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Why do HHDL need another 1m?
I would guess that the two side tracks and the tanker filler station and the 5? Gas to wire sets and the rest of the work to complete the production licence must require it.
And the planning consultants bill.
Why do HHDL need another approx 1m cash when they already have 3m from the oil extracted.
I may be wrong but I read it as the cash call for Angs of £261k is based on their 18.1% stake
Regards
Ru4real
Thorpedo
I think that the £261million figure for HH is more than a little lite in my opinion.
SS said the Portland at HH has a value of £150-180 million & the Kimmeridge has a value of £100 million per site.
He states in the presentation that there will be between 4 & 8 sites on the HH licences PEDL 137 & PEDL246.
I will leave you to do the maths while we await the CPR & a independent appraisal!
I think that Alba have got their sums wrong re their dilution according to the Agreement:
"If a shareholder does not provide finance as set out above, each other shareholder shall be issued new ordinary shares in the capital of HHDL based on the following formula:
Number of shares = shareholder loan contributed by the shareholder/£6,000."
£261,000/£6000 is 43.5 shares or 4.35%
I think the 0.01% is more to do with the contract TBH rather than demonstrating a direct value.
£261M is achievable If UKOGs plans are fully executed and approx. flows realised. I think SS would like Alba to relinquish their 18% for a lot less than £50m!
Something's not quite right in that, argus.
1/ UKOG has 77.9% of the costs as well as of the revenue;
2/ why was UKOG able to buy out stakes on a much lower valuation basis?
If £261,000 = 0.1% of HHDL, Alba RNS today.
"UKOG has a direct 77.9% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246".
Which makes HHDL worth £261million, of which Ukog 77.9% share would be valued at £203.32million.
Which gives a current value of 3.8p per Ukog share for HH alone (PEDL137 & 246).
Alba's HHDL share is 18.1%. Depending on how running costs of HHDL have been agreed, if oil revenue is offsetting running costs it seems that maybe 18.1% may not be enough to meet Alba's costs. But as Ukog has 77.9% of the oil income credited to its costs, Ukog could be well in profit.
Interesting logic Seadoc but I still think you are wrong.
@Legalease "Does place a current value of £261 million on HH?"
I agree if 0.1% is £261K then 100% of HHDL = £261m and that is current valuation not future.
Sedoc
Your valuation as told many times has n9o value for the Kimmeridge as stated by SS.
Oil site are also valued by (NPV) so you need to wait fir the CPR.
Day to day running costs should be covered even by the restricted testing flow - £10k a day to HHDL.
Cash call for upcoming expenses? Hmm wonder what that might be. Bit misleading to suggest it is for day to day expenses when you know its not. UKOG are 'fully funded' for our share of these costs and have a little cash handy to cover our 'partners' Alba kn(o)bers share.
Anyone know why we haven't already switched test production to Kim already to benefit from the 700+bopd as opposed to the current 200.Do we need to wait for the drilling work for some technical reason?
Interesting logic there Seadoc. I think you are wrong though.
ALBA has fallen!
The % loss doesn’t seem proportionate. Don’t expect them to contribute any cash in the future. Free ride for them.
IMO this is all part of SS plans, forcing the smaller ones out and buying their % on the cheap, Gaining control and dictating the terms of news and progress.
Alba % will soon be purchased.
I said earlier this year that the next move would be to buy ALBA's stake in HH. I also suggested that we will see a large ramp in SP to support the partial payment in UKOG shares at a significant premium to the current SP as was the case when UKOG bought out one of the other consortium members.
ALBA has many many projects, a very low market cap and next to no funds. They've been ramping constantly the last few months with RNS after RNS on a whole range of projects, their directors had to invest some coppers at 0.30p to keep them ticking over and yet the best they could achieve was a £500K placement at 0.20p soon after. Clearly ALBA are very stretched for funds and this is why they have to prioritize their spending. UKOG is the oil company and ALBA is primarily a mining company with its Clogau Gold, Greeland and nickel assets. It makes sense to focus on that. Selling UKOG will give them funds to concentrate on Clogau in particular, which looks more interesting now the gold price appears to be on the move with interest rate cuts pending.
ALBA's lack of funds puts UKOG in an excellent position to get an great price by paying with as few shares as possible. Expect UKOG to really work the shares higher on the back of HH drilling which will ensure a high price for minimal dilution. A bigger share of horizontals for UKOG and a bigger shares of revenues is all good here. Expect rig details and mobilization date to be announced in the next few days. GLALTH
ALBA obviously not seeing HH as their primary focus and why would they with 18.1%. An opportunity for UKOG to take them out? That said seems prudent at this stage to keep hold of the 261K if all you lose is <0.1%. Not sure how that works other then as legalease says valuing HH at £261M. Could easily be worth that in the future but I'm just hoping ALBA wont be asking close to 50M for their 18% when UKOG come a knocking!
it would seem legalease yes. to only lose 0.1% by not stumping up £261k
Does place a current value of £261 million on HH?
I see from Alba's RNS today they aren't contributing the £261k to HHDL from the most recent cash call and expect a dilution of 0.1% of their holdings as a result.
They still support HH but will decide case by case on future cash calls as they're concentrating on the core mineral parts of their business.