George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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He talks about it here https://www.proactiveinvestors.co.uk/companies/news/939978/united-oil-and-gas-ceo-brian-larkin-presents-2021-investment-strategy-939978.html
Waiting on development consent then not much to do till turning on the taps as was already completed as a producer , sign off think he says end q1/ q2 so hopefully q3 for first gas
Is anyone up to speed on the Italian gas assets? Is it still just awaiting sign off by the minister?
Thanks Badger99, I take your points and agree that would be a better use of the money.
Off piste I know but I just wonder if there's going to be a small move into green energy in the future, especially in Egypt.
mcbride.c - I personally would use that $2.8m to clear a chunk of that $4.8m debt...opinions? (05/03/21)
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A rather belated reply, reading through the posts from the past few days in one go..
The loan repayments are underpinned via the hedge / commodity swap and with oil at $60+ pb is easily manageable within the Co's monthly cashflows. Even if they could pay down part of the loan, which is doubtful given the set arrangements in place, there's no real benefit financially from doing so given how they can use the Hibiscus cash to give a better return than any saving in funding costs. For example, for an additional low risk well in Egypt in H2 you are looking at a capex of c.$1m-$1.25m cost to UOG and a payback of 6-7 months based on a (hopefully) conservative flow rate of 300bopd net to UOG at $60 p/b less the PSC and opex. The returns are very good.
Alternatively, they can keep it in the pot for 2022 - Egypt drilling, Italian seismic, Maria technical work, Zeta, M&A/Farm-in etc.... or earmark it for Jamaica if they are unable to farm down for a 100% free carry (Personally hoping they don't spend their cash on the latter).
ATB
*CORRECTION* When I said Q1 I actually meant H1 , for clarity the first half of 2021 , I think it would take 3 to 6months to organise a drill in Jamaica.
Fair point but I think they have until January 2022 to drill or drop in Jamaica. I think we might find out if theres any serious interest Q1
Hi bebeto, great hedge for the BP deal but it’s only a small proportion of the higher production. It seems a good opportunity to hedge more to guarantee the revenue and potentially only a smaller farm out for the jam drill
'Explore for more'.
The seismic results have all been previously checked out.
Check out the recent O & G publications on W Egypt exploration finds.
It is nice reading TTL1.
Always DYOR, but the remember the saying 'the early bird........
C.
"Jamaica, is one to watch as I'm expecting to hear something in Q1."
I'm not sure we will hear anything on Jamacia in Q1 Bebeto. In all the interviews, Brian seems to point to any Jamacia progress being towards the end of the year.
The next well is an exploration and is not 80% Cos according to latest video interview from BL
Check out the BP deal that is in place.
Remember BL knows his UOG accounting figures and what is best for UOG. Slowly does it with a tight hold on the finances.
As he also says Egypt just keeps over achieving.
The next Egyptian drills are all funded with CoS of 80%.
New BoD members are also very O & G financially aware.
Just look at their credentials.
That seller cannot keep this down much longer. Is it linked to that massive pending 'Newlands' Spreadbet?
((TLW No 2 ??) . They just regrouped without the debt).
A crazy low Mcap, in my view compared to the income achieved already.
C.
I think 6000+ bbl per month are hedged at $60 with BP to repay loaned debt, which worked out well for UOG in 2020.
I personally would use that $2.8m to clear a chunk of that $4.8m debt...opinions?
This is very much under the radar but UOG is going to have massive Organic Growth. 3 producing wells right now with 35 drill targets which will be paid for from revenues. $4.8m debt left with 18 monthly installments left to go. $2.8m cash from divestment coming in April. Brent currently $68 and we're producing 3200 boepd.
UOG'S cash pile will be building up with 4th well coming online and I'm expecting their expansion momentum to increase inline.
Jamaica, is one to watch as I'm expecting to hear something in Q1.
Long term hold for me with massive returns from this range.
Hi o2, do you think UOG could hedge a bit at these levels
Oil at 68$ a barrel. UOG taking it home in wheelbarrows at these prices. 3000+ barrels per day at £26m mcap.
Market is sleeping
Oil heading up nicely.
Goldman's predicting it to go even higher.
WM seep report due then we have a quarterly update in about 4 weeks.
Spud news also due from Abu Roach.
Watch out for the ISA funds and movements which will start at the end of month as well.
This sp is becoming a coiled spring, in my view.
Just compare the likely income to the Mcap, it is grossly undervalued.
All you need do is make the comparison year on year. Always DYOR.
Held at the starting post, but for how much longer?
You do not get many opportunities like this for a future multibagger.
Patience pays.
C.
Oil surged tonight UK time, to the highest in nearly two years after the OPEC+ alliance surprised traders with its decision to keep output unchanged, signalling a tighter crude market in the months ahead.Good News for oil producing UOG. https://www.bloomberg.com/news/articles/2021-03-03/oil-market-counts-down-to-critical-opec-meet-with-wti-near-61