United Oil & Gas Share Discussion Threads

[9tintin] 15/2/2021 08:39

Maybe the net pay of ASH-3 compared to ASH-2 has disappointed the market.

Only 55% (27.5 m) of ASH-2 which was 50 m.

Begrudgingly moving up some now - disappointing reaction to the news if I'm honest.

tintin

[markstevenkirby80] 15/2/2021 08:36

When's take off then ,pure madness at this price,who can borrow me some money to put in coz am all out of it :))

[90005nelson] 15/2/2021 08:31

Brent over $63 with another successful drill bodes well for current drilling campaign to be extended. Long term view here with 35 self funded drills coming up.

[imnotspartacus] 15/2/2021 08:25

Bought some more

[9tintin] 15/2/2021 08:11

Well that didn't last long - buys at 3.33p !

Sell on news brigade at work.

This is going no where,,,,,,,,,,,,,,,,,,,,zzzzzzzzzzzzzzzzz

tintin

[9tintin] 15/2/2021 08:05

Can sell 100k on ii - but can't buy same - good sign.

tintin

[the chairman elect] 15/2/2021 08:05

2021 already shaping up to be a very good year for LSE:UOG



United Chief Executive Officer, Brian Larkin commented:



"We are very encouraged with the initial results of the ASH 3 well and we are delighted that it has been delivered safely, ahead of schedule and under budget by our licence partners. We anticipate the well will deliver a further uplift to our low cost production base, an encouraging result ahead of the spudding of our forthcoming exploration well and the remainder of our 2021 work, all of which is fully funded from operating cash flow.



"To date the ASH Field has produced close to 2 million barrels of oil, with current production rates at over 5,000 boepd, and we believe significant further potential exists within the licence."

[the chairman elect] 15/2/2021 07:53

United Oil & Gas PLC / Index: AIM / Epic: UOG / Sector: Oil & Gas



15 February 2021

United Oil and Gas plc

("United" or "the Company")



ASH-3 Well Update



United Oil & Gas PLC (AIM: "UOG"), the growing oil and gas company with a portfolio of production, development, exploration and appraisal assets, is pleased to provide the following update on the drilling of the ASH-3 well in the Abu Sennan concession, onshore Egypt. United holds a 22% non-operating interest in Abu Sennan, which is operated by Kuwait Energy Egypt.



Highlights

· Total of 27.5m net pay interpreted over a 59m gross section in the targeted Alem El Buieb (AEB) reservoir

· Initial testing will be completed in the coming days before the well is then brought onstream through the existing ASH Field facilities



ASH-3 Well

The ASH-3 development well, which spudded on the 4th January, reached TD of 4,087m MD (3,918m TVDSS) on 8th February, 5 days ahead of schedule and under budget. The well, which has been drilled as a step-out development well in the ASH Field, has been logged and interpreted to have a 59m gross hydrocarbon column in the primary AEB reservoir target, 27.5m of which is estimated to be net pay.



The well will be tested and completed in the coming days and will then be brought immediately onstream through the existing ASH facilities, delivering a further uplift to production. The ED-50 rig will then move to the north of the Licence, close to the producing Al Jahraa field to commence the drilling of the ASD-1X exploration well. This well is targeting the Abu Roash reservoirs in the 4-way dip-closed Prospect D structure and, if successful, can quickly be brought into production.



The Company will make a further announcement once testing is complete.



United Chief Executive Officer, Brian Larkin commented:



"We are very encouraged with the initial results of the ASH 3 well and we are delighted that it has been delivered safely, ahead of schedule and under budget by our licence partners. We anticipate the well will deliver a further uplift to our low cost production base, an encouraging result ahead of the spudding of our forthcoming exploration well and the remainder of our 2021 work, all of which is fully funded from operating cash flow.



"To date the ASH Field has produced close to 2 million barrels of oil, with current production rates at over 5,000 boepd, and we believe significant further potential exists within the licence."

[9tintin] 15/2/2021 07:50

Interesting day ahead, timeline more or less as predicted and apparently a successful drill, share price reaction is anyone's guess.

