Uk Oil & Gas Share Discussion Threads

[moneymunch] 13/6/2016 13:09

No idea TU, but 3 x 90 day concurrent production flowtests will pay for themselves on the sale of the test oil, during which time a full horizontal production license could be obtained, and so possible full production of HH in 2017........SS and Ukog are accumulating as much as they can of the Kimmeridge, and I'm accumulating as much of Ukog as I can.....the best risk reward opportunity around imho......very little likely downside from this current bargain low and transformational upside ahead if all comes to fruition. Gl :-)

[theuniversal] 13/6/2016 12:38

£1.5 million at $50 if similar to previous flow test of 1700

[theuniversal] 13/6/2016 12:37

Moneymunch ukog flow test at 3levels would that be x £150k =£450 or one drill rules them all (horizontal octopuss)

[moneymunch] 13/6/2016 12:27

It's always been about flow rates.....they were beyond all expectations at HH and that's the reason SS and Ukog are accumulating as much of the Kimmeridge as they can, very cheaply indeed at this stage of proceedings, as they know from the data they have including the imminent reserves upgrade that the Forth coming 90 day production flowtests are very likely to be outstanding as well....they know that the Kimmeridge limestones are awash with high quality oil, the sweetest crude, and in breathtaking volumes. The journey has just begun, and the potential ahead looks to be truly transformational on their expectations of recoverable volumes. Gla holders. More good news coming :-)

[beebong1] 13/6/2016 12:21

moneymunch

You have repeatedly said MPET have free carry for flow test so only HHDL members will pay for the flow test which is 42% for UKOG unless I am mistaken.

You can't have it both ways. Either Magellan are paying or they are not and so far they have not sold their 35%. Whether they will sell with the free carry condition we do not know.

Disingenuous habit is catching as they have not doubled acreage in the Weald IMO if you look at the RNS. IMO we already have 390km2 so I'm not sure how an extra 300km2 over doubles it.

PS. IOW and Lidsey are not considered as the Weald.

[robbie1424] 13/6/2016 12:15

Well,well,well
For me it looks like they are throwing all their eggs into one basket.
They take as much as they can get then try to get the long term flow tests away.
If that comes off and they do indeed get great flow rates they can then approach bigger companies with a view to partnering up which in tern will make the Weald a very expensive average.( which again could be sold on)
They will need a big partner if it goes that way who will have the deep pockets to fulfill drilling.
They certainly think a lot of the kimmeridge.

But they need to start moving this along rather quickly and get the long term tests completed.

It's all about flow rates now as they have thrown themselves very deeply into this play

[moneymunch] 13/6/2016 11:56

Lol all in your opinion and always posting negatively on a share you're not invested.... Ukog have plenty of cash and the prospect of £1000's a day revenue from the sale of the 90 day production flow test oil expected this year....a great and strong position for any small cap explorer. Gla holders Significant potential upside ahead. :-)

[funkmasterp12] 13/6/2016 11:55

UKOG might as well take it now. In for a penny, and all that. It'll rate HH-1 horribly but that doesn't seem to matter.

[kmjs] 13/6/2016 11:50

Today's news makes me wonder if in fact MPET's 35% holding will be sold as one
lump to a larger player.

[funkmasterp12] 13/6/2016 11:03

Increasing acreage is definitely a positive, there's no debate there. Buying from MPET at a time when they need the cash is also very shrewd.

However, what isn't clear is how much cash UKOG will now need to get the oil out of the increased ground area. Whether there's £6m or £4m or whatever cash left, it's largely irrelevant as anything under £10m will disappear very quickly. You're likely to therefore see further dilution before any of the wells can go into production.

Also, engaging Nutech is the correct thing to do, but again it's largely irrelevant as UKOG still is not proven as a viable business. It only made £140k in revenues last year - that'll increase this year, but so will the losses.

I'm yet to be convinced the business is viable. I'll gladly hop on a trading opportunity but that is short at the moment IMO, not long.

All my opinion, dyor obviously.

[beebong1] 13/6/2016 11:00

Angus share of HHDL was 12% when they sold.
"Furthermore, £200,000 of the cash element will be paid directly by Angus to the Licence Operator, HHDL, to reconcile cash calls for the now completed HH-1 flow test operations. "

This suggests last flow test cost in the region of £1.66m. Whilst I think this is rather high I am no expert and we did not get a breakdown of costs.

The next flow test is 3 times longer at least as the last one didn't even reach 2 months in duration. DYOR on what it may cost with UKOG now having to pay 42%. IMO this could well be over £1m but I don't think they will advertise it.

All very nice getting the remaining % of P1916 but they do need to get the skates on as the 1st term expires in January 2017.

[gismo] 13/6/2016 10:59

Thanks but I cannot for the life of me see anything negative in this RNS. I agree there are plenty of pieces missing but it's going the right way and I'm sure SS has plenty more up his sleeve to make this a great company.

[funkmasterp12] 13/6/2016 10:52

No. As I outlined last week, I'd rather be short but I cannot be currently.

I have held before, and I have held ALBA & STG before around the news of the HH-1 spud.

