Uk Oil & Gas Share Discussion Threads

[dgunn222] 15/11/2017 07:51

"Testing will now move directly upwards into the overlying KL2 limestone, and then to the primary KL3, KL4 and KL5 limestone-dominated reservoir objectives, where hydrocarbons were recovered to surface from recent BB-1z testing and BB-1 coring operations. "

[spandy83] 15/11/2017 07:51

Funkmaster fair enough and it looks like the MMs are assuming a poor reaction.It's remarkable how many mis-reads of the RNS I'm seeing on these boards though.90% discount? Come on! Ridiculous.370bopd from KL1...? No! That was drilling fluid not oil. KL1 needs stimulating so it's ruled out for now.Main thing for me here is that UKOG are funded. We are dependent on KL2-5 flow rates now but we always were. I wish they'd started with the more promising zones, mind.

[atino] 15/11/2017 07:50

...long last...it’s here 📉📉📉📉8525;

[oakville] 15/11/2017 07:50

2p by the end of the week?

[atino] 15/11/2017 07:50

Toot toot 🙌

“he Loan attracts 0% interest and may, at the sole discretion of the Investors, be converted into new ordinary shares 😱 in the Company. The conversion price is the lower of either a share price of 8 pence, or 90% of the Company's lowest daily volume weighted average price ("VWAP") during the five days prior to the conversion date. The Loan is convertible in tranches of not less than GBP250,000, with a limit of GBP3 million per quarter, unless otherwise agreed by the Company.

The Loan includes a provision that, for as long as any portion of the Loan is outstanding, neither the Investors nor any of their affiliates shall hold any net short position with respect to the equity of UKOG.

🏂🏂🏂🏂7938;🏂Ԃ01;📉🌎;🌎🌎🌎

[guesswhosback] 15/11/2017 07:49

Could get my 3.75 today

[gazza102] 15/11/2017 07:48

Shorters very worried here.

[judijudi] 15/11/2017 07:48

Spandy,
Your Correct
:)

[judijudi] 15/11/2017 07:46

loglorry
Cement squeeze done
They are moving straight away to test the other Zones

[spandy83] 15/11/2017 07:45

Judijudi... I would recheck your discount if I were you...It's at 90% of the VWAP ... NOT... 90% discount to the VWAP.

[barnetpeter] 15/11/2017 07:44

Death spiral....5p is going to be history.

[judijudi] 15/11/2017 07:42

Must have been really desperate for cash to do that 90% discount deal
Presumably not even enough in the coffers to complete the testing which hopefully would have been good and therefore got us a better deal

[pjj71] 15/11/2017 07:42

A big mark down because its very bad news..

Non commercial well and spiv funding.. what dont you see???

[loglorry1] 15/11/2017 07:41

Death spiral in place. Means that's the only funding they could get in reasonable size. Easy to get around the short selling restrictions.

KL1 and KL2 not commercial.

No Mention of the cement squeeze which I think still needs to be done.

Obviously not much faith in other zones or else why raise now and not wait.

[7767] 15/11/2017 07:40

Why the big mark down for the opening share price I can't make sense of apparently good news?????

[judijudi] 15/11/2017 07:39

Spandy,
I would re check your 10% discount if I were you to 5 day VWAP

[funkmasterp12] 15/11/2017 07:38

It depends how the market reacts Spandy. Let's not forget there is a ton of froth in the current price and no notable institutional positions.If PIs get nervous and start selling, the additional pressure from this loan could have consequences on the SP/MC, prolonged over 12 months.With this now hanging over, IMO the only way UKOG can appreciate now is for good flow testing news. They've not had a good start with KL1 - you're basically buying hope with hope already in the share price.Good luck to all holders, as they say...

[amr2017] 15/11/2017 07:36

I think this a great deal, Ukog have now proven the Weald basin is one connected huge oil play of national significance.

The shorters can scream and shout all they like. There's billions of barrels of oil and ukog are fully funded.

[spandy83] 15/11/2017 07:32

Great news, fully funded.People need to ignore the death spiral comments... the loan is a good deal. An investment company has agreed this loan on the basis of the current market cap (£175m), offered 0% interest repayment (which we may exercise as we choose & if prolonged testing delivers revenue); and can only convert at 10% discount to 5 day VWAP at £3m a quarter cap. This isn't a death spiral as the total £10m is only ~6% of today's market cap.We are now funded... excellent.The KL1 news isn't a big deal; wasn't a primary target. Lots more to come.

