United Oil & Gas Share Discussion Threads

[soulsauce] 29/10/2019 09:07

One would hope so jimmya. There is just 8 trading weeks (7 full trading weeks) until the end of the year.
These type of acquisitions some times take a little longer than hoped so if we get a delay I hope it is not too long, however happy with that for them to get decent placing terms.

What disappoints me a little is it's as if everything else has come to a stand still.
When you listen to the pre xmas conference call of last year Brian was full of excitement about our projects and what we expected for 2019 including Waddock X, and Jamaica. Since then we have added Benin where preliminary work should have been completed in April, yet we have had no updates on any of these projects.

May be with this acquisition some of these projects will lapse but it would be nice to know.

[jimmya1986] 29/10/2019 08:12

Surely we should be due an update imminently....?

[computercoders] 12/10/2019 14:50

Looks like this is going to 2p by looks of the charts

[cpap man] 07/10/2019 18:55

United Oil & Gas....Ex-Tullow Oil boys looking to become MAJOR players!



Perhaps just perhaps !?!?!



Maybe just maybe ?!?!?

[the manini] 07/10/2019 18:50

Good update today. Both deals should be complete in Q4. Further growth in production from Egypt as we move into 2020, plus $3 million payment later in the year, Selva into production and drilling Jamaica (hopefully) plus work on West Africa. 2019 transformational but 2020 should be even bigger. These guys are serious about building value for investors. My biggest holding. PDYOR...

[soulsauce] 07/10/2019 10:17

Indeed tektonik, the price at which the placing is set will be telling in how successful this acquisition has been, from a shareholders point of view anyway.

[tektonik] 07/10/2019 10:11

Nice update this morning. Let's hope the placing to cover the balance will be done at a fair premium from the suspension price.

[the manini] 26/9/2019 14:41

All looking good to me. Roll on Q4 which should be 'transformational' for us!

[cpap man] 26/9/2019 11:05

"Finally, drilling activity continues on the Abu Sennan Licence, 22% of which is currently held by Rockhopper Egypt and which is the subject of the conditional acquisition. Recent drilling has continued a strong track record of success since the start of the year, production on the Abu Sennan permit has risen from approximately 3,800 boepd to over 5,100 boepd."

[soulsauce] 26/9/2019 08:58

All looking ok.

Strange comment though 'the second half of 2019 is likely to see further operational activity across our portfolio'.
As it is now nearly October I am not sure where that comment is coming from. So hopefully there will be quite a bit crammed in from Oct-Dec as apart from the Egypt news there has been nothing else since June.

Of course how good the rest of the year will be will depend heavily on getting the Egypt deal concluded and at a good price in the raising.

[bountyhunter] 26/9/2019 07:57

It's the outlook statement that is key for me. Plenty to look forward to here.

Outlook

United has continued to make excellent progress towards our stated goal of building a full cycle oil and gas company. We anticipate that the Rockhopper Egypt acquisition will be concluded in Q4 2019. In advance of this, and post completion of the equity raise, we will recommence trading on the AIM Market of the London Stock Exchange. With this transaction, United will become a producing oil and gas company with significant cash flow. In 2020, we expect to augment that production with the arrival on stream of the Selva Field in Italy. Production from these assets s will provide funding to drive future growth in the business.

The second half of 2019 is likely to see further operational activity across our portfolio. With the operator, Egdon Resources, we are currently completing technical studies on the Waddock Cross field and are targeting drilling following the completion of technical studies. In conjunction with the operator Tullow Oil, a joint venture farm down process, which has seen considerable interest, will continue on the Walton Morant licence in Jamaica. Our geotechnical team are working to interpret the information gathered from the Colter drilling campaign and interpreting it in the context of the additional acreage awarded in the 31(st) UK Licensing Round.

Finally, drilling activity continues on the Abu Sennan Licence, 22% of which is currently held by Rockhopper Egypt and which is the subject of the conditional acquisition. Recent drilling has continued a strong track record of success since the start of the year, production on the Abu Sennan permit has risen from approximately 3,800 boepd to over 5,100 boepd.

