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bobminor, there is no comparison between sxx and ukog.
What do you mean by "in readiness to get rid of PIs and lead to consolidation?
In my opinion you can't just get rid of PIs and there is no need for consolidation.
Be careful - what happened to SXX could happen here in readiness to get rid of PIs and lead to consolidation of the SP. An outrage though it is - we have been warned to be cautious - not just here but on all high risk investments including some funds.
LSE337, transporting the oil has always been restricted to daytime Monday to Friday and Saturday mornings and none on bank holidays.
This does not change during production.
All the above is valuation based on Horse Hill alone. While this is an improvement on the seagull single wellhead valuation, it does not factor in the multi site potential of UKOGs asset base. Target production rates for the six wells at HH is 750-1000 bopd per well. AFter HH there are 5 further sites detailed for appraisal; Arreton Main, Godley Bridge, Broadford Bridge, Arretion SOuth and "PEDL234 KL new site". Next couple of years should see the SP rise significantly as production ramps up.
Hi Tony,
I read it as transport restrictions during installation of storage equipment not during production.
Phase 3: production and management
Installation of oil processing, storage and tanker loading facilities and production equipment
Duration: 4 months
Hours: 8am-6.30pm, Monday-Friday; 9am-1pm Saturdays
Daily HGV movements: 6
Oil production
Duration: 20 years
Hours: 24 hours, 7 days a week
Daily HGV movements: 4-32
Maintenance workovers
Duration: 1 month
Hours: 24 hours, 7 days a week
Daily HGV movements: 20
Sidetrack drilling
Duration: 3 months
ATB
Chris
Not entirely true Sanchez. Mcap is the important factor and we are still well below where we were at BB with no oil flowing. We have a vertical pumping between 200 and 300bopd and approval for a 6 well programme. We are futher along the road than we have ever been in terms of actually being a proper Oil Company.
toughiv,
Yes we are heavily undervalued due to events a while back at Broadford Bridge. We also have approval for oil based mud testing which we didn't have at BB. This is a real positive and should allow for better testing procedures on the horizontals. Watch this baby fly after the first horizontal flows at 700bopd+
7 days a week production, 5.5 days a week transport movements
24/7 drilling operations
5.5 days a week other work ( although safety work can be 24/7/365)
Apologies Jimmy and Argus.
I missed the bit saying profit/barrel.
:)
Even better!
Lol
So if we get 500+ bopd from horizontal and it happens more than once (proving replicable), this will rocket ??
I don't understand the SP.
Hi Jimmy,
I missed this bit as well.
Daily HGV movements: 4-32
ATB
Chris
Hi Jimmy,
Yep 24/7
From Phase 3 of Planning Doc
Oil production
Duration: 20 years
Hours: 24 hours, 7 days a week
ATB
Chris
Operational costs should be part of the production costs.
Not pure profit.
We still have operational costs to come out.
But it looks pretty eh?
:)
Holy cow. I didn't realise that
Correct me if I'm wrong but aren't we approved for 7 days a week?
Correct me if I'm wrong.
We have 5 Wells + 1 injection.
We can have 3500 bopd according to current permissions.
*IF* we achieve 3500 (I think more likely to achieve 2500)
Valuation:
3500 (bopd) * $45 (profit per barrel) = $157,500 (per day profit)
UKOG = 86%
Therefore, $157,500 * 0.86 = $135,450
Now we want per year...
260 working days...
260 * $135,450 = $35, 217,000
That in £ is ($ > £ = 0.8); £28,173,600
Alternatively, using same calcs for 2500 bopd = £23,400,000
THATS PER YEAR PROFIT. WE HAVE 25 YEARS. EVEN WITH DEPLETION, 10 YEARS = 9 MILL BARRELS WHICH IS RECOVERABLE FROM PORTLAND ALONE?!?!