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Penguin
I have looked all plans of the rig set up and the office ,derreck ,pipe bed everything does not project more than a meter or two beyond the well they are over.all to one side and behind.
Our new well cellars are at least 4 metres if not more edge to edge from the old cellars
I do take your point however on calling a delay to produce funds from Portland but frankly I would just use the 3.5 m recently raised and sod investing elsewhere lets get this job done.
Sting,
Overlaying the plans for drilling these 2 wells illustrates that the rig and equipment would make it impossible to build the cellars whilst drilling, it will be challenging to continue with the ewt whilst drilling.
There is also the small matter of cash. There don't appear to be sufficient funds for UKOG to fund their share of 2 wells whilst continuing to fund the ewt, have a reasonable level of contingency and also fund just running the companies for 3 months whilst ring fencing significant funds for the new ventures that £3.5mm was raised for.
Whatever testing is currently happening doesn't seem to have been much of a change in terms of tankers leaving the site so previous cash burn per month of about £ 900,000 net of the revenue from the test oil production has probably continued leaving probably about £7mm cash at the end of July.
Assuming HH-2/2z begins early August and takes 6 weeks and costs £5mm by mid September there will be about £3mm left assuming UKOG pays about 50% of the well cost, continues with its share of HH-1 ewt cost and revenue, and company costs and thus a similar cash burn continues. This would be enough to pay for HH-1z and 6 weeks cash burn (just) but most of this £3mm is said to be for new ventures assuming some has already been spent assessing new opportunities.
It was never intended to drill these wells back to back, plans change but if the Portland horizontal performs within expectations (or better) then pausing to ewt and generate positive cash flow may enable the cellars to be constructed and funds accrued to drill further wells and the development site.
It's a sea of blue!
Oil is flowing.
Tankers daily.
Cash is being credited to Ukog account.
Flare in operation.
Pump at five cycles a minute.
£10.7 million more cash than seadoc "calculated" at end of last accounting period.
Cash spend per month £1,800,000 less than in seadoc's estimates.
HH2 and HH1z already fully funded.
Rig soon but not expected to be announced before arrival due to protesters activities.
Thorpedo
its tough on people who are well down and I am struggling to see it rising massively to help them out .
I bought down but not everyone can do that .
Little comfort I know but the company will be good.
Sting69 @6:01
Couldnt agree more.
Why anyone spend money on building a house without planning permission in place? then why would UKOG start drilling without the production planning? Especially as the application is in place. A small wait yes but one which mitigates any planning risks.
No Rig means no swampies and nothing sticking up in to the skyline whilst the planning is being considered. During the planning meeting we will be able to say that we have had over 300 tankers and there havent been any disruptions.
Personally I am happy to wait - the Oil isnt going anywhere, or at least not until we have the planning.
https://itportal.ogauthority.co.uk/edufox5live/fox/edu/WONS_WELLBORE_SEARCH_PUBLIC
HH-2 hasn't even been spudded. They have to report within 2 hours of the first drill going in. If you check, HH-1 was spudded the day the auger went in.
White Night
I agree it is extraordinary the silence over Rig ,funding use anything .
I honestly believe and obviously want to believe that with the fact there is oil as we can see then the reason for the silence is not because of a risk to the share but is ultimately because there ae great plans in place and that anything other than silent running would cost the company in other ways.
I posted this over the weekend regarding the rig and since we are all mostly or most of our money is locked in we can just wait but stay positive.
People operating outside our reach are making money trading this share believe you me.
"I was always on the line SS not wanting to reveal his hand ie success of results, disclosure of information but all within AIM rules
Always thought he wanted the rig for a full 6 well drill and that the planning delays were slightly scuppering his plans
Then I remember he wasn't expecting planning permission to be until late in the year as he once mentioned.
I got to thinking and given the already approved 2 wells will take 3 months did he actually make a mistake commiting the comment on drilling to commence 1st quarter to appease share holders and he as since realised if he couldn't get rig 28 from union Jack and the penny dropped if forced to wait he could drill right through planning
The planning delay made this a certain and hence the new position.
Could we drill straight through
I then started to look at the rig setup from previous Rig 28 jobs and the configuration of HH well site
My concern was that they couldn't prepare the well cellars while drilling the 2 approved wells
At first looking at the planning application layout the new cellars were under the rig ,looking at photos even made me think they had the drawing for planning wrong. With the pipe gantry feeding from the pumps shown wrong handed
The Penny then dropped and I realise the cellars still to be built are actually on a new slab which mirrors the existing slab in front of the rig location The flare location remains on the existing and new plan and so I could figure my error out
In short we can build the slab and new cellars in front of the rig while the rig is operational!!!!
I think the small flight auger and casings recently were for anchors to the rig for inclement weather ie winter
Possibly even short piles to support the new cellar slab against future rig weights.
If the rig went to other sites it will be through negotiation and these are the reasons as well as the move with planning that the rig is still under discussion and both companies are working together to minimise costs
I think we will see an RNS that states the rig will stay on site and we will drill right through the next 10 _ 12 months to finish off the site .
I think SS wants the gates closed and this site in full production and move on to other sites by the middle to end of next year Job done
It's going to be a shocker for any one wanting that rig that's for su
Where the fu*k is this rig!! We’re almost into month 8 of the year and not a peep from that useless article SS. Where is the update on the £3.5million share raise, what hasn’t that money been used for . How can any reputable company raise such an amount and not provide any information as to where it’s going.
Unfortunately I am invested here (at a loss) so by no means deramping but this share is the biggest dog I have ever invested in - pathetic performance.