Uk Oil & Gas Share Discussion Threads

[beebong1] 05/5/2016 12:06

In that case UKOG would have to pay 42% of any further costs and as far as I am concerned they have completed the flow test. We will differ in opinion then.

[beebong1] 05/5/2016 11:16

kmjs
Magellan had a free carry up to drilling the original well.

Anything subsequent is pay by all IMO.

I quote from Magellan;

"During fiscal year 2014, the Company executed a farmout of PEDLs 137 and 246, which contain the Horse Hill prospect, to Angus Energy ("Angus"), a privately owned UK based exploration and development Company. Pursuant to the terms
of the farmout, Angus is obligated to fund 100% of the cost of drilling a vertical exploratory well in order to earn a 65% working interest in, and operatorship of, the license."

[moneymunch] 05/5/2016 10:48

MarketsOil price rises as Canada wildfire disrupts supply

24 minutes ago

Oil moved higher on Thursday as investors focused on the latest supply disruption.

West Texas Intermediate, the US oil benchmark, added $1.36 to $45.14 a barrel as a huge wildfire raged around Fort McMurray, Canada’s oil sands hub, write Neil Hume and David Sheppard.

“Our understanding is that up to 800,000 barrels a day of production has been (or is in the process of being) shut down,” said analysts at Energy Aspects. “The situation remains fluid and further disruptions cannot be ruled out.”

Canada produces around 4.5m b/d of crude, of which 2.3m b/d comes from oil sands. Around three quarters of the country’s output is exported to the US and its refining system mainly through a pipeline system.

“Events in Canada are yet another example of what has turned out the be a key feature this year which is a sequence of unexpected supply disruptions supporting prices,” said David Hufton of PVM, a London-based oil brokerage.

On the other side of the Atlantic Brent, the international oil marker, climbed more than $1 to $45.72 a barrel.

Unexpected outages have played a part in the rally that has driven oil prices up more 60 per cent from their January lows. Analysts reckon around 2m b/d of Opec production is already offline.

That figure could rise as a dispute in Opec member Libya over the control of oil sales between competing governments intensifies.

On Wednesday the Tripoli-based National Oil Corporation, which has long handled oil sales from the country, had a tanker blocked from loading by a rival oil company set up by the eastern government.

The move at the eastern port of Marsa el-Hariga follows a failed attempt by the eastern authorities to export their first independent cargo last week in defiance of the NOC.

Traders fear a further escalation between competing governments and oil companies could create more disruptions to Libya’s already hampered exports. Production in the north African country has already sunk to less than 350,000 barrels a day from more than 1.6m b/d before the Arab Spring.

[moneymunch] 05/5/2016 10:36

This is my take on proceedings, and gives an idea of how long Nutech took the last time, although their could be several additional factors before it's released, such as increasing % interest from Mpet etc Gl ;-)

The original discovery at HH by Ukog was announced 24/10/14 but that was for the Portland only, and they had updated the market during drilling to announce they had drilled deeper through the Kimmeridge and below. They further updated the market in December 2014 upgrading the Portland discovery but it wasn't until 30/1/15 that Nutech were commissioned to make a full assessment which didn't arrive until 18/3/15 and then the significant upgrade was announced 9/4/15.

This time around, there is much more information to be analysed given the stunning flowtest data from the two Kimmeridge Limestones and the Portland, however i'm sure much of this can be crossed referenced from the original assessment, although because of the high profile of HH and market scrutinisation , they will want to make sure that their report is water tight, no doubt because the numbers are so ridiculously big....imho........but the report can't be far away.....news imminent and a re-rating more than likely!!! Gl ;-)

Way Forward 21/3/16

Given these exceptional results, the Company has commissioned Nutech to investigate a possible upgrade to the oil in place ("OIP") calculated within all 3 test zones together with engineering studies to examine possible flow rates from a horizontal well. Reservoir engineering analyses by Nutech and Xodus are also underway, and will likely result in an estimation of potential recoverable volumes.

Results of these studies will be reported shortly.

Preparation is now underway to obtain regulatory permissions to conduct extended production tests from all 3 zones at the site, followed by a horizontal sidetrack in the Kimmeridge and a possible new Portland development well.

[funkmasterp12] 05/5/2016 10:35

Could be tomorrow, could be next year. No-one knows.

[fission453] 05/5/2016 10:26

When is the nutech report due?

[moneymunch] 05/5/2016 09:45

Ditto mypension, a bit like us accumulating as many shares as we can for the same reason. Gl ;-)

[mypension] 05/5/2016 08:38

If UKOG is sitting on one of the best onshore oil find for decades, why would they not want MEPT's 35%??? Go for it! One has to be brave and take some risks to score big.

