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While we wait for the imminent rectification of HH2z it is good to know that there is at present oil production from HH1 Portland reservoir at approx 290+ bopd and oil production from Ukog's other oilfield, Horndean, together creating more than £400,000 per month of revenue.
On nearly £5,000,000 per year they should be self-sustaining, shouldn’t they?
Where’s all this money going?
Argus
1 tanker a day is not 290+ bopd unless you are a ramper. No doubt you go to rose coloured specsavers for you prescriptions.
It is the same as your continued post about brent rising. It never seems to drop and yet this year it has dropped from $70.74 down to $53.34 before starting to rise again. You really are full of BS.
https://tradingeconomics.com/commodity/brent-crude-oil
"On nearly £5,000,000 per year they should be self-sustaining, shouldn’t they?"
they don't average 230 bopd over 365 days right now - its probably 50% - 75% up time over the whole test.
They have to pay for the test gear, the trucks, the processing and handling.....
Logging tools are incredibly expensive - a single run is often over £ 100,000. The you have all those trucks going to and from Aberdeen or Bridlington with kit - about £ 1000 a day each..... You have a herd of environmental, planning , HSE consultants working on the IoW and Dunsfold. About a dozen people in the office (and they aren't on minimum wage), security, lawyers ( at around £ 800 an hour ) to sue the swampies etc. Consultants in the USA looking at the results, labs constantly testing oil , gas & water........ and then you get to the Nomads and other low life................
and cranes and Coiled tubing - and God help you when the rig arrives cost-wise.........
Argus
Re 400k, is that before or after costs and if latter, does anyone know what the monthly operating costs are at present?
Just trying to see their Net figures
Ibug, the bopd from HH1 Portland reservoir is 293 bopd.
That is from the recent RNS, the only source of factual information we have.
Not trolls guesses or "calculations" or assumptions.
Not all oil produced is put directly into tankers to the refinery. There is plenty of on site storage.
"No crane needed. Its an easy fix imo.
Steptoes aka Greta One Post - a lot of people have spent a lot of time explaining that its far more complex than any crane can handle - it will cost more and take longer....................... it may be easy but it may not - no-one knows (other than you of course)
Ukog are not paying for a rig etc.everyday of the year. Just when required. When there is next to no on site activity the day to day costs will be low in comparison to say, days during active drilling.
On the other days the money from the oil so!d builds up and is then used towards costs when they occur. So the income over two months with little activity, approx £800,000 will be accumulating and used towards the costs when there is major works. Such as this coming week.
Ibug, re your 13.21 post: you must be very old then.
Argus
So all the gear that has been brought on to site for the last 3 to 8 days and not used is costing us how much in rental?
Some days there have been two tankers.
At 290+ bopd the extra that can not be contained in a single tanker can be left in the on site storage tanks and collected at a later date. Good planning and economics.
Last week it was two waste tankers to one oil tanker on some days. Some days there were no tankers. No doubt they were waiting for the price of oil to rise.
Stanley, did you get fed that information from your good friend and adviser, Ollie or is it just another assumption you made up. If not which RNS is your information from.
Ibug, Another assumption as to how many oil tankers there were each day. Not all are seen by those on twitter. Remember how wrong you were on the tanker count very recently.
I had posted that there could have been around 400 tankers at that time, you strongly denied it claiming only maximum of 370 and you spouted a low total for oil production.
RNS almost immediately confirmed 400 tankers had left HH and far more oil than your "calculations" and "assumptions" had led you to claim.
Your track record with your assumptions is not very good. About similar to Stanley's investing history.
Ibug, there was an oil tanker every day last week (none on Sunday), two on one day, 407 oil tanker to date, that we know of.
Stanley, that is the £1million I had referred to in my 11.41 post today. You seem slow on the uptake.
Funny old thing. That is how many I made it. So allowing for the second one making up for Sunday that is 1 tanker a day. What Argus is also forgetting is that work has been done on HH-1 since the RNS so we have no idea what the flow rate is other than by the number of tankers giving a rough estimate.
What Argus also doesn't realise is that the Kimmeridge and Portland oil will be kept apart and that the very large tanks are for HH-2z.
argus1,
The 400th tanker was photographed by me last Friday week, 7th Feb and UKOG put a photo up on their web site. Seven tankers have been in and loaded since then, so 407 tankers to date.
Stanley, your 14.17 post explains clearly why your investing history is so poor. You need to give Mr Hardy the boot and get your financial advice elsewhere. It could not be worse than Ollie's to date.
"Grid connection is covered by permitted development order 2015."
It is in deed but that's permission from the Planners - I meant there is no record of HHDL applying to THE GRID for a connection..........
Roganjt, it must of been your photo of that tanker that I saw originally I think on FOTH twitter. Then on Wealdoilers as well.
You did well.
Trolls hate support for facts that disprove their false claims. It makes their deramping agenda so much more difficult.
Remember the recent attempt to pretend there was no cage on site for HH1. Same culprits on here today trying to get away with more false and misleading posts.
Argus,
Yes, it was my photo of the tanker and I agree, it's a shame there are a few people knocking Ukog, maybe need week it will all become a lot clearer, for everyone.
HH1 can at present produce oil from three separate levels in two different reservoirs. The lower two levels in the Kimmeridge have been proved by the EWT to be connected by extensive natural fractures creating over a 200m vertical oil zone producing from both the limestone and shales. Greatly increasing the amount of recoverable oil potential.
Argus,
Since end June up to end January about 32,000bbls has been produced (397*215 = ca 85,355 – 54,000 on 28 June). So revenue from HH over these 7months is about £1.65mm (OP av ca. $65, Exch av ca.$1.27/£1) = approx £236,000 per month
Since end November (27th) there has been up to end January 6511bbls produced (85355-78844) using the same figures that’s a gross £325550 in 2 months or £163,000 per month.
So far in February with tanker 407 yesterday that makes 10 tankers, and OP in Feb has been around $56 = about £93,000 – if the rest of Feb continues with one tanker a day = 14*215*56/1.3 = £130,000 – so not £400,000 – but for February, assuming they don’t stop for rig or coiled tubing unit arrival, about £220,000.
From the 31 March 2019 consolodated cashflow account UKOG gross outgoings were nearly £1.3mm a month, the next 3 months it was about £1.1mm.
For details see my post of 12 Feb, 21:03 where my estimate was that UKOG had at best £2.5mm left end of January. Which is why I won’t be surprised if there is a cash raise before the end of February – and not at 2p (or even a 10% discount to 2p).
‘Therefore, the Board seeks approval to increase its authority to allot and issue shares so that it can act swiftly to establish Production via an ability to fund the Company's Horse Hill FDP and to ensure that the Second Deferred Payment can be satisfied.’
Of course the £10,000 net a month they were getting from Horndean (accounts end September to end March) might delay it a day or two.
You may mess around with tanker volume, number of tankers on Jan 31st, average OP, exchange rate or claim that the £1.3mm and £1.1mm were periods with extraordinary costs – but UKOG certainly aren’t any where near covering costs with oil sales.