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TSX Lithium explorer International Lithium Corp prepares to drill at Raleigh Lake
Exclusive: Hardman & Co Investor Forum - Severn Trent, Calculus Capital, Volta Finance, Residential


Uk Oil & Gas Share Chat (UKOG)



Share Price: 1.00Bid: 0.95Ask: 1.05Change: -0.025 (-2.44%)Faller - Uk Oil & Gas
Spread: 0.10Spread as %: 10.53%Open: 1.025High: 1.025Low: 0.975Yesterday’s Close: 1.025


Share Discussion for Uk Oil & Gas




View all UKOG Messages

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Posts per page:

warik
Posts: 564
Opinion:No Opinion
Price:1.025
RE: RE Have The Other
25 May '19
Mirasol

I'm just glad I didn't invest in Angus at 9p with placing.

They went up as they already had horizontal well with all the permissions for permanent production however the previous MD PV was too bullish and didnt raise enough and all got screwed up on BOD level. Thsnk God we dont hsve to discuss this here with UKOG.
 
warik
Posts: 564
Opinion:No Opinion
Price:1.025
RE: RE Have The Other
25 May '19
Sea

Money wont be the issue 1000% planning and direction of the company.

With money you have to update the market also 68.27% of the stock is held by institutions and they aren't selling as no TR1 so hopefully we will get there I pray to God everyday which I never did a year before.
Mirasol
Posts: 242
Opinion:No Opinion
Price:1.025
RE: RE Have The Other
25 May '19
Warik

I don't think any company informs the market about every little bump in the road

UKOG are probably pretty certain that they can do the programme - on their own if necessary - but they're probably negotiating on details........ Trying to keep the legal bills in check . So far Sanderson has been able to ease out a whole bunch of drossy little outfits - it may take time but I'm sure they'll make it work

And the oil keeps flowing all the time - thats the benefit of production - even from a well test.

Compare with Angus - no real production and clearly something odd going on...
seadoc
Posts: 1,171
Opinion:No Opinion
Price:1.025
RE: RE Have The Other
25 May '19
Penguins, HHDL is a private company with a year end to 31/12. The accounts to 31/12/17 were not filed until 11th October 2018 so we may have some time to twiddle our thumbs.
warik
Posts: 564
Opinion:No Opinion
Price:1.025
RE: RE Have The Other
25 May '19
Penguins/Mirasol

If there was a dispute or issue over funding which HHDL/UKOG as HHDL is a subsidiary of UKOG would be liable to inform the market regardless how big or small due to market sensitive information so I dont think that's the case.

I went through all the RNS to see if it was consistent however the original plan was drill early 2019 which changed to combine KL3 and KL4 as the permanent production permission wouldn't come before Autumn.

I also think the results are better than expectations for SS probably due to BB disaster otherwise they wouldn't have changed so many times.

Now they want to continue KL4/KL3 EWT which ends in May as per Alba so I dont how they can continue to milk the well when the original permission was for 210 days as per June RNS also on HHDL website under Stage 1.
Penguins
Posts: 1,371
Opinion:No Opinion
Price:1.025
RE: RE Have The Other
25 May '19
Mirasol,

Apologies for being pedantic but Alba is a shareholder in HHDL, not a partner in the licence, which makes them subject to the HHDL Articles of Association, not the JOA..

HHDL and Magellan/Tellurian are the parties to the JOA, with HHDL as Operator

So whether Alba have the cash is an issue for HHDL to sort out before going to Tellurian with proposals.

When the licence extension was agreed with the additional obligation work programme it may be that Tellurian only agreed with conditions attached to enable them to control their expenditure - who knows.

Given the sort of guarantees a drilling company would want the contract wouldn't be signed until it was clear the money to pay for the work planned was there, and possibly in escrow. HHDL funding is essentially underwritten by UKOG for HHDL's share of cost, but they might not be willing to stump up the additional 35% for Tellurian if they are prevaricating and there's uncertainty as to what the outcome might be.

So maybe the supposed delay is because of Tellurian, but maybe it's just rig availability and for whatever reason signing up the number one choice rig was thwarted and they are leaving options open to sign another rig if one becomes available sooner (hence still in final stages), I doubt it's HHDL shareholders but it may even be an ongoing technical discussion of where exactly to place the Portland producer.
warik
Posts: 564
Opinion:No Opinion
Price:1.025
RE: RE Have The Other
25 May '19
Yes as they raised just over 2m recently and put 1m towards HHDL and also they stated they dont expect to put more now as the oil sales will offset horizontal wells cost.

