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cyan2
SNR refused to comment. I did ask.
Good afternoon Ibug
You wrote
"SNR had a share of the Resan/Basur licence back in 2016 but sold their share to AME after the first 5 wells at East Sadak had been drilled."
Why would they do that if the Resan prospect was that good? As I have posted before; if Resan was so good ; AME would go it alone and reap all the rewards for themselves.
cyan2
SNR had a share of the Resan/Basur licence back in 2016 but sold their share to AME after the first 5 wells at East Sadak had been drilled.
Hi again ocelot;
"Any future oil production is therefore expected to be economically robust ..." "... at current $40/bbl oil prices ...".
No doubt that Turkish costs are lower and hence AME seem to be able to produce micro amounts economically as in "Karakilise-1 Well, in Current daily net oil production is ~20 bbls/day " as reported in the 2017 link Ibug posted;
hTTps://hobbydocbox.com/Investors_and_Patents/70054084-Contents-message-from-the-president.html
It remains a mystery to me as to why AME did not go it alone with such a supposedly promising 'missed pay' play or why AME's usual partners did not invest.
We will just have to wait and see what Resan can produce.
The other side of the "superseded immediately by the production phase." coin, is that even if it is 40 bopd, UKOG and AME have to produce from the well even if it is at a loss. It's a double-edged sword, so you better hope that AME have picked out a good site.
p.s. AME will be making a little profit on their charges to UKOG for use of their staff and RIG, it will not be a cost neutral drill from their perspective.
Wizard,
For accounting purposes, would expect the treatment of the ewt to be the same as in the UK, UKOG aren't going to change their accounting policies because of a change of location.
The big change, however, is that, if successful, the ewt is superseded immediately by the production phase.
Just like HH was going to be robustly commercial... LOL. Yeah ok. Ever heard of the boy who cried wolf? It works both ways, the CEO who cried "transformational". I'd rather invest in a primary school kid's lemonade business.
ocelot
I am presuming that it is not like the UK during a EWT where only costs can be offset on the balance sheet & profits will be straight on the bottom line following revinues.
Just to complete the citation, taken from the original Turkey RNS of 23/07/20:
"Any future oil production is therefore expected to be economically robust ..." "... at current $40/bbl oil prices ...".
Good morning Ocelot
At least YOU tried to post positively on UKOG
"Any future oil production is therefore expected to be economically robust ..."
If only half of what UKOG " expected " had come to pass; shareholders would now be far better off.
What's come to be 'expected' from UKOG is just one disappointment after another; missed targets; poor well performances and massive share dilutions.
TrollHunter2 ignored my polite request for positive links on UKOG and instead this morning posts on another thread. Here is an extract;
" With oil rising over $70pb the margin in Turkey and potential production certainly justifies a 20p target price."
Really?. There are about 13 billion shares presently in issue with UKOG and the number is likely to rise (why does Sanderson want the permission to issue 3 BILLION more shares?).
13 billion times 20p would give UKOG a market cap of £2,600 Million ; £2.6 BILLION.
Compare to regional player GENL ; market cap circa £427 million producing 33,000 plus barrels per day.
TrollHunter2 thinks SIX times Genels value is possible ? Oh dear .
I think TH2 needs to present the numbers ; a reasoned case , to justify such a dream value.
Oil advanced as rising optimism around a demand recovery in regions such as the U.S. offset Covid-19 flare-ups in parts of Asia.
Futures in New York climbed as much as 1.4% on Monday. The U.S. and China, along with parts of Europe, are rapidly recovering from the pandemic as vaccinations accelerate. In the U.S., passengers at airports jumped to the highest since the pandemic began. However, Indian fuel demand continued to weaken in the first half of May.
The oil market’s structure is showing signs of strength. The premium for global benchmark Brent’s nearest contract over the next one has started widening again, signaling a tightening market ... (Bloomberg)
Any future oil production is therefore expected to be economically robust at current $40/bbl oil prices as front end capital costs per barrel are relatively low and expected operating costs, derived from those at AME's nearby East Sadak field, are forecast to be comparable with UKOG's Horse Hill field operating costs at around $15/bbl. An equivalent production stream in Turkey will therefore pay back far quicker than in the UK. (RNS of 23/07/20)
Current Brent price: $69.50
'So 3500 bopd at Horse Hill is quite an underestimate to UKOG's oil production. multiply by other sites and you'll get the real potential value....HUGE.' [17 Sep 2019 07:10]
A quick-pick from Trollhunters history - if only it had been proved to be true. If I had invested with that level of expectation I would also be upset with people posting realistic posts when I want others to overpay so I can get my money back.
Good evening TrollHunter2
Please cherry pick some positive links about UKOG and its prospects.
Hey trolls, here's an idea, why note search the internet and cherry pick negative data to post about UKOG and it's prospects.
That's sure to get you loads of likes with investors.
Admin why do you let the XR's continue here?
Good link Ibug
20 barrels a day from one field , 100 barrels a day from another; 335 barrels from a total of 6 wells elsewhere.
Big league stuff.
Umm Lets hope that UKOG gets more than 50% of 20 barrels.
https://hobbydocbox.com/Investors_and_Patents/70054084-Contents-message-from-the-president.html
Filling in the blanks!