[football] 05/5/2016 08:04

Maybe some news next week after today's Londons mayor's election where neither candidate wanted to talk about London's new runway in fear of losing votes

[beebong1] 05/5/2016 08:01

Not sure about anyone else but personally I would like a HHDL or HH perspective about what is going on rather than SS talking for UKOG as we don't know what the other players in the consortium think.
Anything they do now has to be funded 35% from Magellan and 65% from HHDL which means 27% from UKOG. The 270 day testing won't break the bank nor will 27% of funding for the horizontal well (depending on length). Magellan will need to dig deeper than UKOG but I can't see drilling new well until next year at the earliest so even they should be funded.
At least only having a few production wells in the next few years will give them time to sort out logistical problems of getting the oil to the refinery in sufficient quantities.

[theuniversal] 05/5/2016 06:50

@7.9 million. For mpet adjusted after transaction

[theuniversal] 05/5/2016 06:48

Well well. Looks like magellan have pulled a fast one be it confirmed in june. $7.9 in assets no debt or liabilities. Like i said before they may sell a small part of their % between 5 - 15% MAYBE . Part cash and shares. I feel they have manoeuvred into a crafty position to expliot what is gonna be a a resonable size chunk of oil in the next 1-3yearsTime to top up maybe?http://ir.magellanpetroleum.com/all-sec-filings#May 4th report

[moneymunch] 05/5/2016 06:02

SS's Master Investor Presentation

[moneymunch] 04/5/2016 22:10

That was last week's presentation and an excellent one at that by SS. The mention of a Major was in reference to the eventual full development of the Weald Basin ie multi, multi-pad well sites and even a rail point for exporting oil to Fawley by rail etc, and was not in reference to the immediate development plans for the HH horizontal multi-pad well, which is easily funded by Ukog alone and no doubt already costed and planned. Gla longs.....big news coming imho.

Ps funky, Mpet have also mentioned a merger or similar business arrangement, which could be easily facilitated by Ukog and on Ukog's terms. Although another 10% will do, but preferably the full 35%.

[funkmasterp12] 04/5/2016 21:35

htTps://youtu.be/6h2HxOe8WLI25 mins in. "Maybe we'll have a major" or "maybe we'll do it ourselves".Or to put it another way, "we don't really know yet. But we need money as we don't actually make any at the moment so buy our shares".

[funkmasterp12] 04/5/2016 21:29

I just watched SS's latest advert (sorry, "investor presentation") on YouTube. He makes it patently obvious at the end that UKOG needs a serious amount of cash or - laughably - to try and flog it to a major. Before he helpfully reminds us "oh no wait I'm in it for the long term!".They can't afford MPET. It's a pipe dream. Stick to proving this well is commercial before creating even more cost looking elsewhere on the basin. It's madness.

[moneymunch] 04/5/2016 20:58

pps maybe Ukog have plans to merge or similar with Mpet to gain access to Nasdaq etc, someone mentioned this possibility a week or so ago????

Eliminates Magellan’s debt, preferred stock and most of its current liabilities

Focus on recovering shareholder value by realizing the value of existing assets
–
Monetize the rights to the Mereenie bonus payments
–
Monetize interests in Weald Basin licenses and Horse Hill well
–
Explore the possibility of a merger or similar business transaction

[moneymunch] 04/5/2016 19:07

ps

Exchange Agreement is subject to shareholder approval

Closing expected June 2016

[moneymunch] 04/5/2016 18:58

4/5/16

Magellan - Overview of the Exchange Agreement

"Monitize interest in the Weald Basin Licenses and Horse Hill Well"

[moneymunch] 04/5/2016 13:50

The reason why it hasn't happened yet is because Mpet haven't had their meeting yet for shareholder approval.....another 10% for Ukog would be great but the whole 35% would be better. Gl ;-)


courtesy of JS490 on Lse a few days ago that fits nicely. Gl ;-)

JS490

Here's my current take on the situation:

Magellan is currently working on a deal with a separate financing company to get rid of a large part of their liabilities in exchange for various US-based exploration/development interests.

Reading through MPET's filings, and just reading between the lines, I don't think anything major is going to happen in regards to any of their other interests until this deal is completed. If nothing else, it's needed just to clarify their current situation. Plus, there may be restrictions on the types of deals they can do, just based upon agreements already in place.

There's going to be a special meeting called, but no date has been given. A preliminary proxy has been filed with the SEC, and this should be followed up by a definitive proxy filing, and a firm date for the meeting.

Note, this deal needs shareholder approval, and I can tell you that there's some shareholders that aren't too happy about it. Some people like these US properties, and generally aren't too happy with the company shedding off assets left and right.

Personally, as an MPET shareholder myself, I'm in favor of it, as I really don't care about these particular US properties. For me, it was always about the Horse Hill/Weald interests. I think it still should go through, but we'll just have to wait and see for sure.

So I think the next step to look for now is the actual date of the meeting. Then, should the deal go through, I would expect to see increased activity on other fronts.

[funkmasterp12] 04/5/2016 13:20

Apples and oranges. Buying 7% is very different to buying 35%. Buying another 7% is also very different.

There's a reason they haven't done it yet - it doesn't add up.

[moneymunch] 04/5/2016 12:48

LOL Rubbish!!!



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.