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Ocelot,
but what operating costs - total, per barrel?
We've had three different definitions of operating costs:
‘result in an operating cost ("opex") at field level of $12/bbl, a reduction of around $7/bbl from extended well test costs.’
‘asset-level opex, inclusive of tanker export, sales and marketing, now equates to $17/bbl.’
'From January 2020 to January 2021 our total operating costs have reduced by 66%.'
As the cost reductions for first two were going to be after January 2020 (announced in April) they were already predicting a cost reduction of 37% in 'field level' OPEX per barrel, and of course production when producing also may be down more than 50%. During January 2020 they achieved stabilised production of 293bopd from the Portland and during October, November and December averaged about 135bopd - but there are a lot of unknowns.
So already a prediction of a 37% reduction and a figure of 66% reduction in 'total operating costs' is meaningless without further information (standard UKOG operating procedure), was it an estimate for the whole month of January, operating cost per day, per barrel - some of these could easily be a reflection of much lower production.
ZYX - yes an RNS would be required because the total number of shares in issue will change.
Yes, ZYX098, they would have to release an RNS in those circumstances, the number of issued shares is a key figure for the market.
Ocelot / Penguins,
Probably a daft question, but if UKOG paid PW in shares, would they need to issue an RNS?
They've already covered in an RNS that they have that option, and got permission at the last AGM to issue the amount of shares to cover the PW payment.
They're doing
So they're something right then....is positivity ramping?....
Management salaries reduced at the time of the first lockdown, total HH operating costs down by 66% from Jan 20 to Jan 21, they've been managing their cash resources tightly.
Well cynders, I believe ocelot....the voice of reason
No chance of UKOG paying in cash. Zip, zero, ziltch, nada, none. Silent Steve is probably watching scrooge mcDuck and wondering if he should try swimming in his own cash, then forgot to issue the RNS.
Penguin, so you criticise the company if they do a placing for a specific reason and criticise them if they pay cash?..if they held that cash (and you dont knowthey hadn't) then why would they have to raise it again.....I notice that you have not made any comments on the posts of the last two days which have been below your preferred standards....if you reply please keep it to the points raised....thank you in anticipation
PS: the obvious time to amend authorisations is at the AGM. Last year it was held on 17/06.
Penguins,
Agreed, they can recover the amount through the next placing.
But, as you also point out, there is a cap on how much they can raise, so their potential total cash resources have been reduced by £550k.
Ocelot,
if they paid cash now it will just be added to the next placing - as PW don't get a discount to vwap it might be better to pay in shares (it's UKOG's decision) but then that might not be favourable to PW if the price dropped. Maybe they've returned some equipment instead as they don't need two sets of production kit for a while?
There's remaining authority for about 1.5 billion shares - at today's SP about £2mm less fees.
Ocelot,
if they paid cash now it will just be added to the next placing - as PW don't get a discount to vwap it might be better to pay in shares (it's UKOG's decision) but then that might not be favourable to PW if the price dropped. Maybe they've returned some equipment instead as they don't need two sets of production kit for a while?
There's remaining authority for about 1.5 billion shares - at today's SP about £2mm less fees.
"they definitely paid the 2nd instalment of £550k to PW Well Test Ltd in cash"
There has been no RNS stating that - you are assuming as much and posting as a fact.
How do you know that there is a placing ?
We don't know their cash position, but they definitely paid the 2nd instalment of £550k to PW Well Test Ltd in cash, so most of us got that wrong.
SS must be pulling his hair out. The Turkey pump clearly hasn't generated the interest from mug PI's to help get SS's placing mates a tidy and quick profit on forward sold stock. How much are they trying to raise? £2m at a minimum? I've lost track of how many new shares they can issue and what they could raise at 0.105p.
Wonder how many WH Ireland have managed to shift.
I bet they are trying to get 50% shifted before Silent Steve lodges the RNS.
Whilst I'm on the topic of the CEO. How about a poll to collect the opinion of PI's here.
Poll : When will Silent Steve have a proper Investor Q&A session?
A: 2021 H1
B: 2021 H2
C: 2022
D: Never - UKOG will de-list and Silent Steve will retire on a pretty penny
E: Any other opinion.
I'll kick it off:
D (and I wish I could put that in size 50 bold font.