Firering Strategic Minerals: From explorer to producer. Watch the video 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.
FinancialFox- CEO interview. Stefania talks to David Bramhill, Executive Chairman at Union Jack Oil about the recent updates on Wessle's upcoming production as well as drilling and extended well test operations at West Newton oil discovery. Union Jack is a junior energy company listed on the London Stock Exchange (LON:UJO) and focused on UK onshore production, development and exploration.
WATCH HERE: https://youtu.be/MCChyfe1lNc
Hey steffi,
That was a lovely interview.
Notably David was very keen to talk about Biscathorpe towards the end.
What a nice man he is too, keen to add all the credits to everyone else involved in this journey too
Many thanks and look forward to the next interview with the two of you.
Maybe with everything going to plan and excellent pr interviews, sp holding well, might be a good time for a placing? (Can’t stay fully funded for ever)
Ninetails
There is income coming in, starting in this half of the year from Wressle production. Ok, its only 200 barrels a day, but even if you only ascribe a conservative $20 a barrel of profit, which seems reasonable at $17.50 , that's a million pounds a year going forward for a few years. All the current well cost liabilities are covered with cash in bank. Why would the company need to tap the market for cash ?
On what basis do we need a placing then Ninetails ?
Your statement makes absolutely NO sense what so ever !!
Good grief.
So gkb47, if WNB-1 is a success, and the WNA-2 EWT is also a success, you don't think the JV partners should bother to raise in order to see what they've got at Ellerby or Spring Hill, they should just say, 'We're not raising more funds to prove up the licence because gkb won't like it, we'll just sell the lot and let someone else make the most of proving up the licence - they can have the cream?
Interesting but narrow-minded opinion you've got there gkb.
Seriously.. Stop the ****e stirring on placing. THERE IS NONE. We got endorsed from auditors as growing concern which means you need to be financially robust for the next year. Bramhil said we are fully funded across all projects.
So tell me placing for what. We place for projects and right now we have a bucket load and no new projects on the horizon. Unless there was plans to seriously over haul Keddington, North Kelsey or Fiskerton, which there isn't.. Then forget it for now.
So dont make yourself look like a clown by throwing out placing.. Unless you can back it with proof.
Mix
Selfish we have funding for 3d sesimic over Springs and Ellerby so why drill. You got to leave a bit of fat for the next man. If B1 is a success, my opinion is that will be enough to set a strike price and flip the asset. We won't drill B2 either. Bramhil and partners won't then decide.. Oh this is big.. Let's see who might buy it. I'm betting that discussions have been had or in progress .. This is lined up.. We'll flip if B1 is good. I'd take the money. Give shareholders their pay day and focus on Biscathorpe with the cash to do what I wanted.
Let's see how it plays out but in imho this was and still is the strategy by UJO, RBD, Rathlin and Conaught. Don't forget the monies already put into the project and written of. Partners need their pay day.
All imho Mix... Hanging in to Christmas to find out lol
So just to clarify mixster, are confirming there will be no drill in Spring Hill or Ellerby, and once WNB-1 is drilled and tested, and WNA-2 is tested, there will be no further work to prove up the licence area?
Believe it or not I didn't see your reply before I posted my last message. Great minds eh mixster?
Rathlin may still have a budget for 3D seismic over the Spring Hill and / or Ellerby prospects and UJO may well have sufficient cash to do it but, if I were contemplating a sale of the whole WN licence soon I wouldn't be about to shoot a lot of time and money consuming 3D seismic. In an asset sale you rarely get paid very much for undrilled prospects, even when they are covered by seismic. You'd need another well or two to confirm they are WN analogues, and not just superficially similar from some 2D seismic lines. All IMHO, of course.
Wressle: Some numbers to consider, not my numbers, but those from directly UJO/public information.
Starts Oct?, Production 200 bbls/day, Oil Price $42, Opex $10/bbl ($17/bbl if you include costs to date)
So - Yr 1 Revenue at $32/bbl after opex, assuming 350 days per year of production and no decline. $2.24mm = £1.7mm
Payment due to Calmar LLP on "first commercial production" £ 2.08mm =$2.74mm (2*£1.04mm)
Seems to me they need to pay Calmar more than the first years net revenue.
UJO seem to highlight that payment is due at "first commercial production" in inverted comma's in their release.
What does this actually mean? Clearly producing and selling Oil at $42 when costs are $10 is commercial so is it due
on the start of production, before any significant revenue?
OR
does it mean, the point at which they actually make money including what they've spent to date, and so is only due once they've recovered past costs. Clarification on this is important because otherwise it could be they have to spend £2.08mm when Wressle starts producing essentially before any material revenue accumulates. Given they have £5mm in the bank and they need to drill a well and test two wells, it does beg the question of are they fully funded if its the first interpretation?