[funkmasterp12] 15/11/2017 07:29

Erm, I think you need to read the whole thing again AMR...

[amr2017] 15/11/2017 07:27

If the other 8 zones flow at 370 barrels per day then that's a very commercial well, I expect flow rates above 4 k per day now.

Cool.

[funkmasterp12] 15/11/2017 07:27

I note SOLO introduced a similar scheme yesterday.

[moneymunch] 15/11/2017 07:25

BB-1z Operational Update:



Following the successful removal of the original well completion assembly, optimised sequential flow testing has commenced at the Company's 100% owned BB-1 and 1z exploration discovery, located in licence PEDL234. The new testing programme, formulated in conjunction with the Company's well-test consultants in Houston, Texas and in the UK, encompasses up to nine individual test zones throughout the Kimmeridge Limestone KL1-KL5 reservoir section, each of around 50-100 ft vertical extent. It should be noted with Horse Hill only testing KL3 and KL4, BB-1z will be the first Weald Basin well planned to test discrete KL1, KL2, and KL5 reservoir zones. As previously announced, the first phase of optimised testing utilises much of the well's existing 1047 feet of perforations.



Two short initial tests over secondary shale-dominated fractured reservoir objectives within the KL1 were performed. The interbedded shale and limestone stringers returned gas to the flare. In the second test, completion fluids were returned to the well at an initial natural flow rate of over 370 barrels per day, accompanied by a wet gas blow. Although these two KL1 zones are hydrocarbon bearing, the Company concludes that sustained commercial flow rates from the shale dominated KL1 could likely only be obtained via reservoir stimulation beyond the scope of its existing regulatory permissions.



Testing will now move directly upwards into the overlying KL2 limestone, and then to the primary KL3, KL4 and KL5 limestone-dominated reservoir objectives, where hydrocarbons were recovered to surface from recent BB-1z testing and BB-1 coring operations.



Flow testing is expected to continue until the end of 2017 to establish whether the extensive connected natural fracturing seen in the oil-bearing KL2-KL5 primary objectives can deliver flow at commercial rates and volumes.



About BB-1:



As previously reported, BB-1 was purposely drilled in a location where no conventional hydrocarbon trapping mechanism within the Kimmeridge reservoir section is evident. Therefore, in the Company's opinion, the presence of flowing, light Kimmeridge oil and associated solution gas at BB-1z provides proof that the Kimmeridge at Broadford Bridge contains a significant continuous oil deposit of around 1400 ft gross vertical thickness.



The near identical Kimmeridge reservoir parameters and geology seen at BB-1 and 1z and the Horse Hill-1 Kimmeridge oil discovery, in which the Company holds a 32.435% interest, some 27 km to the northeast, demonstrates that the Kimmeridge oil accumulation is also laterally extensive across the Central Weald Basin and, consequently, a nationally significant oil resource.



UKOG, as the largest licence holder in the Kimmeridge oil accumulation's prospective area is well positioned to exploit this extensive oil resource.





Stephen Sanderson, UKOG's Executive Chairman, commented:



"This £10 MM funding, the largest in the Company's short history, ensures that our stated drilling and testing programme, spanning four wells over the next 12 months, is fully funded.



The programme has key regulatory permits in place, is designed to further appraise the wider Kimmeridge continuous oil deposit plus the Horse Hill Portland oil discovery. Its overall aim is to provide stable commercial production and cash flow by early 2019. A positive programme outcome will give the company a solid base for further drilling and development of the significant untapped Kimmeridge resource-base underlying its extensive licence interests.



The flow testing at BB-1z continues to be a key element of the Company's wider programme and we remain highly encouraged by the natural flow of further hydrocarbons to surface."

[funkmasterp12] 15/11/2017 07:25

Yes, but it's still at 90% of VWAP so it's basically a guaranteed 10% for the loaners - they'll just dump faster (up to 3m worth per quarter).Why not just place? Surely they could have gone to Primary Bid or the like and let PIs participate if sourcing funds was an issue. Why put such extended pressure on the SP?

[amr2017] 15/11/2017 07:24

The loan has 0% interest, repable once Ukog are in production. The previously unknown kl1 has flowed oil naturally to the surface. The finance is at a premium to the share price 8p.

Ukog are fully funded until production, shorts now have no position here, goodbye shorts.