United Oil & Gas Share Discussion Threads

[costax1654x] 13/1/2020 09:37

Previous testing took 4 months

[marunam2] 13/1/2020 09:00

Is it a strategic delay in the lack of a test result in Egypt ?

[costax1654x] 11/1/2020 22:12

Nope!I have shares in it!I am hoping for an extra 500 bopd from Egypt

[soulsauce] 11/1/2020 11:49

What evidence do you have for that? Has the company Rnsd it - no.

May be you are hoping to get the share price down to 3p.

[costax1654x] 11/1/2020 07:51

Jamaica is gone now....disappointing

[costax1654x] 10/1/2020 20:48

Back to 3..to gap up after on the charts!But who knows

[the manini] 09/1/2020 15:10

Good post fbrj all I would add is that if I had a pound for every time I've seen a small aim stock rise 40% in ONE day let alone a year I'd be a rich man.

[soulsauce] 09/1/2020 13:32

Great post fbrj, apologies for mixing up rights issue and open offer.

[fbrj] 09/1/2020 13:29

ss - just a couple of points. I was responding to your original comment about a rights issue. You now mention an open offer - which is completely different.

In a rights issue you apply for a fixed number of shares (and/or sell nil paids if available), in an open offer you can apply for as many shares as you want (although you might get scaled back if over subscribed) but no nil paids available. Different mechanisms. In a rights issue new shareholders can come in but only if they buy nil paids from existing shareholders and then have to buy the rights shares. In an open offer - only available to existing shareholders. Of course an open offer could be combined with a placing (to bring in new shareholders).

My guess is that the mechanism actually used (ie a placing) was because it was felt that the brokers could provide more certainty of raising the cash needed, compared with relying on existing shareholders providing the vast majority of the funds.

It will be extremely disappointing if after this huge exercise, the time involved and the costs of it and the massive dilution existing shareholders have all suffered - if the share price does not get back to the suspension price in pretty short order. Otherwise one might question whether the whole exercise was worth it in the first place! The share price is now basically where it was in September 2017. BL has really got to deliver over the next 12 months. At a minimum I would want at least 25% over the pre suspension price of 4p - so 5p but that is 40%+ from here!

[costax1654x] 09/1/2020 12:30

Anyone noticed ORM ?Gold asset in Salamanca and 5 mil ? Cash,no debts, for 3 mil mcap!

[the manini] 08/1/2020 17:38

Maybe try the finance director? He probably had more to do with putting the deal together anyway

[soulsauce] 08/1/2020 16:52

No it was Manini, just answering fbrj. Promise ;-)

I already have done, no response.

[the manini] 08/1/2020 16:29

"Right that is my last word on the subject"It clearly wasn't and I suspect more will follow.Why don't you put your points and grievances directly to BL and see what his response is? It's what I would do if I felt as aggrieved as you clearly do.

[soulsauce] 08/1/2020 15:35

fbrj some fair comments in there.

BUT you make your assumptions at 3p.

Conversely I would say what if the raising had been set at the original 4p requiring only 119m shares before the sweetener was dangled in front of them at 3p.

How many PI's, given we were being sold a 'transformation', would have been happy to stump up at 4.5p (probably most holders average) or even 5p or 6p? We will never know I suppose just as your with your sinopsis.

But here's an idea on the assumption that an open offer would not have provided them with enough money:-
The original raising was being set at 4p before greed set in, we have been led to believe. Instead of jumping to the bait of the extra money at the lower price why didn't they just put the extra bit they took out to open offer if they thought they needed it enough to sell existing shareholders down the river for it.

I am sure there would have been enough appetite for that slice and you would have saved a total of 69m shares (so a total of 550m in issue), been fair to all and not have given RKH an even better deal. And with less shares in issue as the company improved you would have benefitted even more.

[fbrj] 08/1/2020 14:16

The rights issue route might appear attractive but you have to remember the share structure. There was only 1 holder who held 3% or more of the existing share capital and in any event he didn't subscribe for any new shares. This must mean that the vast majority (if not all) of shares are held by PIs.

UOG issued approx 160m new shares at 3p, with existing share cap of 345m shares. In other words in (say) a discounted rights issue at 3p the offer would be 1 for 2. Lets say you held 200,000 shares valued at £8000 (at suspension). To apply for the RI you would have to put your hand in your pocket for £3000 cash. I just don't believe this would have happened (how many reading this thread would have done so on their existing holdings?).

So, if a substantial part of the issue was left with the underwriters - they would be busy exiting right now and probably depressing the price below the issue price.

[soulsauce] 08/1/2020 11:57

Hope indeed.

[hope67] 08/1/2020 11:54

SSthey should of done a rights issue they had time with the suspension

[rumobejo] 08/1/2020 10:10

time to buckle up

[costax1654x] 08/1/2020 09:55

Bought some Kefi and Uog today

[soulsauce] 08/1/2020 09:02

Manini I am not going to labour on the point as I have moaned about it long enough I think and I do agree with much of what you say.
I understand markets are tough, but we were not approaching them to raise to keep the lights on or for some risky exploration drilling, this was for a transformational asset. It's amazing how much more difficult the market became when the instis waived more money under their nose, which is strange in itself. The markets are tough but more money was offered but at a scalping, no just greed at existing shareholders expense.

I don't think it is too much to ask when the company are taking on a tranformational asset for it to return to the market at least at a small premium, certainly not some 30% less.

If that is going to be the norm' what is the point being invested prior to advertised corporate action? If we had all taken our money out ahead of the suspension the share price would have crashed but we didn't because we believed in the company, the assets and the management and I feel rather let down that not enough thought was given to existing holders.
If we had taken our money out ahead of the suspension we would have all been on a level playing field probably at 1.5-2p on re-admission. (Hindsight is a wonderful thing).

Unfortunately the company did not follow the Serica route.

Right that is my last word on the subject.

[herb clark] 08/1/2020 08:23

3.58 to sell

[the manini] 07/1/2020 23:59

SS They explained how difficult the market was to raise money and other companies I'm involved with bear this out with similar raises at large discounts or projects having to be mothballed until the environment improves finance wise.In that environmentment it makes some sense to take the extra cash while it's on the table. I think this management have aims far beyond most retail investors expectations or timeframes. I think if you take even a one year view the share price will be multiples of where it is now let alone 2 or 3 years down the line. They're extremely ambitious and if you're a true long term investor do you honestly believe 3p or 4p is gonna make much difference in a couple of years considering where they want to take this? My average is 4.95p, there'll be dozens of opportunities to top up, top slice, average down along the journey and make a shed load of money.There's going to be plenty of news flow and I fully expect double figures in H1 if not Q1 so let's focus on the positive. News flow, production, further exploration with an 80% COS, a drill decision on Jamaica, further possible ties with BP, production at Selva and who knows what else! :)

[the manini] 07/1/2020 16:58

Yeah we're gonna get that ss until the placing shares are cleared but there's clearly buying interest and positive news flow aplenty, so get those cleared and we should be good for a nice sustained rise through 2020