The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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21ATS - i can't argue with that - all oil field projects drift to the right I'm afraid - it's now nearly 5 years since they started to drill Horse Hill 1.................
My statement was a little on the simplistic side. But fundamentally there's no point UKOG producing a CPR until it's reasonably further along in it's drilling and permissions.
After all the purpose of a CPR for UKOG is to raise traditional debt based finance based on recoverable oil as opposed to listing lots of "undeveloped probable". Whilst at the same time producing oil form wells to pay down that traditional debt based finance.
Of course at that stage Institutions may or may not be interested as well as other parties that are interested in cold hard production numbers .
Until all those things are in place the spectre of potential further placings always exists. UKOG is at the whim of too many things outside of it's control to be anything more than vague with timescales, the most obvious being planning permissions.
Sanderson discussed it here from 6:15 onwards.
https://www.youtube.com/watch?v=e59gHeiAHec
I feel there's a lot of delusion here about how quickly this is all going to happen.
I'm underwater with a 2.17p average, a lot better than many I imagine. If there's a spike back to that level I fully intend to get out (then re visit when it's a bit further along). I just have a feeling this could drag on longer then we think.
Thank you Mirasol for that very informative post.
Best post I’ve seen for a longtime!
ATS:- "Only recoverable oil in operational drilled fields with full PP can be included in a CPR"
that's not quite true
The standard system is whats called the PRMS - its definitions are explained here
https://www.spe.org/industry/petroleum-reserves-definitions.php
http://gaffney-cline-focus.com/the-competent-persons-report
This classifies all resources in any field or prospect into a grid which ranges from Undeveloped Probable through to Proven Developed Producing. A CPR will try and categorise all the resources into these categories.
When it's all blue sky and no information you can still get a value for that category but it'll be maybe 5 cents a barrel.
A bank will give/value/loan you maybe $15 a barrel for proven undeveloped and maybe $ 30 a barrel for proven producing developed.
Proven means (amongst other things) that you have all the Govt permits in place, an export route and (maybe) a customer.
So right now any CPR will just put all the Portland into Probable Undeveloped and the Kimmeridge into Possible Undeveloped which isn't worth a lot to a bank TBH. Once they have Development approval from the OGA the Portland moves into Proven Developed and (probably) the Kimmeridge into Probable Developed - which is worth an order of magnitude more than today.
Strange ??
Why is it strange that the SP has dropped considering it's been declining for months its nothing new .We are awaiting a series of imminent events which should move this along.
Strange the price has dropped to 1p area then considering we have had tankers leave Horse Hill ??
Let't hope the rig arrives soon and also the Kimmeridge flows some decent numbers.
No CPR until next year ..
I watch with interest and hope my buy in last week starts to make my portfolio look pretty.
IMO GLA
Heid, how many times does it need explaining to you? There's no point producing a CPR until planning permission has been fully granted and all wells drilled for as many sites as possible. Sanderson even explained this in detail in his last presentation which I know you watched.
Only recoverable oil in operational drilled fields with full PP can be included in a CPR.
Are you choosing to ignore this information or just not understanding the principal of it?
We're not going to see a CPR this year.
Not sure Sherlock Holmes would approve of a Mrs Sherlock Holmes!
Elementary, my dear Sting.
Hark at mrs Sherlock Holmes there
Pmsl
I look forward to CPR here after the EWT is completed.
In my opinion this is when we will see the real re rate.
IMO. GLA.