The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
https://www.irishexaminer.com/business/economy/arid-40731114.html
Only because I was presuming that 884 bopd was as high as they were willing to take it with the current equipment, so might want to take some pressure off until they upgraded. Once that is done I am very hopeful that we may see even bigger numbers. As you say I am looking forward to a series of good news stories from Wressle - an astonishing success” as our unemotional CEO called it!
@Serif The 884 bopd was already being produced (free flow) with a substantially high throttle; why would they throttle it even higher to reduce the flow rate.
I think we have to accept that at least 884 bopd is being produced since the end of August (as the RNS states) with a substantial throttle already in place. This to me indicates that we have great potential to produce much more oil per day once the throttle is reduced and the optimum flow rates are determined.
All very GOOD news for a change.
IMHO
Sorry for the "itchy finger". I meant to finish with:
No doubt Egdon will be invoicing us on a monthly basis for the field opex and other capex costs. In any event, the higher our per barrel receipts, the lower the average production rate will need to be to get to our $1 million.
Hi Serif. Thanks for your valid points. My post was only a "sighting shot" at the average Wressle oil rate over the two months' production since the proppant squeeze, so please bear with me. It's impossible (IMO) to say what UJO really mean by "net revenue". Is it net to their 40% interest, or net of the approx. $9 per barrel opex that's owed to Egdon? I suspect it's the former as the oil is sold to a local refiner (Philips, I think) and they are not in a position to know or charge for the opex. No doubt Egdon will be invoicing them on a monthly basis for the field opex and other capex costs. In any event, the higher our per barrel receipts, the lower the average production rate will need to be to get to $1 million.will
@GP. Aren’t the figures that UJO are giving NET revenue, so after production costs have been deducted by Egdon? Wouldn’t this affect any calculation of bopd based on the $1m fret figure - ie you would have to build back operating costs into the equation so we wouldn’t be getting net $75 a barrel? I think it is tricky working out flow rates until they tell us them
For the record I wouldn’t be surprised if EDR had throttled the flow back from 884 - not sure you would want to run production rate at full system tolerance for a long period while you await an upgrade - which will then allow you to produce at a higher rate comfortably within levels of tolerance. Why take the risk of damage?
@Cloves, Your first sentence says it all for me, well said.
Today’s RNS from UJO is very encouraging, IMO, even if we could have done with more precise info about the current production rate. Maybe Egdon are keeping this figure under their hat for now, and are making sure the partners do the same. I really like Yanis' comment that Europa will have earned $750,000 since 19 August, even if it’s not the full £1 million that some investors hoped for. UJO’s RNS was presumably written yesterday, so it probably includes the expected revenue for the previous day which makes 68 days since the post-proppant squeeze production re-start. Our cash receipts from Wressle will therefore have averaged about $11,030 per day over the 68 days. But, if the well has been shut in for any of that time, then this figure will be higher on a producing day basis. Perhaps more important for us, what oil price have we been getting? Looking at the Brent price graph, and assuming we aren’t suffering a big discount for fairly small tanker loads, I’d guess that we will have received about $75 per barrel (on average) over the last 68 days. It was probably less than this in August, and quite a bit more during October. This suggests to me that our 30% share of Wressle production averaged 147 barrels per day over the last 68 days. If we gross this up from our 30% to 100% we get a n overall 490 bopd. So how does this compare with UJO’s “Current daily production figures well in excess of ...... 500 barrels of oil per day”. Well, quite a few days - but obviously not all of them - must have had much better production rates than 490 bopd, especially if there was limited or no production on some days. And it's really great that no water is being produced because this would add significantly to our operating costs
Yanis, it all went wrong for UJO over 2 years ago, when a large number of shares were held by a small group of people who had a great deal of private investor support - almost hero worship. They sold at a great profit, and private investors ended up blaming the wrong people for the subsequent price drop and their massive losses. This was subsequently repeated, and still the wrong people were blamed. Confidence has never fully recovered. Even the hardcore investors from the old bulletin board have drifted away to some extent - rarely, if ever, posting on the bulletin board nowadays.
Any small AIM listed O&G company can be a target for these people.
IMO
UJO … could the SP woe be down to the last £3 mil placing announced a month ago?
IMO, cannot compare that SP performance with EOG’s.
