United Oil & Gas Share Discussion Threads

[source] 29/5/2020 09:32

Good spot Marunam2. Regards

[cpap man] 29/5/2020 09:00

This is just standard accountancy reporting marunam2

[marunam2] 29/5/2020 08:47

Hmmm ?

Going Concern

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Chairman's Statement and the Strategic Report.

The Directors' recent forecasts demonstrate that the Group will meet its day-to-day working capital and financial commitments over the forecast period (being at least 12 months from the date the financial statements were approved) from the cash held on deposit and planned oil and gas revenue from Abu Sennan in 2020, as further opportunities arise and the portfolio continues to grow in line with group strategy. This base case forecast is inclusive of the lower oil prices that are forecast well into 2021, primarily as a result of the global oil supply and demand dynamics and the COVID-19 pandemic. The Group has been able to defer a significant portion of the budgeted capital expenditure programme for 2020 and taken other measures to reduce the running costs of the business, which combined will protect the Group cashflows. Management have also considered some additional downside scenarios including a case where a significant contingent consideration receipt relating to the Crown disposal due in late 2020 is not received within the forecast period, and if realised would place doubt on the ability to fund the business for 12 months from the current cash reserves and projected oil and gas revenues from Egypt. Some mitigating actions have been considered in the event that the downside scenario was realised and include further divestment of the portfolio, potential restructuring of debt arrangements and a further equity raise.

The Group has sufficient funding to meet planned financial commitments in relation to operational activities and a level of contingency, and as a result the directors continue to adopt the going concern basis of accounting in preparing the financial statements. However, in the downside scenario discussed, and without the successful implementation of mitigating actions, a material uncertainty does exist that may affect the ability of the company to continue as a going concern. The consolidated financial statements have not been adjusted for the scenario where the Group is not a going concern

[cpap man] 29/5/2020 08:45

CEO, Brian Larkin, reported:

"I am pleased with the significant progress that the Company has made throughout 2019. At the beginning of the year we outlined our intention to complete a transformative acquisition and to build a full cycle oil and gas company. We have achieved both goals with the Rockhopper acquisition, which has already exceeded expectations. In addition to the continued drilling success on the licence, which has seen production grow rapidly and contribute positive cashflow despite the current pricing environment, we are glad to have built new partnerships with BP and Rockhopper.

Beyond the Rockhopper deal we have made excellent progress across our portfolio. We have delivered shareholder value through operations, geological assessment and through acquisition and divestment.

Covid-19 has caused unprecedented disruption to our world and to our industry. United's management has acted quickly to protect our business and to ensure that our strategy is appropriate to these circumstances. While we are currently adopting a prudent approach, this is with the objective of ensuring that we maintain a pipeline of opportunities for future development and emerge from this challenging time in a position to take advantage of opportunities which may arise. "

[soulsauce] 29/5/2020 08:00

Yep all reads very well, seems our production is probably now above 2000boepd.
Reading between the lines I would say that there may be one or two more acquisitions once the o&g sector improves.

[bountyhunter] 29/5/2020 07:12

A positive set of results. Production strong and costs well under control.

[xxnjr] 29/5/2020 07:09

Results out. some highlights

o The ASH-2 well has continued to outperform expectations, with current gross production from the well remaining above 3,000 bopd. Plans are now in place for further development of the gas at the ASH field, with this project due for completion before the end of 2020

o Gas from Al Jahraa was brought onstream in March, adding an average 650 boepd gross, and reducing flaring on the asset

o Results from the ES-5 development well, which spudded in February, are expected to be announced shortly

-- All Egyptian production, including new gas supply, has positive operational cashflow even at current low market prices

o Low operating costs at Abu Sennan of around $6.5/bbl provide solid operating margins even at low price levels


o The Company's pre-payment facility with BP provides downside price protection by effectively hedging 6,600 bbls of oil per month at $60/bbl until September 2022

o c.20% of United's net production is gas which is sold under fixed contract that is relatively insensitive to oil-price changes
=====================

Great that ASH-2 still performing very well.
ES-5 results to be announced shortly (possibly next tues when United Energy Group of Hong Kong hold their AGM?)

