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Per the most recent RNS.
“The convertible loan detailed below also ensures full funding for UKOG's increased share of future production facilities costs and other near-term surface, subsurface and regulatory costs necessary to bring the field into long-term production.”
I think that is quite self-explanatory.
But just in case you’re going to be extra pedantic about it.
All funds in place to bring the field into long term production.
Making all discussions about questions over funding for future drilling post that point beside the point as there will be a CPR and then UKOG can borrow against reserves.
Sheesh penguins you’re a regular Don Quixote - tilting at another imaginary windmill of UKOG financial woes.
Now just over twice that but agree, still not much scope for profit.
seadoc, I would not expect you to interpret any of the information in the rns's the same way as I do as we obviously have different goals. However I am not trying to save you money. I will not be worried if you lose your down bet. If my memory is working (may not be) I think at one time you said the bet was worth £3000 a penny so with share price just over a penny there does not seem to be much scope for profit.
Oakleaf, " legal completion of the sale" Yes I could accept that. Agree delays are a concern. I was a bit cheeky about the beans. before HH2, but we are having them, again, tonight.
Seadoc I'm no expert but it looks to me that HH2 spud is dependant on legal completion of the sale, not the funds. Maybe this is why things have been delayed until now? Who knows. For balance, I am a tad perplexed why HH1z is no longer mentioned in tandem with HH2. Maybe it is still funded, or maybe the agreed additional YA funds are needed for that? With a fair wind, HH will be pumping 3500bopd within a year, net 86% to ukog, and an extra billion shares will be long forgotten.
The question isn't funding for HH-2/2z but HH-1z which seems to all but disappeared in dispatches.
The acquisition RNS mentions facilities for production but nothing about HH-1z. Wizard asked poster Sanderson earlier about the rig remaining on site after drilling HH-2 and I would say based on the last couple of informative RNS no.
Ignoring any worries about cash to pay for nearly 86% of further wells and the develpment there's hesitation about the Kimmeridge and asuming that hesitancy continues drilling HH-3 (the second Portland horizontal) before testing HH-2 would not be sensible - whilst many on here take for granted that HH-2 wil be a certain success I suspect UKOG would like to see actual results, not estimates before drilling a second Portland well. The OGA would also be included on a decision and almost certainly the FDP would be required before drilling HH-3. Note that the Portland FDP is being prioritised. As it would require no new civils perhaps HH-1z might end up in the Portland to expedite production.
Idespair and was it rosewall?:
The RNS of 7/8/19:
"As a consequence of this transaction, drilling of the much-anticipated HH-2/2z Portland horizontal well will follow very shortly after completion of the SPA."
Part, indeed all of my post, and any previous could be wrong but how do you interpret that simple statement? Clearly not in the same way as I do. The SPA is needed to fund the drill, IMO.
"The Loan ensures we also remain fully funded for further capital expenditures necessary to get the field into long-term production once necessary regulatory permits are in place this Autumn."
And the permits and further loan will be in place when, and if not?
All good news esp:
"This Loan agreement also provides for further funding on the same terms of between £3.6 million and £4.5 million dependent on the operational performance of the Horse Hill asset."
Is that to fund next drill if HH2 also gushes, and should it not reach, say 2000 bopd what then, new terms?
I make no secret that I am short and am most grateful for those who are trying to save me money by pointing out the error of my ways.
My guess........ 6th Sept
I am all for balance but it should be sensible. The ink on the RNS isnt dry yet. It is barely a week old and you are suggesting a cash call is required. Balance needs to be credible and, reluctantly, i would have to say that that part of your comment is totally wrong.
When the rigs arriving it will be leaked to the few (nod and a wink brigade) and the pi's will be last to know. I've no doubt there will be a quick rise in buying activity at that time. If it turns up on Monday Seadoc will eat his hat. IMO.
I don't know how long it takes to service that rig
But i think it more than a few days
Will be an interesting week if the rig arrives Monday,
Dare i say the train has left the station.
R.E cash call for HH2, what part of this bit from the last rns needs further clarification?
"It should be noted that the cash consideration will not impact UKOG's ability to fund the forthcoming Horse Hill 2/2z drilling and extended testing campaign, as cash funds for its full 85.635% share were set aside and ringfenced internally in Spring of this year"
But sure, don't let factual information get in the way of clear negative bias posting. And again, none of the usual derampers rush out to counter, saving their vitriol for those who publish positive posts.
seadoc, the RNS on 7/8/19 stes that the cash for drilling HH2 was set aside and ring fenced earlier this year. You will be aware of this and by referring to nichol investors post at 8.30 this morning you are being disingenuous.
"I think 0.8p is a thing of the past."
For once we are in agreement.
I think 0.8p is a thing of the past.
If as suggested the rig arrives by Monday this will continue the upward momentum.
wizard, Yes and I will take that as a genuine question so add that I am doing my best to extend my down position. The next, worthwhile, information will be the HHDL accounts to 31/12/18. As a private company the deadline is 9 months so say early October, perhaps timed with the publication of SCC planning decision. Just a guess on my part as to the timing. The decision of what is now the biggest holder in HH not to contribute is telling:
• Alba has decided not to contribute to the most recent cash call issued by the Operator, HHDL, for £261,000, as Alba has decided to deploy its cash reserves to the mining projects which Alba operates and controls.
• Any dilutive effect on Alba’s 18.1% shareholding in HHDL will be negligible.
So 18.1% of the cash call was £261,000 and so the full cash call was 261,000/18.1% = £1.44m.
It has been suggested at 08.30 this morning that there will need to be another cash call before the drill of HH2, I find no fault with the suggestion of Nickel_Investor:
Titled, Placing on the way prior to drill. Posted: Today at 08:30:
No chance they have large funds given time of last raise , acquisition of interests since . Hopefully they can get away above 0.80 (sic).
Yes, staying short for now but I make no secret of position and will update should it change.
Are you still planning on staying short?
There is no logic in him taking up, and paying for, options before he has to. It would be far more troubling if he took them up and sold them.
wizard, Shame on you. You know exactly what was published on 16/4/18:
I personally agree & would like to see SS take up some of his options as it would give UKOG a big boost at a time it really needs some confidence instilled into the market. But I am not he & he may have his reasons which may include the reason that the options date was extended last time.
If the options are considered as part of a salary sacrifice for the price that they are on offer for eg. 0.4p.SS would stand to make a loss by not taking them up.
It is also possible that the company could issue shares every month as part of his salary.
Once the options are taken the director is free to sell some or all of them at any time & only has to notify the market once the transaction has taken place (See what happened a Lloyd's bank).
I have read the accounts - the point is that many private shareholders would like the Chief Executive to have more skin in the game. He has a large enough salary to either take up his options or spend a fixed percentage of his monthly salary buying on the open market. I think that most would agree.
Have you read the report & accounts the details of the dates that the directors need to take options by is detailed there but is able to be changed in certain Circumstance's.
Will he ever take up his options and get 'some skin in the game'? UKOG need funds hence the deal that some are describing as XXXXX XXXXXX (I could not write the two words as they are so offensive).