Upland Resources Share Discussion Threads

[stark industries] 03/7/2018 08:12

Great insight SJAYes it does seem like it's going that way :)

[doughty] 03/7/2018 08:11

sja....and if some interesting numbers come with said news then we will have a series of instant reratings along the way :-)

[sja123] 03/7/2018 08:09

Cash....agree

Staley talked of "entering a news rich period"....Cove moved quickly to rise from a small company to large one and then bought....he wants to do the same here as with Cove....

Management have spent considerable months behind the scenes putting the jig-saw together and we could well see many significant announcements coming through...

When you start adding all the possible prospects together....
...well....enough said!

[doughty] 03/7/2018 08:08

Lets all calm down....with some soothing music...

hxxp://www.brookedockyard.com/Limbungan_Brooke_Menuju_Kejayaan.mp3

LMFAO !

Its Brooke Dockyard's corporate song !

Better get used to hearing it !

[cashandcard] 03/7/2018 07:55

sja123,

That post from Zengas reflects very well what may happen here if they are looking at fulfilling both near and longterm strategies and have their eyes firmly on something. I would rather they buy producing assets in Sarawak than spend valuable time on non-producing assets like Hardstoft, that carry considerable time lag due to public-concern and local councils. A 'two-birds with one stone' type move would be mega.


Cash

[yogaboy] 03/7/2018 07:55

Okay Spangle, maybe 40m? UPL would be 1bn, but I'd be long gone...

[hulltiger] 03/7/2018 07:36

Could not resits another 100k before I spend a small fortune doing the weekly shop with the wife at M and S. Hope you all have a lovely day.

[sja123] 03/7/2018 07:16

"Two phase strategy:
(1) Secure substantial near-term revenues to underpin Upland by acquiring interests in attractive low risk assets near to start of production and with robust economics.
(2) Acquire higher risk, higher potential transformative assets"

Although Phase 1 would more likely envisage the Hardstoft/Wressle end of things originally, bear in mind that it can still be brought about by the acquisition of production.....which I believe is still a distinct probability...I keep coming back to Zengas post 1891...

"ZENGAS - 01 May 2018 - 08:16:43 - 1891 of 2961 Upland Resources - UPL
Hibiscus were able to acquire a substantial 50% in an asset last month from Shell - nearly 60 mmbls net and significant production. Was easily financed - just $15m upfront. Deal was with Shell and approved by Petronas. This was an existing cluster of fields off Sabah adjacent and same waters to Sarawak. How many more opportunities could there be? Many undeveloped fields. Who knows Shell/others might sell down some interest in non core fields just as Shell did with these 4.

Completed the North Sabah acquisition from Shell which is 50% of 4 producing offshore fields which was at time of original signing 14,600 bopd gross so 7,300 bopd net and a net 20.5 mmbls P2 and 38 mmbls net 2C.

Opex appears $14/b and total cost ws $25m payable as -
$2.5m at signing date.
$12.5m at completion date 4th April 2018.
$5m 12 months later.
$5m 2 yrs later.

So effectively being able to get their hands on a net 20.5 mmbo P2 & 38 mmbo 2C and almost 7500 bopd for an upfront $15m and likely the balance will be paid for from production.

Considering the size of 'Brooke' and UPL being a selected partner, there's a strong possibility that we could get a meaningful asset that could be transformational. (Note they say a number of opportunities so possibly not just one)"

I would describe the purchase of 7300 bpd of producing assets as "attractive and low risk"......wouldn't you?

All IMO etc

[doughty] 03/7/2018 06:24

...OK...say to safe the herd are here/imminent...that signals that a little turbulence may be expected...best keep your seatbelt fastened !

[hulltiger] 03/7/2018 06:18

Barchart also...

[hulltiger] 03/7/2018 06:15

Good morning all, for those of you who are interested in such things, I note British Bulls have moved to a BUY.

[doughty] 03/7/2018 05:27

PEDL 299 is a total sideshow to what is happening at Wick...Sarawak and North Africa...and as much as Ineos filed notice to carry out 3D seismic last year they appear to have gone cool on it with other prospects being prioritised...so lets not waste valuable management time on it when there really are MUCH bigger fish to fry !

[doughty] 03/7/2018 04:58

...like the previous podcast...well worth listening to the latest cast again...lots of info in there...when talking about the UPL team... ..."they bring us excellent dealflow and ultimately deliver those assets" ...said in the affirmative !...that is a man on a mission if ever there was one...this is his retirement plan also ! ;-)

[copperpot] 03/7/2018 04:56

Hi spangle93,

Thanks for the info matey, much appreciated. Sounds like UPL have bigger fish to fry at the moment, Hardstoft could still be a nice little earner though. "Look after the pennies, and the pounds will look after themselves" type scenario.


Cheers once again.

[argyle underclap] 02/7/2018 22:49

Spangle. Re strategy. Just watched the vid again with ur comments in mind. the narrative and delivery does indeed incline one to feel the bread and butter Hardstofts of this world have been kicked into touch for a re focusing onto much bigger fish. I’d have thought It’d take a significantly positive development of near cert proportions for a cautious Steve Staley to stare at the jam, and only the jam.

