United Oil & Gas Share Discussion Threads

[someuwin] 02/4/2021 09:49

IMO they're doing everything right regarding the Jamaica asset. Exploiting the $30m previously spent, they've increased the prospective resources almost 10 fold (from 46 million barrels in June last year to 406 million now)...

June 2020...



Sept 2020....



March 2021...



They're now on a big push to monetise the asset. And have commissioned Envoi to assist in the search for partner(s) / sale etc,

[mesquida] 02/4/2021 08:56

Yes, i have to agree, The Manini, it still seems as though Spangle is advocating a sale, not quite sure why he wants to deny it, to me it seems a very sensible option and clearly the management have a track record as "flippers".

[the manini] 02/4/2021 01:13

I think the chance of us going it alone is extremely unlikely and would indeed be ill advised.

[soulsauce] 01/4/2021 23:43

I think Spangle is saying any other option than going it alone which has sounded the death knell of many a small oiler.
The optimal being to keep risk and outlay to a minimum while retaining a worthwhile %age.

[the manini] 01/4/2021 23:23

Yep still sounds like you're recommending a sale.

[thirdtimelucky1] 01/4/2021 21:36

Oil seep test results could influence their strategy and punters opinions

[spangle93] 01/4/2021 20:37

The cost of the any well in Jamaica would be more than UOG's market cap. Cenkos reckoned $30MM. BPC's turned out to be $45MM vs $35MM plan.

The likelihood of success of Colibri, the first well in a virgin basin, is rated at 19%, i.e. a 1 in 5 chance, by the CPR.

If UOG tried to go it alone, we'd all have to be diluted to heck though confetti issuing of shares because no-one sane funds exploration with debt

Cenkos worked on the basis of a 50% farm out to get UOG a free carry. That "2 for 1" deal used to be rule of thumb for farm outs, but more recently farminees have demanded a bigger slice of the pie to carry the junior, like 60 to 80 percent. Farming down to a low percent, where a find would still be meaningful, but where the cost of the well is covered, with preferably some covering of back costs, would be the best route if UOG wanted to retain a stake Jamaica.

These boys are self-confessed flippers. Asset trading is what TLW did to grow - acquire something, add value, sell it on. They've picked up the asset for a small amount, and from the work they and TLW did, and they claim to have done after, they've advanced the definition of the concept greatly, including a positive CPR.

Thus their alternative to a farm down to a level commensurate with a junior O&G company would be a sale that brings a good mark up versus cost to date, like Crown, to someone with bigger pockets.

Going for a high risk wildcat exploration well with a requirement to fund a significant equity in the well is not a smart move, IMHO.

[mesquida] 01/4/2021 18:56

In that case, Spangle, could you perhaps explain exactly what you meant, because i have to admit that i came to pretty much the same conclusion as The Manini.

[spangle93] 01/4/2021 17:40

If you're referring to my post 4507, then no, you're not

[the manini] 01/4/2021 14:24

You think they should sell the Walton Morant Jamaican licence, am I reading this right?

[markstevenkirby80] 01/4/2021 09:44

6p back soon

[spangle93] 01/4/2021 09:16

Ref 4505 - So was Perseverence, except it was 700 MMbbl, and that was hardly a roaring success for BPC investors.

Jamaica is rank exploration. We can argue the toss on the numbers, but any Colibri drill is several times more likely to fail than to succeed.

The skill of a small E&P company in an offshore environment is maximising the value and then selling it on. If they are smart, that will be before drilling (or second best, after but with a free carry). That's what they did with Crown, assuming they get paid as promised, that's what they are trying to do with Zeta.

They've done a pretty good job so far by getting TLW's 80% effectively for free. But now they carry all the costs, so the clock is ticking.

[someuwin] 01/4/2021 09:00

ASD-1X spudded 6th march.

will take 'up to' 60 days to drill and complete.

Testing a number of stacked reservoir targets

"There is considerable exploration potential in the Abu Sennan licence, and it is great to be actively drilling wells to unlock that potential. We are delighted that the ASD-1X exploration well has been spudded and look forward to updating shareholders once the well has reached the target reservoirs."

[someuwin] 31/3/2021 07:56

United Oil and Gas (LON:UOG) @UOGPLC

#UOG "There has been over $30 million invested in the license to date & that has included the acquisition of both 2D & 3D seismic data. Since we took over the license in last year, our work is really focused on quantifying the basin potential."

[soulsauce] 30/3/2021 09:46

Good to see a bit more strength today.

[90005nelson] 29/3/2021 22:02

That sounds like an exciting prospect

[imnotspartacus] 29/3/2021 20:34

A video of the Jamaica presentation...

hxxps://www.uogplc.com/coo-jonathan-leather-jamaica-presentation-at-the-appex-prospect-expo-march-2021/

[markstevenkirby80] 29/3/2021 15:00

Not be long now before we get another gusher, 10p 12p +++

[someuwin] 29/3/2021 11:48

Came back from 6p to 4.5p. A textbook 25% retrace.

Now onwards to new highs.

[myn0k] 26/3/2021 21:11

T'was a strange week. Not sure what to make of it, other than to say stocks in general at the moment are quite erratic, at least in my portfolio.

[spawny100] 24/3/2021 11:31

Https://www.msn.com/en-xl/news/other/uk-seeks-to-drill-more-oil-and-gas-from-north-sea/ar-BB1eTBg2

[90005nelson] 23/3/2021 18:43

We're going to become a mid-cap company in time so enjoy the ride here.

[bozzawozza] 23/3/2021 14:59

Holding up very well considering most oilers are down about 7%

[parob] 23/3/2021 11:06

Higher low in and start of the next leg up.