We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Looks like UKOG must have had to stop all 'investing activities' with the exception of Portland planning.
Raising further cash is going to be 'challenging'
The only rabbit that can save extreme pain / likely death ; would be completing a Loxley farmout.
UKOG wants a free carry. No surprise there as the drill cost is £7m.
UKOG can not afford to contribute anything. If Loxley is farmed out , imo, it would excite enough to get another confetti shower away even if UKOG were only left with a 10% interest.
Been on the market a long time has Loxley and I just don't think its going to happen.
Cyan2 ,thanks for that reply and you do make a point, The delayed AGM is annoying, we all want to see were this going . Many want Sanderson to go . But can he pull a rabit out of the hat here ? As he needs to.
Cyan2 ,thanks for that reply and you do make a point, The delayed AGM is annoying, we all want to see were this going . Many want Sanderson to go . But can he pull a rabit out of the hat here ? As he needs to.
There is also the £675k repayment from HH, which is really just moving money within the company, but might give the top-level company a couple of extra months.
UKOG's actual non-investing cash burn is shown in "Net cash outflow from operating activities" in the cash flow statement, as £2,936,000 which does include revenue and cost of revenue and was fairly stable between year halves. That's a cash burn of £245k pm giving an end of April figure of £905k with the cash running out in August.
However there is also £1,673,000 annual cash flow on investing activities, which is an additional £140k pm. If you include that end of April cash is -£70k.
So in summary UKOG are likely to run out of cash sometime between now and August.
After all production costs UKOG made £275k profit on ALL the oil they produced in the WHOLE year; basically insignificant.
6 months on (actually nearer 7 now) maybe half that 275k to puff out the cash position. But its swings and roundabouts ;factor in nearer 7 months admin costs and oil profit boost has gone .
The clue that they are in a desperately poor cash state is in that January £0.75m placing was needed to fund basically just paper submissions in regard to the Portland ambitions and WORKING CAPITAL.
The other clue to UKOG struggling is the lack of any news as regards to remedial actions at HH aimed at improving production.
They can not afford to do anything; even paper planning seems a challenge now.
OK that's me shot down in flames, do your figures take the revenue that's coming in?
"Hang on ,they did a placing in January £750.000 and they had £1.9 million at the end of the financial year."
The accounts tells you the story as to why UKOG can be assumed to be running on fumes . The admin ALONE runs at circa £2.7m p.a.
Its been 6 months since UKOG had £1.9m at ye 30.09.23. (Actually £1.868m in cash to be exact)
So we can assume that circa £1.35 M has been burnt since . That would leave £0.55m if it not for £0.75 placing.
In theory UKOG might have a maximum of £1.3 m NOW.
But reading the 0.75 placing RNS points to the need to further finance the Portland ambition AND provide working capital.
Its obvious that UKOG's cash position must be well south of £1.3m NOW.
How long will that last?
Hang on ,they did a placing in January £750.000 and they had £1.9 million at the end of the financial year.
If they managed to do a placing before the mythical AGM at 20% discount it would raise about £317k, not even enough to pay SS's salary.
At these perilous levels should be not at least expect the decency of a RNS...
In fairness to Sanderson it has been transformational and there has also been monetisation, unfortunately though he has transitioned the company from the Gatwick Gusher to the Turkey Trickler whilst only monetising his bank account with shareholder funds.
Still find it incredible that I was taken in by a
Total Twat and a Jam Jar
Unbelievable but true!
'Ask Peter: Can Other Countries Replicate the US Shale Revolution?'
https://www.youtube.com/watch?v=7Gdvo8QPuMk
His videos are always informative.
Surprised this is still going after all the cash the CEO has milked out of it. Bailed in 2018 at 2p… thought that was low then but this is a perfect example of AIM corruption
Salmon Slacks has destroyed the company and has enjoyed a great lifestyle at the expense of shareholders. Transformational? National importance? Monetisation? All of his projects are just a side show to keep the 'working capital' trough open for his snout. Fiduciary duty of a Director. What a joke!
This is a ponzi scheme period.
When will salmon slacks get investigated is what i want to know.
No more wages for sanderscam.
This isn't an oil business.
It's a borrowing money business.
I agree with Ilovesushi.
You just have to look at just how little disposable cash has coming in.
" UKOG's net share of Horndean production revenues was £297,000 for calendar year 2023, with net earnings after costs of £140,000."
Overall profit from oil production was £275k. It follows that the profit from HH production was only £135K.
It has to be a priority to improve HH performance by injecting, changing the downhole pump and descaling . Yet, the lack of activity suggests UKOG have run out of the cash.
Its patently obvious UKOG do not have the cash to pay their share of any new HH wells either.
I can not see how they can raise enough cash without authorisation to create a ridiculous number of new shares, BUT, would they be able to offload?. Looks like sourcing further death spiral financing may now be off the table.
UKOG base their 'going concern' on their previous successful history of equity based fund raises.
Its now a matter of how much cash UKOG has left and whether they can quickly get a miracle farm out of Loxley with a significant cash up front component. I do not see it happening.
Of course; price of oil surging to $400 a barrel would be enough to keep the lights on BUT that's pretty unlikely, imo.
Looks like the end is in sight, imo.
Looks like the company is finished as too many shares will have to be issued to raise any significant amount of money to keep the company afloat.
Looks like another RiverFort Global Opportunities PCC Limited and YA II PN Ltd death spiral. They are not supposed to short and say they will not but surely they can sell their holdings and each time get more shares in a dilution? Or have they had enough and will walk away?
Looks like the company is unable to raise the funds this time. RIP administration cannot be far away. AVOID
Done more than my fair share of research IBUG thanks.
I didn’t fancy coming to your 2020 party as most of the guests were liars, just plain mad, or thought sitting outside an oil site for days on end was classed as fun!……..I may be a bit early to the new shindig! Is it get well soon, or is it going to be a wake is the question now?…..looking forward to the reading of the will to see who gets what if it’s the later!
Who is going to make the first sell in the 0.02's?
WG818
DYOR. You are also a bit late to the party as it was all discussed back in 2020 when HH-1 started producing copious amounts of water. Better late than never I guess.
I’m glad I can put a smile on your face but, I’m guessing that’s a rare occurrence?….only I mentioned the permissions in place from the EA, and the planning permission required, the transport costs are minimal compared to disposal via incineration, and Angus used to transport the waste water from Lidsey to keep the pressure up at Brockham until permission was withdrawn as Angus failed to answer the EA,s questions on a couple of times of asking. I’m intrigued as to what you mean by water treatment though?…..are going to use it for water boarding the management as they pour it down the injectior well?
WG818
Your naivety is amusing. You obviously haven't taken into account transport costs, water treatment, compatibility and permissions in your thought process. Good luck with that.