[soulsauce] 28/5/2020 11:34

Suddenly woken up this one ;-)

[soulsauce] 27/5/2020 15:59

I would not think this set of results will include the monies we received from Egypt that we should have received from the backdate to Jan 19 as the deal did not conclude until Feb this year but I am sure it will be mentioned.

Be nice to have an update though, been rather quiet here.

[cpap man] 27/5/2020 10:30

How ever you look at it especially with the oil price moving up strongly UOG are now extremely undervalued by Mr Market!

[soulsauce] 27/5/2020 10:25

Results this week, may be buying ahead of them?

[xxnjr] 20/5/2020 09:43

I did look once but couldn't find much. GCCL are owned by Hong Kong listed United Energy Group. They have filings but their annual reports don't have a lot of detail on the assets, although this offering document for the KE acquisition has a CPR with the odd tit-bit on Egypt



Dover Investments are a bit of a mystery. They get a free carry from Kuwait Energy Egypt who in return receive Dover's share of the 'cost oil' +7.5%. But who is/are the beneficial owner(s) of Dover? Not that it makes much difference to the investment case here :)

Wasn't a shareholder, but recent filings suggest some of RKH's RNS's were events driven.

Ramadan ends Sat but ops would have continued anyway. Eid al-Fitr ends Sun eve 24/May.

[spangle93] 20/5/2020 08:33

I had a quick review of material on the web, but I can't find any recent updates elsewhere about Abu Sennan.

Conventionally the junior partners must wait for the operator to make the announcement. In this case, Kuwait Energy, of which there is little on the web, is owned by Gold Cheers Corporation Limited, about which there is virtually nothing.

If there are RKH shareholders they can help me out, but RKH also didn't seem to report Egypt operations as they happened, instead, updates were issued roughly quarterly with a review of all activity and production.

So perhaps our CEO's hands are somewhat tied by protocol

[xxnjr] 20/5/2020 08:22

the price of WTI didn't collapse into the June contract expiration, dragging the price of Brent back up to c.$35. That has to be good news.

Last year annual financials came out on 30/May. Dunno why it takes small companies so long to do their accounts. But hey that can be AIM stocks for you.

[markstevenkirby80] 19/5/2020 21:50

Come now let's have some good news ,

[xxnjr] 11/5/2020 11:43

Couple of takeaways from Apache's 1Q in Egypt.

Well program success rate: 94% (15 out of 16 wells drilled)
Not all that would have been pure exploration but even so a good success rate.

On the PSC they get full cost recovery on quarterly expenses. That and other PSC effects are evident in the last two quarterly numbers. Whilst 1Q20 over prior quarter gross production declined by 1.83%, "adjusted production", or the net amount of barrels Apache end up with increased by 4.18% in the current quarter over prior quarter. Would imagine UOG's PSC works the same way; i.e they will get more barrels as a result of percentage of government take declining with oil price. Not huge but every little helps.

[cpap man] 07/5/2020 11:15

SP Angel . Morning View . New Commodity Supercycle



New Supercycle possible as nations prepare to kick-start growth through stimulus and construction programs....etc....

[burtond1] 05/5/2020 10:55

Is the @UOGPLC stock price on the mend? Shares in the energy minnow #UOG plunged to a new low at the end of March – 1.15p – but gradually rose up through April and are now resting at 1.85p. ...So, we ask can the run continue in the coming months...https://total-market-solutions.com/2020/05/05/united-oil-gas/

[soulsauce] 01/5/2020 11:42

cpap where have you got these rumours from?

[xxnjr] 01/5/2020 10:28

Absent of any substantive 'rumours' this seems more like a case of no smoke and no fire.

[cpap man] 01/5/2020 10:00

As posted yesterday whilst I for one can see why predators might be circling I just do not believe that the BOD's at UOG would entertain any TAKE OVER at any price less than 7p or 8p a share.

The rumours also covered potential [extremely positive] news flow.........which in the short term is in my view a more likely out come here at UOG