Uk Oil & Gas Share Discussion Threads

[beebong1] 17/6/2016 09:20

moneymunch
Again you are basing what has been said by another member of HHDL which is not what UKOG have said.
Octopus concept is for 2500 bopd and at no stage have they gone higher for a pad.
I would love to know where I said UKOG had no long term investment potential.
I stand by saying that I can see no long term prospect as loads of issues are unresolved, unclear or based in land cuckoo.

[moneymunch] 17/6/2016 09:17

Lol let's wait and see what Nutech and Xodus have to.say first, and what response we may get from UK Govt. Post Brexit, and then look forward to permit approval news etc...significant and sudden upside potential at anytime as expected positive newsflow is delivered. Gla :-)

[robbie1424] 17/6/2016 08:54

Money- u are getting well ahead of yourself.
Nothing can happen and no value attained until they flow test then and only then can you start getting excited if they achieve good flow rates.

Your buying just potential at present.



Let's just wait and see if they can even achieve a flow test this year.

[moneymunch] 17/6/2016 08:38

Lol The "scale of the problem"......ie too much oil....what a problem to have, and you were saying a month or two ago that Ukog had no long term investment potential.....pmsl.....I'm sure Esso would be more than happy to run several lines from all of the well sites and lay another line along side their Gatwick/Purfleet pipeline if it was in their interests. Can you imagine the clamour for shares if It was announced that Esso had bought out Mpet's 35% HH interest.....BOOM TIME X 10!!! GLA holders....Nutech/Xodus soon.....pre_ Brexit or post......:-)

[beebong1] 17/6/2016 08:23

IMO
One "Octopus" site would require a 10" pipeline 24/7/365 to transfer the oil, storage and tankers to take to a refinery if the Purfleet option was used.
Imagine a 30" pipeline for multi-sites. This is the scale of the problem they need to deal with logistically and cost wise. Don't run before you can walk.

[moneymunch] 17/6/2016 07:02

ps and Ukog have over 100% interest in their newly acquired block adjacent to HH and 30% of neighbouring Holmwood amongst others....both planned to be drilled next year.......breathtaking prospects and potential value.... gla ;-)

[moneymunch] 17/6/2016 06:51

Courtesy of argus1 on Lse

re that Dowgate Report.

They value RMG's 5% share of HHDL (3.25% HH) at £77.4m.

That would value UKOG's 42% of HHDL (27.3% of HH) at £650m

[moneymunch] 17/6/2016 06:18

This is what Stephen Sanderson wants to do for Horse Hill and the Weald Basin...courtesy of DL ;-)))



One company hit pay dirt with a technological advancement that promises to propel the U.S. to energy superstar status.

Recently, energy company Encana (NYSE: ECA) completed a mind-blowing 51 wells on one pad site to drill gas from an entire canyon in Parachute, Colorado.

Think about this... Encana's pad site is 4.6 acres in size above surface. However, using its multi-well pad drilling technology, it was able to access a full square mile of underground resource.

That's 640 acres underground from a 4.6-acre above-ground pad site.

Apart from the pad site, the entire canyon remains green and untouched as if nothing is going on but the company will drill more gas from this site than it ever has from any previous well pad.

That's just one drilling site. With the Octopus, multiple buried wells can be accessed.

Once it was proven how powerful this technology is, major oil producers began quietly bypassing traditional drilling methods in favor of the Octopus. Last year, Devon Energy (NYSE: DVN) drilled 36 wells from a single pad site in the Marcellus.

The Octopus is quickly becoming the norm and for good reason..

[moneymunch] 17/6/2016 06:17

Lol it's totally irrelevant if you agree or disagree, but no surprise nevertheless........ Horizontal octopus drilling means production flow from all three limestones at the same time, in all directions.....therefore the figure of 27,000bopd could be highly conservative. The most exciting point is the growing likelihood and confidence of just how much oil could be recoverable and the importance they give to the eagerly awaited Nutech/Xodus report. Truly transformational upside potential from this bargain low. Gla holders...Keep accumulating. ;-)))

"Further technical analysis from industry experts such as Nutech or Xodus is required to understand the reservoir, the level of production that can be achieved over a longer period, horizontal well potential, annual depletion rate, etc. Such data would help estimate a net present value for the immediate Horse Hill prospect."

[beebong1] 16/6/2016 22:43

Totally disagree with those figures. You don't drill a horizontal well through two layers IMO. It will either be the upper, lower or possibly a third yet to be tested. You don't get the drill to snake up and down by about 150 feet! Horizontal means horizontal.
Repeatedly quoting the total bopd over all 3 layers is also misleading IMO as the layers would never be flowed at the same time due to the difference in pressures at the different levels.

[moneymunch] 16/6/2016 21:25

Analyst Comments on Horse Hill
-
The project provides Regency with a high impact oil project that could deliver considerable upside, a factor reflected in our valuation.

