Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Dean, I don't think quoting 2017 market cap is particularly relevant. The SP spiked after a positive drilling update from Broadford Bridge! and an RNS from Horse Hill:
"The HH-1 Kimmeridge Limestone and Portland oil discovery well is located within onshore exploration Licence PEDL137, on the northern side of the Weald Basin, 3 km north of Gatwick Airport. As previously reported in February and March 2016, two naturally-fractured limestone members within the Kimmeridge section, known as KL3 and KL4, flowed dry, 40-degree API oil, at an aggregate stabilised natural flow rate of 1,365 barrels per day ("bopd") with no clear indication of depletion.
The overlying Portland flowed dry, 35-degree API gravity oil at a stable pumped rate of 323 bopd. The Portland oil was produced at the rod-pump's maximum achievable rate and thus flow was constrained by the pump's mechanical capacity. " This apparenetly wonderful news was sufficient to sucker me and lots of others in.
How did Broadford Bridge turn out? Why didn't UKOG pursue the wonderful flows from the Kimmeridge? Why did they go for the Portland? WHY DIDN'T SANDERSON REPORT THE WATER ISSUES IN A TIMELY MANNER? WhY DOESN'T HE GO?
Their reputation is SHOT.
There have been about 43 RNS since the one below with no mention of any problems of water so far as investors were aware this RNS still stood until the last RNS, problems should have been announced long before that, shocking communication to investors, many investors still believing the one below. Dry Oil Flows to Surface- Water Shut-Off Programme
Mon, 9th Mar 2020 10:00
RNS Number : 4190F
UK Oil & Gas PLC
09 March 2020
UK Oil & Gas PLCDry Oil Flows to Surface Following Successful Horse Hill-2z Water Shut-Off Programme
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that the intervention to shut off significant formation water ingress into its Horse Hill-2z ("HH-2z") horizontal production well has been successful.
Following the identification of the water ingress source via production logging, a rigid setting Thermatek® plug was set over a zone of open natural fractures clustered at the deepest part or "toe" of the wellbore. Initial testing of HH-2z post-Thermatek® has demonstrated a continuous flow of dry oil to surface, confirming that the plug has eliminated underlying formation water ingress into HH-2z.
I'll say it again it was 300m MC with no oil.
DavidWK, look what the market is paying for oil companies producing on proven reservoirs. UKOG is never ever near a market cap of £100MM now, in my opinion it would need to be demonstrably producing ~3000bpd to attain this market cap. Do some comparisons with other oil companies instead of just spouting opinions. RRE takeover yesterday £240MM market cap, 20,000bpd production.
Exactly. I would say a fair market share right now would be £100m minimum with potential to go to £300m with planning granted, confirmation of aggregated production above 2,000 bopd with oil price at 60$ and good CPR.
Zero goodwill, that’s a minus not a positive, as for the asset valuation good luck with trying to sell horse hill for 34m.
At the end of the reporting period, UKOG has £0.78 million in cash and cash equivalents. After year end it raised a further £4.2 million via the issue of 2,100,000,000 new ordinary shares in the Company.
As a result of the increased expenditure on exploration and evaluation assets, associated with drilling on our Horse Hill oil field, these assets increased to £34.03 million (31 March 2019: £24.58 million). The Company's goodwill increased from £6.29 million to £17.43 million as result of the acquisition the entire share capital of Magellan Petroleum (UK) Investment Holdings Limited for a total consideration of £12 million in cash and UKOG shares which occurred in the second half of our 2019 financial year. It, therefore, was not recognised in the period ending 31 March 2019.
so with the £4.2m raised they had £5,000,000 cash in the bank - Minus the 1.75 million paid to riverfort £3,250,000 cash in the bank. Minus the deal to purchase the rented production kit (this was a cash and share deal) so lets say half was cash. So £825,000. so this leaves them with £2,425,000 - then salaries and continued work - also spending to redo well to oncrease production over the summer - this has already been started (may suggest why the pump is going with no flare.... maybe a technichal bod can confirm....? or i could be totally wrong...?) so lets say they have £2,000,000 left after that.
I cant see a placing for 6 months plus ( granted there probably will be another one down the line)
Asset value of £34,000,000 and goodwill of £17,000,000 - yet the market cap is £20,000,000 - the numbers show there is a disparity there