[cpap man] 26/9/2019 07:55

26th September 2019

United Oil & Gas Plc

("UOG", "United" or the "Company")

Interim Financial Statements for the Period Ended 30 June 2019



United Oil & Gas PLC (AIM: "UOG"), the AIM listed oil and gas exploration and development company announces its unaudited results for the six months ended 30 June 2019.



Year to date Highlights



· Delivering on strategy to acquire and develop a multistage portfolio of low risk development and appraisal assets in Europe/Greater Mediterranean region

· Strengthening of Executive team with appointment of David Quirke as Chief Financial Officer

· Announcement of conditional acquisition of Rockhopper Egypt Pty Ltd ("Rockhopper Egypt")

· Signed a Heads of Terms on an agreement for the sale of the Crown Discovery, successfully monetizing the asset and delivering value to shareholders

· Admission to trading on AIM providing a sound basis for further acquisitions and development of the business

· Competent Persons Reports completed across the whole portfolio, demonstrating the quality of assets

· Preliminary award of Selva production concession and significant upgrade to Italian resources

· Colter South Discovery announced as part of successful Colter drilling campaign

· Provisionally awarded six Blocks in the UK 31st Round offshore licencing round of which four have now been confirmed

· Option secured to farm-in to Block B, onshore Benin



United Oil & Gas Plc CEO, Brian Larkin, said,

"2019 has seen a continuation of both the pace and quality of activity being undertaken by United as we continue to build a full cycle oil and gas company. We have been very active in terms of our existing assets and management of our portfolio and we have made a series of announcements covering ongoing operations, a transformational acquisition, a successful divestment and corporate development to strengthen our team.



Following completion of the acquisition of Rockhopper Egypt, which we anticipate will complete during Q4 2019, United will return to the market a significantly bigger company, with producing assets to complement our already impressive portfolio. I look forward to updating our shareholders further at that time."



Chief Executive Officer's Statement & Directors' Report



The half year to date and slightly beyond, has seen United make considerable progress on our stated strategy of building a full cycle oil and gas company which delivers shareholder value by building a diversified portfolio of short-term development and production assets in Europe and the Greater Mediterranean area, and high impact assets further afield.



Operations

We began the year with the preliminary award of the Selva Production Concession, covering the Podere Maiar discovery. This is another important step on the road to first production, which is expected in late 2020. The development plan will see Selva come into production with facilities designed to produce at a gross rate of up to 150,000 cubic metres per day. At this rate, Selva will be generating significant cash flows for United which in turn will be reinvested into further high-impact activity across our portfolio.



In the UK drilling commenced on the Colter Appraisal Well in early February. The well delivered a new discovery, Colter South, which opens up new opportunity within the licence. While the side-track to Colter North encountered reservoir, it did so deeper than expected, suggesting a smaller accumulation than initially hoped. However, good oil and gas shows in the side-track at shallower intervals mirror the producing Kimmeridge oil field and provide encouragement for the prospectivity of the adjoining JV-held onshore licences.



Portfolio Development

United's strategy is to create and manage a diverse portfolio of assets, with producing or near-to-producing assets in Europe and the Greater Mediterranean area complemented by high impact assets in Africa and the Caribbean. This reflects the expertise of the management team and the extent of the industry relationships that have been developed by the team.



In March, United announced an option to farm into Elephant Oil's Block B, Bénin. Bénin Block B is located onshore in the Dahomey Embayment (Coastal Basin) and covers an area of 4,590 sq. km (approximately 1.1 million acres). The Block is located to the west of Bénin's capital Cotonou continuing to the Togo border.



The Dahomey Embayment of onshore Benin is a frontier area, with no wells drilled in it to date. However, the licence is surrounded by prolific hydrocarbon producing regions, and there are excellent positive indications of a working petroleum system. At this point, the Block B licence data is limited to a single seismic line and a CGG-acquired airborne Falcon Gravity Gradiometer survey. This data suggests the presence of numerous large structures in the licence, with the potential to hold >200mmbbls. The Allada structure has already been identified by Elephant Oil as a prospect.



In the UK, United followed up their success in the 30th offshore licencing round with the award of a number of Blocks in the 31st offshore round. In June, United were provisionally awarded Blocks 14/15c, 15/11c, 15/12a, and 15/13c on a 100% basis. These licences which were formally awarded in September, cover close to 500 km² in a highly prospective area close to Marigold and Yeoman discoveries and the substantial Piper, MacCulloch and Claymore oil fields.



