United Oil & Gas Share Discussion Threads

[ileeman] 24/7/2019 09:12

@Soul

You cant just compare to RRE I think that is a bit misleading. Have you seen how much cash RRE have on relist? UOG have to raise/debt fund to acquire the asset which is very different.

[soulsauce] 24/7/2019 09:04

RRE enjoying a huge uplift this morning on relist after it's acquisition, be nice if we could get something similar.

[spangle93] 23/7/2019 23:36

9tintin - see the RKH annual report, or any of its recent publications, which discuss the issue and current status of late/non payment

[soulsauce] 23/7/2019 22:17

9tintin do you think BP would have backed our company and the management if they didn't see something good in it?

In fact it's not usual for BP to put their weight behind a tiddler at all with a hedged financing deal which makes me think there may be more further down the line.

[the manini] 23/7/2019 22:06

BL stated today in his interview that the payment period is now one month

[9tintin] 23/7/2019 21:42

LTH in the company

Would love to see the graph detailing the receivables - $1.7M currently.

It's no good booking the revenue from 2019 sales if the Egyptian government is dragging it's feet on stumping up the dollars - as Circle Oil discovered.

Territory somewhat questionable & unpredictable politically - tempers the enthusiasm.

tintin

[bountyhunter] 23/7/2019 20:54

'denouement'!? is that Shakespeare lol!

[soulsauce] 23/7/2019 20:12

From Malcy:-

For United this is a major piece of business buying an asset for $16m with a market cap of only £14m. As CEO Brian Larkin states ‘this is a truly transformational deal for United. Not only will it deliver our first production, positive cashflow and significant reserves it also offers very promising infill and exploration upside’.

Overall this is one of those deals that appears genuinely good for both sides, RKH has shown an ability to buy low and sell high and has delivered ahead of the crucial Sea Lion denouement. UOG has, in one step, really grown the company, as advertised.

[cpap man] 23/7/2019 18:21

Someone was not amused judging by the red tick!

[cpap man] 23/7/2019 17:55

Yes but the lack of volume concerns me most!

[bountyhunter] 23/7/2019 16:58

Yes surprising that ;-)

[soulsauce] 23/7/2019 16:55

Proactive interview out.

Price held up well today 😁

[soulsauce] 23/7/2019 13:56

Interview out on share talk. Potential to relist in 6 to 8wks.

[soulsauce] 23/7/2019 12:40

iLeeman I am sure you will know they can alter the share base as part of the acquisition and relisting documentation very much like Pere attempted to do. I.e. consolidate the number of shares and relist and issue shares at a set price well above the current share price thus mitigating some of the dilution.
It would also allow the company to throw off the penny shares shackles. I also think this deal a stepping stone to give them the wherewithal to do even bigger things.

[bountyhunter] 23/7/2019 12:32

Re the reason for the RKH disposal see #42407

[ileeman] 23/7/2019 11:45

The issue is not how large the raise will be the issue is at what price.

Every o&g company will throw around the term transformational on any aquisition, the proof is in the pudding if it is truly transformational then the price of the raise will be very good.

[bountyhunter] 23/7/2019 11:20

Ok in answer to my own question in the latest audited results on 30 May 2019 ...

Cash and cash equivalents = £4,035,910

So not insignificant and should be taken into account together with the Crown proceeds and production revenue for 1100bopd due from 1 Jan 2019 on completion in Q4

[bountyhunter] 23/7/2019 11:14

Exactly my point, also anyone know the current UOG cash position excluding Crown?

[spangle93] 23/7/2019 11:13

Bountyhunter, ref production revenue, let's hope that can be taken off the price paid

[soulsauce] 23/7/2019 11:11

Yes Mustbefunny sorry I didn't make myself very clear.

Brian is on the record as saying the transformational deal would most likely be part debt part equity.

So there should be nothing in that RNS that should surprise anyone including Doc Holiday.

[bountyhunter] 23/7/2019 11:10

Agreed and as I keep saying a payment will be due to be credited to UOG on completion for production since 1 Jan 2019 and UOG already have a healthy cash position.

[snickerdog] 23/7/2019 11:09

Doesn't matter the stock is in suspension any raises will be carried out then to the best price and fairly minimal it looks like. It's looking like a great deal so far

[spangle93] 23/7/2019 11:09

As far as I can see there's a $16MM deal, of which BP's arrangement will cover half, and the other half will be up to $5MM in shares direct to RKH, and the remaining $3MM (and more, since they talk of working capital) from an equity raise. So that's at least $8MM in shares issued, or about 200 million at 3.5p

[bountyhunter] 23/7/2019 11:08

Yes but they will receive that in due course and what about the existing cash balance do you know what that is? Also there will be a healthy cash payment for the low cost production revenue from Jan 1 2019 of > 1100 bopd due on completion.