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No fundraise RNS.
There will be a fundraise in the "near" future, but the near future isn't necessarily the immediate future and UKOG continues to give the impression it is in no immediate hurry.
$73.45 and onwards to $90+ per barrel.... all extra UKOG profit :-)
trillhunter
Is that going to match your previous prediction from last week? You never did say what those "three or four commercial fronts" were going to be so I'm guessing it was all talk.
"Yes a good stream of positive news flow on three or four commercial fronts in the coming weeks."
Ocelot,
Maybe they are having difficulty getting any interest.
Troll,
Extra profit? Wording in the annual report and accounts indicated in mid April that HH was not then in profit., Has the higher OP moved it into profit?
Penguins,
Much more likely, imho, they have no immediate need to undertake a fundraise, (the "near" term not necessarily being the immediate term).
Extra profit? Wording in the annual report and accounts indicated in mid April that HH was not then in profit., Has the higher OP moved it into profit?
--------------
The annual report concerned the year to 30/09/20.
At the time of the 1st Turkey RNS of 23/07/20, Turkey's operating margin was forecast to be ($40-$15=) $25.
An oil price of $73 raises that operating margin to $58, an increase of 132%.
Ocelot needs to brush up on basic math.
Only 16 days till the unaudited results.
Ocelot,
UKOG are loose with time scale wording, usually raising expectations of something happening much sooner than it does. As the timescale was given before the GM what phrase could have expressed that the fund raise would be happening in the near term. There's still nearly 2 weeks until a deadline that may be easy to move as long as intent to start drilling is clearly shown.
Time will tell, certainly seems like the market is waiting to see what happens.
You think they were statements as to the situation at the end of last September?
Annual Report and Accounts, For the year ended 30 September 2020:- '....that in the current pricing environment, the significant cost reductions achieved at Horse Hill over the year and the forecast reduction in water handling costs via the conversion of HH-2z into a water injector means that, going forwards, Horse Hill production is forecast to be profitable.'
In the obtuse way UKOG make announcements this means the production from HH-1 in mid April was not profitable 'current pricing environment' - and at the end of the Chief Executive's statement 'Finally, with the prospect of stable profitable production from Horse Hill.....'
Prospect meaning:- 'the possibility or likelihood of some future event occurring.'
The Cheif Executives statement has many statements about 'current' (at that time) activities.
Penguins,
As your extract makes clear, the annual report for the year to 30/09/20 related, above all, to HH.
It is not particularly helpful in assessing the prospective operating margin in Turkey, where the principal sources are the RNS of 23/07/20 and the current oil price.
Ocelot,the naysayers understand exactly what you are saying, they just can't accept the situation.....the vastly changed value in the oil price has quadrupled since last years accounts, that combined with the stated cost cutting will have an obvious impact on future revenues.....but i don't have to tell YOU do i.....the naysayers will never admit it.......and they criticise Sando for misleading information.......hypocrites in the first degree
And production has dropped by half as well!! What's not to like eh Adrian?
Last years accounts were dated 30 September 2020 when Brent was about $40 a barrel.
https://countryeconomy.com/raw-materials/brent?dr=2020-09
Mirasol, still acting like a child i see.........production halved, you say...share price more than quadrupled.....now if you get out your "times tables" books to help you, you may realise the prospects of UKOG are getting brighter
Production in February 21 (2786 bbls) is nearly the same as it was in September 20 (2799 bbls).
Ibug thanks, that would indicate Mirasol is posting missinformation......no surprise there then
How profitable is HH production?
in October 2018 Sanderson was interviewed and gave an indication as to the base production required;
hTTps://www.youtube.com/watch?v=WWHSjOCFRYg
From 4 mins 25 secs he stated that 80 barrels a day at $60 POO is commercial.
POO today is over $70 BUT we have to factor in water disposal costs ; so; maybe 80 barrels a day pays its way today.
HH production is about 100 barrels a day.
Its fair to assume that there are at least likely 20 profitable barrels a day; Should be enough to pay Sanderson's and one other directors pay ; maybe.
Best not to dwell too much on the other figures Sanderson mentioned.
Cyan 2, there have been major costcuttings since 2018 that is the problem with quoting outdated information.....things have vastly changed since then(and don't we know it "......as we are all aware we are looking at the prospects as they are now, not three and a half years ago
Good morning Ozzy52
You wrote;
"..there have been major costcuttings since 2018 that is the problem with quoting outdated information.....things have vastly changed since then.."
You are entirely correct; a lot has changed; oil production now is FAR FAR worse than Sanderson reported in 2018.
As for cost cuttings ; yes , indeed; UKOG promised 20 -50% directors pay cuts; turned out Sanderson's was cut circa 9.5 % and other directors less.
Cyan 2, most of the oil " extracted " from hh was done whilst in flow testing, so not classed as production( as i see it)...so actual production is not "far far worse" as you say .....also you only refer to directors salary cuts, not the Company cost cuts as quoted in the relevant RNS.......say it as it is......not how you would like it.
Ozzy52,
Not particularly concerned by the naysayers, because, as Rodders Jones has shown, they speak for less than 5% of the share capital.
But do use some of their posts as triggers to make the points I want to post.
They were able to get a fairly steady 200-220 bopd during the well test and they almost got the same as they started "production" - but since then it's been falling steadily
"Its fair to assume that there are at least likely 20 profitable barrels a day; Should be enough to pay Sanderson's and one other directors pay ; maybe."
SS is on £298,000 a year - that's £ 816 a day - 20 pobd is possibly making £ 1000 aday - that has to cover all the office, Directors , all the non-HH staff and all the consultants