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Hello steptoes , I have had backwoodsman on filter for ages ... he used to bash ukog and ujo . Must be playing some sort of short game of is a tree hugger.
Anyhow, good luck ukog, good luck ujo
Backwoodsman
I think that you underestimate the benefits of water production & the reinjection.
The reinjection of water should enhance the % of recoverable oil which is reported to have the possibility of up to 45% recoverable with water injection by independent auditors Xodus.
Because liquid nitrogen also freezes oil
Backwoodsman worst case scenario....
Water production
The present worldwide daily water production from oil wells averages roughly 3 BWPD per barrel of oil, although some wells produce significantly higher amounts. . In a well producing oil with 80% water cut, the cost of handling water can double normal lifting costs. Yet, wells with water cuts in excess of 90% may still produce sufficient hydrocarbons to be economical (e.g., certain wells in the North Sea Shell Expro Brent fields and in the BP-Amoco Forties fields). Water control technology is intended to reduce the costs of producing water.“Bad” water is water produced into the wellbore that produces no oil or insufficient oil to pay for the cost of handling the water. So far we have not encountered bad water, It is not necessary, nor desirable, to completely shut off the coproduced water. The logic here is the distinction between “good” (necessary) and “bad” (excess) water.[1] “Good” water is that water produced at a rate below the water/oil economic limit (i.e., the oil produced can pay for the water produced). “Good” water, then, is that water that cannot be shut off without reducing oil production...basically if water is managed correctly it can be an asset and we have anticipated a water re injection well sorry to disappoint backwoodsman, but you have this and more coming to us both in UJO.
Peter I am no ramper as my posting history will show, but I can’t abide the likes of backwoodsman trying to manipulate the RNS to suit his agenda and try to deramp UKOG for his own trading needs...He is just trying to make things look so bleak here that he think investors will move to ujo where he will trade and sell in to any good news there .
Ninetails. Thanks for your list of steps. I assume SS and team will be aware of this, and since he mentioned "Routine Intervention" hopes that one of those steps will do the trick. After todays news, thanks again to the Eyes. this board seems to have calmed down. Lets give the man and team chance to get on and deliver for all our benefits.
QUESTION? If this turns out to be routine will we still need a rig?
So chemincals going in via coil tubing tomorrow ?
It'll be interesting to see how this unfolds through the week.
GLA
I do not post on technical issues that can be taken apart and twisted, but I work offshore although not in drilling, I am in contact with Schlumberger, Wellservices, Archer, Expro, Halliburton, Baker Hughes and weatherford , feel free to google them all, I have broached the subject of water ingress at the toe end of a horizontal well with slotted liners, they all said they would start with the simple procedure and it would be a process of elimination ie if a plug works (possible chemical) job done if not move on to the next procedure but basically each well has it’s own characteristics and know one knows until the procedure is underway (especially backwoodsman) to comment on such a procedure without all the relevant information, and even then is pure speculation.Until the first procedure has been implemented all the doom and gloom Swing trader Backwoodsman presents to this board is pure speculation on the deramping side.
always thought the unemployment figures are understated!
So many armchair oil and gas engineers and others on this board. Does industry know that this army of engineers, accountants and experts exist?
Missed opportunity by not following the original plan and drilling HH-2 down into the Kimmeridge imo. No doubt SS is kicking himself. Would have made an ideal injector below the lower Portland. Self inflicted wound or just par for the course!
Whilst we all appreciatte how elequently you posted I think I could describe the negative trolls in fewer words . Any negative on this bb is quite simply a spreadbet short a local protester or just some sad loner who likes a fight as such ignore they play no part and are irrelevant to what ukog are doing
What the RNS says....Whilst HH-2z continued to clean-up prior to the current shut-in, returning oil, completion and drilling fluids to surface, evidence of formation water ingress was also recorded. Consequently, an additional routine intervention is planned to shut-off the water source, What backwoodsman says, the RNS says, ....This means that, in addition to hitting a water source at the far end of the well, there is also an issue with the presence of SIGNIFICANT formation water... he just thought he would add the word significant in himself... Not to be trusted he is a swing trader, he had a deramp campaign before he bought into UJO and has been called out many times on the UJO board...
You've repeated yourself twice now and you're failing badly on the doom mongering. Just wait and see what happens when they bung the toe...still, keep spinning this lie as it keeps Suemay1 happy...
Backwoodsman
Thanks for the update and ongoing works and ur opinion
Good man
Chris pea**** so what do you suggest as to why the wont 'furk it up'.
Maybe you could go on site and advise SS and the team exactly how it's done or what they need to do ??
"They may just plug the last 100 to 500 feet of the 2500 feet horizontal to eliminate that exposure to the open natural fracture.
At present there is no evidence of water ingress anywhere else in the horizontal."
PCS is correct - that almost certainly what they are going to try. They said the end of he well was in a different pressure regime to the HH1 - so there is geological barrier that is causing the pressure differential. Position the plug correctly and they should be able to keep the water out for some time.................. May affect the upside reserve picture as obviously the field is not quite what they thought it was when they drilled the long horizontal - but that's not unexpected when you don't have 3D seismic
Backwoodsman...I see you are very concerned with the problems facing UKOG, that you have done much research, and managed to highlight and indeed exaggerate the problems to the upmost , I read your posts on the UJO board as I am invested there also, maybe you should be concerned how things are going to pan out over there before coming on here trying to make things sound worse than they are, at least UKOG have put oil to the refinery, UJO have many, many hurdles to cross before they get to that stage, and who knows what problems will be thrown up there, or indeed how much water will be encountered.And as for communication and updates it is radio silence, and sentiment at an all time low, the only people happy over there are the pump and dump traders waiting for some news to sell into, The Wressle permissions was fantastic news for UJO but the traders took the sting out of that and the same will happen on next news...Good luck with your trading.
Feeling much more relaxed about this now. Work on site. I'm now seeing no updates as a positive - why update if nothing has changed?
GLA
Nope, oil revenue and corporate finance off CPR data will find expansion.
Just fix HH2z water and away they go.
Each well gives them more data and experience to take to the next. One funds the next and so on.
It will scale up fast.
Yep, 50million per year is only 3000bopd which six Wells at horse hill will comfortably deliver.
Then scale it up.
EPS should give us a SP 12 to 15 times revenue.
So 12 to 15 times today's share price.
Just a simple water plug to install and away we go.
GLA
Let’s hope the mms brokers nomads etc start to increase the sp and forecasts
We could be earning 50mil a year let alone 50 mil mcap
There giving them away
Everything is down today except for the nutters over at PET! No assets and a court case against your new 'saviour' shareholder who are waiting to give it a £100m asset but actually just sold down all the shares he was given. Pump and dumpers all over it. AIM at its worst IMO
One thing is for sure, if the price stays this low its really going to be a big jump up when they announce they've dealt with the HH-2z water issue and the site is kicking out around 1000bopd.
3p-4p per share fair value, but sentiment and future confidence in the six well site will be restored and we could go well north of that.
GLA