United Oil & Gas Share Discussion Threads

[the manini] 18/7/2019 16:08

Short video interview with our CEO about sale of Crown... https://www.proactiveinvestors.co.uk/companies/stocktube/14137/united-oil-delivering-on-strategy-as-it-achieves-excellent-outcome-from-crown-sale-14137.html

[spangle93] 18/7/2019 13:07

Just thought the following, from the other side of the table, is interesting - shows why Hibiscus was interested


Anasuria Hibiscus UK has a conditional agreement to acquire license P2366 in the UK central North Sea from United Oil & Gas and Swift Exploration for up to $5 million.

The license blocks 15/18d and 15/19b are roughly 250 km (155 mi) northeast of Aberdeen and 12 km (7.5 mi) southeast of the Marigold field. They include ConocoPhillips’; 1998 Crown discovery, thought to hold 2C resources of 8 MMbbl of oil and 6 bcf of associated gas.

United and Swift were awarded the license last August under the UK Oil and Gas Authority’s 30th Licensing Round. They hold respective interests of 95% and 5%.

Hibiscus is interested in a combined development of Crown with the Marigold and Sunflower fields.

The acquisition remains subject to the OGA’s approval.

[fbrj] 18/7/2019 12:52

It was a pity that the recent valuation for Crown was quite a way adrift from what UOG actually achieved (approx £8m v up to £4m). Although the impact may not seem that significant on the overall valuation (approx 11.4p to 10.4p) - the bigger point in my view is that it might raise some doubts about all the other valuations in the portfolio.Had the original valuation been say £4 - 5m then that question would not have arisen.On the face of it, the overall transaction looks v impressive (£150k to £4m) and adds much credibility to the story that BL has been promoting and has now delivered.I know the cash is not yet in the bank but nevertheless more than 50% of the current market cap is now represented by cash.

[backtogo] 17/7/2019 21:39

Back to 3p

[spangle93] 17/7/2019 12:26

So that's why the broker had a value against it. ;-)
OK, they had £8.0MM and we got "up to $5MM" so their 11.2p target price has come down by 1p.

Should prevent bleatings about "needing cash raise" for a while

[soulsauce] 17/7/2019 12:04

Anasuria seem a decent set up already producing significant amounts of oil from North Sea.

[tektonik] 17/7/2019 11:44

Basic mathematics at it's finest.

[someuwin] 17/7/2019 11:41

Excellent news! I'm in for more.

[bobby1904] 17/7/2019 11:38

Agreed. How can anyone other than a numpty or desperado sell at 4p off the back of this. It beggars belief that people that stupid have earned enough money in their life to invest in the first place!!

[soulsauce] 17/7/2019 11:35

And as ever the seller's are hot on the news. Don't understand it

[zen12] 17/7/2019 11:29

30bags! Excellent investment and sale..

[soulsauce] 17/7/2019 11:28

Nice.

Will take that. OK it is spread over time but we have value from an asset I never thought we would.

Lining the ducks up by the look of it.

[maverick247] 17/7/2019 11:26

Wow that's 30 bags on the 150k spent on crownImagine a prod deal lands now !

[pauliewonder] 17/7/2019 11:25

Fantastic RNS - should really light the touchpaper. Huge profit on the Crown asset. Have been worried that management havent delivered shareholder value over the past 12 months given the drifting share price but that is a very impressive piece of business. Look forward to the rerate which should start now.

The great thing is they have cash anyway following the last raise and this provides a foreseeable cashflow in the short term which removes the uncertainty of a future raise. Well done management.

[soulsauce] 17/7/2019 10:13

Nice bit of movement today.

[soulsauce] 12/7/2019 16:06

I am not sure Spangle. May be it is close to farm out?

To be honest I don't see anything on mainland south of England getting drilled either, too much opposition and nimbys.

It's all about the deal for me and may be something on Jamaica and Benin and ultimately Italy. Much of the rest is just packing out the portfolio.

[spangle93] 12/7/2019 11:20

Souls - yep, I think the broker has let slip what UOG hasn't said i.e. that Waddock Cross is back into the long grass.

The thing I have a little issue getting my head around is £8MM valuation for Crown, which is equivalent to half the current share price. UOG won a bidding round. Unlike the US system, they didn't pay a royalty or fee, or any back costs. All they've done is got some acreage for free (excluding some timewriting), done some desktop studies, had a CPR, and now it's worth £8MM?

No, surely it's currently worth what someone will pay for it. UOG didn't pay anything, and they haven't managed to farm it out.

The new, Round 31 licences don't have a value by Optiva, even though the twitter feed shows prospects on the licence. Benin isn't given a figure, and Acle isn't on the list (in the AGM presentation this time last year it stated "drilling targeted for 2019").

Why is Crown any different?

[soulsauce] 12/7/2019 09:01

Thanks Spangle, hmmm kind of at odds with what was said in the pre' Xmas call-in about getting something away at Waddock X.

Hopefully we will get something from Benin soon but more importantly the company delivers 'the deal'.

[pauliewonder] 12/7/2019 08:43

So if I'm not mistaken this is the same as Barneys last valuation of 15.4p I believe but takes into account dilution. Tasty upside potential

[spangle93] 12/7/2019 08:34

"The estimate is that United currently has cash resources of £3.5m with which to fulfil short term obligations and fund future expansion plans."

:-)

The understanding is that United does not have many substantial capital commitments within the next six months. Optiva believes that assets including Waddock Cross, Walton -Morant and exploration activity on Podere Gallina have no immediate or significant near term funding requirement in 2019"

:-(

[cpap man] 11/7/2019 08:45

More than enough for me here....love the U/R share price target number for UOG of 51p



bobby190410 Jul '19 - 15:38 - 1464 of 1464

New Optiva (Barney Gray) research note out today. Risked Valuation of 11.4p on fully diluted basis (excluding any value for Benin or provisionally awarded 31st Round Blocks). Unrisked valuation is 51p. All of this ignores extra value in the event of potential new farm-in opportunities.

[the manini] 10/7/2019 18:45

Link to new broker notehttps://twitter.com/UOGPLC/status/1149011439790829568?s=19

[thebigbadone] 10/7/2019 16:47

Leak? Or PIs reading the broker note and realising how undervalued we are?

[fbrj] 10/7/2019 16:08

adamski - see post 2 above yours....

[adamski_mk1] 10/7/2019 16:04

Have I missed why the increase in price has happened this afternoon?