PR is good, but looking at what happens to a share price when it attracts a lot of attention from market abusers, can be very unwelcome. UJOs share price is down after this mornings RNS. The RNS provided the opportunity for a few traders to sell at a small profit, and the bulletin board is overwhelmed by bitterness and misinformation. UJO has become a magnet for all sorts of unpleasant individuals. I used to post on it years ago when it was quite quiet like this one. The share price would bob up and down with newsflow, and a small community of shareholders would chat. Isn't that what these bulletin boards were designed to be? But then certain people saw UJO as a target to scam shareholders. We all know who those people are.
I have felt in the past, as you suggested, that twitter can be good if it's the right people tweeting. It was the right people the last time, but most of those investors seem to have moved on.
All in all I'd rather the share price move on news, not at the whim of a market abuser who has turned EOG into another UJO. Being noticed by the masses tends to drive the share price down, from my own experience. So I like limited PR. Fortunately with Morocco and Inishkea we have opportunities that could have an immediate impact, not slow burners, so PR in my opinion isn't so important.
.. Sorry meant to end of August not September!
This is why I had a little rant a week ago. UJO added positive info regarding production post squeeze. Adding meat on the bones with tangible figures of $1M income upto end of September.
Compare UJO RNS to Europe's RNS no figures given by Europa to encourage us share holders. So we end up estimating based on what we think we know.
The one good thing about Europe's RNS is that it said 884 bopd was produced by after late August so we have even greater production now than UJO reported on. I estimate $870000 per month to Europa total income in Srptember/October based on $80.
INHO
Slawek, I am sure many of us are doing this on Twitter already.
The sad thing is EOG also has a twitter account and doesn’t bother using effectively, e.g. i announce events like the last Investor interview for example, or have I missed it?
We have "All the winds in the sail" to success (Oil Price, Gas Price, Income from Wressle). The PR was always poor for this company even with previous CEO, so maybe us Private Investors should take the PR in our hands and promote the EOG on social media? It appears it has worked few months ago when it was loud about EOG on Twitter.
“ When is the market going to wake up??
Let me rephrase that
When is Simon going to wake up? We need some proper PR.
For UJO, this is $1 mil NET revenue in 9 weeks (2 months)
So in this period, EOG would have earned $1,000,000 x (30/40) = $750,000 = £544,429
Also current daily production figures well in excess of 500 bopd & the well is still cleaning up
Max production capacity is yet to be achieved.
When is the market going to wake up?
Union Jack Oil plc
("Union Jack" or the "Company")
Wressle Update and US$1,000,000 Net Revenues Landmark Reached
Union Jack Oil plc (AIM: UJO) a UK focused onshore hydrocarbon production, development and exploration company, is pleased to offer an update in respect of ongoing operations and landmark net revenues at the Wressle hydrocarbon development ("Wressle"), located within licences PEDL180 and PEDL182 in North Lincolnshire, on the western margin of the Humber Basin.
Union Jack holds a 40% economic interest in this development.
Highlights
· Landmark US$1,000,000 net revenues generated to Union Jack since re-commencement of production on 19 August 2021
· Current daily production figures well in-excess of prognosed 500 barrels of oil per day from the Ashover Grit reservoir
· Elevated production rates maintained during well test on significantly restricted choke setting and sustained high flowing wellhead pressure
· Well is producing under natural flow
· Clean up continuing and full potential yet to be achieved
· Zero water cut
· Staged site upgrades have commenced
· Wressle production highly profitable at current oil prices
· Further development and production at Wressle can be achieved from the Wingfield Flags and *****tone Flags formations
· Gaffney Cline Competent Person's Report commissioned by Union Jack ongoing
Executive Chairman of Union Jack, David Bramhill, commented: "The net revenues exceeding US$1,000,000 within a relatively short timeframe is financially transformational for Union Jack.
"Our acquisition of further interests in Wressle over the last couple of years from just 8.33% to being the major equity holder with 40% is now showing material results and gives us increased confidence that the Company is set to deliver on its aim to become a self-sustainable entity in due course.
"Union Jack has four cash generating projects within its balanced portfolio and revenues for year end 2021 are guaranteed to eclipse those reported upon in 2020 and for the six months ended 30 June 2021.
"We believe that Wressle holds considerable further upside and we look forward to reporting on progress in due course."