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Negative comments are welcome, because they help to rein in over-exuberance.
But, imho, they do need to take account the share price which, at its current level, already reflects an enormous amount of negativity.
Ocelot, I don't aggree...... "We" are not guessing.....you always try to keep it real
Or ukog COULD have MAYBE bought a load of lottery tickets and POSSIBLY won the jackpot which MIGHT just be enough to fund the first turkey drill.......if Carlsberg did oilfield exploration.......
ZYX098/Penguins,
We are all guessing as to the timing of the next placing, because none of us have access to UKOG's books and cash position.
As you say, Penguins, "we will see".
Ocelot,
We will see. I suspect UKOG are desperate to announce the drilling in Turkey before having to fund raise again, but if they have shelled out £550,000 to PW that wouldn't help, but may be preferable to having to issue shares to PW and still have to fund raise. They appear to have a close business relationship with PW so the contracted timing may have been allowed to slip.
But it is inevitable they will need to fundraise as their only income is from HH and Horndean which might generate enough cash in 2 to 4 years to drill another UK well, and they have plans to drill more wells at HH presumably before that.
Turkey may generate enough cash to self fund the next well, but that is by no means guaranteed, and depends on success and high enough flow rates, the analogue E Sadak field appraisal and production drilling appears problematic. Suffficient free cash exported from Turkey to fund UK drilling may be years away or never, as may RBL based on reserves in Turkey..
Ocelot,
"Initial drilling and seismic costs" could cover a multitude of things, but I doubt very much it actually included the actual cost to drill the well - more likely the purchase of long lead items (casing, wellhead etc), site preparation and possibly mobilisation costs for the rig itself.
Similarly for the seismic work - I doubt it includes the actual acquisition costs, never mind the processing & interpretation.
With no sign of a CPR on the horizon for HH, it's clear a placing is coming. It's just a matter of when and for how much.
My guess is UKOG needs at least $3 Million and possibly as much as $5 Million, just for Turkey.
My thought is that this would entail a placing at around 0.1p, which would probably drive the share price down to 0.12p once it's all been rinsed through the markets.
Of course, the problem with that is he doesn't have approval for that size of a placing, so he'll either try and hang on until the next AGM, or call an EGM at which no shareholders will be allowed to be physically present and - as at the last AGM - effectively aren't allowed to vote on any of the motions.
". "
Just like the derogatory " soundbites "
and the share price decline is well overdone, imho.
Placing is well overdue. Sanderson must be looking down the back of the sofa for beer money by now. needs another bonus.
Ah yes "suffering fools".....as the accused would say...." no comment"
Yes cynders, re:your last sentance....that would be nice
I'll tell you this much,
Given that Silent Steve and his chums decided not to make any statements about UKOG being fully funded for the Turkey drill in the RNS dated 20th Jan titled "Completion of Resan licence agreement with AME", then you can draw your own conclusions.
My view, as they decided not to mention anything about funding, then they are short of cash and did not want to tell the market.
One thing is for sure, Silent Steve loves to brag given the chance, so if they were fully funded for the first drill, then he would be shouting it loudly from the rooftops.
My verdict, they are short of cash, will have a placing already being forward sold into the market. Give it 4 weeks max and you'll see an update I reckon. AME will be wanting that cash, they are Turkish and don't suffer fools.
SP heading to 0.105p in my opinion.
C'mon Silent Steve, prove me wrong.
The stronger £ will help, too, reduce the £ equivalent of $ drilling costs.
Ocelot, yes there have been many comments and" guesstimates" on the financial strength of ukog and other matters....they are obviously designed to destabilise the sp along with weird share trades and derogatory comments (which I no longer respond to) .no news from the company doesn't help the situation....they say " no news is good news " but in this case it certainly isn't helping.....it's just giving the "agressors" an advantage......our day will come
From the RNS of 02/10/20 (my capitals):
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that ... it has successfully raised GBP2.2 million to fund its share of INITIAL DRILLING and seismic costs through a placing ("Placing") of 1,374,999,993 new ordinary shares ("Placing Shares").
Given the repayment of the 2nd instalment to PW Well Test Ltd in cash, I have begun to wonder if UKOG hasn't got a bit ahead of the curve this time and, in terms of cash resources, thanks also to its cost-saving initiatives, finds itself more comfortably placed that I had previously imagined.
52 week low.
forward selling based on insider info is illegal is it not. no placing has been announced.
D
Why does it matter to the non "invested" what any financial details are....as long as they can keep making their trading margins they'll be fine....the only thing that matters to them is the sp movement
Penguins - thanks.
On the operating costs, one other thing to consider is that they are claiming a 66% reduction over the year, yet they are now producing water (c. 35 - 40 bbls/day) which has to be disposed of.
No real idea of water disposal costs here, but I wouldn't be surprised if it was in the region of £8 - £10/bbl.
Ocelot - thanks - should have worked that out for myself....
Ocelot...there are non so blind as he who will not see.....but keep trying
However "total" operating costs are defined, the key point remains: they have made strenuous efforts to squeeze costs and reduce cash outgoings.
Not sure about that, Penguins, may have responded too quickly.
... From January 2020 to January 2021 our total operating costs have reduced by 66%. The savings will help place Horse Hill in a good position to take advantage of the strengthening Brent crude prices seen in the past month.
So, "total" operating costs, there's no mention of per barrel.