Further technical analysis from industry experts such as Nutech or Xodus is required to understand the reservoir, the level of production that can be achieved over a longer period, horizontal well potential, annual depletion rate, etc. Such data would help estimate a net present value for the immediate Horse Hill prospect.

Flow rates achieved from the recent test of over 1,688bopd at Horse Hill are on the face of it impressive. Obviously more work is required to understand the full potential of the prospect and licence area. In particular we need to know what the flow rate would be over an extended period, as the flow test was only performed over a short period of up to 8 and a half hours.

The test was based just upon a single vertical well. A horizontal well could increase flow rates on the Kimmeridge by 3 to 5 times. If up to 4 wells could operate from the existing platform at Horse Hill, then production may reach around 27,000 bopd (1,365 Kimmeridge x 5 horizontal x 4 wells).

The addition of other well site locations on the Horse Hill licences could further increase production rates. A high production rate would require oil to be piped out rather than trucked.

The construction of an underground pipe that links up with Esso’s existing pipeline that currently runs from Gatwick to Purfleet could be achievable if an agreement is sought and secured with the oil major.

[beebong1] 16/6/2016 19:28

So much for it not dropping below the placing price. It's going to be an interesting 6-12 months.

[forwood] 16/6/2016 16:29

wow, some seriously good value here. Not been this low since just before the flow test results confirmed the strike

[forwood] 16/6/2016 15:48

Funk, there was also a disclaimer on Nutech's original research report on the Weald oil, which your pal TW said meant it was meaningless. Didn't stop it from being true!

[beebong1] 16/6/2016 14:45

The Esso Pipeline System has three branches running from the Fawley refinery. A pipeline carries refined products to the Avonmouth terminal near Bristol. A second one runs to Birmingham and the third line takes fuel to the West London terminal from where it can be further transported to Heathrow. A branch of this also runs to the Purfleet oil terminal via Gatwick airport.

www.telegraph.co.uk/sponsored/lifestyle/new-journeys/11087746/how-fuel-reaches-pumps.html

Already in use 24/7/364 and would take ages to clean between product and crude and get rid of the hazardous waste. We didn't call crude thick black sh1t for no reason!

[moneymunch] 16/6/2016 13:42

Excellent indeed nash81 and even suggests a potential agreement with Esso to use their pipeline from Gatwick to Purfleet because of the likelihood of so much oil. Gl :-)

ANALYSIS RATIONALE

Most of our valuation, some 96% of the total arises from Regency’s Horse Hillstake.

We have followed the same approach for valuing Horse Hill, as previously used for other quoted project partner companies. We value Regency’s interest in the licences at an estimated risked £77.4m, based upon the latest technical reports by renowned international experts such as Schlumberger, recent flow test results and various other prudently projected assumptions.

[funkmasterp12] 16/6/2016 12:43

Let's not forget the caveats:

"This document is non-independent research and a marketing communication under the FCA Conduct of Business Rules. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of the investment research"

"DCS act as Broker to Regency Mines PLC. DCS private clients and institutional contacts hold shares in Regency Mines PLC. "

Or to summarize another way: it's largely useless.

[nash81] 16/6/2016 12:35

there is excellent valuation for Horse Hill in RGM broker report yesterday.

it gives excellent hindsight of value worth for UKOG

[beebong1] 16/6/2016 11:55

breakingfinancenews.com/investing/dowgate-capital-disclosed-lonrgm-regency-mines-plc-supporting-its-price-target-to-gbx0-today/5388/

About Regency Mines PLC (LON:RGM)
Regency Mines plc is a United Kingdom-based small cap natural resources exploration and investment company. The Company focuses on oil and gas, and mineral investments, exploration and development. Its segments include Investment in RedRock Resources plc, Other investments, Australian exploration and Papua New Guinea exploration. The Company has projects in Sudan, Australia, Greenland and the United States in various minerals, and oil and gas. The Company operates in the United Kingdom, Australia, Papua New Guinea, Sudan and Other locations. Its Motzfeldt license is located in southern Greenland, approximately 30 kilometers from an international airport at Narsarsuaq. The Company also has an interest in a graphite project in Western Australia. It invests and manages a portfolio of investments with exposure to Nickel and Nickel processing technology, gold, manganese, iron, base metals, and and oil and gas development.

They haven't even mentioned Horse Hill and yet Dowgate are the Broker for them!!!!! Just goes to show; never trust anyone.

[beebong1] 16/6/2016 11:16

forwood
I agree but I use the money I make from AIM shares to buy ftse 100 ones.
I have no time for TW or many of the bloogers like BMD or Doc Hoiliday. In fact I also take little interest in what the financial experts say unless I follow up with some research. It has worked for me.
Even DL has used TW to promote shares e.g. REM in the early days.
When a company pays someone else to write a report for them you really do know what to expect; it is never going to be bad!

[funkmasterp12] 16/6/2016 10:51

No, not at all. I'm bearish on UKOG and I do agree with the point about the acquisition news being favorably spun and the placing going to flippers.

I'm still not convinced that despite the OIP and the flow tests etc etc etc, that there's a viable business here.