4p would be nice!

tintin

[parob] 15/2/2021 07:37

Excellent news.Plus Brent above $6300.The ED-50 rig will then move to the north of the Licence, close to the producing Al Jahraa field to commence the drilling of the ASD-1X exploration well.Lots of news flow to come over the next few months.Surely we break out of the trading range today/this week.

[soulsauce] 15/2/2021 07:36

Looking good so far, let's see what it does for the share price

[tidy 2] 15/2/2021 07:11

Rub your hands.

[theuninvitedguest] 14/2/2021 15:52

The most recent investors the newlands seem to have a good track record aswell, think it was pointed out they were in TXP and i believe SQZ before the price took off

[theuninvitedguest] 14/2/2021 15:46

I,ve been in this since summer 2019 not long before they annouced the deal for Egypt and i thought perfect timing. The 3p raise was disapointing and been unable to really move on from there has been frustrating. I have been tempted when the share price hit 3.6p to sell as would have been a reasonable return for me. The two recent TR-1 over the last few months has given me a bit more confidence we can shake of this 3p. Im hoping to see more coming in the next few months. Oil price looking really good now aswell which is promising

[spangle93] 13/2/2021 16:41

Well, yes, but of that 21.2p only 2.8p was for the core NAV, i.e. Abu Sennan asset Egypt and the Selva field Italy.

Of the next step of 2.7p up to Tangible NAV, 1.9p is for Maria, a North Sea asset that we haven't heard much about recently, and 0.4p is for Waddock's Cross, which is so far off the radar it wasn't mentioned in the last presentation. Disregarding these, and adding Selva 2C and Abu Sennan 2C to the Core NAV, we get to 3.2p, which serendipitously is what we're currently valued at.

The rest is all exploration, including 11.5p for Jamaica. So an investor's perception of how undervalued UOG is should be conditioned by the amount of belief they have that a farm in partner will be found and the projects will advance towards seismic, exploration drilling, and discovery.

One thing that is missing in the Cenkos note is the $2.85MM that we're supposed to get next month from Hibiscus for Crown. Either that, or it's all rolled up into the Net Cash/Debt line. I think sentiment will improve once that is in the bank balance, and the confetti machine can be put back in the cupboard for a while.

[parob] 13/2/2021 14:08

As a reminder Cenkos most recent share price target was 21.2p on the 5th Jan. Oil price is up about 15% since then.hTTps://twitter.com/martin_aim_77/status/1346749644479586304?s=21

[bad gateway] 13/2/2021 14:06

Looking forward to the ASH result and agree it will be good to see how the share reacts.
Not been so bad as it feels here though. Its more than 3 bagged since the oil/covid shock last year and is still trending up even after the failure at this level before.
Still feels like crawling over broken glass all the same.


free stock charts from uk.advfn.com

[parob] 13/2/2021 14:01

We are seeing higher lows and higher highs on the chart over the last 3 months. We literally could be days away from a major break out so let's see how things pan out this coming week. Oil price is up over 50% in 3 months whilst the share price has barely budged in that time. Something has to give here and I'm pretty confident we're getting close. ASH-3 results could be the catalyst but there's a good chance the anticipation of those results could break us out of the trading range imo.

[9tintin] 13/2/2021 13:21

Re post 3906

They said that about AMER - but the selling didn't stop until a T/O at a ridiculous low offer.

The stagnant share price tells it's own story - reality is sometimes difficlult to accept for some.

The reaction to a positve drill result (ASH-3) will give further clues as to what is going on with UOG.

The bare fundamentals here suggest the share price is under valued by a significant amount, so the continual knock backs to good news does bear discussion.

I don't have the answers but I do acknowledge there is a question.

tintin

[the chairman elect] 13/2/2021 10:10

Far too much time is spent on here discussing the seller....had the same on LSE:ARCM plus LSE:EML both of which then broke out to the upside on large volumes of shares traded

The same could potentially occur here with LSE:UOG this year especially against the back drop of rising oil & gas prices plus the excellent news flow that is quite possibly to come....

