know how many more to come or what other other share incentives are in the pipeline.

[moneymunch] 27/4/2016 09:50

Calm before the storm Gismo, news due now, maybe Rns tomorrow if share price movement suggests. Gl :-)

[funkmasterp12] 27/4/2016 09:43

Ah, the classic "closed period" argument. This may be true, but very (very) rarely ever is. And even if it was, they certainly haven't been in a closed period for 12 months!

And given Lenigas is apparently swanning round on yachts and his associates have done rather well out of his other failed ventures, I don't believe the "I don't have the money guv" argument.

Also, the last CEO I saw talking about stock prices and market reactions to PR puffery so openly was Rob Terry. And we all know what happened there.

[simon8] 27/4/2016 09:32

Why aren't directors buying shares - could be a number of reasons:

1. They're in a closed period as there is price sensitive deal / information they are dealing with so can't buy;
2. They'd love to buy but haven't the hard cash and the Mrs won't let them mortgage the house!
3. They see it as a major risk and as employees of company already have enough exposure;
4. They've filled their boots already on cheap options so don't need to risk real cash.

[funkmasterp12] 27/4/2016 09:16

"Ok Funk so what if we buy Mpet and SS has a JV in the wings? He said he has many that are throwing money at him?"

Throwing money at him but not buying any meaningful levels of stock? And on that subject where are the director purchases, given we're apparently staring at such a bargain?

[gismo] 27/4/2016 09:13

Quiet day today mm

[moneymunch] 27/4/2016 09:10

No idea, but they have got neighbouring Holmwood where the geology matches HH, and as we've already seen with the acquisition of Angus's 7%, it makes sense to increase their interest in their existing exploration prospect, especially following the outstanding results at HH, which would suggest and make perfect business sense that further acquisition would be for some of Mpet's 35% imho Gl :')

[beebong1] 27/4/2016 08:28

"Consolidate and increase licences holding in Weald Basin – control the Kimmeridge Oil play" is one of the bullet points from KIMMERIDGE LIMESTONE OIL PLAN TO 2018.

Can anyone explain why UKOG did not bid for the license area to the east of PEDL 246 which surrounds it on two sides which was available in the 14th round?
Admittedly it is away from the sweet spot but PEDL 246 was acquired before the bidding process ended.

[gismo] 27/4/2016 08:00

Ok Funk so what if we buy Mpet and SS has a JV in the wings? He said he has many that are throwing money at him? Would you be happier then.

[moneymunch] 27/4/2016 06:29

Brent heading for $47 plus today?????? and an Rns coming?????? Gla longs ;-)))))

[moneymunch] 26/4/2016 21:44

Brent's just shot up to $46.25 and rising......Gla longs ;-)

[moneymunch] 26/4/2016 19:42

Pmsl?????????? ;-))))

The rational of increasing Ukog's interest at HH and taking another 10% ( for a couple of £million or so ) or all of Mpet 35% , is clearly explained by SS in the recent acquisition of Angus. Gl ;-)



21st April 2016

UK Oil & Gas Investments PLC (LON:UKOG) Chairman and Executive Director Stephen Sanderson caught up with DirectorsTalk for an exclusive interview to discuss the Angus Energy acquisition



Q1: Now Stephen, yesterday you announced the acquisition of Angus Energy's stake in Horse Hill, what was the rationale behind the acquisition?

A1: Well to be perfectly honest it was a bit of a no-brainer for us, this is arguably a flagship asset with the Gatwick Gusher in it. I think when you look at the recent flow tests, it was clearly a very significant well, a combined rate of almost 1700 barrels a day from the three zones, likely the highest rate from any discovery well in UK onshore and those rates importantly show us that it's commercial from a flow rate point of view. So clearly we wanted more of it, we want more of this very exciting time particularly for the Kimmeridge limestone play and the Kimmeridge limestone reserves hopefully that we are looking at because that's very new and exciting and potentially very significant. So we've moved from just below 20% equity to 27%, so that's a big jump, so now we have a much more material stake in this exciting time. I think it's also worth saying that where we've stated that we are very committed to the Kimmeridge limestone oil play over the basin and this is really just one part of our strategy to increase our licence holding in that Kimmeridge limestone play and really to make us the most prominent and largest player in the Kimmeridge limestone so as I said it's a very simply rationale really.