Additionally, United was provisionally awarded 10% interest in Blocks 98/11b and 98/12 in the English Channel, which lie contiguous with United's 10% interest in the Colter P1918 Licence and contain the Ballard Point discovery and the eastern portion of the Colter South discovery. This aligned with the success of the Colter campaign strengthens United's position in this area.



Portfolio management is a key aspect of the development of any successful oil and gas company, particularly one focussed on delivering value for shareholders. The divestment of the Crown Discovery announced in July will deliver an excellent return of up to US $5 million from an asset acquired less than a year ago. This result, which is in large part due to the technical work of our geological and geophysical team, will generate proceeds to further strengthen United's balance sheet and support the growth of the Company.



The conditional acquisition of Rockhopper Egypt was also announced in July. This is a transformational deal, which will rapidly accelerate the development of the Company. Not only will the acquisition deliver United's first production, but there is significant upside both from infill drilling and exploration. The current infill drilling campaign has resulted in production increasing from 3,800 boepd at the start of 2019 to current levels of over 5,100 boepd. The agreement with BP on both the offtake of United's future oil and gas production, and the provision of the prepayment financing structure of up to US $8m, is another very positive development and United looks forward to developing this relationship.



Understanding our Assets

United, in co-operation with our licence partners, commissioned and published Competent Persons Reports (CPRs) on our licences in Italy, Jamaica and our UK licences covering Crown and Waddock Cross. These CPRs have confirmed the confidence that we have in our portfolio and will assist us in the development of these licences.



The Crown CPR, which is the first CPR commissioned by United on the Crown Discovery, estimates gross unrisked 2C oil contingent resources of 6.35 MMstb for this asset. The updated CPR on the Waddock Cross Field is based on recently reprocessed seismic and has increased the gross unrisked 2C oil contingent resources from 1.23 MMstb to 1.55 MMstb.



The February CPR on the Selva Gas Field was a milestone for United, confirming the company's first reserves. The CPR reclassified previously reported gross 2C contingent resources to the higher confidence and more valuable category of 2P (proven plus probable) reserves of 13.3BCF. A subsequent update to the Italian CPR in April provided additional gross 2C contingent resources of 14.1 Bcf within the Podere Gallina licence and increased the unrisked gross best-case prospective resources to 91.5 Bcf.



A CPR on our Jamaican assets upgraded the potential of the high impact Walton-Morant licence. As well as an increase in the likelihood of success, an additional gross resource of 10MMstb was assigned to the Colibri prospect, increasing the gross unrisked prospective resources associated with the structure to 229MMstb. United have long held this prospect in high regard, and this CPR provides further support to that view. A number of other structures on the licence, including the Oriole prospect, have also been identified. The additional prospects plus the increase in gross unrisked mean prospective resources provide encouragement as progress is made towards a joint farm-down process.



Corporate Activity

Since launching the business, the management has looked to bring on board the necessary expertise to drive the business forward. The appointment of David Quirke as United's Chief Financial Officer is another important milestone in United's development. David's understanding of Capital Markets and Corporate Finance particularly in the E&P sector will strengthen our ability to develop new funding avenues to fuel United's growth.



In March, United moved to the AIM market of the London Stock Exchange. We indicated at the time that the move would help to reduce costs and to facilitate the Company in deal-making and we believe this will prove to be the case.



At time of publication of these interim results, United shares remain suspended on the AIM market as we work to complete the Rockhopper Egypt acquisition. We are confident that we will shortly return to market a larger business with an even more attractive investment case.



Financial Review

The Company has a strong cash position and is fully funded for its share of the current work programme across the existing assets. Proceeds from the divestment of Crown, the equity raise and drawdown of the BP prepayment financing structure, for completion of the Rockhopper Egypt acquisition will transform the capital structure of the business. As at 30th June the Company had cash balances of US$ 1.8 million.



The Company has decided to change its presentation currency from UK Sterling (GBP) to United States dollars (US$) to better reflect the Group's expanding and international business activities and to improve investors' ability to compare the Group's financial results with other publicly traded businesses in the international oil and gas industry.



