United Oil & Gas Share Discussion Threads

[soulsauce] 02/4/2020 15:36

Cheers cpap.

[cpap man] 02/4/2020 15:00

Please find attached Optiva’s latest Company Update Note on United Oil & Gas.



Production from the Abu Sennan concession in Egypt has now reached c.8,400 boepd (1,850 boepd net to UOG) due to the completion of the gas pipeline from the Al Jahraa field to local facilities. Consequently, production has now doubled compared to only 12 months previously. In response to the current Covid 19 pandemic, United has been able to defer key capex commitments in Egypt and Italy and is also reducing its obligations in Benin and the UK. With the company also making substantial cost savings by reducing group administration expenses, we are confident that United will be able to weather the current operating environment whilst remaining in a position to take advantage of future acquisition opportunities.



We noted previously that at least one third of United’s Egyptian oil and gas production is contracted at fixed prices. This includes a floor price of US$60/bbl for 6,600 barrels of oil per month for the next 30 months as part of the company’s pre-payment facility with BP. Additionally c.20% of Egyptian net production is gas sold under fixed price contracts that are relatively insensitive to oil price movements. We believe that this, combined with the deferral of capex in Egypt and Italy, reduction of group level administration costs and the potential for divestments will place United in a strong position to conserve cash and weather the current industry headwinds. As noted before, we feel it prudent to gauge our next valuation assessment in the context of the direction of oil prices over the next two to three months at least as the industry attempts to find a modicum of stability.



At time of sending, UOG is trading at a mid-price of 1.40p.

[xxnjr] 02/4/2020 12:48

Still 4.5/30.5 days effectively means 14.75% of oil is hedged at $60.
And 20% of production is gas "that is relatively insensitive to oil-price changes".
Combined about 30% of production is either "hedged", or insensitive to falling OP.

Moving on to "Deferral of Egyptian Capex reduces 2020 infill campaign from 4 to 2 wells, significantly reducing gross 2020 Capex estimates. Further optimisation of the Capex and Opex budgets is being considered."

All very sensible. Next well was supposed to be Al Jahraa-8 development well but will be interesting to see if they go for an exploration well instead (if drilling a second well). Would perhaps make sense to drill a well in the AEB but on one of the prospects outside of the current development areas? Hopefully get some idea once current drill ends.

[spangle93] 02/4/2020 09:35

Kind of a good problem to have but with the production increase since the deal was announced last summer, the hedging covers a much smaller proportion of the oil production (around 4.5 days' worth per month I make it), so the average cost received per barrel is lower.

[bountyhunter] 02/4/2020 07:26

An excellent RNS especially given the current global situation. Good to see the production increase and hedging in place. Shorters about to get burnt here.

[backtogo] 31/3/2020 15:58

cpap is the large holder suckers

[soulsauce] 25/3/2020 09:55

How would we know cpap when they are not saying anything?
I am assuming we are making good money from the gas production in Egypt and we have the oil hedge on some of our production but beyond that not sure.

It would be nice to have some update from the company. Hopefully the Ash gas has been connected and the latest drill is near to completion.

[cpap man] 25/3/2020 09:40

If Carlsberg did extremely undervalued shares then the like of UOG would be high up on the list!

[soulsauce] 23/3/2020 15:42

Now 7wks in to the drilling of infil well so news should be due, also gas pipeline was due to be finished.

[seans66] 18/3/2020 21:28

the guy is a demented sad troll on a number of BBs, agree best to ignore.

[backtogo] 18/3/2020 13:40

ooo so the market is wrong?oil is not falling like a stone?silly market

[snickerdog] 18/3/2020 13:39

Not much point in engaging Soulsauce !

[soulsauce] 18/3/2020 13:35

If you did some research instead of posting the same rubbish on multiple boards you would know this company has about £3m, and is making plenty of money from gas sales.

You are a pleb.

All look at this idiots posting history, tells you all you need to know about what you are dealing with.

[backtogo] 18/3/2020 13:22

0.5p incomingclose your eyes if you wantlast one out, shut the door

[backtogo] 18/3/2020 13:18

ooooo touchycaught with pants down?

[backtogo] 18/3/2020 12:38

bust soon guyssave yourselves

[backtogo] 18/3/2020 12:35

sasha sethi twitter discord uog ramper signs on dole now skint 0.5p soon

[soulsauce] 17/3/2020 15:46

You have the wrong stock moron, Sacha has nothing to do with this one.

[backtogo] 17/3/2020 14:52

1p today it looks that way

[backtogo] 17/3/2020 14:41

1p soon. Then we can send the FCA to sasha for ramping on discord.