They may exit once the flow of horizontal well start or if they have to put more money for 5 wells as per planning application.
ocelot
Posts: 5,892
Opinion:No Opinion
Price:1.025
RE: RE Have The Other
25 May '19
From note 10 on page 40 of Alba's report, published 09/05/19, re HHDL:

The directors’ current intention is to retain this investment for the foreseeable future.
ocelot
Posts: 5,892
Opinion:No Opinion
Price:1.025
RE: RE Have The Other
25 May '19
Mirasol,

That "going concern" reservation in Alba's annual report is normal, given that the company is an explorer and not (yet) a cash-generator.

I've not checked, but I expect a similar reservation has been made in all of its recent annual reports.
Mirasol
Posts: 242
Opinion:No Opinion
Price:1.025
RE: RE Have The Other
25 May '19
Sorry Warik - I don't normally trawl through this stuff but it's been bugging me for a while - Sanderson is not one to hold back but I couldn't see why they hadn't contracted a rig.

TBH it doesn't matter - I'm sure UKOG have enough cash to carry Alba and they may even have enough to buy out Tellurian - now doing both would be a big ask and might mean another raise but I'm pretty sure all it means is delay while the various options and deals are done.
Newboy58
Posts: 10,886
Opinion:No Opinion
Price:1.025
RE: RE Have The Other
25 May '19
Didn’t SS say Ukog will be self sufficient by the end of 2019? Not long to go really..
warik
Posts: 564
Opinion:No Opinion
Price:1.025
RE: RE Have The Other
25 May '19
Mirasol

Dont say all these things you're stressing me out.

I just want the rig SP up and out and in the recent RNS it says we are on track for the rig.

This share has been stressful for me all year. I dont know how you go through other partners statements to point out things if I had done that wouldn't invest a penny in here.
Mirasol
Posts: 242
Opinion:No Opinion
Price:1.025
RE: RE Have The Other
25 May '19
Depends on the Joint Operating Agreement - they often require partner approval over a certain amount - normally say £ 1 million and they require the Operator to show the partners the bids and there is sometimes language about exactly what the Operator can put in the contract (to protect the partners)

I've been told that in most operations the letter of the law is not rigorously enforced but if someone wants to delay things they dig out the small print and there really is no way around it.

I can't believe it's in anyone's interest to stop the testing and to delay the production paperwork - UNLESS they have no cash - which leads me towards the status of Alba. Their latest presentation is very long on opportunities and totally bereft of any financials.

Page 16 of Alba's latest Annual report states

Material uncertainty related to going concern

We draw attention to Note 1 of the financial statements which, under the heading “Going Concern”, indicates that
the current cash resources of the group and parent company are insufficient to meet the forecast expenditure for the
coming year and that they are dependent upon the receipt of future funding to continue as going concerns. If such
funding is not available, the group and parent company may be unable to meet their liabilities as they fall due within
the foreseeable future.

As stated in note 1, these conditions indicate that a material uncertainty exists that may cast significant doubt on
the group’s and parent company’s ability to continue as going concerns. Our opinion is not modified in respect of
this matter"

The UKOG £ 3 million raise would fund all of Alba's share of the forthcoming planned programme...... and leave some over for beer money
EOGL
Posts: 9
Opinion:No Opinion
Price:1.025
RE Have The Other
25 May '19
Mirasol,
Ref you're 17.06, partner approval of capital expenditure by the operator is governed by the JOA. as it happens, Penguins referred to this in his post at 20.18. usually this means a vote to approve the JV budget at the beginning of the year. The operator would not proceed with well-planning or rig contracting unless this was in place. The approval will have a pass-mark. At a later date, the operator will issue an AFE to cover the cost of the well. This will also require approval by a certain percentage of the equity interests.
The actual contracting of the rig will be done by the operator. It would be unusual for a non-operating partner (Magellan) to get involved in the rig contract, for example. HHDL should only require Magellan's approval of the AFE. As mentioned by others, there will also be provisions for default or sole-risking in the JOA.
GLA




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