Uk Oil & Gas Share Discussion Threads

[funkmasterp12] 15/6/2017 08:49

How much test oil can you sell in a matter of days Ed? Assuming it's even viable? Let's say you sell 5 days worth (call it 5000 barrels) - that's c. £250,000, or about £150,000 profit.

And yes, I suppose the £1.4m for flow testing can be put back in if the BB-1 well isn't viable but it's not exactly stuffing the coffers, is it?

[edgein] 15/6/2017 08:41

Funk,

Wrong, test oil will be sold not flared. Again wrong, if the well is dry firstly they won't be completing if for production, secondly there won't be a production testing period.

Regards,
Ed.

[funkmasterp12] 15/6/2017 08:37

I don't think that £1.4m for flow testing refers to anything more than the initial tests though Ed. It checks out as it appears the initial HH-1 tests cost about the same (pro rata). They might take back a piddly amount in revenue but this would barely cover wages.I think SS has slipped up there imo. That basically indicates to me the company will be running on fumes again after the initial flow test. If BB-1 runs over budget or, worst case, isn't viable - they could be in trouble.

[edgein] 15/6/2017 08:19

Funk,

I hope that you realise that the 10 weeks of testing if necessary provides 10 weeks of incoming cash. If flow testing isn't necessary it doesn't cost a penny. Dry well costs £3.6m, tested well costs around £6m. Incoming free cash (lets take their estimate of 1000bopd on test at $45/brent and use $18/bbl costs). I'm being a little low on brent and a little high on cost oil. That's almost $1.9m in revenues which pays for the testing of the well. Follow that up with long term testing of HH-1 which would generate significantly more over a 6 month period. Means the company is still funded for the foreseeable future. May they raise some at elevated prices if the well is successful, I would imagine so.

Regards,
Ed.

[funkmasterp12] 15/6/2017 08:19

To my knowledge only WH Ireland and Dowgate (can we call them a broker?) and they're both house / paid PR. Cenkos recently came on but I don't know if they've initiated any coverage. The previous Dowgate notes were utterly meaningless PR fluff with the usual ludicrous price target (I think it was about 14p!).

[moneymunch] 15/6/2017 07:13

Lol funky, you pathetic creature......you didn't answer my question to you yesterday....."where do you think Ukog's share price will go on confirmation of free flowing oil in commercial recoverable volumes at BB and HH" ????

[funkmasterp12] 15/6/2017 07:02

Er. From Drill or Drop:"Stephen Sanderson said site construction, carried out by the former operator, Celtique Energie, cost £1m. Other costs were: drilling the well: £3.6m; completing the well to allow for future production: £0.8m; and flow testing: £1.4m."That £6m has quickly gone up in smoke then. £3.6m on the drill alone?! No wonder the company was at pains to stress it was in budget in the last RNS.Ed - I think you'll need to get your calculator back out sir.

[moneymunch] 15/6/2017 05:45

UKOG‏ @UKOGlistedonAIM 13h13 hours ago

BROADFORD BRIDGE: Fact, not fiction. Full list of drilling fluids published hxxp://goo.gl/OqL6r7

[moneymunch] 15/6/2017 05:37

Up Up and Away......a mad dash for shares today.....Drilling update and EA flowtest permit imminent!!! Gla holders.....Good news coming....... On and Up!!! ;-)

[moneymunch] 14/6/2017 18:24

21m late reported buys.....Ukog's share price is all set for some upward action on the imminent update from BB. Gla :-)

[moneymunch] 14/6/2017 11:45

1. Rigger965‏ @Rigger965 2h2 hours ago
Looking forward to the transformational drill results at #UKOG. Proof of concept @DavidLenigas. Game changer for all players and UK gov.
Direct message
David Lenigas‏ @DavidLenigas 12m12 minutes ago
So am I. It should have a good shot at being really good.

[mikeygit] 14/6/2017 10:24

Please guys lets not respond to the likes of Funky, it only gets folk on their high horse which achieves nothing, only stress??!!

[moneymunch] 14/6/2017 09:54

Lol desperate funky numptie....the potential transformational returns are on confirmation of free flowing oil in commercial recoverable volume...what do you think will happen to Ukog's share price if this is confirmed????

[funkmasterp12] 14/6/2017 09:44

"I haven't seen anyone promising transformational gains yet"

!

You must have most of the posters here on filter then.

[edgein] 14/6/2017 09:28

Funk,

I haven't seen anyone promising transformational gains yet. If BB-1 comes in as commercial then you may indeed get the gains that you're after. Likewise if HH-1 test, sidetrack and HH-2 goes well later this year you may also get the gains that you're after. But there is risk in both, the former being the most risky of course as HH-1 did give record onshore UK flow rates when tested. But then again they're drilling on a potentially regional play (yet to be proven, but BB-1 could aid that) with KL being shown in both Brockham and HH in substantial volumes. So you never know, some of these exploration wells occasionally hit commercial oil. I'm punting 2% of my porty on that fact when balancing risk vs reward. Perhaps in a few weeks I'll have wished I had punted more, but we'll see. I'll not wish I'll have punted less as if BB-1 is non-commerical I'm more than happy to sit on these until HH-1 activity kicks off.

Regards,
Ed.

[moneymunch] 14/6/2017 09:22

Drilling update imminent, as the drill nears the first kimmeridge limestone, EA flowtest permit expected "very shortly " and target depth expected in a couple of weeks and HH permit approval for the eagerly awaited extended flowtests expected in 3 weeks...Significant upside ahead on positive drill data and permit news...and the detractors are desperate to deter discourage and undermine at such an exciting and defining period...pmsl....Gla holders...get ready for some serious upside. ;-)

[rayrac] 14/6/2017 09:18

Not as pathetic as you funky my boy!🖕ㇿ9;🔜

[moneymunch] 14/6/2017 09:16

Lol and there lies the opportunity for transformational returns....if it was guaranteed then Ukog's share price would already be in double figures....the risk reward looks firmly in our favour....we know the Kimmeridge interval contains breathtaking numbers of the highest quality oil....we know it flowed beyond all expectations at HH and if the flow is replicated at BB then the share price will re-rate and re-rate...a multi-bag in the making on confirmation of free flowing commercial recoverable volumes at BB and HH....Gla holders Onwards and Up!!! :-)

[rayrac] 14/6/2017 09:15

And some in Spain?!👉7999;😜

[funkmasterp12] 14/6/2017 09:15

Marky - that's the mentality of a few here sadly, promising "transformational" gains whilst actually selling out whenever there's a spike (usually at a loss) and dumping into another stock and hoping all over again.

It's pathetic, quite frankly.

[mikeygit] 14/6/2017 08:27

marky---i should think everyone is aware of that---all shares are a gamble--some put their money on the horses, some the dogs or the Lottery AND SOME invest in shares!! GLA

[markycrispy] 14/6/2017 07:45

If you believe in the long term prospects for UK Oil and Gas then invest a small amount and sit tight for a few years.If you are over investing on hope the drilling report will be great you are just gambling.There are absolutely no guarantees this will be successful first time