Uk Oil & Gas Share Price (UKOG)

HH is too marginal for anyone without deep pockets to want to take on alone and improve, imo.

The bottom line is this; UKOG appears to be no longer a going concern;

".........there can be no certainty that sufficient funding can be obtained in the timescales required...."

"....there remains a material uncertainty that may cause significant doubt over the going concern nature of the Group.

The independent auditor's report also refers to material uncertainty related to going concern."

Its going to be a real struggle to yet again raise enough cash through new equity; I think its a bridge to far now BUT it won't stop Sanderson trying.

Someone previously pointed out that last year Stephen Paul Sanderson incorporated UKEN Holdings Limited with himself as the only shareholder.

Is this a cunning plan to sell this company to UKOG as a holding company for the multiple gas storage subsidiaries as it couldn't possibly be a vehicle to take parts of UKOG private - although on reflection if nothing else Mr Sanderson has been well funded over the past 9 years by thousands of investors buying shares from various lenders given the shares at a price that's briefly (or in the future) below the market price.

Whilst most projects remain early stages, even though they've been on the books for years, HH with very little expenditure could be a nice little earner for a private company that doesn't have huge overheads and expensive and risky ambition. 40 bopd may not fund a company with staff costs over £2mm, let alone all the other costs, but with just a couple of site operatives and a manager the profit could fund a very pleasant retirement - and there's always DL waiting in the wings to help with going public - billions of barrels I tell ya........

"It would not surprise me to see them asking for another 1bn shares as one of the resolutions."

1 billion new shares will not raise enough to last one month . Look at the admin costs alone ; £3.320 million pa that's about 277k a month.

I billion issued at a realistic price of 0.02p, (typical 20% discount), raises only £200K

If you want UKOG to not just survive but continue to finance some very basic works, like Portland planning; UKOG will need to raise at least £3m imo.

That's likely 15 billion shares.

Is it possible? Hard to see anyone wanting that number in a placing of the type that raised £750k in January when the share price was much higher.

UKOG may have to try and raise in bitesize pieces; say 5 billion lots backed by a ramping series of RNS's

Remember this; UKOG burnt through an average of £8.7m in fund raises each year since 2017.

To drill again in Türkiye will require UKOG to put up £1.2 m. I do not see any further Turkish drilling activity now.

Its a lot more expensive to drill in UK and what with the very poor state of PPP finances one can reasonably rule out any further drilling as suggested in the farmin with PPP.

The farmin RNS from March 2023 reminded everyone that : "Planning and environmental consents remain in place for a further 4 production wells at Horse Hill"

There is no chance they will be financed now.

Its all about staggering on , paying inflated wages, and hoping for a Loxley miracle.

Assume UKOG only targets raising enough cash to keep them afloat for 3 months in the hope that a miracle appears:

Monthly cash req for operations: £245k (from cash flow statement)

Offering price: 0.0255p (optomistic)

=> (245,000 x 3) / (0.0255 * 0.01) = 2,882,352,941

That’s 2.88 billion shares!

UK onshore oil and gas production in charts – February 2024

UK onshore gas production dropped in February 2024, reflecting an 18% fall in output at the biggest producer, Saltfleetby.

Daily onshore oil production rose 2%, despite a 28% drop at Wressle, the country’s newest onshore oil producer.

Full article here;

https://drillordrop.com/2024/05/03/uk-onshore-oil-and-gas-production-in-charts-february-2024/