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"Another reason for UKOG to "talk down" the value of HH in its books is the traditional one, of getting all the bad news out of the way."
You mean there has been GOOD news? If so most of us seem to have missed it over the last 6 years
In ocelot's world, there seems to be no accounting standards. Makes me wonder why the last annual accounts included these statements:
Statement of Directors' Responsibilities:
'The Directors have prepared the consolidated accounts in accordance with International Financial Reporting Standards as adopted by the EU ("adopted IFRS").'
REPORT OF THE INDEPENDENT AUDITOR
' The financial reporting framework that has been applied in their preparation is applicable law and international accounting standards in conformity with the requirements of the Companies Act 2006 and as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006.'
So, do you believe the directors and auditors or a ramper?
Another reason for UKOG to "talk down" the value of HH in its books is the traditional one, of getting all the bad news out of the way.
"Since we've got to take an impairment charge, let's make a clean slate of it", something like that.
It means future positive developments should flow straight through into the figures and, if it later emerges they have over-impaired, then there is the potential to write back that over-impairment into results.
Nothing beats alternative facts.... like the growing value of the accumulating tax losses.
ocelot
imo they are both talking *******s especially as what has been reported in the HHDL accounts where SS and GF are both Directors is probably closer to the truth. Just goes to show you can't trust anyone imo.
It means that Alba have expressed an alternative view.
If ever there is to be question of Alba disposing of their stake in HH to UKOG, then it is in Alba's interest to talk up the value of their stake and it is in UKOG's interest to talk it down.
ocelot
Does that mean you don't trust what UKOG are saying?
ocelot
Why post what ALBA said when UKOG have their own views?
----------------------
Because it provides an alternative view.
ocelot
Why post what ALBA said when UKOG have their own views?
"Impairment Review
The Directors have carried out an impairment review as at 30 September 2020. The Directors determined that the net present value of the HH-1 well was £4.78 million and therefore determined that HH-1 should be impaired by £9.35 million. The net present value utilised an internally generated depletion curve that was independently reviewed. Costs we based on current costs less any anticipated savings. A long-term Brent oil price of US$64/bbl. was used, with a discount rate of 8.9% being the weighted average costs of capital of Horse Hill Developments Ltd the holding company of HH-1. Based on current production at Horndean no impairment was deemed necessary."
A reminder from Alba's annual report for the year ended 30/11/20, Alba's stake in HH being 11.765% and UKOG's being 85.635%:
Following a review carried out by the Company in connection with the preparation of these accounts,
the Directors have determined that the fair value of the Company’s investment in HHDL should be
revised down to a figure of £4,000,000 (2019: £5,430,000). The Directors commissioned a third-party
market-based valuation of Alba’s investment. For further details see Note 10.
wizard125
For the 2021 Annual Report unlikely.
For the Unaudited results for the six-month period ending 31 March 2022 possibly but that will depend on the amount of water produced and the price of Brent in the next 6 months.
Average price of Brent does vary considerably. Price is in $.
Aug 2019 59.25 -7.42 %
Sep 2019 62.33 5.20 %
Oct 2019 59.37 -4.75 %
Nov 2019 62.74 5.68 %
Dec 2019 65.85 4.96 %
Jan 2020 63.60 -3.42 %
Feb 2020 55.00 -13.52 %
Mar 2020 32.98 -40.04 %
Apr 2020 23.34 -29.23 %
May 2020 31.02 32.90 %
Jun 2020 39.93 28.72 %
Jul 2020 42.81 7.21 %
Aug 2020 44.26 3.39 %
Sep 2020 41.09 -7.16 %
Oct 2020 40.47 -1.51 %
Nov 2020 43.23 6.82 %
Dec 2020 49.87 15.36 %
Jan 2021 54.55 9.38 %
Feb 2021 61.96 13.58 %
Mar 2021 65.19 5.21 %
Apr 2021 64.77 -0.64 %
May 2021 68.04 5.05 %
Jun 2021 73.07 7.39 %
Jul 2021 74.39 1.81 %
Aug 2021 70.02 -5.87 %
IB.1:IEU
ICE Brent Crude Oil Front Month
PRICE (USD)
78.05
TODAY'S CHANGE
0.80 / 1.04%
SHARES TRADED
160.50k
1 YEAR CHANGE
+86.86%
52 WEEK RANGE
35.74 - 78.24
Data delayed at least 10 minutes, as of Sep 24 2021 21:46 BST.