The seller if there really is one always gets exhausted in the end with companies that have a bullish tone to them with larger than normal volumes of shares traded normally being the answer to the question!

[the chairman elect] 13/2/2021 10:05

Brent Oil ... $62.66 +1.52 +2.49%

Crude Oil WTI $59.72 +1.48 +2.54%



Oil Is Soaring Amid "Supercycle" Chatter

Just days after one of our favorite macro strategists, Dylan Grice, predicted that the stage is set for "a bull market in oil", and JPM quant Marko Kolanovic said a new oil and commodity supercycle has begun, oil is starting to get the message, and has jumped more than 2% on Friday...

... rising to the highest intraday level in more than a year as output curbs from top producers whittle down global inventories, while JPM predicts that an epic systematic short squeeze is about to be unleashed next month in oil (we discussed this earlier this week, and will touch on this shortly again).

Oil was set for a second straight weekly gain, as OPEC+ continued to slash output and the group expects a stronger second half of the year, which to Bloomberg indicates "that global inventories will face sharp declines unless the cartel boosts supply." Indeed, Iraq said OPEC+ is unlikely to change its output policy at a March meeting. Meanwhile, in the U.S., crude stockpiles are at the lowest in nearly a year.

“This time of year, there’s usually builds,” said Bill O’Grady, executive vice president at Confluence Investment Management in St. Louis. "The draws we’ve been getting are pretty surprising, setting up a really bullish backdrop.”

As a result of the rally, WTI futures' 14-day Relative Strength Index (RSI) rose to the most overbought since 1999 this week and remains above 70 in a sign that the commodity may be due for a pullback, which however has yet to come.

“Based on fundamental analysis, the case for further price gains is hard to make, although we are seeing optimism in financial markets in general,” said Hans van Cleef, senior energy economist at ABN Amro. “We think that much higher oil prices are not sustainable and that oil producers will then start to increase production.”

Maybe... but maybe they are. Skepticism aside, a recent bullish trade reco by Goldman was validated as Brent prompt timespreads widened in a bullish backwardation structure, helping to unwind bloated stockpiles held in onshore tanks and on ships. The nearest timespread traded as strong as 55 cents a barrel, while swaps tied to the North Sea physical market flipped from a discount to a premium.

Meanwhile, concerns about global demand remain with the Covid-19 pandemic crimping fuel consumption from China to the U.S. On Thursday the IEA again cut its demand forecast for 2021, describing the market as fragile. However, oil has recovered from the depths of the pandemic (after briefly trading as negative as -$43/bbl on April 20).

That said, a recovery from the pandemic could lead to outsized gains in oil: according to BofA, oil demand could rise at the fastest pace since the 1970s over the next three years, which could send oil prices soaring.

“Inflation fears are increasing rapidly and there is a historic amount of capital filtering through global financial markets due to all of the stimulus programs,” Ryan Fitzmaurice, commodities strategist at Rabobank, said in a note. Large inflows into the space “speak to the fact that investors want to own commodities at the moment and are willing to overlook some of the weaker fundamental inputs to focus on the bigger picture at hand.”

Finally, let's not forget that for the Fed the oil price surge is music to their ear for the simple reason that one of the biggest drivers of 10Y breakevens...

If the Fed really wants higher inflation it should buy crude oil futures. They correlate 1.000 with breakevens and will reprice inflation expectations overnight. It's already buying shale bonds why not go all the way. — zerohedge (@zerohedge) September 16, 2020

... is the price of oil.

And if there is one thing the Fed wants more than anything, is to create the impression that inflation is about to overheat, forcing Americans to start spending. It might be working: earlier today the latest UMich report found that 1-Year inflation expectations surged to the highest level since 2014...

[90005nelson] 12/2/2021 21:08

The seller sells but remember they also buy back.!

[myn0k] 12/2/2021 17:32

Well I'm on glass number one ;)Much rather see this close at 3.25 in the red, then 2.89 black, which was a typical average not long ago.

[welshben84] 12/2/2021 16:47

Aey, we didn't turn blue but I think the selling has eased off or we'd be back below 3p.