[soulsauce] 02/7/2018 21:51

Excellent impressive piece to camera. Very professional.

And well done to vox too for following the company so well.

[argyle underclap] 02/7/2018 21:51

Risk/reward. It’s arguably a safer bet now than when The original strategy was penned. We now have a MOU in Sarawak. What expectation value for that? Vs current mkt cap? Plenty of Funds, and access to more funds if desired. We now have Tune group on board as cornerstone investors, and an expanded network of influential contacts. We still have directors taking stock. A Suddenly bullish CEO. I think risk, whilst always a factor, has decreased.

[argyle underclap] 02/7/2018 21:30

Spangle- hi there. Dr S in my opinion had a different air about him today. A very direct confidence, summed up when he said “We have a track record of success. We have done this before. And we intend to do it again with Upland.” No ifs buts or hopefully’s. Just the assured delivery of a man throughout, who knows he’s already a good way to achieving that goal.

Changing strategy? I still think two phase, maybe time constrained in vid today so no time to mention Hardstoft?

Why the step change today? Maybe something additional bagged, 1TCF North Africa? and I note his recent comments “ if we are lucky enough to make a huge discovery...” nudge nudge? Maybe something soon producing in Sarawak? We’ve all become familiar with the companys line with regards to Malaysia and North Africa prospects being ‘well advanced’ maybe rubber stamping them now as ‘completedR17; is imminent?

Specifics aside, this 100% feels like its about to burst into life in style and the nudge nudge wink wink heads up was defo there 100% in the CEO’s body language today.

[spangle93] 02/7/2018 21:15

Yogaboy - only £20MM quid? ;-)

Cashandcard - I wasn't saying it was a bad thing, it's just an observation that life has moved on. I guess it depends on your timeframe and when you invested, cos in 2017, that was a pretty sound strategy. Since then they've tapped cornerstone investors for cash, and set up loans if necessary, so revenue from early production is no longer of necessity.

Note that Wick and Malaysia were in category (2) of the original strategy, so without the benefit of knowing what will come from North Africa and Malaysia, as things stand it's a higher risk-reward company as a result.

Though we focus on the reward bit here ;-)

Edit - copperpot, my understanding is that with today's horizontal well technology, a dual porosity reservoir like Hardstoft would produce at a much higher rate that the vertical one. I've not seen a rate quoted in their documents, even the CPR in the prospectus, but I'd estimate it would be over 100 b/d if the resrvoir does turn out to be fractured. But the next stated step is to acquire further seismic information to help to constrain the uncertainty.

[copperpot] 02/7/2018 21:07

When/if we get Hardstoft flowing how many barrels per day are we expecting to achieve? I'm totally new to oil shares and don't understand the complexities of putting an old well/oilfield back into production. Or, do we start from scratch and drill a completely new hole? I think I read somewhere that at it's high point Hardstoft only produced around 8-9 barrels per day. I'm thinking with todays technology the numbers of barrels a day would be very much higher, otherwise it wouldn't be worth all the effort.

Thanks in advance for any replies.

[cashandcard] 02/7/2018 20:58

Spangle,Got to say, Hardstoft or wrestle etc, do not interest me in the slightest. I worry they will actually be a distraction when management, in a $70+ oil environment, should be focussed on taking advantage of major value enhancing opportunities, of which several are still within reach. Not wasting time on small projects laced with council, nimby, environmental concerns. Full ticks for Wick, hoping for NA soon and of course, Malaysian assets, which will be key to the longterm.Cash

[yogaboy] 02/7/2018 20:49

Agreed Spangle, Wressle now looks like a distraction. We're well rid of it.Personally, I hope Dr Staley's 20m shares net him 20m quid :)

[spangle93] 02/7/2018 20:35

Thanks for the link to the Vox markets elevator talk (2 min 10 sec elevator ride, must be a tall building ;-)

Interesting, in that the strategy being carried early in 2018 has now changed. At the AGM, they were still describing
Two phase strategy:
(1) Secure substantial near-term revenues to underpin Upland by acquiring interests in attractive low risk assets near to start of production and with robust economics.
(2) Acquire higher risk, higher potential transformative assets

Now, if I scribbled it quick enough from the Vox markets, it's described as seeking opportunities with large amounts of oil and/or gas, with a good risk/reward balance, and low cost drilling.

Maybe that was the result of Wressle not happening in a timely manner? Not sure whether Hardstoft will now be kicked into the long grass? But with stage 1 not happening, and stage 2 being heavily modified, it's a fundamentally different approach

[argyle underclap] 02/7/2018 18:54

Doughty - Ewwwwww lols, you’ll get a private message from Jaba offering to dress up. He’s awfully keen on stuff like that. ;)

[doughty] 02/7/2018 18:24

As disturbing as this may be Argyle...I can just see you...me...and jaba dressed as cheerleaders :-)