Uk Oil & Gas Share Discussion Threads

[football] 23/2/2016 09:33

wetdreams good post I'm probably taking it the wrong way you want it to be taken but the first line in the report is very encouraging for us seeing that we are not involved with offshore exploration


"Investment in new offshore oil and gas projects is collapsing despite cost-cutting efforts, according to a report."

[moneymunch] 23/2/2016 09:30

Re-rating in progress. ...gla :-)))

[datait] 23/2/2016 09:25

This is excellent news for UKOG

[niceyman1] 23/2/2016 09:23

Gonna start moving up now!

[datait] 23/2/2016 09:21

Wont be long before this is 10p and above.

[wetdreams] 23/2/2016 09:21

Hot off the bbc press

[ibug] 23/2/2016 09:17

Either way it seems that the flow testing is going very well then, the definitive results will make interesting reading.

[datait] 23/2/2016 09:13

There were 2 tankers going in this morning.

[ibug] 23/2/2016 09:12

The company are seeking to have the licenses fast tracked by the government; they have been holding ongoing discussions. Development funding looks set to come from a recent lineup of institutional investors----SO NO PLACING ANTICIPATED.


UKOG is looking pretty darn good right now.

[ibug] 23/2/2016 09:09

Another oil tanker truck spotted at the Horse Hill Site this morning---that make six since last Friday where at least four were carrying oil and two water---the flow test is looking really good.

[simon8] 23/2/2016 09:07

Forwood... agree that this is the tip of the iceberg (my take is it will be bought out by a major) in terms of development costs, this is onshore with close proximity to existing infrastructure, storage and refining. The main costs will be the well pads, new wells and lifting and pipelines to link flow of oil to existing infrastructure. It is not going to be massively expensive. My big concern is this gets stuck in red tape for next 12 - 24 months.....

[forwood] 23/2/2016 08:59

Wetdreams - you say: 'to get it into production will cost 10s of million.. question is the flow rates and Ukog 20% of hh lets say 100 bopd'

Effectively they are already in production at the current flow rate from one half inch pipe, giving their share c 100bd. But the game plan will be to ramp up production with horizontal wells to produce 2-3000 bd a day.

The partnership would need to invest for that. I've no clear idea how much but I doubt it would be multiples of £10m, given what has been achieved to date. And UKOG share will be c 20%.

Having proved the concept, I expect cash for HH partners will not be a problem, either as loans, a new investor coming in, or an outright sale.

I recently demonstrated the value here on present assumptions of recoverable oil in place and PoO in a range 1.8p (lowest estimate) to 9p (best estimate). That was just for this one well, ignoring all their other interests. Others thought I was being too conservative. They may be right. Valuing this on oil at $33.50 is too conservative.

If you were hoping to get in more cheaply, you've missed the early rise, but it's not too late to catch the main rise, as we've only just begun to scratch the potential. It will still be substantial. I wouldn't even think of shorting it until it exceeds 9p.

[simon8] 23/2/2016 08:54

I am assuming they will announce the next two zones separately.... so two RNS', if that is correct then we should be due the second zone FT about now assuming they tested over the weekend which I assume they did as their licence permitted that.
Patience is virtue, but sometimes you just can't wait!
GLA

[spanishshares] 23/2/2016 08:37

Simon8 - Thank u

[simon8] 23/2/2016 08:35

It is basically saying the company is now worth a lot more and therefore the share price will reflect that by going up. I wouldn't worry about it - it is just people saying share price on the rise because of the HH results to date.
The market will find its value once the info, results and development plan are out there, it isn't going "re-rate" over night to a mid cap!!!! This is a long game

[datait] 23/2/2016 08:34

Market makers trying their best to get your shares folks.

[datait] 23/2/2016 08:33

More Tankers just turned up at the site.

[spanishshares] 23/2/2016 08:25

Excuse my ignorance guys but what exactly is a Re rating & is that a good/bad thing for UKOG?Thanks

[moneymunch] 23/2/2016 08:16

Re-rating definitely in progress.....massive upside on more good flow data from the next Limestone. GLA ;-)

[moneymunch] 23/2/2016 08:10

In Friday's interview, SS stated that they would be tesing the Upper Limestone in the next few days, and so news anytime now. GLA ;-)

[beebong1] 23/2/2016 07:39

forwood

When you consider Magellan have only spent about £50k maintaining the licence and hold 35% of HH they are clearly the winners here. The money is in the licence!
They farmed out 65% to Angus for a free carry who then farmed out the majority of their stake for over £5m.
UKOG are in for over £2m, ALBA for over £1m and the rest about £600k each. RGM and EVO paid over the odds for their % IMO.
IMO the way forward for small oilies is to win the licence and then farm out for a free carry.
Not many fields have suspended producing even with the low POO. I think I have read about one up north somewhere so it's not all doom and gloom.

How do you value MPET's worth? It will all depend on when or if they want to sell IMO. I'm pretty sure it will be more on completion of flow testing though.

[moneymunch] 23/2/2016 06:55

The Ernst and Young report/study will be a defining moment for all invested at HH....gl ;-)

Hopefully UK Oil & Gas Investments PLC's (UKOG) activities in the Weald
basin of south-east England have raised awareness of the potential for
significant tight oil production to help assist UK energy security.

If successful, the impact could be similar to that of shale gas. Following the drilling of UKOG's Horse Hill well in 2014, world renowned analysts Nutech estimated, in October last year, that there are 124 billion barrels of tight oil in the ground in a 1,261 sq mile area of the Weald.

Approximately 80 billion barrels are in Kimmeridge clay. The first extraction target lies within two limestones in the Kimmeridge, which Nutech calculate to contain 19.5 billion barrels of oil in the ground.

These are serious numbers from a serious business.

Ernst & Young (EY) will soon publish a study which assesses the potential
economic impact and benefits of tight oil extraction from these Kimmeridge
limestones. EY show that production could contribute between 4% and 27%
of the UK's current oil consumption with an associated total value contribution to the economy of £7 to £53 billion over the life of the project.

The Chancellor will be particularly interested to read that tax contributions
could be anything from £2-18 billion.

[moneymunch] 23/2/2016 06:49

But wetdreams , you were hell bent on destroying the old thread of any worthwhile debate with Lydnem and 12bn et al, by incessant repetitive repetition, a tactic that you're well known acrosss Advfn.