Q2: How do you see the acquisition in terms of value and impact to UK Oil & Gas Investments?

A2: In terms of value, the acquisition is all about adding potential recoverable resources, from that point of view the value of the transaction is exceptional. I'll explain a little, if you go back we have had various analyses done by Schlumberger and Nutech and also looking at analogues in similar type of rocks that produce oil in the United States and globally. We were looking at recoveries from the considerable oil in the ground, now I'm specifically focussing on the Kimmeridge limestones, Nutech calculated that we had a billion barrels of oil in the ground over these licences, the Horse Hill licences which cover 55 square miles so if you look at that the sort of average recovering was, then about 5%, looking for the 27% we now have we are looking at net to us of 14 million barrels or so. The important take away from the Horse Hill flow test is that not only are the higher rates but the very low viscosity oil and the fact that it flows very freely, I think we could be looking at considerably better than 5% recoveries, maybe even up to 10% which you see in some of the analogous rocks say in the Austin Chalk in the United States. We could be looking at now 27% of 14 up to 28 million barrels net to us now thats very significant but in terms of this acquisition, we acquired another 7.8% in the overall licence and that in using those ranges in recoveries, that equates to sort of 4-8 million barrels net to us. Now we paid £1.8 million for that so when you look at that in terms of cost per barrel of potentially recoverable resource, that's very cheap, it's sort of 23 cents to 45 cents a barrel, that's very very low which is good if you're acquiring.

I think people should understand that when we move this project forward in the next 6-18 months where we actually prove that we have commercial resources and reserves here that value per barrel is going to move significantly upwards so adding a lot more value to the company and to these assets. Looking at other assets in the basin and looking at other assets in the world which have very similar sort of rocks and performances to our Horse Hill Kimmeridge limestones I think it's not beyond the realms of possibility that when we get to proven probable reserve we'll be looking at in the range of $5-10 per barrel net present value so you can see that having paid only cents on the dollar with something that ultimately that has value in dollars up to $10 a barrel is a very good move and if people stay in for the long term, and long term being 6 months to a year to 18 months which is not that long, then they could see very significant returns I think. This is a very typical oil exploration story so I have to say I'm a little surprised at the market's reaction yesterday that we added 37% of our flagship asset, 37% more potentially recoverable reserves and we didn't see too much movement in the stock so maybe people should scratch their heads a little more.

[funkmasterp12] 26/4/2016 18:48

Buying MPET now would be like me going to buy a flat in Mayfair. It's probably "cheap" in that its value is probably 20% less than it has been, but I would overstretch myself and not be able to afford the mortgage.I don't get how you can't see that?

[moneymunch] 26/4/2016 18:05

Correct, and it still stands this week.....the detractors were screaming that a £10m placing was imminent directly after the flowtest in Febuary if you recall....lol......but instead Ukog bought another 7% of HH, and still have well over £3m in the bank.

Buy more of HH while it's cheap....when it's proven, only BP, Esso and the other Major's will be able to afford it. Gla Longs Exciting times ahead!!! ;-)

[robbie1424] 26/4/2016 17:58

Money munch- u said that last month.
Cash gets used daily.

Funky- spot on
Play with what they have, prove it up, get some income coming in then build.

[moneymunch] 26/4/2016 17:46

Lol...Ukog have over £3m cash, enough for there known development plans for 2016 and no doubt their share of costs for production flowtesting. The perceived fear of a placing is probably holding back the sp, although it's now been over a week where the share price has held the same c2p, which could be a clue for any likely placing level.....88e who are well behind the curve in relation to Ukog's progress at HH, flowtesting, free flow of oil etc , and had a massive placing last week at a similar level as Ukog's share price and was well received.

A placing by Ukog would obviously increase the number of shares in issue, an extra 400m to raise £8m for instance, but any downside would be negligible and short lived imho, as investors who might have been worried about a placing, would then flood in and push the share price higher, to a fully funded Ukog with increased share of a multi-billion barrel prospect , especially on the back of a stellar reserves upgrade from Nutech and Xodus.........Bring it on, LTH's have nothing to fear. GLA Longs ;-)