Outlook

United has continued to make excellent progress towards our stated goal of building a full cycle oil and gas company. We anticipate that the Rockhopper Egypt acquisition will be concluded in Q4 2019. In advance of this, and post completion of the equity raise, we will recommence trading on the AIM Market of the London Stock Exchange. With this transaction, United will become a producing oil and gas company with significant cash flow. In 2020, we expect to augment that production with the arrival on stream of the Selva Field in Italy. Production from these assets s will provide funding to drive future growth in the business.



The second half of 2019 is likely to see further operational activity across our portfolio. With the operator, Egdon Resources, we are currently completing technical studies on the Waddock Cross field and are targeting drilling following the completion of technical studies. In conjunction with the operator Tullow Oil, a joint venture farm down process, which has seen considerable interest, will continue on the Walton Morant licence in Jamaica. Our geotechnical team are working to interpret the information gathered from the Colter drilling campaign and interpreting it in the context of the additional acreage awarded in the 31st UK Licensing Round.



Finally, drilling activity continues on the Abu Sennan Licence, 22% of which is currently held by Rockhopper Egypt and which is the subject of the conditional acquisition. Recent drilling has continued a strong track record of success since the start of the year, production on the Abu Sennan permit has risen from approximately 3,800 boepd to over 5,100 boepd.





Brian Larkin

Chief Executive Officer

[alistair4444] 26/9/2019 07:20

United Oil & Gas PLC
Interim Results Announcement
RNS Number : 7078N
United Oil & Gas PLC

26 September 2019

[bountyhunter] 23/9/2019 21:37

Selva on track for 2020 (UOG 20%)

[cpap man] 21/9/2019 10:15

JohnNew200121 Sep '19 - 10:13 - 1699 of 1699 (Filtered)

[bountyhunter] 21/9/2019 10:09

Thomas Cook won't be needing that beach ;)

[soulsauce] 21/9/2019 10:02

Hopefully the protests in Egypt are a storm in a tea-cup.

[soulsauce] 18/9/2019 09:11

Fingers crossed.

[bountyhunter] 18/9/2019 08:54

Or HNL, but RTOs do generally progress to completion successfully and with a decent premium as was the case with SQZ and RRE.

[soulsauce] 18/9/2019 08:43

Thanks Spangle.

So RKH decided to divest due to from Egypt as they could not gain a bigger position. Hopefully we have gained a great asset.

bountyhunter yes indeed. I just hope it doesn't end up being a saga like the one I am having at PERE. They suspended in Feb 2018 to take over a big copper mine, it was supposed to take 4 to 6months but still awaiting re-list.

Hopefully our BoD have got more oil in their lamp than the muppets at PERE, excuse the pun.

[bountyhunter] 18/9/2019 08:35

so again that begs the question as to the timing of the capital raise

[spangle93] 18/9/2019 08:24

From RKH Half Year report

Our interest in Abu Sennan has performed very well for us both operationally and financially. However, despite our efforts to acquire and grow a more material position in Egypt, we were unable to do so on attractive terms given the competitive market dynamics and significant buyer interest for assets. Instead we took the opportunity to divest, crystalise an attractive return on investment and at the same time strengthen the balance sheet.

...

In Egypt, all of the Group's oil and gas production is sold to Egypt General Petroleum Company ("EGPC"). The average realised price for oil was US$63.1 per barrel (H1 2018: $68.4 per barrel), a small discount to the average Brent price over the same period. Gas is sold at a fixed price of US$2.65 per mmbtu.

....

As a result of the acquisition of Mediterranean Oil & Gas plc in 2014, goodwill of €9 million arose relating to the portfolio of intangible exploration and appraisal assets and the strategic premium associated with a significant presence in a new region. However, following the decision to dispose of Rockhopper Egypt Pty Limited and with Italian portfolio now deemed largely non-core, a decision was made to impair the goodwill associated with that acquisition.

...

The Consideration Shares issued to Rockhopper will be priced at the price at which United issue new shares as part of their proposed capital raise.
Any Consideration Shares held by Rockhopper in United are subject to certain lock‐up and orderly market disposal provisions for a period of up to 12 months from completion.

[bountyhunter] 13/9/2019 23:29

Yes, good chance of an update then I would have thought.