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Disconnect here is crazy.
The fundamentals will eventually shine through.
The London market is obviously telling the BoD to 'walk the talk', as we are not prepared to take any risks in this sector.
Take a look at some of the UOG peer group with higher Mcaps, that have produced virtually nothing.
City funds seem to be only interested in IPOs and quick returns, it would appear, that produce very little.
Money moving money around.
In my view, it is time for UOG to look for another broker as well.
The present lot seem to have gone on summer holiday early and not generating much City financial support.
This sp is as cheap as chips.
Sitting back and being patient.
C.
It could be worse there could be a K after the U in the ticker symbol :)
We have a MC of about £26m yet we have potential revenues in year 2021 of about £20m given the production levels during the second half and higher and consistent oil price. There are a lot of fixed costs and if even £3m could find its way to the bottom line the pe would be about 8. There will be further earnings from Egypt and other assets to consider. There seems to be quite a disconnect between the potential and the current value imo
Crumbs thx good point so looking good for 20m full year rev on those payments and around 3000 bpod AVG so hopefully this does not drift much lower short term. Will watch and see what it will take to get sp back to 5-6p gla
You seem to have forgotten the Hibiscus payment .... add this in too
'a US$3mln payment (US$2.85mln net to United)'
Crumbs it's o Initial payment of £2 million at completion of the transaction
o On Field Development Plan approval, a further consideration of £1.2 million
Should not forget the payments from N sea assets I think off top of me ed if and when they all come they equate to getting on for 4 million quids?
It's another well chalked up and we're onto the next. I'm happy to let the wells keep accumulating. People can look towards Jamaica but there's also another asset coming our way as the company continues to grow.
Bozi thx reply
H1/21 average of 2,730 boepd rev £7m so therefore full year £14m at that rate. Let's say they achieve 3000 AVG full year 21 so add 10% to £14m I reckon full year rev will be around £15-20m at best assuming next well hits and existing wells don't drop off as they tend to do. The real value here is prob Jamaica but that is waiting farm in let alone drilling.
Yes agree uog progress during 21 hence sp around 4 now v 3 but fail to see what sends this higher until Jamaica or last drill is somehow way over expectation.
I'm not sure it works like that Bethany1.
At the end of 2020 UOG had average boepd of 2195. The oil price was under $50 at the end of the year but as low as $20 when the Abu Sennan transaction completed.
Revenues were $9m net of govt take for the 10 months to 31 Dec 2020.
So here we are in 2021. Oil prices between $50-75 and gas prices higher than they were post pandemic. Most importantly UOGs production profile has grown steadily and for Q3 2021 must be somewhere north of 3000boepd. Q4 we could be looking at 3200+. Not to mention the upgrades to reserves on the licence.
Fundamentally the company has improved leaps and bounds during 2021 and if it stays at this level then i suspect we'll be trading at a very low P/E come the end of the year.
This appears to be the buy zone to me.
Why is it under valued on £7m H1 revenue that even if current production double gets to £14m ?
Check out the market reaction to the latest news.
This shows that the London market has no appetite for O & G.
It is time for a dual listing BoD. A time to try US or Canada?
Crazy undervalued Mcap.
C.
Thing I don't get is ....
Rev from H1 $10m or £7m from around 2500 bopd at around $60 so even if uog double that to 5000 bopd it would be £14m that's tiny rev from 5000 bopd ?
More to come from this well too:
'The well will now be completed and brought onstream from the Lower Bahariya reservoir. The hydrocarbon-bearing zones that were encountered in the Upper Bahariya and AR-E will be tested and brought onstream at a later date.'
Already on to the next drill Egypt keeps giving at least in Oil.... Expect sp to go up 5% then down 20% lol
Great work Brian and team…
Nice and steady wins the race !
Happy with that, another good result.
I find the psc very difficult to work out what is being given at any one time but those figures seem broadly correct for boepd net ‘net’ to uog. Looks like around 4,000 ‘net’ end of year could be coming uogs way.
For the keener eye bite Brian’s comments around the next well. It is expected to be the last in 2021. Not it will be.
Personally if they have any sense they will be lining up a second rig for the next campaign and start drilling at double the rate. That’s where the focus should be for shareholders.
Hi Greg - I think you are right. if we are net 3,200 bopd and we "give" (i think) 41% to Egyptian government that leaves us with c1,900 bopd so therefore revenue at $70 pb per annum is c$48m or c£34m.
Do i have that right?
Decent result to be fair. It’s not producing from the actual target horizon and it’s in contact with a decent amount of pay so should sustain those rates reported. Overall a good save there. Does that put UOG on circa 3200 boepd net?