[football] 13/6/2016 10:39

He will be once the drives the price down a bit more

[gismo] 13/6/2016 10:38

Funk, simple question, are you a holder?

[moneymunch] 13/6/2016 10:18

UKOG expands footprint and adds drilling opportunity in Weald basin

09:09 13 Jun 2016

This more than doubles UKOG’s net acreage holdings in the prime Kimmeridge limestone oil province.

A well could be drilled on the new project next year.
UK Oil & Gas Investments Plc (LON:UKOG) has increased its footprint in the Weald basin, in southern England, through a deal with Celtique Energie and Magellan Petroleum.

It is acquiring 100% of PEDL234 from the two companies, which each have 50% of the project.

The transaction, worth £3.5mln, sees the company add a regulatory approved drilling opportunity in the Kimmeridge which proved successful during testing at the Horse Hill project.

It more than doubles UKOG’s net acreage holdings in the prime Kimmeridge limestone oil province, the company highlighted.

Stephen Sanderson, UKOG executive chairman, pointed to the success of Horse Hill - which was flowed at a total of 1,688 barrels of oil per day in testing - and described the new acquisition as “an entirely logical step”.

"This is a transformational step for the Company and its position in the new Weald Kimmeridge Limestone oil resource play,” he added.

“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 new acreage also includes a gas appraisal opportunity, at the Godley Bridge discovery.

UKOG will pay Celtique Energie £625,000 in cash and £1.125mln in shares, and the Magellan side of the deal is on the same terms. A total of 142.6mln new shares will be issued to the sellers.

The acquisition is conditional upon the securing an extension of PEDL234, to enable the drilling of the BB-1 well. UKOG highlighted the well pad has already been built, and it will seek the remaining consents required from the Health and Safety Executive and OGA.

It is planned that the BB-1 well could be drilled in 2017.

[moneymunch] 13/6/2016 10:12

Lol wait for the report.....the majority HH players all raised similar amounts around the same time Ukog raised £400k from the warranrs which suggests this covered their share of flowtest costs imho ( UKOG share was estimated c £150k prior to the test ) ....Ukog easily have £6m plus cash in the bank.....fully funded for all of this year and beyond.....and the upcoming 90 day production flowtest test will potentially provide Ukog with a significant revenue stream from the sale of test oil. Transformational prospects and potential ahead. Gla holders; -)

[theuniversal] 13/6/2016 10:11

Not forgetting the money when the flow test are under way 90days x 1700 at 50 thats 10 above break even of 40 So do the maths

[funkmasterp12] 13/6/2016 10:03

football - completely agree.

[funkmasterp12] 13/6/2016 09:57

Erm, where does the company say cash from the warrants paid off the flow testing? And your cash flow assumptions appear to suggest no outlay whatsoever. I think you need to recalculate.

"The eagerly awaited Nutech and Xodus report will further validate the Weald's potential"

As per above, so what?

[moneymunch] 13/6/2016 09:53

Lol funky, makes you wonder why you spend so much of your valuable time on this thread....pmsl.....Ukog had £4.5m cash prior to spending £1m to acquire Angus's HH %, and raised £400k from.warranrs to cover all flow test and administration costs and therfore after today's news of a further £1.25m, which doubles their Kimmeridge sweet spot % interest and gives them 100% of the IoW, leaves over £6m cash in the bank which provides plenty for all of the near term development plans.

It's great business by SS and Ukog as they increase their % very cheaply in respect to the potential value that lies ahead, and makes them well positioned to develop into a leading UK mid cap oil producer.

The eagerly awaited Nutech and Xodus report will further validate the Weald's potential and news of HH's 90 day production flowtests and approvals expected this year will be a defining moment. Gla holders :-)

[football] 13/6/2016 09:47

The fact is they can buy every bit of land in the south-east and it won't do diddly squat to the share price until they start production and pumping oil out of the ground or at least say they are commercial fields and not fields with lots of promise

[funkmasterp12] 13/6/2016 09:33

Well, one thing is for sure, the market isn't buying the news.

I really struggle to see how Nutech will be the silver bullet the bulls are hoping for. Let's say it prophesizes a huge increase in estimated reserves - 300bn barrels, 400bn barrels, 100000bn barrels.

In my view though, so what? All the oil in the entire world could be there, but it's going to cost UKOG a fortune (and now even more) to get it out of the ground.

I really don't understand why they're buying all of this acreage now. Yes, MPET are cash strapped but really so are UKOG. They have some left in the bank (I would put the number closer to £4m based on ongoing operating/PLC costs) but that'll now evaporate quicker than you can say "extended flow test".

The market isn't rating this news because it makes it obvious more dilution will be on the way. Also, any flippers from the last placing will take what they can at c. 1.65 (hence the spike this morning and immediate sell-off).

I still would not be buying or averaging down now, or on Nutech, or on extended test news. The only short-medium term outcomes here are a buy out (which I would put at 5% probability) or further dilution (95% probability). Until Production is underway, I can't see how these shares will go up significantly at all.

All imo, dyor of course.